#224: The Real Math Behind Luxury Development: What Most Investors Never Account For - Michelle Stevenson

She did 30 fix and flips, figured out the model was broken, and pivoted to building 7,000 square foot luxury homes from the ground up in Dallas. Now she's scaling to 15 simultaneous developments.

In this episode, Chris sits down with Michelle Stevenson — a luxury real estate developer based in San Diego building in Dallas, Texas. Michelle started in real estate sales, completed approximately 30 fix and flip projects, and made the pivot most investors never make — ground-up luxury development in one of the fastest growing markets in the country. She's currently managing two active luxury builds in neighborhoods like Preston Hollow, University Park, and Highland Park, each around 7,000 square feet with features like saunas, media rooms, pools, and outdoor kitchens — and she's targeting 15 simultaneous developments through strategic partnerships.

In this episode you'll learn:

Why Michelle left San Diego development for Dallas — better timelines, lower construction costs, and explosive population growth

How she analyzes ground-up development vs fix and flip — and why the numbers look completely different

The real math behind a luxury build: $730K land, $1.3M construction, $250K in closing costs, and what the actual profit margin looks like after everything

Why newer developers consistently underestimate true project costs — and the mistakes that kill margins

The hidden risks in fix and flip that most investors never account for

What luxury buyers actually want: multi-generational living spaces, saunas, workout rooms, and family-first layouts

Her unique perspective as a woman builder designing homes for how families actually live

Her mentorship platform — The Real Estate Connection — launching September 1st for women entering real estate investment and development

Her long-term vision: 15 simultaneous developments and eventually health and wellness resort development