In the heart of Lakeway, Austin, Texas, 52-year-old entrepreneur David Henson built a successful construction empire that would eventually face a dramatic downturn. With over 35 years of experience in construction, Henson established CTC Remodeling Construction in 2009, after holding executive positions in two different construction corporations. His company, specializing in framing houses and residential remodeling, reached impressive heights with annual revenues of $1.5 million, earning him a personal income of around $400,000 before taxes.
However, life had other plans for Henson. A series of personal tragedies, including the loss of his wife after her 17-year illness and the death of his stepson, combined with the impacts of COVID-19, would mark the beginning of a significant decline in his business operations.
Decline of David Henson’s Construction Business
The impact of these personal losses was immediate and severe. Revenue plummeted from $1.5 million to approximately $600,000 annually before completely stalling in recent months. Henson’s business decisions during this period further complicated matters. Rather than building savings or maintaining stable finances, he prioritized experiences and opportunities, often using credit and mortgage refinancing to fund various ventures, including supporting his son’s motocross racing career. Following his wife’s death, he made the decision to walk away from his house, surrendering any potential equity.
The construction business eventually ground to a halt, with Henson reporting no income for four months. His business checking account fell into the red, showing a negative balance of $1,183 with mounting overdraft fees. The situation deteriorated to approximately $30,000 in bad debt, multiple credit cards in collections, and an impending eviction from his residence.
A New Venture in Nutrition and Wellness
Despite financial advisors suggesting he return to construction to stabilize his finances and save for retirement, Henson made a surprising pivot in late 2022. He invested $40,000 in specialized red light therapy equipment to launch Ultimate Red Light, a wellness business offering treatments and supplements. The landlord of a retail space allowed him to move in without immediate payment, despite his negative bank account balances and approximately $50,000-60,000 in debt.
The business model combines red light therapy treatments, which Henson claims can improve recovery time by 70%, with a multi-level marketing structure selling supplement packages starting at $500. Marketing efforts have struggled, with Facebook campaigns failing due to strict advertising restrictions around health claims. The business has only generated a few sales since opening, relying primarily on word-of-mouth marketing.
A Scene Straight Out of The Office
In a striking parallel to a famous scene from The Office, financial audit’s Caleb Hammer sat down with Henson to review his concerning financial situation. The meeting took an eerily familiar turn as Henson enthusiastically explained his business model, describing what he insisted wasn’t a pyramid but rather a “Dynamic compression” structure.
“It’s not a pyramid system,” Henson maintained, proceeding to draw out how the business works with “five and five and five” people under each person. The irony reached its peak as he inadvertently described the exact shape of a pyramid while denying its nature, explaining how he sells $500 packages to people who become “coaches” under him, who then recruit others to sell the same packages.
Unlike its comedic television counterpart, this real-life moment carried significant weight. In an unprecedented move, Caleb assigned Henson’s financial situation a “negative one” rating – the first time he has ever given a negative score in his assessments. Despite Hammer’s attempts to redirect him toward more stable income through his construction expertise, Henson remains convinced about the legitimacy of his new business venture, even as he faces eviction and holds no retirement savings at age 52.
