The primary problem with lending private money loans is that they can be risky. And, that's the case for both the parties: the borrowers and the lenders. People are attracted to these loans as they have fewer regulations. Therefore, they get more leverage to use the loan for multiple objectives. The alleviation of the risk factor is important for a private lender and the borrower as the aim is to earn money. There are a couple of aspects that a borrower can consider before getting a loan.