How Stacie Stewart Built a Real Estate Construction Empire | Affordable Housing & Luxury Homes

Kristen Knapp (00:00)
Yeah, and what would be some red flags off the bat that maybe you see pretty often?

Stacie Stewart (00:04)
Well, a reflex for me are when contractors tend to ask for money like 50 % up front. I think that if you’re established and you have been in the business as long as you say you have, then you should have some type of cash flow of your own to be able to float the job and wait at least a week to get paid based on progress. So I still clear away from contractors to ask for 50 % up front just because sometimes I’ve had issues in the past where they don’t show up and then I’m out of that

Kristen Knapp (00:10)
Mm.

Stacie Stewart (00:33)
So I don’t don’t practice that anymore.

Kristen Knapp (02:08)
back to the Real Estate Pros podcast. I’m Kristen and I’m here with Stacie Stewart, who is the CEO of BWI Contractors. They function out of the DFW area in Texas and I’m excited to speak with her today. Thank you for being here. Yeah, so you have been in the business for over 25 years. You seem very well awarded. Your business was Small Business of the Year award at one point. Tell us how you got into this line of work.

Stacie Stewart (02:20)
Thank you for having me, Kristen.

Well, I started in the East Coast in Virginia, D.C. area, Maryland. And from there, I guess by default, I ran into a couple who was investing in real estate and actively doing mortgage lending. And so they taught me the ropes out there on the East Coast. So I was dibbling and dabbling in real estate in terms of a fix and flipper. And when I moved to Dallas in 2000, I bought land and I started building from the ground up ever since.

Kristen Knapp (03:00)
Wow, so you just, you got right into it. You found your passion right away.

Stacie Stewart (03:03)
I evolved,

yeah, I understood how the business worked from the real estate aspect in terms of investing and then from there just started buying land and started building from the ground up.

Kristen Knapp (03:14)
Wow. And what particularly about building really drew you to it?

Stacie Stewart (03:18)
I would say the whole aspect of just watching the land, the dirt, and then from there just seeing all the steps and the processes to erect that vision from the blueprint out the ground to actually seeing the actual structure in front of you that you could admire, walk into and see.

Kristen Knapp (03:35)
Yeah, it’s tangible. You can actually like see the progress.

Stacie Stewart (03:37)
Yes, from paper

to actually seeing it. Yes, it’s awesome.

Kristen Knapp (03:42)
That’s amazing. you know, while you were building your own business, how did you, like, how did you even, you know, develop your skillset when you started building for the first time?

Stacie Stewart (03:52)
Wow, it was the road of heart knocks because I didn’t have a coach, counselor, not counselor, but a mentor, anyone like that in the business. So I just jumped into it. I thought that I had the knowledge because I was a rehabber, but boy, it’s a totally different world being in a builder, build it from the ground up. So I learned as I went trial and error. That was my best teacher.

Kristen Knapp (03:54)
Yeah.

Yeah, can you think of a time where maybe something went horribly wrong and you learned something from it?

Stacie Stewart (04:19)
Absolutely, I’ve had instances where we’ve built in an area where the power was not, ⁓ I guess, installed by the developers, so there was no overhead or underground power. I’ve had situations where we built in areas where the second story was too close to the power and we had to fight with Encore to move the lines.

You know, it started off, really got ⁓ bamboozled in terms of getting ripped off by the contractors not knowing the business, so they were over-ordered materials. I mean, this business is not for the unknowledged, unless you want to lose a lot of money. I recommend someone doing this would definitely pair up with someone that has experience, because otherwise, you’re to go through the trials and errors that I went through, and it wasn’t pretty.

Kristen Knapp (05:50)
Yeah, and I imagine it’s a line of work where it’s always something unexpected. There’s probably always a change of plans. Is that sort of correct?

Stacie Stewart (05:59)
Well yeah, you you’re dealing with human beings, it’s not robotic, right? So there are human errors that happen. Sometimes the architects might miss something on the plans that’s not accurate. The square footage might show one thing, but when you’re actually on site and you’re measuring it’s totally different. yeah, there’s all sorts of stuff that can happen. So if you’re not prepared and know how to maneuver, it could really cost you money, time and money.

