Positioning multiple lenders

[Kevin Smith]

Hey there BP community.  Newcomer here curious about structuring some financing.  My ideal option would be to work with a single private lender to fund a flip.  In that scenario, of course, the lender would have a lien on the property to offer some collateral should anything go wrong with the project.  My impression is one needs to build a reputation and positive track record before being able to secure such financing.  I imagine starting out I'll need to use a combination of hard money and a pool of funds from multiple friends and relatives.  In that case, the hard money lender would have first position.  Will the friends and relatives just be out of luck should anything go wrong?

If there were no hard money lender in the picture and there was just a pool of funds from friends and relatives, would all said lenders just get some percentage ownership of the owning LLC and then get a corresponding percentage of the sale price in the event something went wrong?

Obviously speaking with an attorney (I assume a securities attorney) would be warranted, but I'm just curious if others in the community have done something similar.  Not looking to setup an investment fund, but perhaps that's the only way to do it properly?

Appreciate any insights.

Thanks!