What happens when the very experiences that could break you become the foundation for your purpose? Rochanne Douglas is an entrepreneur, real estate professional, investor, author, and founder of Loving 2 Learn Child Care Center, a childcare organization that has served children and families for more than 30 years. Her journey includes growing up around addiction and instability, becoming a teenage mother, surviving domestic violence, building successful businesses, raising a family, and navigating tremendous personal and professional challenges. Through it all, faith, perseverance, and an unwavering belief that circumstances do not determine destiny became the foundation for a remarkable life.
The conversation also explores her highly publicized Washington, D.C. property rights and squatter case, the lessons adversity has taught her about resilience and leadership, and the story behind her forthcoming memoir, CRACKED: A Memoir of Survival, Faith, and Becoming. From entrepreneurship and real estate to breaking generational cycles, trusting God through uncertainty, and finding purpose in difficult seasons, this episode is an honest and inspiring reminder that our struggles don't have to define us. Sometimes, the very things that crack us open are what allow the light to shine through.
In this episode, you will be able to:
The key moments in this episode are:
0:00 The Sacrifice Behind The Hustle
1:41 Buying A First Home At 19
4:14 Why Starting Small Beats Waiting
7:59 Short-Term Rentals As A Better Fit
10:44 Tenant Horror Stories And Going STR
16:02 Bootstrapping Financing And The BRRRR Path
20:58 Using Real Estate To Give Back
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Full Transcript Here:
Rochanne Douglas: 00:00
To be honest, I sacrificed a lot of time. A lot of time with my children. You know, they they to this day, my daughter hates Home Depot and Lowe's. She will not go there because it's like, okay, I picked you up from school. We got to go to Home Depot. We have to go to Lowe's. We have to do this. Um, it was just, it was really just a push to get it done. Um, I can't even say how I juggled it. I just made it happen.
Mike Swenson: 00:22
Welcome to the Real Freedom Show. We inspire you to pursue your passion to gain time and financial freedom through opportunities in real estate. I'm your host, Mike Swenson. Let's get some real freedom together. Hello, everybody. Welcome to another episode of Real Freedom, Real Estate Leverage Freedom, where we talk about different ways that people are building a career inside of real estate. I'm your host, Mike Swenson. If you want to get started on your real estate journey, check out our website, freedom throughrealestate.com. It's where we put all of our content for you to listen to other people's stories, see the path that they've taken, and hopefully be inspired or connected to other people that are doing some cool things in real estate. And I'm super excited to share today. We've got a great guest, Roshan Douglas. Roshan is an entrepreneur, uh seasoned real estate professional investor, author, and founder of Loving to Learn Childcare Center. Lots of different experiences, lots of background in real estate, which we'll talk about. Also, have a book, Cracked, a Memoir of Survival, Faith, and Becoming. We'll talk about the process of that and everything in between. So, Roshan, we're so excited to have you on the show. Welcome.
Rochanne Douglas: 01:34
Thank you for having me. I'm happy to be here.
Mike Swenson: 01:36
Take us back to the beginning. Talk to us a little bit about your background and uh we'll go from there.
Rochanne Douglas: 01:41
I am a, as I as you um announced, I'm a founder of a child care center, which is kind of how my real estate career began. I had a small daycare and I needed somewhere to go. And so I bought my first house at 19 years old. And so, yeah, buying that house, I established um a love of real estate because I amassed a lot of equity during the first few years of that property. And I became a landlord very young. I bought a second property. I realized that, oh my gosh, my neighbor's house sold for $200,000 more than what I paid. And the light bulb kind of went off at that time. Like, oh, this is a thing. I just bought the house really to have a place for my business. But when I realized the power of real estate, I thought, well, wow, if I had three or four of these, you know, I'd be in, you know, good shape. And so that's how it kind of got started. I flipped my first house at 28 and my career continued on. I got my real estate license in Maryland. Um maybe 15 years ago now. I began my journey with um helping other people buy real estate, flipping houses, um, buying and holding um short-term rentals and everything in between.
