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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. September was a busy month for us, which is very exciting! |
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“You miss 100% of the shots you don’t take” - Wayne Gretzky - Michael Scott (for our “The Office” fans). In the month of September, we collectively made 15 offers on potential fix/flip properties. We took a small step back from offers to ensure our current projects’ systems were in place and moving forward smoothly. Although we did not get any under contract, we have built great relationships with more wholesalers, real estate agents and even investors! We aim to make a lot more offers this coming month to keep up with our massive goal of getting a deal under contract every week. Although we did not lock one in this past month, we do have 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 deal. |
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Belmont, NC Fix/Flip Sold!
This Belmont property had a lot of potential and numerous ways to approach it. We originally had a plan to turn the garage into an ADU, fix up the primary residence and create a cool |
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space/bar in the back with the other small shed as a cool amenity. After diving deeper into the property, we realized that it was going to take up a lot of time with potential for minimal profit. We ran into some timing trouble looking to get the garage approved to be an ADU as well as noticed some unexpected expenses that popped up overall. Although we still could have made some profit on the deal in the long run, we made the decision to quickly wholetail this property to another investor willing to take on the project for a very minimal loss. Thankfully, using our network, we offloaded this property within a week of putting it up to sell off-market. Sometimes the best deals you do are the ones you don’t do, or get out of fast! Real estate is all about making decisions quickly and if you sit too long, you may run into more trouble. By exiting this property, it has allowed us more time to focus on our other projects as well as continue making offers on other properties with better return on investment. |
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| Rock Hill, SC Fix/Flip #2 Demo Completed!
We have finished the interior demo of this property and are excited to get moving on the renovation portion of our plan. We have been working with the town of Rock Hill, SC to ensure all of our permits are set up correctly to allow for |
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speed of renovation without any disruptions. We have all the materials, contractors and plans lined up, but are just waiting on final approval of our permits. Permitting is one of the biggest factors of fix and flipping and as we work to build a relationship with a new town the permitting process will become easier and faster. Once the permits are approved, which should be this week, we can hit the ground running on renovations of the interior/exterior and the project should be completed in 4-6 weeks. Stay tuned for before and after photos! 💯 |
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Salisbury, NC Novation Finalized and Construction Has Started! |
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What is a novation agreement? In this scenario this is when a seller wants to sell their house and move, but do not have the money to fix it up and get the max dollar amount for it. We then form a partnership with the seller where they have a predetermined guaranteed amount they will receive from the sale. We then go in and fix up the property out of our pocket, then we sell it for the max amount possible! Anything over the agreed upon amount we promised the owner after our expenses is our profit. 💯 |
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How does this benefit us? With this agreement we are going to accrue no holding costs as the owner handles that throughout the project (mortgage, taxes, insurance, etc.). Also we do not have to purchase the property at all, saving closing costs and also a down payment! We just put in renovation money to fix what’s needed in the property, help sell it |
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for max dollars and take all profits over the predetermined amount the owner is promised. 💰How does this benefit the owner? They are guaranteed a predetermined amount from the sale without putting their own money and time into the rehab. Worst case scenario if it can’t sell and fails, they now have a free rehabbed property 🤷♂️. The seller has moved out of the property and we have our contractors completing the work currently. This project entails a lot of small cosmetic updates to quickly get this property back up and listed as soon as possible. It has already been cleaned out, painted on the interior, repairs in the bathrooms have started and the remaining materials/appliances are set to be delivered/installed over this week. This project should be finished mid-October and then listed quickly at a very competitive price point providing the owner a well earned profit, as well as us! |
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Rock Hill, SC Fix/Flip #1 Closed and Already Rehabbed/Listed! |
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For this Rock Hill property we helped a homeowner avoid foreclosure which could have bankrupted her and left her with years of financial issues 🙏. Along with helping her out of financial hardship, we got to do a quick light cosmetic rehab of this property and get it back on the market as soon as possible for some quick efficient returns 💰. We already finished the rehab of this property and currently have it listed! We are hoping to get it under contract shortly, but we are realizing with the current market as well as the elections coming up, it is causing properties to sit a little longer in some areas. We are working with our real estate agent to properly market this property efficiently and come up with plans to entice buyers to make more offers. Sometimes the market shifts, but as long as you underwrite correctly, prepare accordingly, have a large cushion of return on investment, as well as minimal holding costs, you can ride the storm a bit. We do not expect this property to sit much longer as homes in this area at this price point usually go under contract within 45 days or so. Either way we expect a good return on this deal, even though we will need to have a little more patience! |
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32 Unit in Lancaster, SC
We received 100% of rents for the month of September. We did endure a few more vacancies, but the units were left very nice and should only need a quick cleaning to be filled again. We now have 4 vacancies, 2 of the units will be back up and listed |
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quickly and 2 of the units are currently being renovated and will be listed by the middle of the month. When stabilizing a property this occurs frequently for the first year, but as long as you have a good team working to renovate, list and fill units, the project just continues to increase in value. We expect to be able to fill these units in the coming month as we have applicants already interested and ready. We expect |
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