Real Estate Transactions
MICHAEL SANTOS
How I Built Assets Worth More than $5 Million
I’m 100% transparent and I never ask anyone to do anything that I’m not doing. I offer this information to show the various real estate transactions that I’ve completed since my release from prison.
Although the amount of total transactions that I have completed may be insignificant compared to other investors, remember the facts:
- I made bad decisions when I was in my teens.
- When I was 20, I participated in a scheme to sell cocaine.
- In 1987, authorities arrested me and I went to prison.
- After 25 years in prison, I transferred to a halfway house in San Francisco in 2012, where I would serve my final year of imprisonment.
- I concluded my obligation to the Bureau of Prisons in 2013.
- I had a 0-0-0 credit score.
Despite that history, the transactions below show that I used a combination of unconventional financing and conventional financing to raise capital. During my first five years of liberty—after 26 years in prison—I conducted more than $12 million worth of transactions.
For these reasons, I’m convinced that anyone who applies a disciplined, deliberate path can build prosperity over time.
Readers may follow the month-to-month financial reports to see how the investments are performing. I publish those reports each month.
Interact with me to share how you’re building pathways to prosperity.
Deal 1— Date: August 2012
First Deal:
Real Estate Transaction 1: Sonoma County, California
Type of transaction: Purchase of single-family residence
Value of Acquisition: $380,000
Down payment: $15,000
Type of acquisition financing: Unconventional, seller financing on $365,000
Details: Created personal narrative to advance my candidacy for the seller to consider financing me. Made a presentation to the seller. Persuaded the seller to believe in me. Negotiated favorable terms to get me started as a real estate investor. Over next 18 months, I built a credit score. I succeeded in getting traditional financing through a mortgage broker.
Refinance: In May of 2014, obtained an appraisal of the property. Appraisal showed property value at $460,000. Secured a mortgage of $365,000 from a mortgage broker. Used those funds to pay the developer. Monthly payment to service the debt: $2,800.
Income: June 2014, signed a long-term lease with a tenant for $2,800 per month. Relied upon that income to pay the monthly mortgage payment on the property. Since we financed the mortgage over 15 years, built substantial equity each month. Ten-year value of lease: $336,000.
Estimated Value of Property in September 2018: $685,000 (based on recent sales of comparable properties)
Debt on Property in September 2018: $268,000
Estimated Equity on Property in September 2018: $417,000
Deal 2 — Date: June 2015
Second Deal
Real Estate Transaction 2: San Bernardino County, California
Type of transaction: Purchase of single-family residence
Value of Acquisition: $160,000
Down payment: $160,000
Type of acquisition financing: Paid cash
Details: Located elderly tenants who were about to lose their long-time residence to foreclosure. They had been making payments steadily for years. But an adjustable-rate mortgage had reset, raising their monthly payments to a level they could not afford. They did not want to move. I signed a long-term lease with them for $1,225 per month. And paid cash, for $160,000 to acquire the asset.
Refinance: In September 2018, I did a cash-out owner financing on the property with a traditional mortgage company. I pulled out $120,000 with a 15-year mortgage. The monthly payment is $1,200.
Income: June 2015, signed a long-term lease with a tenant for $1,225 per month. Relied upon that income to pay the monthly mortgage payment on the property. Since we financed the mortgage over 15 years, built substantial equity each month. Ten-year value of lease: $144,000.
Estimated Value of Property in September 2018: $250,000 (based on recent sales of comparable properties)
Debt on Property in September 2018: $103,000
Estimated Equity on Property in September 2018: $147,000
Total value to date of transaction: $304,000 (includes signed value of lease)
Deal 3 — August 2015
Third Deal
Real Estate Transaction 3: San Bernardino County, California
Type of transaction: Purchase of single-family residence
Value of Acquisition: $215,000
Down payment: $215,000
Type of acquisition financing: Paid cash
Details: Raised $215,000 in capital through unconventional financing to fund an acquisition. Found suitable tenant to rent the property. Signed long-term lease for $1,600 per month.
