Pooling Private Funds

[Cornell M. Dayne]

Hi everyone!

Hopefully, this post finds you all in good health in good spirits.

My question is as follows:

What does an investor have to do in order to pool the funds of individuals without having to represent/secure each individual interest as an individual lien against the property?

For example, if I purchased an industrial warehouse that sold widgets and the value that we derived for the property was $2,000,000 and I then managed to raise $400,000 from a total of 20 folks who were solely interested in a debt partnership with my company. How could I go about securing their investment and/or pooling their funds without creating 20 lien positions on the property.

I've heard that it is very unattractive to be in a lien position greater than 3.

Thank you all in advance for you wisdom and advice.