When is Private interest rate of loan beneficial?

[Gopichand N.]

I am working with an investment group who provides Private interest rate of loan,the interest seem to be higher (4.5%) than then traditional 30 year loan for investment properties(3.25%), it obviously  doesn't sound beneficial ? am curious as when would folks prefer private interest ?in almost all cases the traditional 30 year loan seems beneficial

[Trevor Alexander]

@Jay Hinrichs Agreed! It's troubling as a Lender with so much misinformation.