A loan from a private money lender is a type of financing in which an individual or company lends money to a borrower, typically for a real estate transaction. Private money lenders are not banks or credit unions, so they can offer more flexible terms and conditions than traditional lenders. However, private money loans typically come with higher interest rates and fees.
Private money loans can be a good option for borrowers who have been turned down by traditional lenders or who need financing quickly. They can also be a good option for borrowers who have less-than-perfect credit or who are self-employed.