Multi-investor Loans Inquiry

[Matthew Lee]

Hey all - had a question about multi-member loan borrowing:

I am looking to invest with 5 other investors (tenancy in common) with a conventional loan. This is for a short term rental. Eventually, we plan to transfer title to an LLC that we fractionally own. In this situation, I believe each of us would be signed onto the loan as the guarantor for the FULL loan amount.

i.e.)

If each person owns 1/6 (17%) of a home and we take out a $1M mortgage, instead of inheriting 1/6 of $1M, each person would have the FULL $1M as a liability on their credit

As I understand it, this would significantly increase our debt-to-income ratio = more difficult to get future loans.

Is there a way to navigate this? I'd love to adopt the fractional / co-owner investing model and scale it for business, but I see this is as a huge gate if my debt is disproportionately growing faster than my share of the asset.

Would appreciate any insight and strategy for this game, thanks!