Below I describe in detail the work I have done during a period of 20 years, managing a large real estate patrimony. In the course of this work I have developed my experience and practical training in commercial and business management as well as my law training in the real estate sector; and particularly in the area of urban rentals in different uses: commercial, offices and residential.
The real estate patrimony I have managed is located in Madrid. It belonged to a family, consisting of a mother and her son; for which I have been working during a period of 20 years until the decease, first of the mother and later of the son.
Such real estate patrimony has been valued in 2008 by a certified real estate appraisal society, with an estimate of the present worth of the whole properties, in 35 millions of Euros. It was composed of a complete building in the center of Madrid -Puerta del Sol- and 53 additional real estate properties.
Activity and functions:
In the last years the regulations of the Madrid City Council, has been increasingly demanding in health and security matters. This obliged me to carry out studies and projects of renovation and rehabilitation of the real-estate patrimony of the family, very aged by its antiquity -many of them from the 19th century.
In spite of the considerable real estate business and patrimony volume, I personally did all management and daily work; and only had help, from an specialized taxes firm, for yearly taxes and monthly social security requirements of the the building janitor.
In the management of the whole patrimony of the family, my criteria were to considered it as a productive company or business; trying to apply the best practices of effective business management with the major possible benefits, as if the business were of my own.
To the death of the mother, as a result of my management , I had a reasonable financial liquidity. However, due to the above mentioned decease, with the existing liquidity I had to pay the Inheritance Taxes -Tax on Successions-, at that time a very high percentage; and the municipal appreciation taxes as well. As a consequence, I remained without liquidity. That is to say, on the year 2000, selling a flat of the patrimony, negotiating payment delays with the Treasury -Hacienda-, and self-financing payments with rentals, I managed to pay the taxes while maintaining an operative liquidity; all that without any bank loan or mortgage.
Finally, in March of 2008, after the accidental decease of the son, as a result of my profitable management of the patrimony, I maintained a high financial liquidity; and again all that without bank lending's, mortgages or any debts.
The strategy of my management were based on the rentals business of real estate properties of the family, with the following criteria:
The business essential issues I faced with, were:
I simultaneously managed all the above with renewed rentals which provided a good global profitability to the business.
In the same way, as a result of my management and work, various real estate were rehabilitated and reformed: the building in the center of Madrid, and various ITEs (Inspección Técnica de Edificios) and reforms. All that completely finished and paid.
The balance or final results of my management and work were the following:
After the decease of the mother and consequent payment of the Inheritance Tax -Impuesto de Sucesiones- in November 1999, I practically had no financial liquidity to manage the large family real estate and business.
From the death of the mother to the death of the son, in February 2008, the final results of my management and work were: