Category Archives: Business

Jackson State University Alumnus & Former NFL Player Turns HBCUpreneur/Chefpreneur

Posted on April 24, 2018 by | Leave a comment

“Cooking is not just about ingredients, recipes, and cooking. It’s about harnessing imagination, empowerment, and creativity.” – Guy Fieri

The road to success rarely takes the path we have drawn up for ourselves. Along the way as we are pursuing our success we start to learn more things about ourselves. We may realize what we thought was our passion really is not and something we have tinkered with actually is the thing that truly brings heat to our kitchen. Enter, Tobias Dorzon, a Jackson State University alumnus, who spent multiple years in both the NFL and CFL, but whose true calling had been more or less a mere hobby.

In a recent interview with CNBC, Tobias Dorzon reveals how he hung up the cleats, picked up the apron, and became a culinary superstar –  actually the latter following in the footsteps of his father. He tells CNBC, “Cooking was something I always loved. But it wasn’t until I ventured off and stopped playing (sports) that I realized I loved it more than football.”

Now, Dorzon is the owner of Victory Chefs, a catering company started in 2014, and Victory Truck, a food truck venture which launched January 2018 and tackles the streets and stomachs of Washington D.C. The food truck and catering company are a launching pad for Dorzon to one day open a full-service restaurant as word travels throughout the D.C./Maryland/Virginia area of he and his teams exquisite cuisine.

HBCU Money reached out to Mr. Dorzon and Victory Chefs, inquiring how his time at Jackson State helped prepare him, “Being the unofficial team chef while I played ball was my first segue into preparing meals for athletes. We were a family on and off the field, and me being able to feed my brothers the home cooking that they were used to from back home was a great feeling!”

This is a prime opportunity to connect the work that agricultural HBCUs also known as the 1890s do with African American farmers and farms and connect them with the end users like Chef Dorzon, all while creating research opportunities for the institutions themselves. It also bodes for an argument, that an HBCU culinary school should be formed to diversify, hone, and explore the interest of many African Americans who may want the HBCU experience, but have a non-academic interest. There is lot to bite off and chew in the possibilities of connecting our ecosystem, but with stories like Chef Dorzon’s, we expect it will be an amazing meal that we can all enjoy.

Visit The Victory Chef team at https://www.thevictorychefs.com/

You can also find them on Instagram: @kingcheftd & @thevictorytruck

 

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Kolors By K Hops Into Rarefied Air By Landing Leaping Bunny Certification

Posted on March 15, 2018 by | Leave a comment

In another milestone for startup cosmetic company Kolors By K, they recently became a recognized company by Cruelty Free International’s Leaping Bunny Program. The program per their website, “is the gold-standard in cruelty-free certification for personal care and household products companies and signifies no animal testing at any stage of product development.” Internationally, there are less than 1,000 companies with such designation. As consumers become more conscious about how the products they consume are made, being an early adopter of Leaping Bunny’s criteria is poised to position Kolors By K as an up and coming leader in the cosmetic industry.

The beauty industry itself seems to just keep going and going like another bunny, growing from $160 billion in sales in 2003 to almost half a trillion in sales today. It is an industry that seems to show no signs of slowing down either, especially with people living longer and the rising middle classes in developing nations, there will be demand on vanity and simply feeling good about oneself that the beauty industry provides. It also does not hurt that this industry is women-centrist as we appear to be entering a golden age of women empowerment. Women who want to conquer the world, look good doing it, and who just happen to be more and more in control of the household incomes the world over. The industry is brimming with opportunity and that is one reason Kolors By K looks poised to leverage this recognition.

We reached out to Kolors By K Founder and CEO Kalauna Carter for comment on her company’s achievement, “To see Kolors By K get the Leaping Bunny Certification really gave us the push to keep going. If you are an entrepreneur and you hand make your products, to have your products Leaping Bunny Certified makes them official, internationally. The certification helps with reaching other potential customers in other countries. To be Leaping Bunny Certified is truly an amazing feeling for my company.” It is clear that Ms. Carter sees this as a moment that could take her company to another level. This just reaffirms the values, strategy, and direction that Kolors By K is setting for its future, which at the moment is shining brighter than ever.