Mike Swenson: 02:52
Good to see. I mean, I I worked for a nonprofit for 10 years. And for me, yeah, kind of the the real estate piece was a big side component because you know, we didn't have a ton of money. My wife had just graduated college too. And so it was an opportunity to be able to earn some equity just by paying the mortgage, you know, and continuing to do updates and things like that. So certainly helpful for people on the side. So for you, then it kind of sounds like seeing the equity gain, seeing the neighbors' houses, kind of what that sold for. That was maybe what what inspired you to get on the path in real estate?
Rochanne Douglas: 03:26
That's what inspired me. As I said, I was a child care provider. Um, that was a good, stable living, but I knew it wasn't something that could elevate my life or, you know, really get me the financial freedom that I was looking for. Um, and I when I saw those gains in real estate, I just was I was drawn to it. I was like, I've got to get into this game. And funny enough, the first house that I bought at 19, I bought from a flipper. But at the time, I didn't realize he was the flipper. I just knew that I bought a renovated house. Um, but when we were at the settlement table, he got a check for 90,000. And I was like, oh wow, what did he get that for? Mind you, I'm 19, so I have no clue about anything. I'm just kind of there. And he was like, I said, How much did you pay for the house? And he said, 30,000. And I'm like, so you get a $90,000 check, you paid $30,000 and I'm paying you $90,000 for the house
Rochanne Douglas: 04:14
or one $150,000 for the house, you know, and it was just like, ta-da, you need to get into this.
Mike Swenson: 04:19
Yeah, it's interesting. And and what I love hearing from people too is you know, a lot of times when they're starting, it is uncalculated, it's just on a whim. Because I think so many times people feel like, oh, if I want in a good real estate, I have to watch a bunch of podcasts and go read a bunch of books and study up. And a lot of those people end up just getting into analysis paralysis and don't do anything. And and you took action without realizing what you were taking action on, saw the results and and kind of figured out a way to spin it to uh what is going to be a beneficial career for you.
Rochanne Douglas: 04:51
Yes, absolutely. And that's when I became an agent, I advocated for that. Even if you can get in something small, just buy something. Because even if you can't live in it, buy it and rent it out so that you can become a player in the game. Because if you don't, you're kind of pricing yourself out of any kind of advantage because every time you move, your landlord is gonna want more rent, more rent, more rent, and you get nothing for it. So when I saw that, I always advocated start small, get a first-time homebuyer program. Um, a lot of places have um grants and you know programs that they're trying to promote. Get into the program, just get into a property. It doesn't have to be a dream property. The my first house didn't have a garbage disposal, it didn't have a dishwasher, it you know, was teen. We outgrew it like in one year, but I owned it and it was mine, you know, as opposed to paying a landlord for rent. So I I encourage people just get into however you have to get into it, just to start. And then you can always build up and go from there.
Mike Swenson: 05:49
Yeah. And out of curiosity, then was it uh like a uh like a FHA low down payment, or kind of what did you have to do at 19 to be able to save, or was it zero percent down at the time? Kind of curious how you were able to get into it.
Rochanne Douglas: 06:02
It was a low um FHA program, adjustable rate because at the time rates were high. My rate was seven
Rochanne Douglas: 06:08
and a half percent back then, and that was at on an arm. So a standard rate was around 10. Um, so I just got in my rental payment, I'll never forget, was six hundred and eighty-five dollars. My mortgage was gonna be seven hundred and fifteen dollars. And that at that time, that was in 1994. That was a big, big jump for me. But I was like, I'm gonna make the sacrifice and I'm gonna do it. So it was a uh uh FHA program that I got in with three and a half percent.
