What would you do if, overnight, your job disappeared, your income ran dry, and the bills started stacking up? For many, this scenario would trigger panic and uncertainty. But for Chad Harris, it was the catalyst for a life-changing journey into real estate investing, fueled not by bank loans or personal savings, but by the power of private money.
On a recent episode of Raising Private Money with Jay Conner, Chad Harris shared his journey from being broke and jobless—with a family health crisis on his hands—to building an impressive real estate portfolio of fifty rental properties, all done without a single cent from traditional banks.
Here are some of the core principles he shared that can help anyone looking to build real wealth through real estate using private money.
- Embrace the Commitment First
Chad Harris’s story begins at rock bottom: freshly back from an overseas job, with no house, no car, mounting medical bills, and a family to support. But instead of backing down, Chad committed to becoming a full-time real estate investor. Here’s the first powerful lesson: success starts with a decision. Before you can raise money, structure deals, or scale your business, you must fully commit to your vision. As Harris puts it, “If you are committed to it, you can figure out a way to overcome any obstacle.”
- Real Wealth is Built by Serving Others
A common misconception about raising capital is that you need to ask, beg, or sell yourself. Chad and Jay both reject this approach. Harris draws from his background in ministry, where he learned the art of inviting people to participate in something impactful—not just for himself, but for the other party as well. The principle here is simple but profound: focus on serving the needs of potential lenders. Many people want to get involved in real estate but lack time, expertise, or confidence. By offering them a chance to invest as private lenders—earning solid returns, secured by real estate—you’re fulfilling their needs as much as your own.
- Start Conversations, Don’t Sell
Both Chad and Jay stress the importance of natural, genuine conversations over hard sales tactics. Rather than “pitching” investments, Chad shares what he’s doing and allows curiosity to drive the next steps. For example, he likes to say, “We buy ugly houses, fix them up, rent them to great families, and share the profits with people we know instead of the bank.” This sparks genuine interest and invites people to ask for more details, creating a comfortable, non-pushy way to introduce private money lending.
- Structure for Win-Win Outcomes
Early on, Chad thought he had to offer the highest possible interest rates and fast payback terms to incentivize lenders. But over time, he realized that conservative, consistent returns—like 8% annual interest—were more attractive to most private lenders, who equate high returns with higher risk. By structuring deals that offer solid returns along with the safety and predictability private lenders seek, he created lasting relationships and repeat business.
- Ordinary People, Extraordinary Potential
One takeaway that Chad and Jay emphasize is that private lenders are ordinary people—teachers, retirees, professionals—looking for better, safer returns than the stock market or CDs. As real estate investors, we’re uniquely positioned to help them achieve their goals while building our portfolios.
- Mindset Is Everything
The key mindset shift? Stop thinking of yourself as a “borrower”—start seeing yourself as a “private money teacher.” You’re not asking for favors; you’re providing valuable opportunities. This shift not only boosts your confidence but also attracts people who want to learn and partner with you.
Conclusion
Chad Harris’s journey is a testament to the incredible impact of private money in real estate investing. Whether you’re starting from scratch or looking to scale, remember: Commit wholeheartedly, focus on service, structure win-win deals, and approach conversations with authenticity. True wealth isn’t just about money—it’s about empowering others while building a better future for yourself and your community.
If you’re inspired by Chad and Jay’s approach, begin today by starting a genuine conversation about your real estate journey—you might be one chat away from your next great deal and a lifetime of wealth-building partnerships.
10 Discussion Questions from this Episode:
- Chad Harris shared that a family health crisis forced him into a major career pivot. How did this challenge shape his approach to real estate investing and fundraising?
- The BRRRR strategy was a key part of Chad’s success. How did he adapt the traditional BRRRR method to rely entirely on private money, and what advantages did this bring?
- Both Jay and Chad emphasize serving private lenders rather than “chasing” or begging for money. How does this mindset shift change investor-lender relationships?
- Jay mentions that many of his private lenders were completely new to private lending and self-directed IRAs. Why is educating potential lenders such an impactful part of this process?
- Chad advises that commitment is the first step for anyone starting. In what ways can commitment help overcome the initial obstacles that new real estate investors face?
- Chad realized that offering higher rates of return sometimes scared lenders away because it seemed too risky. How does setting reasonable terms help attract the right funding partners?
- Discuss the difference between hard money lenders and private lenders as explained by Chad and Jay. Why does this distinction matter for real estate investors?
- Chad describes starting conversations about private money by sharing the opportunity, but letting interest come naturally. What are the pros and cons of this indirect approach?
- Many private lenders, according to Chad and Jay, experience a positive life impact from their involvement. How do these personal stories strengthen the case for private money partnerships?
- The episode repeatedly highlights the impact of mindset, service, and relationships in successful fundraising. How can real estate investors cultivate these qualities to build long-term wealth?
Fun facts that were revealed in the episode:
- Chad Harris Built a 50-Property Portfolio Without a Single Bank Loan: After returning to the U.S. with no job or savings, Chad raised over $3 million in private money and bought fifty rental properties—all without using traditional bank financing.
- Private Lenders Often Prefer Lower Interest Rates: Chad learned through experience that many private lenders feel more comfortable with lower interest rates (like 8% instead of 10%), seeing higher rates as “risky”—a surprising mindset shift for many new real estate investors.
- Private Money Conversations Can Start Anywhere: Chad’s favorite way to attract private lenders is simply by casually mentioning that he buys and fixes up properties and shares the profits with investors, in everyday conversations at church, over coffee, or at social events. This approach sparks curiosity without ever having to “sell” or “beg” for money!
Timestamps:
00:01 Pivot to Real Estate Investment
04:26 Vision for Real Estate Investing
08:36 Connecting Dreams: Ministry & Real Estate
12:16 Private Money Lending Introduction
16:08 Lender Reactions to Loan Payoffs
17:26 Transformative Impact of Lending
23:01 Hard Money vs. Private Lending
24:50 Private Lending: Everyday People Business
27:58 Attracting Investors Through Curiosity
31:36 Connect with Chad Harris:
https://www.TrueWealthInvestors.com
Private Money Academy Conference:
Free Report:
https://www.jayconner.com/MoneyReport
Join the Private Money Academy:
https://www.JayConner.com/trial/
Have you read Jay’s new book, Where to Get the Money Now?
It is available FREE (all you pay is the shipping and handling) at
https://www.JayConner.com/Book
What is Private Money? Real Estate Investing with Jay Conner
https://www.JayConner.com/MoneyPodcast
Jay Conner is a proven real estate investment leader. He maximizes creative methods to buy and sell properties with profits averaging $67,000 per deal without using his money or credit.
What is Real Estate Investing? Live Private Money Academy Conference
YouTube Channel
https://www.youtube.com/c/RealEstateInvestingWithJayConner
Apple Podcasts:
Facebook:
https://www.facebook.com/jay.conner.marketing
Listen to our Podcast:
Comments