 

 

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The Conundrum Of HBCUs & American Campus Communities

Posted on October 15, 2017 by | 1 comment

Glorious shall be the battle when the time comes to fight for our people and our race. – Marcus Garvey

It is often preached that one of the major obstacles to African American economic development is the inability for the African American dollar to circulate within the community. This is often viewed on an individual level by where African Americans shop or eat, but what about at the institutional level? Do African American businesses and institutions like HBCUs also have a role to play in the circulation of the dollar? The answer is without a doubt, yes. Perhaps even more so and more impactful than anything individuals can do. Yet, it seems that when it comes to real estate development and student housing, specifically HBCUs have missed a golden opportunity to circulate millions of dollars within the African American economic ecosystem. To be more blunt, they have failed. That land development is not more revered is somewhat remiss given the lore of the 40 acres and a mule legacy within our communities, but our lack of strategic integration has become others opportunities.

American Campus Communities is a real estate investment trust (REIT) that was co-founded in 1993 by Bill Blayless. Its primary developments are as their name suggest focused on college and universities both on and off campus and primarily housing with some retail mixed in. They have built 206 developments spread across 96 colleges of which 11 have been built on 7 HBCU campuses. Prairie View A&M University, which has a twenty year relationship with ACC,  has the most with four developments with the most recent one opening in 2017. ACC as they are known by their ticker symbol is publicly traded with a market capitalization of $6.1 billion and annual revenue of almost three-quarters of a billion dollars. They have a unique niche in the campus housing development space. However, the story does not simply end there.

If HBCUs are going to do business with developers that are not African American and more importantly HBCU alumni, then there should be something that compels them to do so. A company with an outstanding track record for diversity, a stake of the company in their endowment portfolio, etc. Yet, further examination of American Campus Communities leaves serious questions about exactly who is making the decisions to use them for HBCUs. Of the company’s executive team, senior officers, and board of directors there is not one African American present and no HBCU alumni present either. In fact, there are no ethnic minorities period on the aforementioned groups and only a handful of women. What are decisions like this saying to our community that we so passionately claim to be saying we have the interest of? Are we to believe that there are no African American real estate developers who we trust or are worthy of such projects?

Bob Johnson, Sharon Johnson, and Quintin Primo, three African American real estate developers with a combined net worth of almost $2 billion, have developed multi-faceted real estate development corporations and are nationally known certainly would seem more than capable of handling the multi-millions worth of development that happens at HBCUs. There are likely hundreds if not thousands of local African American developers as well like Sharone Mayberry in Houston, Texas who renovated Unity Bank, the only African American owned bank in Texas, and is leading the efforts of renovation in Houston’s historic Third Ward.

It is hardly a surprise that some of these HBCUs are being directed who to use or even having it chosen for them as six of the seven HBCUs who have ACC developments are state schools with Clark Atlanta University being the one private school. Being a public university means that public politics from the gubernatorial office and state politicians have a heavy influence on who receives government and public contracts for work throughout the state. This probably comes with a concerted lobbying effort by ACC to select politicians who make the decisions. The autonomy that state/public schools among the smaller schools (see HBCUs) often marginalizes their decision making while the state’s flagships tend to have the political capital to leverage their own autonomous decisions as it relates to almost every facet of their strategic decision making.

To be clear, this is not a suggestion that all American Campus Communities needs to do is add a token African American to their executive team or board and all is right in the world. That would still not create institutional circulation of the African American dollar and ultimately that is what this is about. If embracing the true circulation and creating a multiplying effect it would take HBCUs concerting with African American financial institutions to sell the bonds that would raise the funds for such construction, then taking that funding and having a request for proposals that ensured HBCU engineers, architects, and developers were a healthy percentage of those who were vying for the bid. Something akin to the Rooney Rule that the NFL uses in ensuring minority coaches get interviewed for head coaching positions that come available. The fact that HBCUs do not seem to be making a more vigorous effort to do this is troublesome.

