Private money loans are used for Fix & Flips or "Rehabs" for a number of reasons. Most commonly they are used when the condition of a property does not qualify for a conventional loan or needs significant repairs and upgrades in order to be profitable.
Fix & Flip loans are generally short term loans, as once the necessary repairs have been completed the property can be sold for a profit, or the loan can be refinanced with conventional financing.
You can channel your inner Chip or Joanna Gaines and renovate the property yourself, or you can hire out those services to a professional. Either way, Fix & Flips are one of the most rewarding types of real estate investing.