Why is Private Lending a good strategy for an investor?

Traditional lending middlemen (banks, credit unions, finance companies, investment managers) are eliminated in a Private Lending scenario. Private Lenders receive the full proceeds of their investments (collateralized by real property) without sacrificing (often significant) portions of their returns to other institutions and organizations. This enables the traditional risk / return results to better favor the investor. Additionally, the Private Lender is relieved from day-to-day involvement in the construction, rehabilitation or management of real estate, thus freeing their time and energy while maximizing their investment return with one or more passive income streams.