Twelve Million Exit Deal

From $1M Entry to $12M Exit — The AERAF Development Strategy | WalterSites Real Estate Podcast In this episode, Walter Rivera Santos walks through a real transaction — a 10-acre property in eastern Puerto Rico — and shows exactly how a family can enter a deal at $1 million and engineer an exit at $12 million. This is not theory. This is a real deal, real numbers, and a step-by-step development strategy built on five revenue streams, government-backed incentives, and a self-financing construction model. WHAT YOU WILL LEARN IN THIS EPISODE: → How a Lease with Option to Purchase works — and why it is the most powerful entry tool in Puerto Rico real estate for buyers who want to develop without paying full price upfront → What a cap rate is and how to use it to engineer property value intentionally — not accidentally → How Puerto Rico's Act 60 Chapter 5 Tourism Decree turns your construction budget into a government co-investment — where 40 cents of every dollar you spend comes back as a transferable tax credit → How a self-financing development model works — where each phase of construction funds the next, and the land pays for its own development → What a real exit looks like — not a hope, not a projection — a calculated, structured wealth event built on numbers you can verify right now THE AERAF MODEL: Arts · Entertainment · Recreation · Accommodations · Food Five revenue streams. One piece of land. One development strategy. One exit. KEY NUMBERS FROM THIS EPISODE: • Entry price: $1,000,000 (Lease with Option to Purchase) • Entry deposit: $50,000 • Phase 1 value: ~$3,600,000 • Phase 2 value: ~$7,200,000 • Full build-out value: $12,000,000 • Family net proceeds at exit: $5.7M – $7.6M • Act 60 construction tax credit: 30%–40% of eligible investment (transferable) • Cap rate principle: $1 of annual NOI = $12.50 of property value at 8% cap rate RESOURCES MENTIONED: • Invest Puerto Rico (free Act 60 consultation): investpr.org • Single Business Portal (Act 60 application): sbp.pr.gov • Walter Rivera Santos: WalterRiveraSantos.com --- Walter Rivera Santos | Licensed Real Estate Broker | Puerto Rico | Lic. C-24587 WalterRiveraSantos.com | Available on Apple Podcasts and all major platforms as WalterSites