Is it possible to purchase with multiple private lenders?

[Paul S.]

I have been doing some research on private lending recently. Everything I have found is related to finding one person with money to fund the deal. You would then put their name on title and on insurance to cover their investment.

I am wondering though, has anyone here funded a deal through multiple private lenders? For example, let's say I find a house for $80k and it needs $20k in rehab. If I knew 5 people each having $20k, that would be enough to purchase and fix the property. It doesn't seem feasible though to put 5 people on title and insurance. How would the liens be ordered for each investor for example? Maybe as an alternative it makes more sense signing promissory notes for each person and then just buying the house myself. But then how do the investors get security in the deal? I'm also not sure if this falls into some syndication category and becomes very complicated.

If anyone has any experience structuring such a deal, I would really love to hear the details. Thanks.

[Nick Wing]

Look into fractionalizing the Note, just like @Account Closed said. We are able to do that in California.  Multiple people have a designated interest in the note. Lets say Investor 1 puts in 40% of the loan, Investor 2 puts in 60%; if you default, investor 1 will get 40% of the default judgement amount or proceeds from foreclosure sale, and investor 2 will get 60%.