An elated Helen Flowers listened with an unmistakable exuberance as Earl G. Graves Sr., chairman and publisher of BLACK ENTERPRISE, told her she was the 2006 winner of the Own Your First Home Contest and would be awarded $10,000 toward the down payment on her new home. Flowers was chosen as this year’s winner from a pool of nearly 1,100 applicants. Her compelling story, thorough knowledge of the home-buying process, impeccable essay, and determination to build wealth through homeownership make her a perfect example for readers to follow. Flowers has come a long way since relying on public assistance some 15 years ago; now goose bumps ran up and down her arms and tears of joy flowed freely. The clock was now ticking, however, to get the deal done.
Flowers and her team of attorneys and bankers had to act fast to apply the prize money toward the purchase of her $333,900, four-bedroom, two-bath home in New Windsor, New York. Now the team needed to address new questions, order new documents, confirm new numbers, and, ultimately, reschedule the closing.
“At every round, I had to get it done. I didn’t want to just half do it; I wanted to do it with excellence because that shines
I’m through,” says the 40-year-old divorced mother of two, recalling the rigors of the contest. “It was challenging because there were deadlines that had to be met for BE, but I also had to work on the details of getting the house itself — and try to balance my work, my children, and my ministry. It was crazy.”
Nonetheless, Flowers would close almost a month later with several of her closest supporters in the room, including her mother, brother, and children, marking the culmination of a long road toward homeownership that began more than a decade ago.
Flowers, director of appeals and internal quality review for the City of New York’s Department for the Aging, was determined to build a better life for her children and her parents. When they were young, Flowers and her then-husband dreamed of owning a home together in which to raise their children, but that never materialized. “When you’re married at 16 and pregnant at 17, it’s like the blind leading the blind,” says Flowers, mother of Michael, 22, and Jasmine, 14. Although her marriage eventually deteriorated, her resolve to become a homeowner did not.
Being a single mother without a college degree, however, limited employment opportunities for Flowers. Fifteen years ago, she says, “I was on welfare and I took advantage of it and did something with it … I got my associate’s degree from Bronx Community College, a bachelor’s degree from Lehman College, and now I’m studying toward a master’s degree.” Flowers still resided in the Bronx, New York, housing project she grew up in. Yet, she never let her environment define who she would become.
Instead it was her faith, she says, not her circumstances, which would ultimately sustain her. “When you put God first, he will give you the desires of your heart,” says Flowers, an ordained minister. By living by the law of reciprocity — that of giving and receiving — she was able to encourage others to do more with their lives and has been blessed in return.
As one of millions of baby boomers who neatly fit into the “sandwich generation” — those middle-aged workers who find themselves simultaneously caring for growing children and aging parents — Flowers determined that she would create a new legacy for her family, one of homeownership, which is the premise of Declaration of Financial Empowerment Principle No. 1: to use homeownership to build wealth.
Designed to encourage African Americans to build multigenerational wealth, BE’s Own Your First Home Contest enhanced Flowers’ chances to do things differently. “This contest offered me an opportunity to achieve one of my greatest dreams, to leave a legacy for my children, to build wealth, and to see what my hard work can do,” she says.
GETTING SERIOUS ABOUT HOMEOWNERSHIP
Flowers started on the path to owning a home in 2002 by “inquiring about the process, from getting a mortgage to the closing. However, reality hit when banks denied my requests due to my horrendous credit history.” She contacted the three major credit bureaus to review her credit
I’M HOME!
To create another income stream, Flowers took a course and now prepares taxes on the side, a gig that brings in nearly $4,000 annually. Flowers, who now earns about $72,000, prepares taxes and advises her clients on how to prepare fiscally for the future. Her tax savvy will come in handy as she becomes a homeowner as well. “You can break up real estate taxes quarterly or semiannually,” she says. “[In New York,] you can get a deduction off of your real estate tax and school tax. You can also make a deduction during the tax season and when you get your refund, it will cover you for the first couple of months of the mortgage, in order to not deplete all of your funds.”