Kristen Knapp (06:22)
Yeah,

you have to be comfortable in the uncomfortable, be prepared for anything. And as you built BWI, how did you go about building out your team?

Stacie Stewart (06:25)
Absolutely.

Well, you know, I’ve been in this business so long that I managed to keep ⁓ a close-nitched list of contractors. But as I evolved and added on more projects, we have to recruit with them. So we just kind of vet our subcontractors very well because they are the life of the construction. So the better you get to trades, the better your product comes out to be.

Kristen Knapp (06:53)
Absolutely. imagine, I think in any business, hiring people can often be the hardest part, like really getting people who are trustworthy and who work really hard. So I imagine hiring, hiring, there’s a strategy, there’s, it is a skill set.

Stacie Stewart (07:08)
Absolutely, because you could hire someone that says all this, their resume says all that, but then when you work with them, and even if you check their references, it could be one thing for other people that they work for, but when they come and work for me, the experience is going to be totally different. So it’s just trial and error in that regard as well.

Kristen Knapp (07:25)
Absolutely. So what kind of projects do you guys predominantly work on at BWI?

Stacie Stewart (07:29)
We do predominantly, I would say 80 % is residential. So we build anywhere from mansions, luxury homes to custom specs. And we also work with the municipalities to build affordable housing because there is a crisis right now for affordable housing with the market being so crazy and high. So yes.

Kristen Knapp (07:48)
Yeah, talk more about affordable housing and kind of your process with that.

Stacie Stewart (07:52)
Well, the process with that, we don’t compromise the quality in essence because it’s affordable. these homes are still relatively have luxury feel to it at an affordable price. So basically we just built smaller homes, more like streamlines to keep the cost down. And we participate with the cities and they use their subsidies for the homeowners to qualify.

Kristen Knapp (08:16)
Amazing. mean, that must feel really good to contribute in that kind of way.

Stacie Stewart (08:20)
It is, it is, because I know my daughter is wondering right now, like, hey, Mom, how am going to afford to buy a house when I get much older and ready to settle down and get a home? Right now, she’s into renting, but it’s a scary thing right now with the prices and how they’re going up. So I’m proud to be in a position where I give back by building affordable housing and keeping people’s dreams alive in terms of homeownership.

Kristen Knapp (08:42)
Yeah, and it’s great to hear that you’re not compromising the quality as you’re building out these homes.

Stacie Stewart (08:48)
Yes, absolutely. And you know, I stay abreast of the news out there with other builders and what they’re doing. And you’d be surprised, even some builders out there that have been building for years and even the new ones, they’re putting up structures and, you know, months later, years later, these structures are having major water damage, all sorts of issues. So I’m proud to say that in doing this for such a long time, we haven’t had, you know, callbacks in that regard. We may have had maybe two or three warranty issues, but

being in this business for that long, I’m proud to say I take three over more than that any day.

Kristen Knapp (09:55)
Yeah, absolutely. mean, so you’re just really diligent about the quality as you’re building.

Stacie Stewart (10:02)
Absolutely, because I take pride in my name and my reputation is everything. So I don’t want to compromise that for anything. So I make sure that I’m doing everything, not cutting any corners, making sure I’m diligent about the processes and not letting the subs cut corners because sometimes they have a tendency to want to cut corners. But this is all you stay on top of the crews and you have crews that practice with integrity. Then as a builder, I’m proud to say I build structures that are here to last.

Kristen Knapp (10:30)
Yeah, and what would be your advice for somebody who’s hiring a contracting company? What are some things they should be looking for?

Stacie Stewart (10:37)
I would say, wow, do your research, make sure you vet this person, check the references, check the job sites, go and see the product that they’re actually building for yourself. That’s very important. And hire those contractors that are not just fly-by-night contractors, that they actually love what they do and they’re passionate about what they do and they have had experience, not just started like three weeks ago out of their truck.

Kristen Knapp (11:04)
Yeah, and what would be some red flags off the bat that maybe you see pretty often?

