Private Money is common in the commercial lending industry, particularly in this lending environment we now find ourselves in currently (site updated 2010).  Private Money refers to lending money to a company or individual by a private investor or an investor group/pool.   Commercial loans have a much higher investment safety record compared to mortgage loans.  The reason is simple… due to the lower “Loan to Value” of a Commercial Loan, plus the livelihood of the borrower depends on the project’s success.  With CD and Money Market rates between 1-2%, a 9% fixed rate can be appealing to an investor.