Investors try to use a conventional mortgage to buy a property with one to four units if they can meet the bank’s criteria because this is where they’ll find the lowest rates and fees. To buy a home to renovate and resell or lease, investors often turn to private lenders that specialize in this process. Many banks either won’t provide these loans or take too long to close for an investor’s preference, so private money lenders are successful here. Private and hard money lenders are also helpful when investors want to buy commercial properties like apartment complexes, medical office buildings, or office towers for example. Their terms are more flexible than conventional mortgages and they will work with borrowers who have lower credit scores where banks and credit unions may not.