JUST seven years ago, Abi Hookway was a broke single mum struggling to get by.
Now, the 39-year-old has totally transformed her life, building an £8 million property portfolio and a £10 million business.
Abi Hookway has candidly opened up on being in £3.7million in debt[/caption]
The mum-of-two revealed all on her “good debt”[/caption]
She explained why she isn’t a “lunatic” for having the debt[/caption]
Now she makes a fortune by flipping properties[/caption]
But having said that, the Property Expert and Entrepreneur has confessed that she is in £3.7million of debt.
Despite this, the mum-of-two isn’t bothered by the debt and still lives a very lavish, millionaire lifestyle.
Abi doesn’t work a standard 9 to 5 job and people have called her a “lunatic” as a result, but she isn’t phased, as she’s too busy living the dream.
Posting on social media, the businesswoman, who spends £800 a month on a housekeeper and has £70,000 in savings, got candid on her financial situation.
Instead of working for someone else, Abi earns money by property flipping – she buys a property, renovates it, and sells it for a profit.
As she filmed directly from a concert, she said: “I’m £3.7million in debt and I sleep like a baby – honestly, it is the best time of my life right now being in so much debt.
“Most normal people would go ‘oh my gosh, you’re in so much debt, you’re a lunatic, what are you doing?’ – for me, it makes me happy.
“Why? Because my debt is good debt. It’s leveraged on properties that pay for my lifestyle.”
Abi then explained: “I don’t work a 40-hour a week job, I don’t have a boss, I do what I want, when I want, because I’ve got all these houses paying passive income to me so I can do what I want in life, I can be at peace and fulfilled doing what I love most.”
Abi stressed the importance of understanding how to earn passive income and knowing the difference between “good debt and bad debt.”
She acknowledged: “We’re taught all debt is bad, but it’s not – good debt is leveraged on assets to make you money. Figure it out.”
To have debt leveraged on assets involves borrowing money specifically to acquire or invest in assets with the expectation that those assets will generate enough income or appreciate in value to not only cover the cost of the debt (interest and principal payments) but also provide a net positive return.
Despite her “debt”, Abi has an £8 million portfolio, which includes buy-to-let properties, holiday homes in the Lake District and Peak District, and commercial properties.
And her ambitions don’t stop there, as in the next 10 years, she plans to become a billionaire.
Abi now splurges £800 a month on a full-time housekeeper[/caption]
Abi has an £8 million portfolio, which includes buy-to-let properties, holiday homes and commercial properties[/caption]
She recommends investing into property[/caption]
How exactly did Abi get started?
After finding herself consumed by “fear and anxiety” as her credit card debt spiralled, Abi took the plunge in property flipping.
Her breakthrough came during a conversation with her dentist, who admitted he’d love to invest in property but didn’t have the time.
Abi seized the opportunity and her dentist agreed to fund her first property flip, in exchange for a 10% return on his investment.
Her first project was a neglected house in Doncaster that had been vacant for 18 months.
Using her dentist’s investment, Abi successfully flipped the property, paid back the loan with a 10% return and walked away with £72,000 in just six months.
The next big goal is taking my business to the £100 million mark
Abi Hookway
Abi previously told Fabulous: “I said goodbye to my £24,000 debt, and the rest of the money was reinvested.
“I’d just made double my annual salary in less than six months, working less than six hours a week. Why wouldn’t I do it again?”
Now, Abi earns between £50,000 and £100,000 with every property flip.
5 Tips to Get on The Property Ladder
Saving for your first property is tough, but it is possible. Here are a few steps for first-time buyers.
1. Cut back on luxuries and start saving
Consistent monthly saving is the best way to accumulate enough money to get on the ladder, for a deposit and purchase fees. To do this, you need to take a look at your monthly outgoings and think about what can be cut out – holidays, new clothes, weekly takeaway.
Using a savings calculator can help you to establish how long you will need to save for a deposit. Based on your income, you can figure out a realistic amount to save each month.
2. Have a realistic property search
Set a budget for the property price you would like to buy, and think realistically about the location and size of your property. While we all may want that house with a view or extra bedroom, can you afford it?
3. Research Help To Buy and Shared Ownership schemes
The government has introduced a few ways to help first-time-buyers get on the property ladder and they’re great for those on lower incomes or to buy a property in more expensive areas like London.
4. Consider buying with another person
Investing with somebody else you know is a sure way to get onto the property ladder. You only need to save half the amount you would otherwise, so you can work towards getting your property sooner.
You can invest with a friend, family or partner. Naturally, it is a big step and a huge commitment so be open and honest about what you expect from living together — if you haven’t already.
5. Talk to a mortgage broker and get your documents in order
A mortgage broker can tell you exactly how much you can borrow for a mortgage, what you will need to pay monthly and in upfront costs.
Abi added: “My most recent deal is a three-acre plot of land used to store caravans and containers. I’ve got about six or seven holiday homes and four or five commercial properties.
“The next big goal is taking my business to the £100 million mark.
“This year, my business should turn over around £10 million, but I want to fast-track it.”
Social media users react
The TikTok clip, which was posted under the username @abihookwayproperty, has clearly left many open-mouthed, as it has quickly racked up 414,400 views.
It’s also amassed 20,200 likes, 121 comments and 1,036 saves.
Passive income is a game changer. Love it!
TikTok user
Social media users were stunned by Abi’s claims and raced to the comments to share their thoughts.
One person said: “I want to do what you are doing.”
Another added: “Passive income is a game changer. Love it!”
A third commented: “It’s crazy but you’re right.”
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