Businesswoman Matilda Sánchez, a graduate of the University of Puerto Rico (UPR), has a lease with an option to purchase a building that the institution inherited at the entrance to the Botanical Garden, in Río Piedras.
Her monthly payment is $700. She obtained it following going through a process that she identified as a kind of auction. To win it, she met many requirements. But, in the end, she recognized that undergoing this process represented her “promise to start over” and start out as an entrepreneur.
“It was truly a blessing. We mightn’t have done it any other way.“, she stressed.
Initially, the woman, known as Maite in the Venezuelan community, said that without this opportunity it would have been difficult for her to establish her locksmith business, The Key Lock and Safe.
“Otherwise, we probably wouldn’t have qualified for a loan for the building and there would have been more costs. Because, if you go to the bank, well, then you have appraisals, other expenses,” she explained.
She added that “having that purchase option contract does not reserve my purchasing power. In other words, it does not harm my credit, I am not reserved from that credit. Sometimes I need to buy tools, inventory for the projects I do, and then, well, if it had been a mortgage, for example, my purchasing power is adjusted to that debt.”
But what seems “fantastic” to the businesswoman is that for the five years in which she will be paying $700 a month, her payments will be credited to the total sum for which the building will be sold to her.
Sánchez said that the five years she agreed to rent with an option to buy expire in May 2025. She did not want to advance the agreed sum to complete the transaction and become the owner of the property. However, she assured that the savings she has had under this agreement with the UPR, the contracts she obtains to provide services and renting half of the building to the business Doctor Gomas will help her acquire the property in cash.
The businesswoman said that she learned regarding the building through the owner of the tire shop. She said that she immediately went to the UPR Central Administration to look for details.
“I spoke to them and they guided me,” she said.
See the list of available properties here
Sánchez said that she was made to look for “a lot of documents, but many of them were free and were found on government websites.” These included her last five income tax returns, certifications that she has no debt to the government, and even her certificate of good conduct.
However, she noted that the UPR helped her fine-tune her business plan, which has helped her succeed.
“I found that I was welcomed. I was treated very well. They saw my needs, they guided me on what would be most advisable, they took their time.. They were demanding and persevering in the documentation that one presents. But, that help that the university provided me, at least certified that I was on the right path,” she said.
The businesswoman said that she spent $5,000 in the process of acquiring the building under contract with the UPR. In addition, she had to obtain public liability insurance that exempted the institution from any incident in the building, which she said costs over $1,000.
She also had to take charge of improvements to the building, which had been unused for regarding four years. These improvements included checking the paint for lead and the building for asbestos, sealing the roof and fixing the floors, among other things.
Another aspect that the UPR is demanding regarding is knowing whether the company transfers its Sales and Use Tax amounts to the Treasury Department on a monthly basis, as well as whether it complies with all regulations.
But what satisfies Sánchez the most is that, “right now, thanks to the benefit that the University extended to us, of those facilities Seven families live there. Between the tire and me, who is in the locksmith shop, we have seven coworkers who are working day following day. We contribute to the community because we present products and solutions specifically for the Venezuela and Río Piedras neighborhoods, which have their own economic level and particular needs, which, for example, a locksmith from Plaza Las Américas will not have.”
Sánchez is also pleased to be able to contribute to the scholarship fund for students at the UPR, where she studied a bachelor’s degree in computer science and a master’s degree in finance.
“I understand that these scholarship programs are the future of Puerto Rico,” she said.
After telling her story, Sánchez joined the call for citizens to report to the UPR buildings, farms, houses or apartments that are abandoned or for which it is unknown whether they have heirs. She explained that, with more properties, the University can help more people who want to start their own business.
“I understand that this is an incentive, it is a way of developing our market, our professions. The University is doing it in a humane way, it is a way that identifies with the needs of people,” concluded Sánchez.
