Built to last: a homebuilder launches and soars during the downturn.

• Author: Kinder, Peri
• Position: Lessons Learned

Last October, in the middle of one of the worst housing slumps in history, two men got together and decided it would be a great idea to create a home building company. Although construction companies were folding faster than bad poker hands, Colin Wright and John Stubbs mixed good business sense with capital and innovation, and created Henry Walker Homes.

Friends and family might have been skeptical but, one year later, their business is not only surviving the downturn, it's flourishing and expanding into more areas of the state. So what did Wright and Stubbs do that other home builders didn't? They chose projects selectively, limited risk and hired top-notch employees.

A Conservative Approach

"You need to be prepared for the worst-case scenario and ask if you're okay living with the worst-case scenario," says Wright, CEO of Henry Walker Homes. "[Builders] should ask that question before they go into every deal. If you're not structured to survive the worst-case scenario, you're not structured correctly."

So far, for Henry Walker Homes, the structure is holding strong. In 2010, the company's goal was to close on 14 homes. But that number is already up to 40, and it's looking at closing more than 125 homes in 2011. New construction is happening in Kaysville, Layton, South Jordan, Farmington, Draper and coming soon in St. George to the exclusive Entrada community.

The home construction industry in St. George took an especially big hit when the real estate market plummeted, and Henry Walker Homes was able to acquire land inside Entrada for a remarkably affordable price. The company is passing that savings onto future home owners, who will be able to get a luxury home in the exclusive community at an unbelievably low price.

"There are so many deals. We probably see 20 deals for every one we take," says Stubbs, president of Henry Walker Homes. "You want to grab the cheap land, but it really is making sure you're in great locations and providing homes the customers want."

"Risk is a good thing," he adds. "But limit the risks. Do what you can to mitigate that risk. We're not crazy cowboys. We're very risk adverse. Very conservative."

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Part of their conservative nature comes from their lifelong experience in the home building industry. Stubbs knew in high school that home construction was his career path. He worked with Ivory Homes and Richmond Homes, learning good business practices and expanding his knowledge of home...