There are quite a few more lenders out there than the "big banks" we see in our towns and cities. We hear about them through advertising, but rarely ever see an actual storefront.

These are the B Lenders 

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Many people turn to using these private lenders because the conditions are much more lenient and they offer a larger amount you can borrow. You are able to get a larger Loan to Value (LTV) on your property with less of your money down. The interest rates are higher.

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When should you turn to one of these lenders?

If you've found a great property that you know you can buy, fix, and turn some profit on and the larger banks are shying away from lending you the money.

You'll pay a higher interest rate, however, you won't be required to put a lot of your own money down at the time of purchase. This allows you to keep some of your money to pay for the renovations. At the time you've finished your renovation you have an excellent chance of getting a new mortgage on the property at a much lower interest rate.

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Read the fine print

Make sure when applying for a mortgage through a private lender that you read all of the fine print that comes with the mortgage. Look out for clauses regarding missing a payment/late payment, ending the mortgage early, etc.