Some, but not all states, allow you to fractionalize a loan, @John Geldert.

Because this fraction is computed as "debt/basis". 

Has anyone ever put together a group to buy/build a vacation home?

He riskes only his time, earns a six figure income, has no ownership hassles and is happy earning a small fraction of the potential profit on any deal.

(over renovated, took too long and spent too much for a look that can be achieved at a fraction of the cost)Then, I had to hold it and rent it....

You can also set the note up and then gift your children "fractional interest" of the note.

Alternatively, a lien holder’s interest would be purchased for a small fraction of what is owed.Once acquired, the lien can either be held to secure my investment against a junior lien holder and/or the owner of record, or the lien can be foreclosed to force a trustee or sheriff’s sale of the property with the goal of collecting a fuller value of the lien from the sale, as note buyers frequently do.In the event that the owner of abandoned property cannot be found my company would assume control of the property, pay the taxes as necessary to avoid property tax foreclosure, and manage the properties for the income they can produce.If a previously lost/unfound owner eventually shows up, then we’ve done him/her the services of saving their property from tax foreclosure, of preserving the property from waste and theft, and of managing the property in their absence.

Send out offer letters at a fraction of the resale value (typically 25%), and start your due diligence once you receive a returned offer letter.  

Apologies if this is a topic that has been covered or is more appropriate in a different section but I am looking for information about selling fractional ownership in rental properties.

This results in the situation we have today in Denver  - a situation where a very tiny fraction of available housing is in the form of condos - a small percentage compared to other similar markets.