When Rory Caton first dreamed of opening his own company building custom homes, he was barely in his teens.

"I've been planning this since junior high," says Caton, 28, president and founder of Heavenly Homes LP. "Every step has been toward the end-goal."

Years of hard work, study and careful preparation toward becoming a home builder have paid off for Caton.

What began as a way to make some money as junior high school student has evolved into a booming business with three full-time employees. Revenue reached $3.4 million in 2006, surpassing the previous year by $1.5 million.

Caton got his start in the field while still a teenager when he began building gazebos and decks out of cedar and stained pine for neighborhood families. He usually made $2,000 or more from each job.

"I always had a knack for it," Caton says. "I did odd jobs here and there. I did my first deck when I was 15. I learned as I went, and just had a good ability to figure out how things were put together.

"Back then," he says, "I did wood cutting by hand. I tried to analyze everything before I made the first cut."

Caton continued preparing for his goal as a student at Texas A&M University, where he graduated magna cum laude with a degree in construction science in 2001. He chose that field of study because, he says, "It's a degree that combines architecture and engineering and gets you ready to build."

After graduating, Caton worked as a superintendent for two custom home builders -- Newmark Homes and Gehan Homes. "I handled all materials, on-site construction and the final walk-throughs," he says.

Caton established Heavenly Homes in 2003, starting out with little jobs as they came along. His big break came a year later, when he designed and built a home for a family with a child who has special needs.

"The price range didn't allow them to get it done" by an established builder, "so I took on the job and got a special line of credit from a bank," Caton says.

Because he had no track record, the bank at first required Caton's father to co-sign for the loan.

The successful completion of the first house allowed Caton to obtain financing from the bank to design and build two more houses "on spec" that quickly sold, and then four more. So far, he has designed and built 28 homes and four townhomes. This year, he plans to build 20 more homes.

The bank isn't asking for a co-signer anymore. Now, Caton says, he has access to several lines of credit at different banks for up to $3.5 million. About half of Heavenly Homes' houses are built on spec, and the other half are built under contract for a home buyer, he says.

Caton says he designs all the houses, explaining that in Texas, you don't have to be an architect to design homes.

Eventually, he plans to branch out into commercial development projects, such as strip malls and office buildings. He says he's already working on a $6 million office-condo project.

"I try to pay attention to what people want. I do market research before I build a house," Caton says. That's important, he says, because markets often can change and be fickle.

Even though Caton is working in a cyclical business known for its ups and downs, he says his biggest challenge has been his relatively young age.

"It still is the biggest challenge," he says. "I always get a reaction from people because of me being so young. The way I overcome it is by letting the product speak for itself."

Heavenly Homes' customers include upscale residential home buyers, as well as other custom home builders.

Homes the company designs and builds start at about $250,000 to $300,000.

"Our midprice ranges are homes priced from $400,000 to $600,000, and our upper-middle range is $600,000 to $800,000. We cap out with homes at $1 million," Caton says.

Customers can choose from eight floor plans and at least seven subdivisions located mainly in the northwest corridor of Houston, close to Spring, Conroe and The Woodlands. There also are townhomes priced at more than $300,000 in the close-in Heights neighborhood.

Competition is intense from other home builders vying for the same metropolitan market. So Heavenly Homes tries to set itself apart by making the process easier for the buyer, Caton says. "Our goal is to make it as effortless as possible for the customer. Our whole idea is to make it a heavenly experience."

With that in mind, Heavenly Homes plans to open a 2,500-square-foot showroom near the Rayford-Sawdust exit of Interstate 45 North. The showroom, which is planned to open two or three months from now, will feature not only building materials but also appliances. "Customers will be able to save a huge amount of time," Caton says.

Customer service starts with an initial hour-long meeting between potential clients and the staff at Heavenly Homes. During the meeting, information is shared on pricing, materials, amenities, overall style, layout and desired finishes.

Heavenly Homes' interior designers work with customers step-by-step throughout the planning process, Caton says, adding that he also tries to distinguish his company by using stand-out colors and home designs.

"We want the home to be vibrant; a family environment, yet very elegant," he says.

The meticulous planning and customer service attracted Houston engineer Doug Gordon, who chose Heavenly Homes to build a three-bedroom house on Lake Conroe. "Rory is really talented," he says. "He did a good job using our ideas and our plans. He is very organized, efficient, and got it done very fast."

Caton also has been attracting housing industry attention. He was a finalist for the Greater Houston Builders Association's award for custom home builder of the year. He also has been featured in articles published by Savvy Homebuyer, Woman's Day, Redbook and Houston Living.

While Caton sees plenty of room for growth ahead, he says he doesn't want it to come too fast. "I don't want to lose control over the company, over what we do -- providing people with services," he says.

Keeping control of the pace of growth and quality control comes down to finding the right people, Caton says.

"If we can find the right people, I can see us doing 100 homes a year," he says.

Business: Custom-built homes
Year founded: 2003
Top executive: Rory Caton
Employees: 3
2005 Revenue: $1.9 million
2006 Revenue: $3.4 million

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