Stacie Stewart (11:08)
Well, a reflex for me are when contractors tend to ask for money like 50 % up front. I think that if you’re established and you have been in the business as long as you say you have, then you should have some type of cash flow of your own to be able to float the job and wait at least a week to get paid based on progress. So I still clear away from contractors to ask for 50 % up front just because sometimes I’ve had issues in the past where they don’t show up and then I’m out of that

Kristen Knapp (11:14)
Mm.

Stacie Stewart (11:38)
So I don’t don’t practice that anymore.

Kristen Knapp (11:40)
Yeah, so what would be an acceptable amount that a contractor should ask for upfront?

Stacie Stewart (11:44)
I would say some money is fine, maybe like a ⁓ flat fee or even getting a percentage of their contract the first week of work. So once they’re performing, then they get paid. So it’s almost like, me what you have. Let me see that you can do this job and how you work. And then I don’t mind paying because we process payroll weekly, every single week. Now, if it’s a small contractor and they might need an advancement or something, we don’t mind paying that. But the work has to be there before we pay anyone.

Kristen Knapp (12:13)
Absolutely, yeah, no, that’s good advice. I think that’s very practical advice because I think there’s a lot of people probably asking for 50 % off upfront or even more. And I’ve actually, I’ve had some friends get almost scammed in a way where the people just don’t show up or they’ll work for a little bit and then they just never see them again.

Stacie Stewart (12:20)
Mm-hmm. Yeah. Yeah. They do.

Exactly. now say they show up and they do some work and then you don’t like their work or they’re having, you know, their performance is not up to par, then how do you get that money back? You won’t, right? So when you terminate them, then now you’re in the position of rehiring and now you’re putting a strain on your budget because you’re overpaying.

Kristen Knapp (12:50)
Right, of course. Yeah, it’s better to look for quality upfront and it might cost a little bit more, but you know that it’s gonna, they’re gonna do a good job. So going to the kind of working with real estate investors, what are typically some things that maybe you see investors misunderstanding about costs and timelines with construction?

Stacie Stewart (12:59)
Absolutely.

I think people have to have a realistic ⁓ time frame when they’re getting into construction because sometimes as a general contractor you might give them an estimate of say three months, four months, but then you might have a time when mother nature wants to rain for 30 days consistently and so you can’t prevent such things. So I think an investor needs to be realistic to know that okay when you’re given a time just know that there might be other situations that are not in our control and just

Kristen Knapp (13:28)
Right.

Stacie Stewart (13:41)
to be little bit more understanding and patient and put in a buffer, right? Put in a buffer maybe to account for that time. And then also I’ve had situations where people, investors start out wanting a certain material and then as the project gets going, they say, wait, I changed my mind and they want to make these changes. And then, you know, when you say, hey, I have to charge you more, they’re like, why? You know, so understanding that, keeping the project the way it is in terms of design and not change it.

Kristen Knapp (13:59)
right?

Stacie Stewart (14:09)
anything really eliminates a lot of misunderstanding.

Kristen Knapp (14:53)
Yeah, and how as a business owner, how do you handle those sort of situations where maybe somebody’s frustrated because things are taking too long or over budget or maybe something, maybe it’s over budget because of their own additions or changes. How do you handle that?

Stacie Stewart (15:10)
Well, we explain to them upfront before they make those changes and let them know, right, that what is going to, how is it ⁓ going to impact the budget so that they’re educated and they’re well informed upfront so that we can eliminate those situations during the project. But let’s just say, for instance, someone is adamant about adding something and then later on they just, they realize, hey, I’m running out of money at the end. Well, we just let them know that,

know, we informed them it was an educated decision that they made and then we try to see how the lender may be accommodating and how they could find savings in other ways to hopefully help offset that cost overrun.

Kristen Knapp (15:51)
Yeah, it sounds like you guys are very communicative up front and throughout the process.

Stacie Stewart (15:56)
Yes, in this business you have to be. have to be. And rightfully so, this is a very big investment, know, it’s a lot of money. there’s financing, banks and other people involved for those that don’t pay cash. So it’s a very stressful process for those. So I like to take that away and make it more enjoyable.

Kristen Knapp (16:12)
Absolutely. Yeah. What’s something that you really enjoy about this? Like what’s fun when you’re starting a new project? What’s your favorite part about it?