Time and time again, African American institutions, be it HBCUs, churches, or businesses operate in their own bubble and are not more purposeful in integrating themselves, which makes the dollar within our communities even more difficult to circulate and therefore antagonistic to our institutional economic development. Alumni must deepen their resolve to be involved in not only fundraising for HBCUs, but auditing where those dollars go once they are received. It would be prudent if alumni demanded accountability of just how much of the annual services and products were bought from businesses owned by HBCU alumni. There is a long way to go in moving the needle on circulating our dollars more effectively, but a $10 meal at an African American restaurant versus hundreds of millions in development deals between HBCUs and our own real estate developers is a stark difference in getting us there.

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Is African America’s Financial System Collapsing? The Sale of First State Bank Reduces Black Banks To 19

Posted on July 3, 2017 by | Leave a comment

“First we need a savings bank. Let us put our moneys together; let us use our moneys; let us put our money out at usury among ourselves, and reap the benefit ourselves. Let us have a bank that will take the nickels and turn them into dollars.” -Maggie L. Walker

The #BankBlack movement maybe moving, but quite simply it is not moving fast enough. After almost 100 years in business, First State Bank, the last African American owned bank in Virginia, has sold the majority of its ownership to Casey Crawford, CEO & Founder of Movement Mortgage (pictured above). The sell reduces the number of African American owned banks to 19 and represents an almost 20 percent decrease in the number of African American owned banks lost in the past two and half years.

It has been seen that with the absence of African American owned banks and credit unions comes much predatory behavior to the community. Banks like Wells Fargo and Citigroup have paid hundreds of millions for their behavior and payday loans are as rampant as ants at a picnic within the community. Since desegregation, African American institutions from neighborhoods to businesses and even schools that were inherent to the interest of African America have been in a struggle to stem the tide of a collapsing institutional fabric.

As recently as the early 1990s there were over 50 African American owned banks in the United States. First State Bank’s sale removes $32.9 million in assets from African America’s financial hold. Key states absent of an African American owned bank were already Florida, Mississippi, New York, and Ohio all of which have major African American populations. Now, add Virginia to that list which is a key state down the I-95 corridor and proximity to the nation’s capital. The loss of First State Bank truly echoes tears of frustration as Virginia was the home of Madam C.J. Walker’s St. Luke Penny Savings Bank, which she chartered in 1901 making her the first African American woman to charter and preside over a bank. Now, there are none in the state 116 years later. Is this what we call progress?

There has not been a new African American owned bank opened in seventeen years since Alamerica Bank was opened in Alabama. The #BankBlack movement is simply not enough if African American institutions like HBCUs, businesses, fraternal organizations, and the like are not willing to move their deposits into them. A harsh reality is that lending to the African American community is risky. We have lower median incomes, less assets, and more volatile working lives. The chance that we could become unemployed is a much higher probability than other Americans, therefore our banks are always at more risk for loan default from us. They need even more reserves than banks like JP Morgan and company who are being required to hold more because of their systemic importance. Our banks must look at themselves in the same light, they are systemic to our community’s financial health. If not, the candlelight of opportunity is going to quickly fade away into darkness when African America truly has no place to turn for its own financial well being.

First State Bank closing is more than just 100 years of financial stability to southeast Virginia’s African American community, it is another nail in the coffin of African American institutionalism which we so desperately need to revive.

 

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2017 National Real Estate Preview: HBCU Alumni Real Estate Agents Look Ahead To The New Year

Posted on May 14, 2017 by | Leave a comment

An HBCU alumna and ally who are now prominent real estate agents sit down and talk with us about what to potentially expect for the year ahead in the real estate market covering coast to coast.

Tiffany Curry (top left) – A Texas Southern University alumna who now works for Berkshire Hathaway Home Services Anderson Properties in Houston, TX.

Kimberly C. Lehman (top right) – An HBCU ally who is married to a Hampton graduate and now owns and runs KC Lehman Realty as a division of John Aaroe Group in Los Angeles, CA.

