A private money loan is a type of financing provided by an individual or private company, rather than traditional banks or credit unions. These loans are often used for real estate investments, such as house flipping, because they can offer faster approval and more flexible terms compared to conventional loans. Private money loans typically come with higher interest rates and shorter repayment periods, and they are usually secured by the property being purchased. Borrowers often turn to private money lenders when they need quick funding or when they don't qualify for traditional financing.