The North Star Capital Fund LLC Reports Investor Third Quarter Return of 10.15% APR!

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Dec 04, 2023, 08:46 ET

The North Star Capital Fund LLC is currently open for new capital investment!

CONCORD, Calif., Dec. 4, 2023 /PRNewswire/ -- After the end of the third quarter of 2023, The North Star Capital Fund LLC ("Fund') reported a remarkable 10.15% APR net return for its Fund Members. For Fund Members who have reinvested or "rolled over" all their distributions, their return since inception is an extraordinary 13.40% APR. Since inception, the APR net return for Fund Members that take quarterly distributions is 11.29%. "The performance of the Fund since inception has been exceptional," states John W. Simonse, President of LHJS Investments LLC ("LHJS") and a Managing Member of the Fund. "The Fund continues to outperform similar funds by almost 50%!" Mr. Simonse goes on to say that "For investors who prefer a secure investment, one not subject to the volatility of the market, The North Star Capital Fund is an excellent choice. Every quarter since the Fund's inception, over three years ago, the Fund has returned at least 10 % net APR to its investors."

Going forward, the outlook of the Fund remains positive. "I continue to get calls from my investors in regards to the threat of a recession and how it will affect the real estate market," states Mr. Simonse. "I explain to them that even though there is still an inverted yield curve (short-term interest rate yields are higher than long-term yields), which in the past has been a reliable indicator of a recession, the threat of a long and harsh recession is minimal. Mr. Simonse goes on to say, "The effects of the Fed increasing the federal funds rate to fight inflation is starting to have a much stronger effect on the economy. Although consumer spending held up notably well this year, I am not expecting it to hold. I expect consumer spending to diminish towards year-end and continue to contract through the first quarter of next year. Real GDP growth, which was about 2% this year, is predicted to be less than 1% next year. The Feds have resisted lowering rates so far, but faced with a recession in the middle of an election year, with inflation approaching the Fed's magic number of 2%, I believe they will have no choice but to cut rates no later than summer of next year."

Mr. Simonse continues, "As stated in my previous Fund reports, in California, where the Fund lends, the ongoing housing shortage and intense market competition have continued to exert upward pressure on the housing market. The labor market continued to be tight throughout 2023 and the forecast is for it to soften a bit in 2024 but remain resilient. Therefore, once home builders conclude mortgage rates will be going down, residential housing investment will increase and home builders will start building again. This should provide for a strong housing market in the second half of 2024.

"The Fund does a great job also in mitigating risk," states Mr. Simonse. "One way is by keeping the Fund's loan portfolio geographically diverse. I also focus our loans in areas that have diversified economies and large populations, such as the Greater Los Angeles area and the San Francisco Bay Area. These two regions always need housing because they are vibrant, have large labor forces, and have a continuous flow of people moving in and out. The Fund loans are designed to follow the real estate market as it fluctuates. It does this by only utilizing short-term loans, which on average have loan terms of one year. The Fund also requires that borrowers sign personal guarantees for their loans in addition to deeds of trust, to ensure the borrowers have additional financial backing for their projects."

About The North Star Capital Fund LLC

The Fund provides construction, remodeling, and other business-purpose loans in the Bay Area and the greater Los Angeles area, where the demand for construction lending is extremely high.

The North Star Capital Fund is open to accredited investors only. Call now if you would like to invest in trust deeds alongside Mr. Simonse and his partners.

Contact: John W. Simonse Phone: 925-603-0433 Email: [email protected] Concord, CA 94520

SOURCE The North Star Capital Fund LLC