Stacie Stewart (16:19)
I love designing. not an architect by trade, but I love to just think about a home and just think about how I can make the design not so practical. Sometimes I’ve had the opportunity to, not every home I design, but the ones that I have designed, I do things out of the box, like maybe blinds that are already built into where they are remote controlled, maybe wet bars and other niches.

Kristen Knapp (16:44)
Mm.

Stacie Stewart (16:46)
and just little things that I just think about that makes the house look really pretty, the color combinations, it just depends. I just love all of it actually to be honest with you. I just love the process, the designing and just how you can see literally the whole project come to life.

Kristen Knapp (16:55)
Yeah.

Yeah. Well, it sounds so creative. And what are some design trends that you’re excited about?

Stacie Stewart (17:09)
Smart right now is very popular, in providing more, I would say, smart technology into the homes, like touchless water faucets, the roller blinds, the shades that go up and down remotely, cabinets that…

are also smart operated and just different functions. Maybe the lighting, you know, having more modernized lighting that you could just all do it literally from almost like watching The Simpsons all from a little iPad type of thing. Yes.

Kristen Knapp (17:38)
That’s awesome. And then

what are some trends that have kind of gone out of style that used to be really hot?

Stacie Stewart (17:43)
Hmm, I would say Some trends that are going out of style right now I would say people are building more modern I see more more modern and not in less of a traditional floor plan that you see everywhere So I think people are getting more creative in the in the pitches to roof pitches to flat You know flat roofs and things of that nature So I’m seeing more of a trend with with the homes being more modernized instead of just traditional

Kristen Knapp (17:51)
Right? Yeah, I see that too.

Yeah, I even just see that in my area. Like whenever there’s a new build, it seems to be a modern home.

Stacie Stewart (18:13)
Yes, another traditional old time look right from back in the day.

Kristen Knapp (18:17)
Right. I

know, and it definitely cycles. think for a while it was very, like people were very into like Mediterranean and then it became modern and it just always, it’s all cyclical.

Stacie Stewart (18:27)
Yeah, then you have the, if you want, those that like the country feel, you have a barnaminium now, so I think that’s pretty cool where you have that country ranch type style on the outside, but when you get inside, it’s like, wow, it’s modern, contemporary looking. So I think barnaminiums are pretty neat now, and I’ve built some, so I love building those as well.

Kristen Knapp (18:43)
know.

Amazing. Well, to kind of wrap this up, what would be a piece of advice that you wish you learned earlier on in your career?

Stacie Stewart (18:55)
I wish I learned earlier in my career to really…

be more meticulous when estimating as well as hiring the right contractors because if you don’t estimate properly of course you have issues with your budget and if you don’t hire the right contractor again you’re going to have issues not only with the house but as well with your budget so i think those are basically the two factors if anyone starts this business to really understand it know it as much as you can and if you don’t have the time to get that knowledge then

work with someone that does that will eliminate all those issues for you because it could make you or break you.

Kristen Knapp (19:28)
Yeah, absolutely.

I mean, you’re only as good as the people who you’re hiring out to. You’re only as good as the employees. Well, amazing. That was amazing advice. And thank you so much for being here. Where can people find you?

Stacie Stewart (19:38)
Yes.

They can find me on bwicontractors.com also on, if they just pull my name up, Stacie Stewart. I’m all over the internet. I’m not hard to find.

Kristen Knapp (19:54)
Yeah.

Stacie Stewart (19:54)
We’re moving

our offices from the Dallas area into the Arlington area. So my website will be updated, but right now our offices are in Dallas. But I’m really easy to find. I can get my number out too. It’s 817-618-3002. So yeah, just Google me and just, hey, love to work with you.

Kristen Knapp (20:15)
Amazing. Yeah, Stacie is very well awarded. I was looking at her awards and it’s like a whole paragraph long. So yes, she’s very easy to find and please reach out to her. Thank you so much for being here. I really appreciate it. Awesome. And thank you everyone for listening and we will see you back next time.

Stacie Stewart (20:27)
Thank you for having me, Kristen. It’s been a pleasure.

Yes. Thank

you everyone.