UPR Graduate Leases Building with Option to Purchase, Embraces Entrepreneurial Journey
Matilda Sánchez, a graduate of the University of Puerto Rico (UPR), has taken a bold step toward entrepreneurship by securing a lease with an option to purchase a building owned by the institution. Located at the entrance to the Botanical Garden in Río Piedras, the building provides a prime location for Sánchez’s locksmith business, “The Key Lock and Safe.”
Her monthly payment of $700 is the result of a competitive process, akin to an auction, where she met a series of rigorous requirements. Despite the challenges, Sánchez views this endeavor as a “promise to start over” and embrace the journey as an entrepreneur. “It was truly a blessing. We mightn’t have done it any other way,” she emphasized.
A Chance for Growth and Empowerment
Sánchez, known as Maite in the Venezuelan community, acknowledges that this opportunity was crucial for establishing her business. “Without it, we probably wouldn’t have qualified for a loan for the building, and there would have been more costs. If you go to the bank, you have appraisals and other expenses,” she explained.
The lease option contract, Sánchez notes, provides financial flexibility. “It does not harm my credit, I am not reserved from that credit. Sometimes I need to buy tools, inventory for the projects I do, and if it had been a mortgage, my purchasing power would be adjusted to that debt.”
A Win-Win Situation for All Parties
The terms of the agreement are particularly appealing to Sánchez. For the next five years, her monthly payments will be credited towards the total purchase price, making the acquisition more feasible. “It’s fantastic,” she remarked.
Sánchez plans to utilize her savings, ongoing business contracts, and income from renting half of the building to “Doctor Gomas” to acquire the property in full by May 2025.
Navigating the Process and Securing the Property
Sánchez discovered the available building through the owner of the tire shop located nearby. She immediately contacted the UPR Central Administration for further information and guidance.
“I spoke to them, and they guided me,” she said. [Link to UPR property list: https://www.upr.edu/inventario-de-propiedad-inmueble/ ]
The process required Sánchez to gather extensive documentation, including her last five income tax returns, certifications of debt-free status with the government, and even her certificate of good conduct. However, she notes that the UPR provided valuable assistance in fine-tuning her business plan, playing a significant role in her success.
“I found that I was welcomed. I was treated very well. They saw my needs, they guided me on what would be most advisable, they took their time. They were demanding and persevering in the documentation that one presents. But, that help that the university provided me, at least certified that I was on the right path,” she shared.
Investment and Community Impact
Sánchez incurred an initial investment of $5,000 in acquiring the building, which included obtaining public liability insurance that exempts the UPR from any incidents. Additionally, she was responsible for bringing the building, which had been vacant for four years, up to code. This included assessing for lead paint and asbestos, sealing the roof, and repairing flooring, among other improvements.
The UPR also requires ongoing compliance verification, including confirmation of monthly Sales and Use Tax payments to the Treasury Department and adherence to all regulations.
Despite the investment and adherence to regulations, Sánchez is immensely satisfied with the positive impact of her business on the community. “Right now, thanks to the benefit that the University extended to us, seven families live there. Between the tire and me, who is in the locksmith shop, we have seven coworkers who are working day following day. We contribute to the community because we present products and solutions specifically for the Venezuela and Río Piedras neighborhoods, which have their own economic level and particular needs, which, for example, a locksmith from Plaza Las Américas will not have.”
Supporting the Future of Puerto Rico’s Students
Sánchez expressed pride in contributing to the scholarship fund for UPR students. “I understand that these scholarship programs are the future of Puerto Rico,” she emphasized.
Call to Action: A Shared Opportunity for Growth
Sánchez encourages individuals to report any abandoned or orphaned UPR properties, such as buildings, farms, houses, or apartments. She believes that by increasing the number of properties available, the University can empower more aspiring entrepreneurs to follow in her footsteps.
“I understand that this is an incentive, it is a way of developing our market, our professions. The University is doing it in a humane way, it is a way that identifies with the needs of people,” concluded Sánchez.