Mike Swenson: 06:35
That's great. I know you had mentioned about the the adjustable rate. Um, you know, when we bought our first house, I was talking with my lender who was was my cousin, and he was like, Hey, do you plan on we had a townhouse? And he said, Hey, do you plan on living here for more than five years? I said, Nope. He said, Okay, great. Well, we have this adjustable rate program. Didn't think anything of it, right? And it was a a ticking time bomb that um took a lot of people down with them. And fortunately, we were able to kind of work and finagle our way around that. But um, you know, sometimes, yeah, you do have to figure out how to adjust, and it turned into us um owning that townhouse for probably 15 years because we did buy right before the crash, and then to be able to come back, but we were able to hold and have a good story long term. It wasn't a good story in the short term, right? And so I think that speaks to real estate does have its challenges, it's not perfect, it does have its struggles, and yet the longer you hold, the longer time is on your side, the more beneficial that happens is as your mortgage gets paid down, the principal goes down. You do have the the equity depending on the time of of uh your life when you you buy it and how much that equity goes up. And so, yeah, there's a lot of different levers that work out, and so good that you guys got in at a good time.
Rochanne Douglas: 07:43
You always make sure we have a plan B. That even when, as an investor or as a first-time home buyer, if this doesn't work out, can I rent a room out? You know, what can I do to make sure that I can sustain if things don't go as planned? Because you do want to be able to hold on to the property. So you always have to have some kind of plan B.
Rochanne Douglas: 07:59
When I got into um short-term rental, I had a daycare, it was a daycare, and I closed it um as I was expanding. And I'm sitting with the house that has all these bedrooms and bathrooms and things like that. And I'm like, what am I gonna do with this house? It's it's chopped up, you know, kind of thing. And I had a friend that was doing um Airbnb, and I said, Well, I'll try that out. So that was a plan B. And I figured I'm also by the University of Maryland, so I figured if that didn't work, then I could do rooms for college students. But I did it and I loved it, and it, you know, ended up being a great, a great thing to do.
Mike Swenson: 08:32
So, did you do Airbnb kind of rent by the room, or did you rent out the entire unit as like one one room?
Rochanne Douglas: 08:38
Renting by room, which was um not a good thing for I think that's okay if you live on site because you're able to kind of monitor people, but I did that very like fifth long, and then you know, I did the whole house because I think somebody needed a monitor because you just don't know who's coming in and out and stuff like that, and you can't control it.
Mike Swenson: 08:55
Interesting that you talk about your story of being at the closing table and have your eyes open to something different because our first flip property that we did, we held on to it, actually rented it out to my brother-in-law because we kind of ran the math and determined hey, if he paid rent to us, it would be less than what he's currently paying his landlord. And we know who he is, and he's trustworthy, and we know he's gonna pay. And so that was kind of what helped us to make that leap. But long story short, we fixed it up eventually when he he went to buy his house. The person that we sold the house to did rent by the room, and he had multiple properties near the University of Minnesota campuses. And our agent said, Yeah, he does this rent by the room. And then I started to do the math, and I'm like, wait a second, he's renting out four or five of these, and and kind of like what people do turn some of the common areas into additional bedrooms and things like that. And I was like, Holy cow, he's living there and renting out four other rooms. He's looking pretty sharp. And and now, you know, rent by the room is much more popular today than it was, man, it was 15 years ago, I think, when we sold that property to him.
Rochanne Douglas: 09:59
Because rents have increased so much if people almost can't afford to live on their own. You know, here in um Maryland, I'm right outside of Washington, DC. Room rentals are starting at a thousand dollars for a teeny bedroom. And if you get one with an en suite or something like that, it can be fifteen hundred dollars for just a room. So um the shared living is really becoming popular because it's becoming so expensive, which is why I advocate for people to buy. Because even though right now it may seem like, you know, it's a higher payment or the interest rate is high. But if you hold, like you said, and time gets on your side, then you become in a much better um financial situation. So I still encourage uh home ownership and rent real estate investing.
Mike Swenson: 10:38
Now you mentioned, okay, so owned your own home, flipped a home. You mentioned a short-term rental. What was the next step
Mike Swenson: 10:44
for you? And how are you able to handle balancing that with running your childcare business?
