A borrower should consider using a private money loan in situations when he or she has strong equity or down payment, but cannot get a bank mortgage. Sometimes, it is due to time or paperwork, other times it may be the condition of the property. Some instances it is the borrower’s credit; others, the banks’ difficult lending guidelines. The borrower must be willing to pay higher interest rate and fees, so that they can access to capital more quickly, without the extensive paperwork requirements to reach their real estate goal.