What do you believe the rate hike in December by the Federal Reserve may do to the coming year of real estate?

TC: I believe the rate spike will motivate buyers that have been on the fence. I think people will fear the rates may continue to rise and that we will see an increase in buyers purchasing homes. Rents are at record highs. It is still less expensive to own vs. lease.

KC: If the interest rates rise in the way we expect, it will impact how much buyers currently in the market can afford. As such, home values should level out, but many buyers will continue to be priced out.

Tell us something that makes you optimistic and pessimistic about the 2017 real estate market?

TC: I’m excited that the 2017 market has already shown positive signs of movement. I currently have clients who are ready to sell and purchase new homes in the first quarter of 2017. I expect my business to double in the 2017 year which is remarkable in the current marketplace. Consumers are seeing value in homeownership and are trading their homes for more space or better locations.

KC:  Optimistic: In Southern California, there is no shortage of buyers, and therefore opportunities for business continues to grow. If values level out, that might balance out the supply and demand which also equals more opportunities for business.

Pessimistic: Uncertainty of our new administration has sellers that ordinarily would sell right now holding tight. Also current home values will cause some buyers who are unwilling to compromise on property location and/or condition to drop out of the game.

Where do you see the most opportunity for real estate investors in your market for 2017?

TC:  In Houston, we have a diverse and growing economy. I see development as an excellent place for investors. Land purchases should be key for investors as the Houston population will nearly double by 2040. Land will become scarce and is a great opportunity for someone that can buy and hold.

KC: Southeast Los Angeles if they are smart. They missed the boat on Inglewood.

Companies like Redfin, Zillow, and others are disrupting the traditional real estate market. How are you seeing their presence influence the real estate market?

TC: Houston is a rare marketplace where we have our own local consumer public facing website, har.com. HAR.com is the only site in the US where Zillow, Realtor.com and others do not hold prominent market share. This has enabled brokers and agents in the market to maintain their presence without the need for an outside third party. Redfin however has come into the marketplace as they offer a discount service. Consumers who want to save on commissions are using their services however it is in line with the traditional discount brokerages that would have attracted this type of consumer. Although they are capturing consumers they still are a very small impact in our local market as most consumers still want the guidance and expertise of a REALTOR that has time to handle their needs rather than one that is focused on transactions.

KC: Buyers and sellers are relying on these sites to educate them about the real estate process and home values. As it relates to the latter, none of these sites are truly accurate. Redfin in particular has gotten their own market share of listings and buyers through their site and their agents are in direct competition with those of us at traditional brokerages. They aren’t always knowledgeable of the areas they are tied to via the site. I’ve heard horror stories!

On the upside, Zillow reviews are liquid gold to agents in the field.

Since reaching its all-time high of 49.1 percent in 2004, African American homeownership has now fallen to an all-time low of 41.1 percent as of third quarter 2016, an almost 20 percent decline. What do you believe can be done in the foreseeable future to reengage the African American consumer?

TC: I believe the African American consumer must be reeducated on the value of homeownership. Homeownership for most Americans is their primary source of wealth and assets. I believe our communities, churches and social groups must put more emphasis on the value of owning the land beneath your feet. As one of the largest groups in consumer spending we must do a better job of prioritizing what we spend our monies on. Material items that depreciate are not the key to wealth. Laying the foundation to a solid financial future for our children and their children’s children are what we must focus on. Building and maintaining our communities by owning what is in them is key.

KC: African Americans need to pool resources in order to compete with the current buyers in the market. Often, our community looks to FHA, NACA, CALHFA and other government programs to help us – but unless we are shopping in low income areas, we can’t compete with the cash offers elsewhere. If we work together and create real estate investment groups we can began to establish potential generational wealth for our heirs.

Thank you for participating ladies and we look forward to your 2018 forecast! To reach these agents please click their names to be directed to their websites.

Tiffany Curry – Houston, TX

KC Lehman  – Los Angeles, CA

 

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