Welcome! Thank you for taking the time to read our monthly newsletter update from Hammerhead Capital. Hammerhead Capital is a real estate investing company that Wendell Butler created to invest in value-add real estate. Our goal with this newsletter is to provide insight into the existing projects we are actively doing, past deals we have completed and provide context for prospective and future investors. Our team currently owns, has under contract, and manages 45+ units, which consist of multifamily rentals, in progress flips and land throughout Massachusetts, North Carolina and South Carolina. We are constantly looking to add more high-quality properties to our portfolio. January ended up being a pretty busy month for us to get the year started off right!

  Rock Hill, SC Fix/Flip #3 Under Contract!

This property was brought to us from a wholesaler for an asking price of $230k. We quickly got a walkthrough scheduled and found that the asking price was actually too high based on our evaluations of the numbers. We submitted an offer of $215k and after a day of negotiation it got accepted. This goes to show to always submit an offer if you are interested in the property, but stay true to your numbers, do not get emotional. We are purchasing this for $215k where it needs around $50k of rehab to bring the property back to life. The expected ARV we are targeting is $355k, which would be a decent return! We are looking to close this property in the middle of February and get to work.

  Rock Hill, SC Fix/Flip #4 Under Contract!

We found this property from another wholesaler that we have not done business with yet, but always love the way they put together their deals. This wholesaler does a very good job of working with the sellers, getting great properties under contract and then assigning the contract at very competitive pricing. The asking price for this property was $214,400, but we actually ended up offering $225k! Why would we offer over asking? Well like we said, this wholesaler does his numbers very well, which sets them up to go over asking usually and also get a lot of offers, but it is also because this deal is essentially a whole-tail where it really only needs $20k of work which includes very very quick and easy repairs/updates. Due to the ease of the renovations and how we can finish it very fast, we were okay with going over asking because it fit our numbers! We are purchasing this for $225k where it needs a maximum renovation budget of $20k and the expected ARV should be around $310k-$320k. This will be a quick flip for some nice profits! We are closing this deal as well in the middle of February and are excited to get this one started as well.

  Rock Hill, SC Fix/Flip #5 Under Contract!

We found this property in a facebook investing group where a wholesaler was trying to market it. We reached out to him right away and set up a scheduled walkthrough of the property with him and the seller. The asking price was $120k from the wholesaler and we ended up offering $115k after reviewing the numbers. Again, always stay true to your numbers and make an offer, even if it is below asking. Because we were very up front, quick with our offer and easy to work with, the wholesaler ended up taking our offer even though it was below asking. He even said he had others come in higher, but because we were so fast and easy to work with as well as had a track record of closing deals, he picked us. Sometimes the price isn’t the most important! We are purchasing this deal for $115k where it needs roughly $40k of rehab and we are expecting the ARV to be around $210k-$220k. This is a base hit of a deal, but it should be a relatively easy one with low capital needed to get it done to get a nice return on investment. This is currently going through probate, so it will take a little bit until we close, but we are hoping we can close this in a month or two and get to work.

  Charlton, MA Multifamily Stabilization Project Under Contract!

This deal is from a seller that we have worked with before a few years back when we purchased an 8-unit from him. Since that process went well and we got him out of a headache of a property, he thought he should reach out to me again for this deal. This is a 7-unit property (package of one 4-unit and one 3-unit) where it is pretty similar to the situation he had before. He has low paying tenants that aren’t the best, the buildings need a lot of work and he is having a tough time selling it. He brought this to me asking for $700k. We ended up getting him down to $675k and also got a 10% seller finance at a 5% interest only term to help on our end with the numbers! We had to get creative to make this work on our end as well as make the seller happy. We are looking to purchase this for $675k, put around $180k-$200k of renovations into the property, get all the rents where they should be (almost doubled from where they are now) and then either sell the property or hold it. After everything is said and done this property should be worth upwards of $1.1M, so any way you shake it, we should profit pretty nicely. We are looking to close on this in the middle of March and are excited to get this one started.

   Waxhaw, NC Whole-tail Renovations Completed and Listed!

We secured this property from a wholesaler just before the new year and made sure to close before 2025 arrived. The sellers needed to sell this property before January 1st, 2025 or they were going to get hit with a large fine due to personal family situations. We made sure to close this property very quickly and help them out of that situation. Because of the speed we moved and helped them out on, we got this property for $415k and it is worth as-is around $530k! All this property needed was a few touch ups, a deep clean and then we immediately listed it. We have spent around $5,500 on renovations/staging for this project so far. This was completed within 2 weeks and now this property is currently listed, which you can see the listing below! A whole-tail is a situation where you can get a property for a great discount that does not need much, if any, work at all. This is the definition of a wholetail and hoping this sells quickly!

     Charlotte, NC Fix/Flip Renovations Started!

Renovations have started on our Charlotte, NC fix/flip! This deal was found by utilizing our real estate agent network and this particular agent had a seller that was in a time crunch. They needed money from selling their current house to be able to secure the loan and purchase their new property they were under contract for. This is where we stepped in to purchase the property very quickly to allow them to have less stress knowing they will sell their home in time for their move.

We bought this property for $260k and the after repair appraisal came back at $390k! This is higher than the $370k we underwrote for, so that is very good news. The property needs some touch ups and also a new renovated kitchen where we are expecting to spend around $35k-$40k. We also opened up a wall separating the kitchen and living room to create an open concept layout, which looks awesome so far. We are expecting to be able to finish renovations and get it listed by the end of February/early March. Stay tuned for more updates on this project!

Rock Hill, SC Fix/Flip #2 Cosmetic Portion of Renovation Underway!

shortly thereafter. This project was supposed to be finished around 2 months ago, which normally would really hurt some deals. Thankfully when we underwrite and prepare for our projects, we always underwrite very conservatively to account for situations like this. We always account for a little more renovation costs than expected as well as a longer timeline. Because of this, this project is actually still on track to get us the profit we expected! We will say though, we are very excited to finish this one and move onto the next. Not every project goes the way you want to, but that is real estate for you. You just have to keep moving, adapting and continue pushing forward solving problems along the way. With all that being said, this is going to end up being a beautiful finished product!