Private investors offer less strict guidelines for qualifying... but this doesn't come without a high price tag.

Can close in a few day.

Fast closing - high interest.

As Carol Williams said...

All I know is that you can buy a whole lot of chicken with other people's money.

Carol Williams nailed this one!

The buyer may have a chance of qualifying for the mortgage - even if the credit score is low or there are issues with other conventional methods.

  No underwriter, less fees.  But you will probably pay a higher interest rate.

Private investors are not as concerned about past credit or current credit load. They tend to collect points up front to increase the yield and make the loan have a better and more attractive return.

Carol Williams has a great answer. A

Many great answers.

You make the private investor wealthy.

Here in NH i use a lot of hard money to buy, fix and sell homes. It is for short term, not long term and not for homes with any "unknowns" it can get costly if you do not do your homework first. It is not for owner occupied or long term holding

Easier to qualify and quicker to close.

I am involved in a development project where the money is in the land, that is already on mortgage. The current mortgage is approx $200k and the land is worth $1.2m. It does not qualify for commercial lending because the owners don't have the "cash" needed to help fund the new loan. They do not want to go through the process of pulling an equity line out just to have this cash and then go through the lending process. This could take months and put the project on hold due to winter. So, instead, they are going through a private investor that can get the money to them in a couple weeks. Sometimes its worth it, if time is a factor.

You pay more yet you get a loan that a lending institution will not underwrite. 

You get a loan that a financial inst wont fund

for those who have shaky credit, it's a blessing.....for others, it might not be!!!

Private investors offer lower lending amounts to value, higher interest rates and many times short balloons. If you have lousy credit, you pay the price.

Are you asking for the lender's side or the borrow's side? Depends on the borrower's history. 

For some people it may be the only type of financing available.  

Well there are usually fewer hoops to jump through and less paperwork..easier to qualify

Other similar have ansereed

Much less red tape.

They can close faster but have higher rates.

Private investor can make up some of own rules but still are under US Federal rules and CFBP

when you stop being anonymous I will be happy to answer your questions.

IT may be the only way to get the funds.

It can be quicker with less hoops to jump throuhg.  Typically private investors charge a percetage up front, and have much higher interest rates. 

You can often find private lending when you would fail to qualify through a traditional lender for one reason or the other. Private financers are great for flipping investment property because they will usually fund the purchase and the cost of improvements. 

Easier qualify

Private loans can provide professional real estate investors with quick and more flexible access to funding for investment properties. While typical private loans often come with higher interest rates, these loans are often easier to qualify for, require less paperwork and are based on the value of the property versus the borrower’s credit.

It depends on a lot of things

A higher interest from an investor is not an advantage.

Cash

Easier credit process, but beware of rates and conditions e.g. bullet payments in two years or something like that akin to predatory lending.

Some may not qualify for institutional financing.

None, unless you like to pay high interest rates.