Unless the current owners agree to upgrade the electrical system to current code - a costly proposition - we are going to terminate the PSA.

Basically it lets you walk through a prospective property with a property expert.The value proposition is to help you get advice from knowledgeable real estate professionals whose interest is actually aligned with yours (they don't make more money when you pay more on a property).

Can you prove to a lender or an investor that this is a money-making proposition?

You also need an employing/responsible broker where you can hang your new license until you can become an employing, or independent broker (check rules in your state).Part of the employing broker selection process should include a full explanation of your business plans with the investors, so that he/she can understand and accept whatever risk your business proposition might pose to their brokerage. 

I also know that this is a lot to take on for the first deal, but with our novice eyes it appears to be a cash flowing proposition.

"We judge others by results but ourselves by our intent" is a losing proposition in disputes like this and will cause problems.

Your assertion on the Garn St Germain Act is correct.However, although no trustee is required to be named, users of anonymity trusts should anticipate objections from a future title company based on the proposition that a trust is not a legal entity—which it technically is not, even though trusts often act as if they are in fact legal entities.

The value proposition many social media heavy agents make to their sellers is we will do a variable rate commission, so total commission will be a great deal lower, typically half, by selling it off market via social media....then if it doesnt sell that way for the price we want, we will then come to the MLS, where the commission will be closer to normal because then 2 agents are involved.Prior to this rule, an agent was free to market a property however they chose and their client agreed with.

Proceed with extreme caution, trying to wholesale a property owned by a relative is a tricky, landmine filled proposition.

In California, because of proposition 13, the assessed value basically tracks the purchase price adjusted for inflation each year rather than a newly appraised value each year based on the market.