Hammerhead Capital May 2025 Newsletter

Hammerhead Capital May 2025 Newsletter is Here! ✨
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Welcome to the Hammerhead Capital Monthly Newsletter! We appreciate you staying updated on our latest projects and insights. Founded by Wendell Butler, Hammerhead Capital focuses on value-add real estate investments, including multifamily properties, fix-and-flips, and land development. Our portfolio spans 45+ units across Massachusetts, North Carolina, and South Carolina. In March, we wrapped up existing projects while seeking new opportunities. As always, we’re committed to disciplined investing to drive long-term value. Stay tuned for more updates, and thank you for being part of our journey!

In April, we submitted 20+ offers on fix-and-flip projects and land for new development. This month we got under contract and quickly closed on one fix-and-flip as well as had an offer accepted on a land deal. Additionally, we sold two flips this month, and our ongoing projects are progressing smoothly. Despite the competitive Charlotte market, solid deals are still available for disciplined investors. Many are overpaying and listing properties at unrealistic prices, which leads to longer market times and shrinking profits. Our strategy remains numbers-driven, focusing on calculated risk over emotional decisions. In today’s market, patience and discipline are key to long-term success.

We were recently presented with a ~1.66-acre land deal in Rock Hill, SC, initially offered at $135K. Early concerns about a lack of sewer access nearly killed the deal, but after confirming with the city and using Google Street View, we located the sewer taps—unlocking major development potential. We negotiated the price down to $110K and got it under contract. Zoned for potential subdivision into 12 lots, the site could support six duplexes (12 units total), giving us flexible exit strategies: either entitle and sell to a builder or develop it ourselves. We’re now in due diligence with the city to confirm feasibility. Rock Hill can be tough on development, but the upside makes this one worth pursuing. Stay tuned—this deal could offer strong investment opportunities.

We sourced this deal through a Facebook investing group where a wholesaler was marketing the property. After a walkthrough and quick analysis, we offered $115K—below the $120K ask—by sticking to our numbers. Despite receiving higher offers, the wholesaler chose us for our speed, transparency, and proven ability to close. We’re acquiring the property for $115K, budgeting $40K for renovations, and expect an ARV of $210K–$220K. It's a solid base hit with minimal capital and a smooth flip ahead. The property is currently in probate, so closing is delayed slightly, but we expect to finalize within the next couple of weeks and begin work right away.

We were presented with this small property by a trusted wholesaler in April, who initially asked $79,300. After some negotiation, we offered $80,000, and despite higher offers from others, he chose us due to our efficient approach. We secured 100% financing through a private lender we’ve worked with before, covering both the purchase price and renovations. This partnership allowed us to avoid high closing costs, maximizing our profit. The property requires about $30K in cosmetic renovations and landscaping, with an estimated ARV of $165K, potentially reaching $200K based on location. Renovations are set to begin soon, with completion expected in about a month. Once finished, we’ll decide whether to sell or BRRRR and hold as a rental for passive income.

Our 7-unit property in Charlton, MA is off to a strong start—just one month into ownership, the project is ahead of schedule and under budget. We acquired the asset for $675,000 and are targeting an exit north of $1 million, positioning our investors for solid potential returns. Renovations have been completed on all four vacant units, which are now listed at $1,700 each. Two of those units are already under agreement with leases being finalized. Meanwhile, rent increases have been issued to the three existing tenants, raising their combined rent from $1,750 to $3,350 per month. Altogether, we anticipate the total rent roll to exceed $10,000/month by next month. Operationally, we’ve replaced the roof on one of the buildings, rebuilt both front decks with new boards and railings, and completed full cleanouts of the basement and exterior areas. We’ve also engaged Mass Save for an upcoming energy assessment and heat pump installation to further improve efficiency. Overall, the Charlton property is exceeding our expectations, and we look forward to sharing continued progress as we execute our business plan.

We recently closed on this property at the end of February, acquiring it for $225,000 with a renovation budget capped at $20,000. Our contractors came back with a quote just under $14,000—comfortably under budget. With an expected ARV between $310,000 and $320,000, this is shaping up to be a quick, high-margin flip. Renovations are already nearly complete; we're simply waiting on the front door delivery to finish installation. Once that’s done, we’ll take listing photos and bring the property to market—likely within the next week. We're excited to see this project come full circle and deliver strong results.

Renovations are officially complete on our Charlotte, NC fix-and-flip! We sourced this deal through our agent network, stepping in quickly to help a motivated seller close in time to secure their next home. We purchased the property for $260K, invested around $42K in renovations and staging—including a full kitchen remodel and opening up the layout—and received an after-repair appraisal of $390K, beating our initial $370K projection. While we’re ready to list, we’ve discovered an exciting opportunity to subdivide the lot, potentially unlocking $100K+ by selling the land or $180K+ through a new build. Thanks to our conservative underwriting, we’re positioned to hold the property while we explore this value-add play. Final decisions on the subdivide are expected later this month. Stay tuned for finished photos and updates on the potential land opportunity!

We’re excited to share that the refinance on this property is scheduled to close next week (May 6th). This milestone will allow us to bring all preferred returns current, bolster our operating reserves, and implement rent increases across all units—targeting approximately $1,000 per unit and a projected total rent roll of $32,000–$34,000 per month. With operations now stabilized, we anticipate strong ongoing cash flow in the 8–10% range. Investor distributions officially began in March 2025, reflecting our focus on delivering timely, consistent returns. While we continue evaluating long-term strategies, including a potential future sale, this asset is on track to be a strong performer in our portfolio.

This project pushed us through nearly every challenge imaginable—delayed permits, stop-work orders, surprise leaks, and even a few disappearing subcontractors. Despite the setbacks, our team pushed through, completed renovations beautifully, and delivered a strong end result. Although we were delayed by about two months, we always underwrite conservatively, accounting for potential cost overruns and extended timelines—allowing us to still hit our projected profit. We listed the property in early March and received multiple offers within days, ultimately going under contract for $405,000—$5,000 over asking—just four days after hitting the market. We’ve officially closed and are thrilled to pass this home on to a happy new family. On to the next one!

We acquired this property from a wholesaler just before the New Year, closing quickly to help the sellers avoid a looming fine tied to personal circumstances. By acting fast, we secured it for $415K—well below its $525K as-is value. With only $7,500 invested in light touch-ups, cleaning, and staging, we listed the home and accepted a $510K offer after about 60 days on market. While slightly under asking, the quick timeline and low renovation costs kept our profit right on target. Given the property's location in a 55+ community, we opted for a faster close over waiting and risking increased holding costs. This deal is a textbook example of a successful “wholetail”—minimal work, fast turnaround, and strong returns.