Developers and house flippers, and individuals use private money lenders for private money loans to fund deals because they can borrow up to 100% of your purchase price!
On the other hand, hard money lenders will frequently require you to back up your loan with real assets.
If you know you can buy a property and turn it quickly at huge profit, and you can’t get a standard mortgage, it might be one way to go.
Some investors use private money lenders for hard money loans to get into the property.
They do some quick fixes to raise the property value. Then get a new loan (based on the property’s new, improved value) from a bank to pay off the private money loans.