Fix and Flip Is Broken: How ADUs Turn Single-Family Homes Into Duplexes

Jim Park (00:00)
Fix and flip is not penciling out nowadays. You can fix it, but you ain’t gonna flip it ’cause houses aren’t moving.

But what if I help you buy that fix and flip with almost no money down, give you all the financing to build an ADU and pop it on the back. So now you took a single-family residence and made it a duplex. And just here in Orlando, you should see how many fix and flip guys already fixed it, but they can’t flip it. So they’re just trying to get out of it.

Q Edmonds (02:02)
Hello, everyone. Welcome to the Real Estate Pros Podcast. I am your host, Q Edmonds, and I am excited to be here today. I’m excited because, listen, I have an excited guest, and I love what he’s doing. He is on a cutting edge. He got some things that he’s going to talk to you about, and he’s kind of getting ahead of the game. And so I’m, I’m really excited about what he’s doing. He is the founder, CEO of Park Place Lending and Investments. He provides funding and lending for projects, and he’s an investor himself. Got, listen, years of experience. He knows what he’s doing. And so I’m excited for us to sit down and glean from the experience of Mr. Jim Park. Mr. Jim, how you doing today, sir?

Jim Park (02:44)
I’m doing excellent, Q. Thank you for having me on, and, you know, I would just love the opportunity to share with the audience this amazing opportunity here.

Q Edmonds (02:52)
Man, yes, sir. And I, and I thank you for your time. You’ll hear me say that again at the end. I think time is almost a precious commodity. So I do indeed value you being here. And so, Jim, I’m the type, sir, I like to dive right in. So I would love for you to tell the people what’s your main focus these days. If you don’t mind, give us a little origin story, kind of how you got into the space that you’re in, and then tell us what market you’re operating in, sir. So you got the floor, my friend.

Jim Park (03:17)
Awesome. So I’m from California originally. Graduated from UOP with a finance and marketing degree way back in the early nineties, and then thought I was gonna be a stockbroker, but decided, you know what, I’m gonna go into mortgages. So I did my first loan back in nineteen ninety-four. And for those of you veterans, you know Ameriquest, right? So we started way back when, and then in two thousand and two I launched my own company called Park Place Lending in Pleasanton, California. So that went well until a good old two thousand and eight crash. Okay. So when that happened, obviously it was time to kind of, like, pivot. So for, for about a few years I went into the marketing space. And then when the lockdown happened here in 2020, I moved from California to Florida. And that’s when all the fun stuff started happening. Okay, so, you know, I’ve, I’ve had many years of doing funding, not just your regular, you know, Fannie, Freddie, FHA stuff, but really investor type. You know, how do we expand a property and bring value to it?

And then also this past five years when I moved to Florida, I was actually involved in building some duplexes. Because duplexes is something I knew when rates were gonna go up, they’re gonna have to have a source that generate cash flow to cover that housing expense. So that’s been going well here in Ocala, Florida. But about a year ago, that’s when things kinda, like, hit the brakes. You know, the cost of goods, the labor shortage really started to, you know, put a damper on the profit margin.

So then about a year ago I did a massive pivot, and that’s where I’m excited to share with everyone here what that is and where we’re going ahead with it.

Q Edmonds (04:55)
Yeah, absolutely. Well, listen, man, you got the floor. I want you to give me a little bit more about what’s the massive pivot. Talk to us about what it is that you’re talking about, man.

Jim Park (05:51)
So those of you that live in California, you’ll know what I’m talking about. This is called ADUs, a sec—accessory dwelling unit, where most people call it a backyard cottage. Well, in California you don’t have as much land as you do here in Central Florida. So ADUs is almost a necessity because housing is not moving, the prices went sky high, the rates aren’t coming down, and affordability, we’re at a crisis point right now.

So in California, they’re using the, the land they have in the backyard and putting a one- or two-bedroom, sometimes a studio, right there in the backyard. Genius move. Because that’s something where you can expand your residence and do it in a way where you’re not having to gut the house. You get to keep your main house, but it’s like a two-for-one. So here in Florida, it was kind of slow to adapt.

But here the cost of housing went up. There’s a lot of houses on the market. So people that have a house right now where they got at least ten thousand to about fifteen thousand square feet, guess what? That backyard is dead space.