Purchased the property for $215,000. Refinanced the property with $160,000 mortgage that I financed on 15-year note. Used those funds to repay capital I obtained for acquisition. Sold the property for $240,000.
Sold property: $240,000
Total value of transaction: $1,141,000 (includes signed value of lease)
Deal 4 — Date: November 2015
Fourth Deal
Real Estate Transaction 4: San Bernardino County, California
Type of transaction: Purchase of single-family residence
Value of Acquisition: $155,000
Down payment: $155,000
Type of acquisition financing: Paid cash
Details: Found tenant who needed housing. Signed long-term lease for $1,200 per month. Raised cash from previous refinancing and savings. Acquired the asset with cash payment of $155,000. I banked income for life of transaction. I sold the property for $195,000.
Sold property: $195,000
Total value of transaction: $422,000 (includes signed value of lease)
Deal 5 — January 2016
Fifth Deal
Real Estate Transaction 5: San Bernardino County, California
Type of transaction: Purchase of single-family residence
Value of Acquisition: $250,000
Down payment: $250,000
Type of acquisition financing: Paid cash
Details: Raised $250,000 in capital through unconventional financing to fund an acquisition. Found suitable tenant to rent the property. Signed long-term lease for $1,800 per month. Purchased the property for $250,000. Refinanced the property with $205,000 mortgage that I financed on 15-year note. Used those funds to repay capital I obtained for acquisition.
Estimated Value of Property in September 2018: $340,000 (based on recent sales of comparable properties)
Debt on Property in September 2018: $190,000
Estimated Equity on Property in September 2018: $150,000
Total value to date of transaction: $1,171,0000 (includes signed value of lease)
Deal 6 — June 2016
Sixth Deal
Real Estate Transaction 6: Orange County, California
Type of transaction: Purchase of single-family residence
Value of Acquisition: $500,000
Down payment: $25,000
Type of acquisition financing: Conventional Financing
Details: Obtained 95% mortgage through mortgage broker on 30-year note to acquire property for $500,000. Later, refinanced property on 15-year note for $400,000. Leased property for $2,600 per month. Sold property for $550,000.
Sold property: $550,000
Total value of transaction: $2,165,000 (includes signed value of lease)
Deal 7 — January 2017
Seventh Deal
Real Estate Transaction 7: Riverside County, California
Type of transaction: Purchase two single-family residences
Value of Acquisition: $1,000,000
Down payment: $1,000,000
Type of acquisition financing: Unconventional Financing
Details: Raised $1,000,0000 through combination of unconventional financing, sales of other properties, and conventional financing to make acquisition of two properties. Made $200,000 in modifications to building. Signed long-term lease at $8,000 per month. Refinanced property to raise $580,000. Signed additional long-term financing with lender for $1,000,000.
Estimated Value of Property in September 2018: $1,125,000 (based on recent sales of comparable properties)
Debt on Property in September 2018: $961,000
Estimated Equity on Property in September 2018: $164,000
Total value to date of transaction: $3,220,0000 (includes signed value of lease)
Deal 8 — February 2018
Eighth Deal
Real Estate Transaction 8: Orange County, California
Type of transaction: Purchase single-family residence
Value of Acquisition: $900,000
Down payment: $225,000
Type of acquisition financing: Conventional Financing
Details: Used conventional financing to make $900,0000 acquisition. I invested $225,000 down from savings, and used conventional financing for $675,000 mortgage, financed over 30 years.
Estimated Value of Property in September 2018: $925,000 (based on recent sales of comparable properties)
Debt on Property in September 2018: $670,000
Estimated Equity on Property in September 2018: $250,000
Total value to date of transaction: $1,575,000 (includes signed value of lease)
Deal 9 — July 2018
Ninth Deal
Real Estate Transaction 9: Costa Rica
Type of transaction: Equity investment in land development
Value of Acquisition: $1,400,000
Down payment: $1,400,000
Type of acquisition financing: Unconventional and Conventional Financing
Details: Raised $580,000 in financing from a mortgage company by refinancing other properties, and raised an additional $1,100,000 through combination of debt and equity capital for venture funding.