Rochanne Douglas: 10:51
The next step was that I was successful with the flipping of the houses, but then I wanted to hold. I didn't want to just keep flipping and flipping, and you know, I wanted to be able to hold on to some of the assets. So I got into landlord, uh, being a landlord for a short time. But then I was finding that every time the tenant would move, the house needed to be almost renovated. They wouldn't tell you about the leak in the bathtub and the ceiling fell in, or they I had one person install a stripper pole in the bath in the bedroom and painted this dark blue. It took like eight gallons of eighty gallons of paint to get it back. Like, so they just have a horror story, or you get the calls every week. I don't have this, my I lost my job. This so I was just like so tired of that. Um, and that compiled with running my other business. Luckily, I had staff and I grew that business so that I could take a little bit of a step away and really invest in the real estate. Um, I wanted the real estate to be a long-term play for me and my family so that we could have, you know, a legacy, uh, generational wealth. And so that's how I got into short-term rental. When I closed that one daycare and use that as a short-term rental, I really liked that platform because you're in the property constantly, you're able to see what's going on, even with a bad tenant. They're only there for four days, or you know, so you really can't, you can do damage. So I have stories about that. But, you know, most people won't tear up a house in four days. So it was a little bit of a um better play for me um at the time. Um, so I just continue to grow in in the real estate um business and like I said, doing the short-term
Rochanne Douglas: 12:26
rentals.
Mike Swenson: 12:27
How much time did that take? You know, you mentioned you were able to take some time away from your other business. I'm just kind of curious how you're able to juggle your schedules and juggle your responsibilities and your sanity um at the same time, trying to do multiple things because there's so many people that are entrepreneurs or have a W-2 job and are doing real estate in some way, shape, or form on the side. And it is a challenge. Um, and some may want to get into it full time, some may just want to still continue to keep things separate. So just kind of curious how you're able to handle, you know, your quote unquote day job with you know, being able to do some of this real estate stuff and continue to build that.
Rochanne Douglas: 13:03
A lot of weekends and holidays and evenings. So you just it was like a juggling. And to be honest, I sacrificed a lot of time, a lot of time with my children. You know, they they to this day, my daughter hates Home Depot and Lowe's. She will not go there because it's like, okay, I picked you up from school. We got to go to Home Depot. We have to go to Lowe's, we have to do this. Um, it was just, it was really just a push to get it done. Um, I can't even say how I juggled it. I just made it happen. It was I had a fierce determination to do it. Um, I I saw the light at the end of the tunnel. I had great contractors as well. Um, that really plays a huge part because when you don't have to manage your contractor or make sure that they're doing everything correctly, that really gives you a lot of freedom too. So a great contractor is like golden. So if you get one, make sure you treat them well and and and keep them on board because I we've had the same contractor for the last 15 years. Um, and he can build a house from the ground up. And we've used other people because at one time we had flip multiple flips and things like that. But really, it's just pushing and you you have to sacrifice. You have to sacrifice sometimes those evenings, those Saturday mornings, you know, and and to push till you get to a place where then you can choose a little bit um of what you want to do.
Mike Swenson: 14:17
How many flips have you done in total?
Rochanne Douglas: 14:19
I do not have an answer for that.
Mike Swenson: 14:20
Uh too many to count.
Rochanne Douglas: 14:22
It would be challenging. There was a point in time I didn't even know how many houses I had at one time. Somebody asked me, and I was like, one, two, three, four, five. I'm not really sure how many I had. Um I wouldn't say substantial. It wasn't a huge undertaking, but it it's probably at least around 20 or so. Um probably at one time we were doing two or three um at a time, which was a lot uh to take on.
