Alumnus Wins Black Enterprise Financial Fitness Contest

Tyron Springs is unlike his peers and other recent college graduates who are wallowing in financial ruin as a result of student loans and unsound financial decisions.

Springs, 23, is relishing in praise from one of the financial community's most esteemed publications, Black Enterprise. In only three short years, Springs, has amassed over $700,000 in real estate property.

Springs, a Howard University alumnus, is commercial document specialist at the Bank of Oklahoma in Tulsa, Oklahoma. During his senior year at Howard, Springs decided to take his first steps toward economic empowerment.

In December of 2003, Springs, New Jersey native, bought his first house in Philadelphia for $65,000. The next year he bought two more Philadelphia row houses for less than $50,000 each. Then in 2004 he bought another house in Philadelphia for less than $50,000. Springs now a owns a total of seven houses; four in Philadelphia and three in Oklahoma.

During his time at Howard University, Springs was a Spanish major and an economics minor. Initially, Springs had wanted to be an economics major and a Spanish minor, but he'd accumulated so many Spanish credits in high school from taking advanced placement courses, that he was able to graduate in three years instead of four with a B.A. in Spanish.

Springs does not makemuch money at his current job, roughly $34,000 a year. However, the rental income from Springs' properties produces another $17,340. According to the National Association of Colleges and Employers the average annual gross income for a recent college graduate with a background in economics is $42,802. Springs' aggregate annual income is $51,340.

For many young adults owning a home is simply a bullet on their "Things to do in the Next ten Years' List." Few students have enough money or a credit report that is impressive enough to purchase real estate. For Springs, these two things proved to be insignificant.

Springs, the exception, worked in the metropolitan area as substitute teacher for grades 9-12 while he was student at Howard University and saved a great deal of his earnings. "While other students were buying new clothes and new cars, I took the metro and saved my money," Springs said. He'd also been a credit card carrier since the age of 18, and had assembled a decent credit report. "Having a credit report is very important when one is trying to purchase property. I always paid my credit card bills on time and kept my credit score above 700," Spring said.

For him, buying real estate started as a safety net. Springs admits that he felt more comfortable buying houses than stocks. "At the time, I was a senior living in Slowe Hall and I really wanted a place of my own," said Springs when asked what was the major factor that prompted him to buy his first home.

Unlike the many young adults who are financially inept, Spring had interned with INROADS, an organization that seeks to increase business career opportunities of minority students. This internship and others helped Springs understand the importance of investing in real estate as a of method of building wealth.

"When I decided to buy a house I sought the service of a local personal banker that worked at the Bank of America in Chinatown. He gave me a lot of advice on the homeowner process, " Springs said.

Springs advises students to utilize their resources as he did his. "I learned the most about real estate from my family, friends and professors," Springs said.

Springs claims that to be a successful homeowner and landlord one must assemble the right team. "I made sure that I had the right attorney, the right mortgage brokerage, and the right CPA (Certified Public Accountant) to ensure that I would have the right situation," said Springs.

Currently, Springs is in his last year of law school at the University of Oklahoma at Tulsa. With a personal net worth of $266,000, Springs has his sights set on becoming a millionaire. "I believe [that being a millionaire] is a realistic goal. I think if I continue to make smart decisions like saving and investing, I think that I could be a millionaire before 30. I am already a quarter of the way there."

Springs insists that building up his net worth has made his life a 'tad' more comfortable but by no means extravagant.

"I still shop at discount stores, still go to the mall, and still drive the Honda I brought [as an] undergraduate," said Springs.

He maintains that his success has not really changed him. "The most visible change in my life is my domain. I currently live in a 4 bedroom, 3 bathroom house with an in ground pool. I maintain a home office, gym and a guest room. Anytime I invite my family over they are always surprised that I don't have roommates."

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.