Estimated Value of Property in September 2018: $1,400,000 (based on investment)
Debt #1 on investment in September 2018: $50,000
Debt #2 on investment in September 2018: $580,000
Partnerships: $1,050,000
Estimated Equity on Property in September 2018: $770,000
Total value to date of transaction: $1,400,000 (total investment)
Deal 10 — August 2018
Tenth Deal
Real Estate Transaction 10: Belize
Type of transaction: Equity investment in land development
Value of Acquisition: $2,700,000
Down payment: $0
Type of acquisition financing: Unconventional Financing
Struck deal with developer with whom I invested in Costa Rica (See deal number 9). Acquired lots number 560 through 587 in the Laguna Palms subdivision at The Reserve, in the Stann Creek district of Belize. Agreed to pledge my equity and future profits against my investment in Costa Rica to acquire 27 pre-construction lots in an emerging section of a pristine, master-planned community. In exchange for my cash-infusion into the Costa Rica project, along with a pledge to raise an a total of $10 million in new capital, acquired the lots at a discounted price, with 100% developer financing.
Estimated Value of Property in September 2018: $2,700,000 (based on acquisition price)
Debt on investment in September 2018: $2,700,000
Estimated Equity on Property in September 2018: $0
Total value to date of transaction: $2,700,000 (total investment)
Deal 11 — August 2018
Eleventh Deal
Real Estate Transaction 11: Belize
Type of transaction: Sale of Laguna Palms Lot Number 582
Value of Transaction: $135,000
Down payment: $0
Type of financing: Unconventional Financing
Sold lot 582 for no-money-down, reducing my total debt to developer on transaction in Belize (See deal 10).
Transaction value: $135,000 (based on contract)
Remaining debt on Belize investment in August 2018: $2,665,000
Value of remaining 26 properties (based on acquisition): $2,600,000
Total value to date of transaction: $135,000 (total sale price)
Deal 12 — September 2018
Twelfth Deal
Real Estate Transaction 12: Belize
Type of transaction: Sale of Laguna Palms Lot Number 580
Value of Transaction: $135,000
Down payment: $0
Type of financing: Unconventional Financing
Sold lot 580 for no-money-down, reducing my total debt to the developer on the transaction in Belize.
Transaction value: $135,000 (based on contract)
Remaining debt on Belize investment in August 2018: $2,430,000
Value of remaining 25 properties (based on acquisition): $2,500,000
Total value to date of transaction: $135,000 (total sale price)
Total Real Estate Assets — September 2018
- Use desktop computer to see spreadsheet that tallies all real estate transactions to date.
- Total value of all transactions as of Oct 5, 2018: $13,916,200
- Total value of current real estate holdings as of Oct 5, 2018: $7,363,898
To view portfolio of total current holdings, please visit following link that shows spreadsheet to my real estate portfolio.
- Spreadsheets that show performance of assets over time
REAL ESTATE TRANSACTIONS
MICHAEL SANTOS
How I Built Assets Worth More than $5 Million
I’m 100% transparent and I never ask anyone to do anything that I’m not doing. I offer this information to show the various real estate transactions that I’ve completed since my release from prison.
Although the amount of total transactions that I have completed may be insignificant compared to other investors, remember the facts:
- I made bad decisions when I was in my teens.
- When I was 20, I participated in a scheme to sell cocaine.
- In 1987, authorities arrested me and I went to prison.
- After 25 years in prison, I transferred to a halfway house in San Francisco in 2012, where I would serve my final year of imprisonment.
- I concluded my obligation to the Bureau of Prisons in 2013.