Mike Swenson: 14:48
Yeah, it's funny. I had uh early on, we had our our townhouse, uh, we had our flip, which we bought for $36,000. Um, and then we had another single family home because we had turned our townhouse into a rental, and then we had our single family home that was a short sale that we bought at a fire sale discount, too, that I was able to fix up. And so at that time we had the three properties and we were renting out the other two. And one of my friends had a had a young daughter, and somehow it got brought up in conversation. Now, mind you, they lived in a brand new build, amazing home that was just perfect. And she was talking, and and uh in her perspective, she said something about about the different houses that we had, and she said, Wow, they own three houses, they must have a lot of money. And I'm thinking, not at all. Like we have way less than right, way less than you guys do. We're just working harder to kind of build that and grow that, and the houses that we have, you know, probably are worth what your bedroom is worth. But uh, yeah, it's it's funny how you know, little kids' perspectives and what they think is cool because yeah, there's a lot of kids out there that think that doing this stuff is cool. And to your point, my kids have shown zero interest in any of the real stuff state stuff that we've we've done on our side.
Rochanne Douglas: 16:02
And you have to see a vision for it. I've always been like a person who can kind of see what's not there. My first house was a flip, but the second one that I bought that I ended up converting into a child care center, um, it was it had 11 stores in the basement. It had water problems, it had, but the reason why I got it is because it had land. It sat on land, it was very convenient to the university, to um the metro station for people that go in and out of DC for work. So at looking at it from a business perspective as well as a real estate purchase, I had to see beyond the water and the snakes and the grass grew up over the house and all of the things and just you know bootstrap it. Um, I didn't come into the business with a business mind. Again, I was growing my childcare center and real estate was just a part of that. Um, so I didn't have traditional financing. I financed my house through a traditional mortgage loan, but then I had to figure out how to convert that into a business. So that was really, you know, um a lot of lessons, a lot of hard lessons. I didn't get into real capital um until long after I had been flipping houses and all that. I was using my own money, reinvesting it, and then the light bulb came on that you need to be doing this a little bit differently than you're doing it. And then I discovered, you know, capital and things like that. But I just used what I had and did the best I could and just said, you're gonna do this one way or the other. So figure it out.
Mike Swenson: 17:30
So did you do like the the Burr method and and buy and fix it up and then kind of take those proceeds into your next flip, or was it hard money, or how were you able to kind of keep that moving forward without just putting in more new capital of your own?
Rochanne Douglas: 17:44
At first, it was the Burr method. Um then we started working with working capital. Um, and then you know, and then you are able to get business loans and things like that. Once you have a substantial, you know, portfolio, you're able to do things a lot differently. But it started off with just sell the first house, take the money, reinvest it, do it again, do it again. So that's how we started.
Mike Swenson: 18:04
So, where do you guys stand today? How is your time spent today? On, I guess I don't know if you're still running your your child care business or real estate. What is what does that look like now?
Rochanne Douglas: 18:14
The child care center pretty much runs itself. I'm over 30 some years into that, so I'm thankful for that. Um, the real estate business is um it's it's doing good. We still have a lot of houses, but we had a situation, uh squatter case in DC that really kind of took me out um emotionally with the real estate. I went through a lot of stuff over these years with tenants and Airbnb and all kinds of stuff. But this particular situation really put me in a place of really trying to recalibrate and figure out what I want to do. We ended up selling the house that this situation took place in. It was in DC for uh not exactly a loss, but it was less than market value because I just wanted out. Um it took a hit because the house was over there by the new commander stadium. So in a few years it'll be worth a ton of money. So, you know, it was it and just the loss of the money, the lawyers, the all of the things that I had to deal with as it's as it relates to the house. So it has put me in a kind of a holding pattern with real estate as far as where do I want to go next. Um, as far as because that was an Airbnb. So that situation took place and arose out of an Airbnb guest. Um, and I don't want to go back into long-term rental. Um, Airbnb, like I said, it had been good. Uh so it's kind of a holding pattern. I don't know what the next steps are right now. Just probably sit and hold and wait and kind of let the dust settle a bit.
