Since instituting this policy, I've only had one situation where multiple friends rented together and it worked great.

The institutional hard money lenders will in most cases require some skin in the game.  

My reading of the rules is that 1099-INT is only issued by financial institutions like banks and not by private individuals.Your sister does not need to issue any IRS form (1098), either, because she is not in the business of lending.No forms, but she must report the income.

What I can say is that all lending institutions have very different criteria for evaluating creditworthiness. 

Banks and credit unions can also offer flexibility for investors that engage in strong relationship-building strategies, offering discounts and solid loans in exchange for borrowers willing to use the institution for other purposes (savings accounts, etc.).

Consumers have no control if or when a loan will be sold, to another Financial Institution.

And they're not too bright anyways (as institutions, I'm not talking about individuals).

*Private lenders are typically funded by accredited high net worth groups, individuals, or conglomerates as opposed to institutional banks.Typically, you may be asked questions such as:1.

Luxury real estate marketing professionals may want to look into getting certified by the Institute of Luxury Home Marketing.

As an investor, you would want to see a committed investment from major institutions and the government to turn around those trends to be comfortable with the opportunity.