Real Estate Track Record of Steve Nauert, Founder.
These are private, past transactions that the founders have personally been involved in. These are not properties that have been handled by Safari Property Inc.
NOTE: As you will see, a large part of successful real estate investing relates to correctly timing the real estate cycle. Prer 2007 purchases were profitable, purchases after 2007 were sold at breakeven or we took a loss.
In 2001 we purchased this 20 unit “fixer” for $360,000 located at 725-729 Sanford Ave. Wilmington, CA, 90744. Three partners contributed $18,500 each, and Steve Nauert contributed his $9,000 commission. Using a professional management company, “Sanford” began to throw off $2,000 per month in spendable income, which we received for 90% of our holding period. We re-financed in 2003, took out $80,000 and split 4 ways.
Sale #1: We sold Sanford 11/30/04 for $1,040,000. Each partner made $139,826.17 on the sale, plus previous $20,000 in re-finance proceeds, plus dividends.
Purchase #2: In 2002 we purchased 842 Wilmington Blvd.
Wilmington CA 90744. Cost: $225,000. Three partners invested $8,500 each; Steve Nauert contributed his commission of $5,625. The building was grossing $23,000 per year. We turned over all units and increased annual income to $48,000.
Sale#2: We sold 842 Wilmington Blvd. on 2/18/05 for $664,000.
Purchase #3: We entered into a 1031 Tax deferred exchange and purchased 10 units on 1109 N. Wilmington Blvd for $1,040,000 with the proceeds of our sale from 842 Wilmington Blvd. We sold this property in February 2013 and the owners split approximately $330,000 in profit.
In 2002 we purchased 1619 N. Avalon Blvd. Wilmington Ca 90744 for $339,000. Three partners contributed $15,000 each; Steve Nauert contributed his $8,475 commission. Moved out tenants and replaced with section #8 tenants. We increased annual rental income from $33,000 to $52,000.
Sale#4: We sold Avalon in 2003 for $461,000.
Purchase #5: We used the profit from the Avalon sale of $117,000, plus a 2nd T.D. of $52,000 and entered into a 1031 Tax deferred exchange to purchase 14 units at 1253 E. 64th Street in L.A. for $550,000. We sold this building for $915,000.
In 2007, our Safari Partners IV LLC purchased “The Wilmington Inn” at 903 N. Fries, Wilmington CA 90744. Price: $1,245,000, Down payment $237,000 (19%). This was the first purchase for the Safari partnership, Safari Partners IV LLC. We took on a 50% partner in this transaction.We have since sold thsi building, we got caught in the real estate downturn and we took a small loss.
In 2007 Safari Partners IV LLC purchased 240 & 250 Calaveras Street in Fresno for $1,040,000. A twenty unit two story walkup apartment building built in 1963. Since our purchase, apartment values in Fresno have plummeted along with a 15% decrease in rental rates. We lost this building in foreclosure during teh real estate downturn..
In 2008 Safari Partners IV LLC purchased 222 N. Effie in Fresno California. These eleven units were purchased for $425,000. Unfortunately, a gang member moved into this building and intimidated the other tenants into leaving. We were unable to meet our mortgage payments, and we had to let this building go back to the bank.
In 2008 Safari Partners IV LLC purchased 1339-1357 N Street Fresno California. This14 unit property is located in a prime location of the downtown district. We purchased this building for $700,000 with seller financin. Originally the sellers carried a first Trust Deed of $472,000. In 2011 we completed re-negotiations with the sellers and they lowered the indebtedness to $210,000, plus extended the due date of the note to 5 years. We sold this property and were grateful to break even.