I was £24k in debt, now I’m a multimillionaire

After leaving her marriage, mum-of-two Abi Hookway, 38, from Doncaster, plummeted into debt, racking up £24,000 on credit cards. Scared and desperate, she saw no way out of her financial situation, until a social media post propelled her into a new career as a property investor. Now she's a multimillionaire, with a vast property portfolio and supports other women to enter the world of investment. Here, she shares her story…

Opening my online banking account, I stared at the balance and began to cry. They were tears of joy, relief and pride. That day, the sum of £72,000 had been paid into my account, the profit I’d made on my first foray into property investment.

Those five numbers represented a new beginning for me and my children, and an escape from the dark hole of debt I’d fallen into. In 2017, I became a single mum of two, after making the difficult decision to end my three-year marriage.

We wanted different things from life. He was content with our status quo of working nine to five in corporate jobs, and living a comfortable, ordinary but not particularly exciting lifestyle. I wanted more than that.

Friends and family didn’t understand why I’d walk away from our nice home, a holiday every year, and a joint income of around £90,000, when I had nothing else to go to. I understood their bewilderment, but had this deep-rooted belief there was another future out there for me, if I could just find it.

Slipping into debt

Despite the fact we’d had a joint income many people would think was a comfortable one, by the time we paid the mortgage, a childcare bill of £1,300 a month, bills and all the expenses that come with family life, we’d never had anything left over and had no savings.

We lived from one month to the next, spending all our salaries, and put extra costs, like new shoes for the children, a family meal out, or clothes on credit cards, spending more than we earned most months.

When we split, we agreed he could keep the marital home, taking over its mortgage, plus the majority of the debt we’d accumulated, while I took responsibility for around £10,000 of debt myself.

Now, supporting myself and two children, Ellie, eight, and Thomas, 11, on just my £32,000 salary from my job as a call centre manager, I began to really struggle financially.

The rent alone on the house I found for us, which was cold and shabby, was £795 a month and my salary just wouldn’t stretch to cover all the essentials like food, heating and my car, let alone extras like after-school activities and the odd meal out.

Add interest on my credit card debt to the mix and every month I was at least £300 short, often more.

A desperate situation

I started to put more on credit cards, applying for new ones to spread my debt around. I knew I was only making my problem worse, but didn’t feel I had any choice.

Some months it was basics like a gas bill I had to pay with a credit card, because I’d spent the money on a car repair.

However, there were other months when I added to my debt from living beyond my means, like taking the kids for a McDonalds or ordering myself some make-up and clothes online for work.

I wanted to protect the children, I didn’t want them to realise that every month I was slipping further and further into debt. I also still had my pride, and didn’t want people to realise how much I was struggling.

The reality was, I was now £24,000 in debt, both from spending and interest.

At night I’d lie awake, unable to sleep I was so wracked with worry about how on earth I was going to get out of his hole. My mood was so low, my GP even suggested I take anti-depressants.

I felt scared and anxious all the time, guilty I’d dragged my children into this situation and at times, regretful I’d left the security of my marriage.

A new opportunity

In May 2018, I came across a post on social media about a property investment expert who’d made millions buying, renovating and selling properties – a process known as 'flipping' – and had also accumulated a portfolio that paid him a rental income.

The post was about using 'angel investors' to put up the funds needed to purchase a property, then repaying them from the profit made when it was flipped, and keeping the remaining profit yourself.

Property had always fascinated me – from playing Monopoly as a child to watching TV programmes like Homes Under The Hammer and Location, Location, Location. I’d look in estate agents' windows and daydream about how I’d transform the houses for sale.

But I’d never seen it as something accessible to someone like me, especially now I was a broke single parent with less than nothing in the bank. Reading about this investor though, it was like a light going on in my mind.

Finding an investor

I didn’t have money to invest in a property, but if I could find someone prepared to trust me to invest on their behalf, that could open a door into this world for me.

I approached this investor, and told him I was interested in learning from him. He offered me a job working for an estate agents he’d opened, and agreed to train and mentor me.

Once again, friends and family thought I’d gone crazy. How on earth was I going to persuade strangers to give me money to buy houses with? Their doubt only spurred me on to prove them wrong.

I studied so hard, absorbing all the knowledge I could about how to pitch to an angel investor, how to buy and renovate a property, then how to sell it and make a good profit.

I made my first business pitch entirely by accident in October 2018. I was at the dentist telling him what I’d been doing, and my hopes of breaking into the property investment world, especially as I’d recently found a perfect property for sale.

To my shock and delight, he expressed an interest in becoming my angel investor. He had money in the bank and this felt like a great opportunity.

He paid £127,000 for a two-bed terrace house in Rotherham, including the stamp duty, legal bills and renovation costs, and we agreed in writing he’d get his full investment back, plus an additional 10%.

It was nerve-wracking taking someone else’s savings, feeling the pressure to spend them wisely and make them more money. I knew if I didn’t make a success of this first project, people would think I was a scammer or hopeless, and never invest in me again.

Once the house was purchased, I appointed a building company to do the renovation work, which took four months, and included creating a third bedroom. Then, after that was complete, I marketed it for sale, and within three weeks had a buyer. My investor got his money back plus 10%, and I made £72,000.

I couldn’t believe it. In seven months, I’d made more than double my annual salary, and would be able to clear my debt in full and take my children on holiday. I couldn’t stop crying, I felt so relieved and happy, and knew this was just the beginning.

Building an empire

Six years on, I’ve 'flipped' around 25 properties, both using angel investors and my own money as my wealth has grown.

I’m currently in the middle of flipping one with my mum Rebecca, 59, as she wants to get into property investment to fund her retirement.

Using the money I’ve made since 2018, I’ve also acquired around £10 million pounds worth of residential and commercial properties, as well as holiday lets, which I rent out to bring in a passive income, rather than selling them on.

I own an estate agency too, through which I advise people with money what new build developments they should buy property in, which they can then rent out for a long-term income.

Something I’m passionate about is opening up this world to other people, and training them to do what I do. I run online seminars which take place over two days and cost £99.

Many of my clients are women – single mums and soon to be divorcees who want to create a financial safety net for their future – and I love helping them.

Sharing my expertise

There’s no doubt that property is still a man’s world and in my experience, women need to work harder to prove themselves, especially the ones with a single mum tag, like me. But I tell the women I train, if I can do this, you can too.

I advise people that if you want to get into ‘flipping’ properties to make money, you need to buy outright, either with help from an investor or bridge lending – which is a short-term, secured loan. Mortgages are longer term arrangements, you’re usually tied in for at least two years and the exit fees are high. To flip a property in a short time period like I do, a mortgage isn’t suitable.

All investing comes with risk and the most important lesson I teach my clients is to acquire knowledge, take professional advice and support, and understand exactly what they’re doing before they take that step into this industry.

A new lifestyle

My lifestyle now is a very comfortable and happy one. My children and I live in a beautiful four-bed detached house in Doncaster, although my goal is to one day own a stately home.

We holiday several times a year, from Turkey and Edinburgh to America, and I never have to think twice about whether we can afford a day out to a trampoline park, or a mini-break to the Lake District.

I no longer lie awake at night worrying about debt and how I’m going to care for my family, but I haven’t forgotten what it feels like to have nothing. It makes me feel so grateful for how far I’ve come, I’ll never take it for granted.

My journey from debt to millionaire is proof that with determination, knowledge and hard work anything is possible.

For more details, see Abihookway.com