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SEPTEMBER 2024 NEWSLETTER |
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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. August was a busy month for us, which is very exciting! |
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| Belmont, NC Fix/Flip Closed!This Belmont property has a lot of potential and numerous ways to approach it. We will be giving an extensive cosmetic rehab to the primary dwelling, giving life back into the property. Additionally we have the |
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ability to possibly convert the garage in the back to an ADU. If we can do this, then the value of the property will increase and will also be very beneficial to the end buyer as a potential income producing dwelling on their property to help supplement their mortgage payments! That is if we don’t decide to keep it as a rental ourselves utilizing the BRRRR strategy There are many different ways to approach this project as a fix/flip, BRRRR hold and/or even a whole tail situation. We are currently reviewing contractor quotes to match our expected budget, then we will get to work! |
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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 now get 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 . As you can see from the before photo, this property had some recent hail damage, so the first action was to get those solar panels gone and replace the roof as well as some siding! The inside needed some minor updates, but not too much work to get it back on market. We already finished the rehab of this property and currently have it listed within just a few weeks! |
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Rock Hill, SC Fix/Flip #2 Closed!This was another distressed seller being foreclosed on who needed to close smoothly and fast. We put together an offer that helps them move onto the next chapter in their life without being burdened by financial issues caused by a foreclosure. It is always rewarding to be |
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able to help out individuals in these situations. We recently closed on this property and are excited in the coming weeks to get to work! We are currently working with contractors to finalize our plan and start the renovations. It has the ability to be a beautiful finished product and provide an exceptional return on investment. |
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| Salisbury, NC Novation Agreement Under Contract!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 |
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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. 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 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 We are currently working with the owner to get our contractors in to plan the rehab and get this property updated to sell quick and fast. |
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| 32 Unit in Lancaster, SCWe received 100% of rents for the month of August. We were able to fill all of the five recent vacancies. We now have one soon to be vacant unit and also one eviction set to happen this month. We expect to be able to fill these two units in |
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the coming month as we have applicants already interested and ready. We expect this property to be worth over $2.8-$3 mil once these units are filled where our cost basis is currently $2.2 mil positioning our investors for a nice return. Our objective is to return close to 50-60% of investor funds in 1 year of ownership with a cash out refinance then continue increasing the equity of the building through rent raising and continued stabilizing. We are also exploring a 1031 sale opportunity to lock in our investors with a 50%+ return in less than a year and position their investments into a new project with more value-add opportunities. |
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Worcester, MA Duplex Land SubdivisionThis duplex was one of our first deals that was BRRRR'd. Currently the property is stabilized and providing exceptional returns. We have been working with the Worcester, MA zoning department to get approval to subdivide some land on the property that will allow us to either build another duplex or sell off. We are in the final stages of this with only a site plan approval remaining! The land will be worth approximately $120k which we can sell or build another duplex. If anyone knows |
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someone interested in either purchasing the land or helping us build a duplex, please let us know! |
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