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

Following Link takes you to a spreadsheet that shows value of each transaction, along with value of current holdings:

To view portfolio of total current holdings, please visit following link that shows spreadsheet to my real estate portfolio.

Get FREE Brochure

michael santos free investments brochure

See Each Real Estate Transaction

See Monthly Value of Real Estate Portfolio

Financials

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

See snapshot that shows performance of real estate values over time by clicking the following link:

 

 

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

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See Each Real Estate Transaction

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Financials
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