If the property type is too unique or otherwise unacceptable with conventional financing (for example, pre HUD manufactured home) hard money might be more doable. You may save money on origination fee but you'll certainly spend it on the rest of the terms which are going to be advantageous only to the lender. May or may not require appraisal.

often close faster.... more forgiving of credit flaws but will pay a higher rate..... 

Less concern about credit and other issues conventional financing would have

Candice A. Donofrio gave you great reasons!

You have many answers her.

I wish you all the best with your real estate studies and in your real estate career. 

For the buyer, it may be the only financing option available.

For the investor, with the right "product" there are always opportunities.  Hopefully with the right intent.  

Ability to get financing on something you may otherwise not be able to, due to credit, condition or type of property, etc. -Kasey

Kyle, I second Jeff Dowler's response. The speed at which you can move is much faster too. 

For some it's an only option. Less credit requirements, higher interest which they can refinance at a later time.  

Flexibility in an unusual investment situation.

its quicker, but pricier

Less restrictive, faster closing and often simpler terms but at the cost of a higher interest rate. They're not for everybody!

Kyle Beers Private investors may not be so critical with a borrowers credit information. In return they will pay a higher interest rate to get a loan.

Easier qualifications

Less paperwork, process and time.

Some borrowers are unable to qualify for institutional financing.

Faster closing!

no one wants to finance. A private investor can lend $.

Easier credit process, but beware of terms.

No underwriting, no loan closing costs. 

Interest rate will probably be higher.

They move quick

Not havig to jump through all of the hoops required of traditional underwriting! :)

The private investor gets to make a lot of money on someone who should still be renting.

Able to close fast.

If this investor is not able to obtain a loan thru regular lending institutions.

Advantage.

No safeguards in place so the buyer can fly as close to the sun as they wish.

Investor makes LOTS of money and could end up owning the house.

House can be uninhabitable.

Borrower my be completely unable to qualify for a loan. Now this could be because the borrower income is not W2 based and funds may be undocumented. Wells and Chase are unlikely to play ball.

Can close on property very fast.

Since such lending is typically between investors, the protections of the occupant buyer are minimal.  Private lenders are exposed to GREAT risk when lending to an occupant buyer.

Nee Kracker Lending LLC suggests collection may be more personal for non-performance.

Make sure your buyer knows what he is signing

They may be able to provide financing when a traditional lender cannot.

If someone needs money fast and agree to pay a higher interest~ used mostly by investors. 

usually less red tape and a faster process

I do it all the time and it is great for buy, fix and sell. never for holding or long term

For some, it might be the only option.

Great question for a lender!

quick close, can bring cash for an offer... 

You get the mortgage - that is the first advantage.

If the buyer cannot get traditional financing then it could be an option to use to buy and finance the property.

You can buy more properties, qualify for lending you might not get through a traditional lender, close faster, get enough money to buy and renovate on a flip, and others.

In 25 years I've never used one.