With a renewed vision to get her financial house in order, Flowers was on track to buy a home. She committed to an aggressive savings plan and eliminated unnecessary spending to save $22,000 in two years. “I honestly believe that the reasons my finances began to grow was because of great discipline and being a faithful steward in the house of God as a tither and a cheerful giver,” she says. “By 2004, I paid [off] all my credit accounts and my car note, and I now owe a small student loan and a college credit card.”
FINDING HOME SWEET HOME
Finding the perfect home would prove challenging for Flowers, who had a few requirements. City government workers were required to live within the five boroughs of New York City, where it’s difficult to find an affordable home in a safe area. In addition, she wanted to purchase a two-family house so that she could help care for her aging parents. “What started out as an optimistic search became painful,” she recalls. “The market was terrible; the only two-family houses I could afford were in downtrodden areas, and the best required too much money down.” In fact, after signing contracts and spending money for inspections, appraisals, and attorney’s fees, two deals fell apart right before her eyes.
Then, in 2005, the tide turned. The city government worker residence rule was lifted, freeing Flowers to look outside New York City. She worked with several real estate agents and became a lot more selective about her power team. “I’ve learned that whenever you’re making major moves, you must do more competitive shopping and networking to seek out the best people and services.” Fortunately, Flowers knew exactly what she wanted in a home, including the price, location, type of home, demographics, and accessibility to the city. “All of those things were my concern because I have children. [Agents] would show me houses that just didn’t fit my criteria. They thought if the house was a great price it didn’t much matter if it was in a poor neighborhood,” says Flowers. After working unsuccessfully with other agents, Flowers hired Taisha Holmes, with Prudential Rand Realty in Central Valley, New York.
Holmes showed Flowers 10 houses their first time out. With flashlights in hand, they peeked under cabinets and peered through windows. After viewing several homes, Flowers found the perfect house for her and her family: a sky blue colonial that sits on a 1/2 acre, complete with a decorative well and pine trees. Holmes advises choosing real estate pros with caution. “Do your homework on the people that you use, and don’t take the first [house] you see. Find out w
ho your [agent] is, and get a reputable mortgage broker. I’ve seen a lot of brokers promise the world and then [not deliver].”
At times, prospective home buyers will go through this process without ever really speaking to the people on their team. But getting to know them, who they are, and what they stand for and against should be a priority. “Start early in the process because it’s important to do your research in the market, to know all the properties out there. By looking online, talking to people, and talking to brokers, you’ll have a better chance of finding
the right property for you,” advises Joe Holland, a real estate developer with Uptown Partners in Harlem. Also, make sure you save enough money because you’ll need “to have as much capital to invest as possible. It’s not only the down payment — it’s closing costs and moving costs,” he says.In addition, read books such as Mortgage Confidential by David Reed (AMACOM; $16.95), an excellent resource. “I’ve read about the process,” says Flowers. “But researching and learning and going through are a whole different thing. Do your homework; don’t just be led by referrals. Get to know these people, how long they’ve had their positions. Feel comfortable with the people [who] are serving you. You want people who have your best interests at heart.” To get started, check out sites such as www.hud.gov and www.fredddiemac.com.
BUILDING A LEGACY
Now that the papers are signed and the deal is done, Flowers is preparing to make her new house a home. “It’s always been important to me that my children have better,” she says. “By investing in homeownership, I can leave this behind for them. And now, they know it’s possible; you don’t have to live in an apartment all your life. They have something they can look at and say ‘This is my family’s, we own this.'”
For Flowers, buying her home was about more than just gaining an asset: She wanted to create a legacy as reflected in DOFE Principle No. 10: to ensure that my wealth is passed on to future generations. In addition to her home, Flowers owns several assets including IRAs, stocks, vacation and Christmas club accounts, and stock options through H&R Block. Her next steps include opening her own practice in taxation and finance. “I see myself investing in other properties as well and taking on new opportunities in my career.”
Clearly, this is just the beginning of new things for Flowers and her family. If you’re planning to purchase your first home over the next year, check in at blackenterprise.com for details on the next Own Your First Home Contest.
— Additional reporting by Sheree R. Curry