Entrepreneur Building Financial Wealth

n this day and time, many of us are searching for some kind of financial security. The baby boomer generation is especially seeking financial security for the future because of the depleting funds of social security. Reginald Sanders, a Northside High School (NHS) 1976 graduate, is an entrepreneur that has taken control of his financial security and at the same time trying to help others obtain theirs. Sanders is the owner of Pinnacle Properties, a real estate and investment company located in the Whitehaven area of Memphis. He is also co-owner of Sanders Catering.

The Early Years

During Sanders years at NHS, he played on the basketball team and was a member of the gentlemen's club called the Esquires. After high school, Sanders attended the University of Tennessee at Knoxville. He graduated in 1980 with a major in Accounting and minor in Real Estate. During his summer breaks, he would work at his father's real estate company called Sanders Investment Group. After graduation from UT Knoxville in 1980, he landed his first job as an Auditor for a CPA firm in Memphis. After one year, he moved to Dallas, Texas where he lived for the next eight years before moving back to Memphis. He worked as either an Auditor or Tax Accountant in Dallas. He also made several investments in real estate property in the Dallas/Fort Worth area. He started his first business venture in Dallas with one of his brothers. The company was called Horizon Enterprises, which sold bookshelves and audio speakers.

The Move Back to Memphis

Sanders decided to move back to Memphis when he and his brothers Odell, Michael, and Orlando decided to start a catering business called Sanders Catering. Several of his brothers had food service backgrounds and with Sanders accounting background, they believed they had the resources to create a thriving business. After combining their resources, the brothers renovated a building that they purchased in the Whitehaven area and started their catering business. The building includes a banquet facility that seats about 300 people. The banquet facility has been used to host receptions, prayer breakfast and banquets. Sanders Catering also provides catering for events held off-site. Most of the business they do is off-site catering.

Family Business in Real Estate

Sanders took over his father's business when his father, Olion Sanders, passed away in 1995. Sanders changed the name from Sanders Investment Group to Pinnacle Properties to go more in line with the direction that he wanted to take the company. Pinnacle Properties sells residential homes to their home buying clients as well as purchasing real estate property for their investors. "Some of our investors buy property to rent or renovate and resell. It could be anything from a house to an apartment building. Pinnacle Properties also make real estate investments within the company by buying and renting property along with renovating property for resell," says Sanders. When working with their residential homebuyers, Pinnacle Properties work with their clients to get pre-approval for financing to buy a home before homes are shown to the client. This way they know what price range the homebuyer can afford to purchase a home and the type of loan they qualify for, such as FHA or conventional loans. They also inform the client as to how much cash they will need and estimate their monthly mortgage payment. "We don't want to write a contract for a home when we don't know the amount of the loan approval. It can be disastrous if someone ends up liking something that they cannot afford." Pinnacle Properties has a new homebuyers program that is designed to introduce the homebuyers to different mortgage programs according to their income or as a first time homebuyer. Therefore, they can match the client with the lending program that will benefit them. Sanders is the only family member that handles residential sales. However, he has several family members who are involved in the investment side of the business.

Success and Growth of the Business

The success of Sanders' business comes from his willingness to invest the necessary hours needed to make his business succeed. He takes the time to reinvest in himself, by continuing to education himself. He knows the dynamics of his business and keeps abreast of the continuous changes in the real estate market, new trends, as well as technological innovations. Sanders tries to stay ahead of the curve by knowing what the trends are and pointing the business in that direction. He has experienced tremendous growth within his company.

Initially, his real estate business was geared toward the residential market. Now the business has grown through their own investments and helping others invest in real estate. "Real estate is good way to build wealth and cash flow. You don't have to quit your job to manage it. Some of our clients buy about one or two properties a year to renovate, resell and make about $10,000 to $20,000. We have other clients that are more aggressive. They might buy five or six properties a year for renovation and resell." Pinnacle Properties take their investors through a hands-on step-by-step process of real estate investment. They assist their investors with getting setup for financing to purchase property, locating property, and giving advice on why certain properties are a good investment. They also help them with the necessary renovations of the property so that it is ready for rental or resell. "We try to guide them through the entire process so they can miss all of the pitfalls that can occur," says Sanders. Sanders not only helps people to buy homes for themselves, but also teaches his investors how to use real estate as an investment.

Giving Back to the Community

Sanders uses his knowledge to give back to the community by volunteering as an instructor for the Memphis Housing Resource Center. The Memphis Housing Resource Center was established to help people place themselves in a position to purchase a home. They provide classes designed to help people work through their credit problems, understand mortgages and understand the process of buying a home. Sanders teaches the class on home buying and mortgages. He talks to his students about some of the things to expect when purchasing a home like contracts and inspections.  He tries to dispel some of the myths of buying a home and securing a mortgage.  

Challenges In Business

Sanders believes that being a self-employed person turns you into a sales person because you are always promoting your business. Company sales go up and down; therefore, the benefit of having a regular bi-weekly or monthly paycheck is greatly missed. Getting a steady flow of repeat business or referrals helps maintain a certain level of income for a business owner. Managing people has also been a challenge to Sanders. "Getting people to recognize their capabilities so that they can accomplish more and getting them to buy into the direction in which you are trying to take your business is always a challenge. As a manager, sometimes you believe in your employees more that they believe in themselves." Sanders believes that being an African American entrepreneur presents challenges within itself. "There are some of us in the black community who think that going to a business owned by another race is some how better than going to a black own business. Sometimes, we take each other for granted."

Entrepreneur Motivation

Sanders is motivated by doing something that he enjoys. He is motivated by the opportunity to help people to purchase their dream home. "I enjoy watching their eyes light-up when I hand them the keys to their new home," says Sanders. He also enjoys helping people to better their financial situation through investing in real estate. "One of the keys to wealth is real estate. Most people, who have become wealthy, have investments in real estate as part of their wealth. It is not difficult to get into real estate, however, it does take some understanding."        

The Future of the Business

In the next 2 to 5 years, Sanders would like to see his company work more toward getting people to invest in real estate. Pinnacle Properties has plans in the future to help simplify the real estate investment process for their investors. Sanders plans to create a real estate package investment plan that will be customized toward the goals, resources and cash flow of their investors. Their investors will be given the option to manage their own properties or have Pinnacle Properties manage them. In the future, Sanders also plans to shift his primary duties toward the investment side of his business.

Passing Down the Family Business

Sanders would like to see his company someday passed down to his children, nieces or nephew in his family. "Business owners have the advantage of passing down their business to a second, third or forth generation. That's when you can really make a difference. The next generation won't have to struggle as much because everything is in place." Sanders believes that this will allow the next family generation to take the business to the next level. Reginald Sanders has a 20-year-old daughter name Nicole and is a devoted husband to his wife, of 18 months, Toya.  His desire to help others has created a financial stability for his family and himself. His vision for the future of Pinnacle Properties will create unlimited opportunities. Sanders is well on his way to creating his own dynasty.