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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 40+ units, which consist of 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. October was a busy month for us, which is very exciting! |
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In the month of October, we collectively made 30+ offers on potential fix/flip properties. Out of those 30+ offers we have 1 new deal under contract and we still are negotiating a creative deal that is currently in the works, but not secured yet. It is looking very promising and we will update everyone as soon as any light comes to this creative deal. The market has been tough lately, but the amount of deals being sent our way has had a slight uptick which is good to see! It is important to keep making offers that work and not get too risky with your numbers. We are seeing a lot of investors currently getting in trouble because they are overpaying for properties. We always make offers that limit the risk on our deals and are very numbers oriented, especially in the current market. You can not get emotional in real estate investing with your purchases, that is where you can really make a mistake and lose a lot of money! |
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Charlotte, NC Fix/Flip Under Contract! |
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We have another fix and flip project under contract in Charlotte, NC! This deal was found by utilizing our real estate agent network and this particular agent had a seller that was in a time crunch. The sellers are currently under contract for a new home that they |
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fell in love with, but it is closing early December. They need money from selling their current house to be able to secure the loan and purchase the new property. They understood that the market is a little bit soft right now and selling a home takes a little bit longer than usual, plus around 30 days to list and close is very hard to do on the retail market in any market. 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. The property is worth approximately $300k as-is and we got it under contract for $260k! The property needs some touch ups and also a new renovated kitchen where we are expecting to spend around $30k. Once the property is rehabbed it should be worth around $370k! We are expecting to be able to fix this up and get it listed within a month of closing to quickly turn around and sell it. This is a win-win for everyone involved that we can make some quick profit on, while helping these sellers get into their dream home stress free. We are looking to close early December, stay tuned for more updates on this project! |
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Rock Hill, SC Fix/Flip #2 Permit Approved and Renovation Underway!
We have finished the interior demo of this property and are now moving on the renovation portion of our plan. We have been working with the city of Rock |
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Hill, SC to ensure all of our permits are set up correctly to allow for speed of renovation without any disruptions and have finally obtained them! Our team is now moving full force into the renovation of this property. They have within the first day of |
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| obtaining the permits already removed a supporting wall, re-supported the home with new headers and also piers in the crawlspace. This is super important because now it opens up the living room into the kitchen and gives the open concept vibe everyone loves! This is one of the best updates you can do on these older homes and allows you to sell for a higher value once completed. Wait until you see the transformation coming this month, this project should take until mid-december to be finished then we will look to list it shortly after the New Year. When |
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listing properties, the winter/holiday time is one of the slowest times to try to sell a property, so sometimes it is better to wait a few weeks to list than during the holidays. Stay tuned for before and after photos! |
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Salisbury, NC Novation Under Contract$10k Over Asking! |
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| Our novation agreement rehab is complete and we listed it for $215k a little over a week ago (end of October). Within 2 days we had 3 offers and one was $10k over asking which we accepted! The buyers inspection and appraisal is currently taking place this week |
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and we are looking to close on this a few days before thanksgiving. The owner of the home is thrilled and is going to be walking away with a great profit and so will we! We currently have put around $30k of our own money into this deal and will look to walk away with around a $40k+ profit plus our money back within just 2-3 months. That is around a 550%-800% return annualized. What a win-win for everyone involved! |
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Rock Hill, SC Fix/Flip #1 Under Contract!
Our first Rock Hill, SC fix/flip has received an offer at asking price and we have accepted! Currently the buyers appraisal is being finished and we are looking to |
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close this property around the middle of November. This was a great base hit fix/flip where we are looking to make around a $17k profit on $40k spent within 3 months. That is about a 170% return on our money annualized. It was a little less profit than we would like, but with the market turning soft we are still thrilled to have this underway to be sold and get the profit we gained. |
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