Potential STR strategy

[Robert Ashton]

Curious as to what the brilliant minds on here can come up with in this investing scenario!

My wife and I are real estate agents, currently with no capital to invest in a property or finance a renovation. 

My grandmother owns a studio in Yucca Valley that is a head ache to her and she only visits to check in 2 days out of the year. The property is a studio and definitely needs some work but once fixed up could STR for $130/ night. She's not willing to fund any of the renovations that would be needed to get up to rental condition.

What would you do in this situation? Bring in a 3rd party to fund the deal, pay them back (say 20% more than they funded) of all initial proceeds then continue to pay Grandma a percentage of the remaining cash flow?

Looking to get our feet wet so to speak in the space, not necessarily hit a home run, and this seems like an opportunity waiting to happen.

Curious to what you all can come up with and appreciate the tips in advance!

[Shiela R.]

@Robert Ashton do you have access to credit?  A lot of times big box stores (Home Depot, Lowes) will give favorable financing like no interest or payments for 12 months.

If you can get access to credit and/or pay a licensed contractor with a cc, you could use a land trust where you and grandma are beneficiaries of the Yucca Valley Studio Trust which, essentially, names you both on title. At the same time, you are the trustee of the Yucca Valley Studio Trust in order to oversee the work and scheduling, therefor taking the burden off Grandma but helping her liquidate the asset while splitting the profit (not necessarily 50/50).