- I had a 0-0-0 credit score.
Despite that history, the transactions below show that I used a combination of unconventional financing and conventional financing to raise capital. During my first five years of liberty—after 26 years in prison—I conducted more than $12 million worth of transactions.
For these reasons, I’m convinced that anyone who applies a disciplined, deliberate path can build prosperity over time.
Readers may follow the month-to-month financial reports to see how the investments are performing. I publish those reports before the 15th of each month.
Interact with me to share how you’re building pathways to prosperity.
Deal 1— Date: August 2012
First Deal:
Real Estate Transaction 1: Sonoma County, California
Type of transaction: Purchase of single-family residence
Value of Acquisition: $380,000
Down payment: $15,000
Type of acquisition financing: Unconventional, seller financing on $365,000
Details: Created personal narrative to advance my candidacy for the seller to consider financing me. Made a presentation to the seller. Persuaded the seller to believe in me. Negotiated favorable terms to get me started as a real estate investor. Over next 18 months, I built a credit score. I succeeded in getting traditional financing through a mortgage broker.
Refinance: In May of 2014, obtained an appraisal of the property. Appraisal showed property value at $460,000. Secured a mortgage of $365,000 from a mortgage broker. Used those funds to pay the developer. Monthly payment to service the debt: $2,800.
Income: June 2014, signed a long-term lease with a tenant for $2,800 per month. Relied upon that income to pay the monthly mortgage payment on the property. Since we financed the mortgage over 15 years, built substantial equity each month. Ten-year value of lease: $336,000.
Estimated Value of Property in September 2018: $685,000 (based on recent sales of comparable properties)
Debt on Property in September 2018: $268,000
Estimated Equity on Property in September 2018: $417,000
Total value to day of transaction: $716,000 (includes signed value of lease)
Deal 2 — Date: June 2015
Second Deal
Real Estate Transaction 2: San Bernardino County, California
Type of transaction: Purchase of single-family residence
Value of Acquisition: $160,000
Down payment: $160,000
Type of acquisition financing: Paid cash
Details: Located elderly tenants who were about to lose their long-time residence to foreclosure. They had been making payments steadily for years. But an adjustable-rate mortgage had reset, raising their monthly payments to a level they could not afford. They did not want to move. I signed a long-term lease with them for $1,225 per month. And paid cash, for $160,000 to acquire the asset.
Refinance: In September 2018, I did a cash-out owner financing on the property with a traditional mortgage company. I pulled out $120,000 with a 15-year mortgage. The monthly payment is $1,200.
Income: June 2015, signed a long-term lease with a tenant for $1,225 per month. Relied upon that income to pay the monthly mortgage payment on the property. Since we financed the mortgage over 15 years, built substantial equity each month. Ten-year value of lease: $144,000.
Estimated Value of Property in September 2018: $250,000 (based on recent sales of comparable properties)
Debt on Property in September 2018: $103,000
Estimated Equity on Property in September 2018: $147,000
Total value to date of transaction: $280,000 (includes signed value of lease)
Total cumulative value of transactions: $996,000
Deal 3 — August 2015
Third Deal
Real Estate Transaction 3: San Bernardino County, California
Type of transaction: Purchase of single-family residence
Value of Acquisition: $215,000
Down payment: $215,000
Type of acquisition financing: Paid cash
Details: Raised $215,000 in capital through unconventional financing to fund an acquisition. Found suitable tenant to rent the property. Signed long-term lease for $1,600 per month. Purchased the property for $215,000. Refinanced the property with $160,000 mortgage that I financed on15-year note. Used those funds to repay capital I obtained for acquisition. Sold the property for $240,000.