Mike Swenson: 19:44
Well, and I love that because I think for people listening, you might feel like you have to have all the answers and have it figured out, and or you've got this grand plan of where you're going. And most people that I talk to things shift around, right? Your passions shift. You run into things of I thought this would be cool and now it's not cool, or I thought this would be easy and it's not as easy. And maybe I decide I like this over there. And that's the amazing thing about real estate is you can choose your own path and you can create a different path and still take all the knowledge and experience that you have, and the relationships and the banking relationships and the vendor contract relationships and apply it in different areas. And so I think that's the cool part of your story is um, yeah, you have all this experience, and now, yeah, you can decide kind of where is that next step for you and and what do you want to do? But you have all this experience that you've relied on to help you make good educated decisions, and two problem solving skills, like the you know, one of the things that I share a lot on here is to be an expert problem solver, you have to have problems that you're solving, right? Otherwise, you you can't be a problem solver if you don't have any problems. So, you know, being able to figure out and navigate those situations now will help you make good decisions in the future, leaning on your problem solving skills
Mike Swenson: 20:58
in the past. So that's fantastic.
Rochanne Douglas: 21:00
Yes, and I actually am in a stage where I want to give back. So I was looking at I have two empty properties additionally, and I was thinking about as we talked about the rooms, the shared housing, um, doing that and maybe also providing housing for displaced individuals, people who are struggling with maybe domestic violence or temporary homelessness. I there are a lot of programs out there. I'm trying to figure out a use of the homes that I have to give back or to be more of a benefit. So I'm kind of looking at different avenues of what to do with these properties that could be impactful in the world too, not just financially, but you know, also do good for other people. So I'm looking into different things. Oh I'm not I'm not done yet.
Mike Swenson: 21:39
Yes, absolutely. And I think that's a good transition to your book. Talk about the process of being inspired, deciding, you know, yes, I want to do something like this, putting pen to paper and flushing it all out. Well, tell us, you know, how that came about and how to be for you.
Rochanne Douglas: 21:54
It's kind of like other the other things in my life. When I flipped my first house five years before that, I said, I want to flip a house. When I realized the equity position, I didn't know how I was gonna do it. I didn't know anything about real estate. Mind you, I was in my early 20s. I had two kids. I was, you know, I was not in a business mindset at all, but I said I want to do it. And then one day I got a phone call and it was available and I did it. The book is the same way. Several years ago, I would tell people about my story and how I, you know, have done things and the the child care center and the real estate and how things kind of manifested, and they would say, Oh, you should write a book, oh, you should write a book. And one day I did my vision board and the author, I put it on my vision board. This was in 2013. I wrote two chapters and said, Oh, I don't have time for this. I'm flipping houses. I'm a real estate agent, I own a child care center. And then um, last year, the author came back to me and I said, Oh, I should write this book. And I just wrote it. I wrote it. It talks about all of the challenges that I went through as a teenage mom, starting my first business, buying my real estate. It talks about how I flipped my first house from a phone call from my dad in the middle of the night. It talks about how I bootstrapped my way along, you know, and it's written really to give people an inspiration to know no matter where you are, you that's not your final destination. You can do anything you put your mind to it. Just keep going. Don't quit. It talks about the roads, you know. When I bought the house that I turned into a full childcare center, I had gone through six different opportunities to have a standalone childcare center that all fell through. They all fell through. I would put a business plan together and do all the things, and then this happened or that happened, but I just never quit. I never gave up. So the book is really just to give people that that notion. Just don't quit, keep going, and things will work out.
Mike Swenson: 23:45
Wonderful. For people that want to uh, you know, either get the book or reach out to you or learn more about you. Uh, how can they do so?
Rochanne Douglas: 23:54
Um, I'm on Instagram at Forever Miss Roshan, because that's my childcare name, Miss Roshan. Um, you can also connect with me on my email, uh, connect.rsdouglas at gmail.com. Um, I'm pretty easy. If you Google me, I come up. So I'm pretty easy to find.
Mike Swenson: 24:11
Wonderful, wonderful. Well, thank you so much, Roshan, for coming on and sharing your story. And for people listening, pick up the book and thank you for helping others and for what you do for others and excited to see where your journey is going to take you.
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