Sweet dreams: a few smart real estate deals have helped the Washingtons open a trio of ice cream parlors.

FOR KERRI AND DARRYL WASHINGTON, sweet dreams start at home. Homeownership has proven to be a blessing for family life, as well as a wealth creator-one that has enabled the couple to open their own business selling sweets at their three Maggie Moo's Ice Cream and Treatery stores.

But owning a home did not come easily. The year was 1993 and as newlyweds in their mid-20s, Kerri and Darryl were both working two jobs. With a Veterans Affairs loan and help from their families, they cobbled together $6,000 to buy a $163,000, three-bedroom house in Arlington, Virginia.

It was only when their first daughter, Kai Yanna, arrived in 1997 that they began entertaining the idea of a bigger house. It was Kerri who thought of a way to make it a reality: refinance their mortgage, take out some of the equity for a down payment on a new house, and then rent out their first home.

By the following year, the Washingtons had purchased a $198,000, four-bedroom house, also in Arlington. "When we did our tax return and I saw how the rental income we received was more than the mortgage payment, a light bulb went off," says Kerri. "Real estate was the way to go."

Although Kerri was busy working as a typesetter for Black Entertainment Television's magazine department and running her own small business, and Darryl was toiling away as a deputy sheriff and a reservist in the Air Force Reserves, they weren't too busy to notice a fixer-upper. It was a small three-bedroom house that they ultimately bought for $164,000. "Kerri had the vision. I didn't like it because it required too much work," says Darryl, now 39. "But it turned out to be a gold mine." It was around this time that Kerri, 38, obtained her real estate license.

Within a year they refinanced the mortgage on the fixer-upper and bought a two-bedroom condo in Crystal City, Virginia. In 2000, the local real estate market was booming and, fearing that they would be priced out of the area, they decided to sell their home for $315,000. With the proceeds they purchased a second condo, in Arlington, for $93,000. The Washingtons chose to live in their Arlington fixer-upper while they looked for their ideal home.

Shortly thereafter, they learned that their daughter Cheyenne was on the way. The pregnancy came on the heels of a layoff for Kerri, prompting her to begin exploring franchise opportunities because of their branding and support system.

It wasn't until 2001 that the couple found a house that tickled their fancy: a three-level, six-bedroom home with a two-bedroom basement apartment. The Washingtons didn't have the income to support the $500,000 price tag, but they sold the bank on the fact that the basement rental would almost cover the mortgage. The family managed on Darryl's salary (then $70,000 a year), Kerri's $800 monthly unemployment benefits, and their rental income.

Kerri stepped up her franchise research and by 2003 she opened Maggie Moo's, a premium ice cream franchise in the Adams Morgan section of Washington, D.C. Again, homeownership made things happen. The Washingtons used their primary residence to secure a Small Business Administration loan of $265,000. A year later, when Kerri met resistance from the banks to finance a second store, she and her husband decided to sell both condos and were able to open the store later that year. Then, realizing that their home was now valued at $1 million, they refinanced and paid off some of the debt on both stores. The cycle continued, when they refinanced the "fixer-upper" and bought a third Maggie Moo's.

Fast-forward to today. The Washingtons--who exemplify BLACK ENTERPISE Declaration of Financial Empowerment principle No. 1: I will use homeownership as a foundation to build wealth--have made a series of smart purchases and refinancing decisions to build their net worth.

If you think the Washingtons must be high-flying M.B.A.s, they are quick to tell you that's not the case. Neither went to college, but what they lack in education they make up for in moxie.

Today, their stores bring in about $900,000 a year, of which the Washingtons take home about 20% to 25%. They also bring in another $140,000 a year--an amount that includes Darryl's salary as an Air Force recruiter and their rental income. What's their secret? DOFE principle No. 2: I will be proactive in managing my budget credit debt and tax obligations. Kerri has used QuickBooks for more than five years to track spending. Furthermore, they spend moderately and buy only used cars. But what's most critical? "Without good credit and budgeting, nothing would have happened for us," says Kerri.

Declaration of Financial Empowerment

From this day forward, I declare my vigilant and lifelong commitment to financial empowerment and hereby pledge the following:

1 I will use homeownership as a foundation to build wealth.

2 I will be proactive in managing my budget, credit, debt, and tax obligations.

3 I will maximize my earnings potential, live within my means, and commit to save and invest at least 10% of my income.

4 I will ensure that my investments are properly diversified and correspond to my current financial goals.

5 I will immediately commit to a program of retirement planning and investing.

6 I will preserve and protect my assets through proper financial and insurance planning.

7 I will ensure that my children receive a thorough education on financial matters and business issues. 8 I will ensure that my wealth is passed on to future generations through proper estate planning.

9 I will actively support the creation and growth of viable, competitive black-owned enterprises.

10 I will use a portion of my wealth to strengthen my community.

The Washingtons' Advice:

* Refuse to rent. "If you're paying rent, you can find a way to afford a home," says Kerri. Explore the plethora of first-time home buying programs. To get started, see what special programs may be sponsored by your state government or other organizations. Go to ww.hud.gov/buy ing/localbuying.efm and click on your state,

* Consider credit royalty. Credit is king. Bad credit will hold you back. Establish credit early and be fastidious about paying consistently and on time. Don't have a bunch of credit cards. Even if you don't use them, lenders will see that you have lines available that you could run up. Lastly, know your credit score. To learn more, go to www.myfico.com.

* Express your entrepreneurial spirit. You may only have an inkling of an idea, and maybe a business is five or more years away, but start researching now, says Darryl. The more you know about the market, the pros and cons. the better you'll be able to plan and set goals. Put your thoughts in writing and create a business plan to make your goals more real. For information about starting a business, the Washingtons recommend the SBA. (www.sha.gov).

* Lastly, read, read, read. The Washingtons favorites: BLACK ENTERPRISE magazine; The Millionaire Next Door(Pocket: $22) by Thomas J. Stanley and William D. Danko; The 7 Habits of Highly Effective People(Free Press: $26.00) by Stephen R. Covey; and The 9 Steps to Financial Freedom(Crown; $24.95) by Suze Orman.