Sold property: $240,000
Total value of transaction: $1,141,000 (includes signed value of lease)
Total cumulative value of transactions: $2,137,000
Deal 4 — Date: November 2015
Fourth Deal
Real Estate Transaction 4: San Bernardino County, California
Type of transaction: Purchase of single-family residence
Value of Acquisition: $155,000
Down payment: $155,000
Type of acquisition financing: Paid cash
Details: Found tenant who needed housing. Signed long-term lease for $1,200 per month. Raised cash from previous refinancing and savings. Acquired the asset with cash payment of $155,000. I banked income for life of transaction. I sold the property for $195,000.
Sold property: $195,000
Total value of transaction: $422,000 (includes signed value of lease)
Total cumulative value of transactions: $2,559,000
Deal 5 — January 2016
Fifth Deal
Real Estate Transaction 5: San Bernardino County, California
Type of transaction: Purchase of single-family residence
Value of Acquisition: $250,000
Down payment: $250,000
Type of acquisition financing: Paid cash
Details: Raised $250,000 in capital through unconventional financing to fund an acquisition. Found suitable tenant to rent the property. Signed long-term lease for $1,800 per month. Purchased the property for $250,000. Refinanced the property with $205,000 mortgage that I financed on15-year note. Used those funds to repay capital I obtained for acquisition.
Estimated Value of Property in September 2018: $340,000 (based on recent sales of comparable properties)
Debt on Property in September 2018: $190,000
Estimated Equity on Property in September 2018: $150,000
Total value to date of transaction: $1,171,0000 (includes signed value of lease)
Total cumulative value of transactions: $3,730,000
Deal 6 — June 2016
Sixth Deal
Real Estate Transaction 6: Orange County, California
Type of transaction: Purchase of single-family residence
Value of Acquisition: $500,000
Down payment: $25,000
Type of acquisition financing: Conventional Financing
Details: Obtained 95% mortgage through mortgage broker on 30-year note to acquire property for $500,000. Later, refinanced property on 15-year note for $400,000. Leased property for $2,600 per month. Sold property for $550,000.
Sold property: $550,000
Total value of transaction: $2,165,000 (includes signed value of lease)
Total cumulative value of transactions: $5,895,000
Deal 7 — January 2017
Seventh Deal
Real Estate Transaction 7: Riverside County, California
Type of transaction: Purchase two single-family residences
Value of Acquisition: $1,000,000
Down payment: $1,000,000
Type of acquisition financing: Unconventional Financing
Details: Raised $1,000,0000 through combination of unconventional financing, sales of other properties, and conventional financing to make acquisition of two properties. Made $200,000 in modifications to building. Signed long-term lease at $8,000 per month. Refinanced property to raise $580,000. Signed additional long-term financing with lender for $1,000,000.
Estimated Value of Property in September 2018: $1,125,000 (based on recent sales of comparable properties)
Debt on Property in September 2018: $961,000
Estimated Equity on Property in September 2018: $164,000
Total value to date of transaction: $3,220,0000 (includes signed value of lease)
Total cumulative value of transactions: $9,115,000
Deal 8 — February 2018
Eighth Deal
Real Estate Transaction 8: Orange County, California
Type of transaction: Purchase single-family residence
Value of Acquisition: $900,000
Down payment: $225,000
Type of acquisition financing: Conventional Financing
Details: Used conventional financing to make $900,0000 acquisition. I invested $225,000 down from savings, and used conventional financing for $675,000 mortgage, financed over 30 years.
Estimated Value of Property in September 2018: $925,000 (based on recent sales of comparable properties)
Debt on Property in September 2018: $670,000
Estimated Equity on Property in September 2018: $250,000
Total value to date of transaction: $1,575,000 (includes signed value of lease)Total cumulative value of transactions: $10,690,000
Deal 9 — July 2018
Ninth Deal
Real Estate Transaction 9: Costa Rica
Type of transaction: Equity investment in land development
Value of Acquisition: $1,400,000
Down payment: $1,400,000
Type of acquisition financing: Unconventional and Conventional Financing
Details: Raised $580,000 in financing from a mortgage company by refinancing other properties, and raised an additional $1,100,000 through combination of debt and equity capital for venture funding.