You’re paying property tax on it. You’re just wasting it. But here’s what I’m really excited about regarding the backyard cottage or the ADU. There’s three things. First of all, we have a thing called a silver tsunami. Seventy-six million baby boomers are about to hit all at once, and that long-term care is at a crisis point. So why is that important?

Because if I have Mom and Dad who’s elderly, do I wanna put them in, you know, long-term care, pay ten thousand a month? No. I’m gonna use that empty space in my backyard, and I’m gonna call Jim Park, okay? And I’m going to get a modular ADU in the back. You heard correctly, modular. Modular is built in the factory. It’s more efficient. It’s more, you know, predictable.

Because you don’t have to worry about labor shortage anymore. It’s built in the factory. Now you get a general contractor to go and put the concrete foundation and then do all the, the other stuff, but majority of the framing is done in the factory. Okay, so we avoid the problem that I had here in Ocala. Okay, so that’s gonna help the baby boomer, seventy-six million baby boomers about to hit at once. Two, the average first-time homebuyer right now is forty years of age. Q, forty. I had two kids by then.

Okay. I mean, forty years of age. So a lot of times now kids graduate college, they’re not able to buy their first home according to the stats until they’re forty. Well, I have two daughters, you know, in their twenties. I love to death, but do I want back in my house? Probably not. But if I have a backyard cottage, an ADU, I would love to have my kids in the backyard and take and figure out what to do.

Right? So instead of, like, hey, guys, go pay rent or try to buy a house you can’t afford, come and live with Mom and Dad for a few years. Get your own space. They love it, ’cause they still got Mom’s cooking, right? But they got their own personal space. So you have that demographic. Now the third demographic that’s really exciting are fix and flippers.

Fix and flip is not penciling out nowadays. You can fix it, but you ain’t gonna flip it ’cause houses aren’t moving.

But what if I help you buy that fix and flip with almost no money down, give you all the financing to build an ADU and pop it on the back. So now you took a single-family residence and made it a duplex. And just here in Orlando, you should see how many fix and flip guys already fixed it, but they can’t flip it. So they’re just trying to get out of it.

I’ll go in there. A client comes to me, we’ll buy that house fully renovated at the price that they bought it for. These one out. And then we’ll do a fix and flip construction loan. So guess what? I don’t have to fix up the main house now. I just get the financing to put a one- or two-bedroom backyard cottage on that lot.

So if I’m going to flip it, I just did a massive value add with a minimal investment. Two, if I want to hold, I just took a single-family and made it into a duplex. And here in Orlando, there’s a place called College Park. It’s kind of like a higher end, you know, the rents are high, all the amenities.

There’s tons of properties right now that I would love to help people and go, look, all these properties, they’re not moving. We get this at a really good price. You don’t even have to fix the main house. We do a fix and flip financing, get you the money to put that modular, and you either keep it, and rents out there twenty-five to three thousand. Okay? So multiply that by two. So those are the three key demographics that I have this lined up.

I’ve been crossing the country this past year, Q. I’ve been flying all over, going to conferences, talking to CEOs, and then boom, we get another gift. So there’s a 21st Century Housing Act that just went into law. Okay? Most people in my industry don’t think it’s a big deal, which for the most part it’s not. But guess what? There’s a clause in there that now makes modular construction on par with stick. Because HUD knows, okay, the, the government knows that we need to build these houses more efficiently and more cost-effective. So they put that in there. So guess what? Now you’re gonna be able to get conventional financing once it’s all said and done. That’s gonna change the game. Some modular ADUs with the right funding in right locations, that is what I’m passionate about.

Q Edmonds (12:01)
Sir, thank you, man. Thank you for walking us through the journey. Thank you for letting us know what you’re up to now, man. And you’ve talked about times where you had to pivot. And so, Jim, I often say destiny has no wasted moments, right? As we’re going through life, we’re borrowing from each leg of the journey. So what has these moments, what has this journey revealed to you about yourself? Has it revealed humility? Has it increased your tenacity? Like, what does these moments reveal to Jim about Jim?

Jim Park (12:28)
So my identity is in my Savior, Jesus Christ. And that is something I have no shame, a hundred percent. I’m so thankful. And do not be ashamed of the gospel, for it is the power that saves. So my story is that from, you know, beginning of, end of college to about forty years of age, I was a nonbeliever.

