Private lenders are individuals who lend. Typically they are high wage earners who don't have time to buy, rehab, flip or be involved in rental property. These are individuals you know; family, friends or someone you met at a REIA meeting or other REI event that you have built a relationship with. The other are HML even if they state they are private lenders they are HML. I like private lending because I can borrow the full amount with little or no points and a lower interest rate.