Investing In
Multifamily Real Estate

Hyper-focused on mitigating downside risk

At Cloud Capital, we first target a market thesis where to deploy capital…

As our market thesis gains traction, we delve deep into the data to determine our investment objective. Our thesis is typically built through the lens of historic rent growth rates, past sales figures, housing demand per demographic, employment shifts, and other factors that contribute greatly to supply and demand imbalances.

We then seek to acquire properties that are underperforming, mismanaged, and undervalued in comparison to similar properties in the surrounding submarket.

 

We create value by rebranding the property with extensive interior and exterior renovations, improve operational efficiency by reducing expenses, and implement stringent asset management strategies that drive NOI higher and increase cash flow to our investors.

Investment Principles

  • Invest In Compelling Stories

  • Invest Where Demand Outpaces Supply

  • Buy Below Replacement Cost

  • Utilize Appropriate Amounts of Leverage

  • Align Interests with our Investors

Multifamily Investment Criteria

Cloud Capital has developed a unique and proven strategy to acquire multifamily assets that will offer compelling risk-adjusted returns to our investors.

  • Compelling Story

  • Well located submarket with supply/demand imbalances

  • Underperforming asset with lower income or higher expenses than surrounding properties providing an opportunity for value creation through renovations

  • 1980+ Vintage

  • 75-250 units

  • $10-30MM deal size

8

Preferred Return

15

Targeted IRR

282

Units

15075000

Average Deal Size

Our Competitive Advantage

  • Wall Street Experience –  allows Cloud Capital to structure an optimal capital stack for each investment lowering risk and enhancing investor returns

  • Underwriting is in our DNA – Cloud Capital scrupulously underwrites each investment with our proprietary, institutional-grade models rather than outsourcing  

  • Conservative Investing – we factor in conservative assumptions and do not “reach for the stars” in order to attract capital with unattainable projected returns

  • Focus on Markets We Know – enhances our ability to identify unique opportunities and shortens our response time to get off-market deals under contract

  • Relationship Driven – we partner with best in class operators and property management companies to ensure our business plan is implemented with greater certainty of execution  

Acquire

Cloud Capital sources, underwrites and secures properties that fit our acquisition criteria and uphold our investment principles. We only make offers on properties that have a built-in margin of safety and allow our investors to exceed cash on cash and IRR target return projections.

We will remain true to adhering strict emotional discipline and refrain from overpaying for assets where we do not have a distinct competitive advantage for outperformance.

Renovate

After closing, our operations and best-in-class property management teams immediately begin executing our exterior and interior renovation strategy curbing deferred maintenance.

The renovation includes modern exterior paint, new parking lots, dog parks, upgrading the gym, installing stainless steel appliances, granite countertops, and fresh interior two-tone paint rebranding the properties’ appearance.

Stabilize

Prior to stabilization, we work relentlessly with our asset management teams to increase income, decrease expenses, and drive Net Operating Income higher increasing cash flow to our investors.

Cash distributions will be distributed to our investors on a quarterly basis accompanied by detailed institutional quality financial reports.

Disposition

Once our desired investor return targets are achieved, we will begin to look for the most advantageous exit which could include a refinance returning investor capital or an outright sale. Our investors appreciate our focus on tax implications while we weigh alternative exit scenarios to preserve capital gains.

We can also transition the property into a longer-term hold to capitalize on cash flow distributions to our investors.

Investor Participation in Cloud Capital Deals

  • New Offering: Cloud Capital secures the investment under contract and provides investors with an Executive Summary outlining the offering.

  • Investor Commitment: Investors confirm capital they will contribute as a limited partner.

  • Timeline: Cloud Capital sends the PPM along with critical dates and deadlines to our investors.

  • Closing: Cloud Capital closes on the target property.

  • Cash Distributions: Investors receive detailed financial reports and are paid quarterly cash distributions.

Create an Investor Account

DISCLAIMER: The information on cloudcapitalllc.com may include past results of certain investments by Cloud Capital; however, past performance is no guarantee of future results. Investors are advised that any investment with Cloud Capital may experience different results from those shown. All investments offered by Cloud Capital involve risk and may result in loss.
Some of the statements contained on the Cloud Capital website are forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. These statements involve known and unknown risks, uncertainties, and other factors that may cause an investment’s actual results.
The overviews presented on the Cloud Capital website do not constitute an offer to sell or a solicitation of an offer to make an investment herein. No such offer or solicitation will be made prior to the delivery of definitive documentation relating to such investment.
Before making an investment decision with respect to any offering, potential investors are advised to carefully read the related subscription and offering memorandum documents and to consult with their tax, legal and financial advisors. Cloud Capital does not give investment advice or recommendations regarding any offering posted on the website.

Get In Touch

Cloud Capital, LLC
101 W Renner Rd Suite 305
Richardson, TX 75082