I think arbitrage is the riskiest of all str investments for numerous reasons.

It's hard work but very rewarding.

Hi Maria,Finding, evaluating, and securing high-return opportunities in private money lending can be rewarding, especially for beginners.

There use depends on the type of trust setup - they can be used to bypass probate; eliminate ownership and control from a person subject to lawsuits; skip a generation on an inheritance and hence skip inheritance taxes, and numerous other uses.  

@Alex SilangAs someone who does lending I would lend on a long term rental over a short term rental 10/10 timesA STR is more running a business and always having to stay booked whereas long term rental is more stable.Higher reward available = higher riskBanks do not like risk

It can be very rewarding!

A deposit on cheaper ones...I've beeN an Airbnb and HomeAway host on numerous properties for the past 6 years. 

You just need to close correctly and legally.We have several information and instruction documents we send out for free to anyone wanting to learn.I will reiterate -- no fight intended -- just advising what we have seen, done and developed over the past numerous years.Stay safe out there guysAlan 

We help clients close numerous multifamily deals in the valley each month and have good pulse on what's happening.Matt

Leaving aside if the JV is the best way to fund and assuming its not a scam than the fee is probably a very wise business move because a large percentage of the deals you see are from people who are delusional or are not taking numerous things into account (delays, closing cost, wrong comps, time, etc.).