Estimated Value of Property in September 2018: $1,400,000 (based on investment)
Debt #1 on investment in September 2018: $50,000
Debt #2 on investment in September 2018: $580,000
Partnerships: $1,050,000
Estimated Equity on Property in September 2018: $770,000
Total value to date of transaction: $1,400,000 (total investment)
Total cumulative value of transactions: $12,090,000
Deal 10 — July 2018
Tenth Deal
Real Estate Transaction 10: Belize
Type of transaction: Equity investment in land development
Value of Acquisition: $2,700,000
Down payment: $0
Type of acquisition financing: Unconventional Financing
Struck deal with developer with whom I invested in Costa Rica (See deal number 9). Acquired lots number 560 through 587 in the Laguna Palms subdivision at The Reserve, in the Stann Creek district of Belize. Agreed to pledge my equity and future profits against my investment in Costa Rica to acquire 27 pre-construction lots in an emerging section of a pristine, master-planned community. In exchange for my cash-infusion into the Costa Rica project, along with a pledge to raise an a total of $10 million in new capital, acquired the lots at a discounted price, with 100% developer financing.
Estimated Value of Property in September 2018: $2,700,000 (based on acquisition price)
Debt on investment in September 2018: $2,700,000
Estimated Equity on Property in September 2018: $0
Total value to date of transaction: $2,700,000 (total investment)
Total cumulative value of transactions: $12,090,000
Deal 11 — August 2018
Eleventh Deal
Real Estate Transaction 11: Belize
Type of transaction: Sale of Laguna Palms Lot Number 582
Value of Transaction: $135,000
Down payment: $0
Type of financing: Unconventional Financing
Sold lot 582 for no-money-down, reducing my total debt to developer on transaction in Belize (See deal 10).
Transaction value: $135,000 (based on contract)
Remaining debt on Belize investment in August 2018: $2,565,000
Value of remaining 26 properties (based on acquisition): $2,600,000
Total value to date of transaction: $135,000 (total sale price)
Total cumulative value of transactions: $14,925,000
Deal 12 — September 2018
Twelfth Deal
Real Estate Transaction 12: Belize
Type of transaction: Sale of Laguna Palms Lot Number 580
Value of Transaction: $135,000
Down payment: $0
Type of financing: Unconventional Financing
Sold lot 580 for no-money-down, reducing my total debt to developer on transaction in Belize.
Transaction value: $135,000 (based on contract)
Remaining debt on Belize investment in August 2018: $2,430,000
Value of remaining 25 properties (based on acquisition): $2,500,000
Total value to date of transaction: $135,000 (total sale price)
Total cumulative value of transactions: $15,060,000
Total Real Estate Assets — September 2018
Most recent month values are listed in table below:
| Property | Value | Debt | Equity | Income | Payment | Cash Flow |
| Rental 1 | $631,996 | 268,245 | $363,750 | $2,800 | $2,509 | $290 |
| Rental 2 | $248,678 | $103,164 | $145,513 | $1,225 | $1,117 | $108 |
| Rental 3 | $322,892 | $189,716 | $133,175 | $0.00 | $2,297 | $-2,297 |
| Rental 4 | $1,115,810 | $964,369 | $151,440 | $5,000 | $7,649 | $-2,649 |
| Rental 5 | $919,188 | $669,616 | $249,571 | $0.00 | $4,415 | $-4,415 |
| Rental 6 | 0 | $577,592 | $-577,592 | $500.00 | $4,019 | $3,519 |
| Costa Rica | $1,400,000 | $0.00 | $1,400,000 | $0.00 | $0.00 | $0.00 |
| Belize | $2,500,000 | $2,430,00 | $70,000 | $0.00 | $0.00 | $0.00 |
| Total | $7,138,564 | $5,742,704 | $1,935,859 | $11,325 | $22,007 | $-12,482 |