I made millions of dollars in that era, okay? But I didn’t have the Holy Spirit, so I was empty and I did stuff I shouldn’t have done. Market crashes in eight. I go from the penthouse to the outhouse. But that’s when God broke me. He broke me to the core, and then we moved to San Diego, and I heard the gospel for the first time. Okay, the pastor said, “Hey, for those of you that money’s your God, how’s he doing now?” And I was like, no, he just left.

Right. So at that moment in time, he gave an invitation. “Hey, Jesus paid for your sins. Everything you’ve done, he’ll forgive you. Come on down.”

When I heard that for the first time in my life, it was October nineteenth, two thousand and eight, my brother. Okay? And I remember it like it was yesterday. So it was something that I never heard before in my life, but I just, my heart was just on fire. So I go down and, and he says, “Hey, you don’t have to do anything. Our Savior already did it all. Just, you know, repent and then follow him.” And the minute I said, “Father, I’m sorry,” man, I broke down like a little newborn baby. And little do I know, you are born again in the spirit. They’re weeping and crying.

But it was a moment of joy. It was a moment of, like, wow, where has this been my whole life? It wasn’t the millions that brought this. No. It was that moment in time that God’s grace found me, and then he broke me, and then he lifted me up. So that’s who I am as a person. And why is that important? Because, look, I’m about to turn sixty in a couple years. I’m at the fourth quarter of my life. I’ve pretty much did everything a person can do. I have a beautiful wife of thirty years. I have two beautiful daughters.

I mean, what more can a man want? But now I want to be able to give back, not only in the marketplace, but in a place where they’re gonna have eternal salvation. Because when you live with that power, I’m telling you, when you live with victory, it’s kinda like playing the World Cup, right? The final game. Hey, you’re gonna win one-nothing. Well, if you already know going into the game, you’re gonna play with peace. Yeah. But if you don’t know, you’re gonna be all stressed out, right? But with all the stuff we got.

Q Edmonds (14:56)
Yes, sir.

Jim Park (14:58)
In this economy, the unknown, listen, AI is gonna fool a lot of people. It’s gonna fool a lot of people. Okay? And, and, you know, that kind of brings a lot of anxiety. And I’m telling you, there’s only one source for true peace, okay? And that’s the Word of God, His salvation, and His mercy. So with that, I pray that God will continue to open doors. I want to be a resource with all the experience, knowledge He’s blessed me with, to be able to build these accessory dwelling units, ADUs, to give people hope in housing. Because if you think about this for one second, if my housing is taken care of, 99% is pretty much done. Okay? Because, look, if you lose your house or you can’t make ends meet where you live, that’s a stress on any family. So that’s why I’m so passionate about taking this model and taking it out to the masses, starting in my backyard. And whoever’s willing and hears this, please reach out, ’cause I’ve got other opportunities regarding this modular construction that may work for you.

Q Edmonds (15:51)
Yeah.

Well, thank you, man. I’m so glad that you’re clear on your mission, man. And I want to talk to you a little bit about, because you want to help people, I want to talk a little bit about relationships. And I would love to know, what is your philosophy on building healthy business relationships? And who are some people in your corner who has helped you get to the level where you are, and people that continue to be in your corner that you share business with, ideas with? So talk to me a little bit about relationships, Jim.

Jim Park (16:50)
Let’s—well, you know, relationship, I believe, I believe in theory, iron sharpens iron. And, and those are not just words. Okay, so you and I are building this relationship. My whole purpose as you and I build a relationship is, how can I serve Q today? How can I serve him in a way that will bless him not only spiritually, financially, and sometimes emotionally? Do you know the best conversations I have is not, “Hey, how much can I afford, or what can I do?” It’s like, “Hey, I’m going through some tough times right now.” Okay? I said, “Great, we all have that moment. Can we pray about it?” And we just bring the Holy Spirit, and then we bring the peace, because we fight this battle not against flesh and blood, but against the powers and principalities of the unseen world. So you gotta fight that unseen world, okay? Because I forgot to share one thing that’s very near and dear. So about three and a half years ago, Q, man, December twenty-fourth, twenty twenty-two, my, my mom just passed away.

