Private lenders dont have to conform to the strict guidelines of govt backed programs.  Private money gives more options, but as Wayne Martin indicated, it will probably cost you!

the closing costs should be minimal... the qualifying will probably be less severe .... 

I have had investors use private financing because it made more sense for them and their situation and they came to an agreement to pay it off within 6 months.  Worked out for the investor and the private financier.  Sometimes it has to do with low credit scores or inability to get other loans.  It is just another option. -Kasey

Quicker money but there is  price for that

Less hassle to go through, but it'll cost you!

The only advantage that I can think of if a private investor is the only way you can become a homeowner.

Otherwise, I don't know of anything other than major disadvantages - especially having to pay out the nose in interest!

The ONLY time I've run into this is when the investor's name was Mom or Dad.

Advantage is that you get the money when a bank won't provide it ... and one pays a handsome price for it. 

Some buyers do not qualify for institutional financing.

Financing properties lenders would not, and avoiding the regulatory guideliness. But the cost will be higher

Read Chapter 15 Financing Alternatives

Private investors can be more flexible in structuring a deal.  But generally more expensive.

A private investor will often finance a mortgage for someone who cannot qualify with a traditional bank or mortgage company.

Poor credit! But be ready to pay the price!

Exactly what Fred Griffin said.

I suppose they are a good resource for someone who can't get money otherwise, but it will come at price.

If a buyer doesn't qualify for a traditional mortgage, a private investor might be a good option.

 Faster, easier loan approval with lower closing costs.  But you will probably pay a higher interest rate than market.

Corey Christiansen A private investor may be more lenient with the borrower; however, they will pay for this with a higher interest rate.

Quick, efficient, flexible, and a lot less fees and other monkey business.

Corey,

Everyone gave you great answers.

It depends on the transaction and the parties.

Most often although low qualifying standards, very high interest and points meant for short time use. Best used for buy, fix and sell. Never owner occupied and not meant for long term. 

You have ten mortgages which is the Fannie Mae limit. Also getting non-recourse loans.

I call this the "Golden Rule"...The man with the Gold...makes the RULE. As a Private Investor they can set the Rate, Terms, Loan To Value. The deal is up to his/her discretion. In some states they are only restricted under the "Usury Laws" as far as rate. They used to refer to this as Hard Money Lenders or Sub-Prime. Hold on to yours seats everyone, it's starting to make a comeback.

If you need money fast and understand all consequences of using a private money lender. 

able to close the deal faster

Jim Cheney nailed this one!

Less stringent credit requirements; quicker, but usually the rate is higher and beware of balloon or bullet payments.

They provide solutions to problems.

The problems can be property related or borrower related.

Solutions come with a price tag.

Corey Christiansen - well, buyer can buy is the best advantage.

Lots of great answers here...

Control?

There are usually less closing costs and the buyer may not have to go through a stringent qualification process. The rate may be higher though.

I hope they are all private with my info. 

Ask Jason E. Gordon 

Their are much easier to get and also have steep terms. Best left for wise investors. Not for newbies that don't know much yet.

same as cash