Development Fund vs. JVs
My partners and I are at a point where we have a ton of upcoming pipeline (mostly multifamily), which is going to require a few hundred million of equity over the next 3-7 years. Traditionally we've always gone to institutional partners on a deal-by-deal basis, but we've noodled with the idea of using these deals to seed a fund.
Ergo, I wanted to start a discussion to get this forum's thoughts on the pros and cons of having a platform vs. raising capital and negotiating every deal as you go to put them into production. We love the idea of building out more of a fee-based business to smooth cash flow, but obviously a fund comes with a ton of overhead and I have no idea how much (if any) of those fees are actually profit.