I’m sorry, but she’s only seventy-eight. Mm-hmm. And I, I’m her baby son. Man, I’m telling you right now, it still hurts so bad. So it proved to me at that moment in time that this life we live, man, there’s an end. We think it goes forever. It doesn’t. We were all supposed to go to dinner at my mom’s house, and then I get this frantic call from my dad.

And she passed away on the spot. You know, it was a cardiac arrest. But I remember this. We go to the hospital, right? And then my mom is living there—I mean, she’s, she’s lying there lifeless. Mm. And I look, and she has these earrings. And these were, like, these pearl Mikimoto earrings. I remember as a kid how much she wanted those earrings. You know, ’cause she brought us from, you know, South Korea when I was little. They worked in sweatshops and all that.

So anyways, she worked her way up and got these earrings. It meant the world to her. Well, guess what? She’s on that hospital bed, deceased, and those earrings are still in her ear. And I’m like, we ain’t taking nothing with us. You think things of this world are so important to you, whether it’s a house, but to my, to my mom, that, that earring was, like, her precious level of success. So now it hit me even more.

Okay? At any moment in time, only God knows when our last day is. So yes, we’re to do our best. Yes, we are not to be in scarcity mode. We need to be in abundant mode so we can serve others. Okay. As a believer, okay, we are to use our gifts and bring abundance so I can serve Q, I can serve the community. Because if you’re, if you’re lacking, you’re scarce, what can you do? Right? So that’s kinda…

Q Edmonds (20:03)
Yeah.

Jim Park (20:27)
The passion for this and relationships. Listen, I’ll talk to anyone. I don’t care what you believe in. To me, it doesn’t matter. But man, when I come across a Q or someone that’s a on-fire believer, woo. You know, th-those are the conversations I love having because now we’re on the same page. Yeah. But that being said, I don’t care who you are. I don’t care what you believe. If I can serve you in any way and walk this out and represent my Messiah, let’s go.

Q Edmonds (20:58)
Yeah.

Yeah, man, I, I love it. Thank you so much for sharing. And that iron sharpens iron, that’s one of my favorite scriptures as well. And I love reading it in the Amplified Classic Version because it says iron sharpens iron, and this happens through discussions. Yes, that’s how it happens. So, man, I, I love it. I’m so glad that you and I had a chance to have the discussion for you to plant seeds and for you to sharpen somebody else’s iron. So I, I appreciate you, sir. Jim, if someone wanted to reach out to you, connect with you, collaborate with you, learn more about what you’re doing, how can they get in contact with you, sir?

Jim Park (21:35)
Can go to my website, parkplacelending.com. I always use my last name, so just parkplacelending.com. There, there’s a button that says, “Book a Call,” and you can schedule a call. We can chit-chat like this and have a good time. Or I can, you know, get you the right financing, get you an ADU, so on so forth. So I’d love to have you book a call, and then we’ll hop on a call, phone call, Zoom call, and then you can find me on LinkedIn, Jim Park.

That’s where I usually, you know, share all my information. But yeah, parkplacelending.com or LinkedIn, Jim Park.

Q Edmonds (22:12)
Man, I just want to say I truly appreciate you coming through. I want to say three things to you sincerely. One, thank you for your time. I think time is our most precious commodity, and so thank you for, for giving us your time. I value that. Secondly, thank you for your story. Thank you for your authenticity, even what I call the gift of your vulnerability, man. I believe we plant seeds, right? Jesus taught in parables. So our life is just a parable, it’s an allegory. And I believe you planted enough seeds that we don’t know when it’s gonna take root, but the seed is there, and it’s gonna take root at any given time. So you put some real seeds out. And lastly, man, thank you for your mindset. Thank you for the way you think and bringing that mindset to this platform. Jim, I greatly appreciate you coming on today, sir.

Jim Park (22:57)
Q, thank you so much for the opportunity, and I can’t wait to build a relationship with you, my brother.

Q Edmonds (23:04)
Well, listen, y’all heard Mr. Jim. His information is in the show notes. Please get in contact with him. But definitely make sure you’re subscribed here, ’cause I promise you we’re going to continue to bring on amazing people, just like Mr. Jim Park. So, sir, thank you again. And everyone else, y’all have a fantastic day.