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How I did it - Property and construction

Construction: 'Taking advantage of the downturn'
Kerrie Hanafin started her first business at the age of 28. After working in the male-dominated arena of investment banking, she decided to go for something completely different by creating A Woman’s Touch, a Wimbledon-based construction company that specialises in building, refurbishment and maintenance work throughout the country.
Kerrie is one of the many entrepreneurs who have actually benefited from the economic slowdown. "I saw that with the economy starting to go downhill and many of our competitors going out of business, there was a plethora of cheap properties and buildings that needed to be sold fast," she says. "Whilst everyone else seems to be talking doom and gloom, we’ve spotted a very real opportunity for those with some money to make a lot more."

Together with her friend and housemate, estate agent Rose Lock, they spotted a gap in the market. To fill that gap they set up Vision Board Properties, a company that buys properties at cheap rates and develops them on behalf of clients. "We looked at property prices around Spain and, with my contacts from investment banking, we had lots of clients who had the money to invest in the property that we found for them," says Kerrie. "A lot of the time the buildings are half built and abandoned, so we choose developments that we know our investors will make money on. The content of our book varies hugely from a derelict farmhouse at 60,000 Euros, to an equestrian centre at 8.5 million Euros and even an apartment hotel at around the 25 million Euro-mark."

Although experienced in the property market, Kerrie and Rose sought expert advice ahead of launching the venture, with Business Link being their first port of call.
Estate agency: 'How I made a profit by adding value'
Charles White, founder of Badgers Estate Agents, bought and developed his first property in London back in 2002. "I bought a one bedroom flat, converted it to two bedrooms and sold for a profit," he recalls. 
Charles saw the project as the starting point for a sustainable property development business and had a strategy worked out ahead of making his first acquisition. "I targeted London and I wanted to work in areas where I could get the best value," he says. "I decided to the focus on the Vauxhall, Oval and Kennington area. It was close to the centre so I felt I could get good prices, but there were bargains to be had in terms of the property available."
Charles stresses the importance of choosing properties that will provide the best possible return. "I spend a lot of time researching the market," he says.
Badgers makes a profit from conversions and refurbishments, although Charles stresses that no one should rely on a rising market for their income. "By adding value you can make a profit in most housing markets," he says. "The exception is probably when you buy as the market is at a peak, just before a sharp reduction in prices. That can make it difficult to sell."