What an episode with Nathan Cloud – this is a masterclass on underwriting multifamily real estate. I’m sure there will be a few things within this episode that you haven’t yet thought about as it relates to underwriting, this is a good one!
Nathan is the founder and managing principal at Cloud Capital where he oversees acquisition strategy and capital raising for the company. He has sourced over $23.8MM of multifamily assets. Before starting Cloud Capital, he worked as a senior equity trader and portfolio manager for a proprietary trading firm in New York City.
Nathan is an experienced investor and is now focused on executing Cloud Capital’s growth strategy to acquire multifamily and senior housing assets throughout Georgia and Texas. Mr. Cloud resides in Dallas, TX, and is a graduate of the University of Mississippi with degrees in accounting and finance.
Key Takeaways:
– Nathan shares his diverse background, and how he educated himself in multifamily real estate.
– We discuss the ways to quickly analyze returns on real estate deals and how to determine which deals are worth your time.
– We discuss how the market and story of the deal is a key, not just purchase price.
– Nathan shares specific data points he uses to determine if a market is focusing on. Also, we learn that pinpointing a certain market that you have a competitive advantage in is a key component to success.
– Nathan shares the components he uses to successfully underwrite a deal to gain the highest ROI.
– We discuss why expense ratios are critical in underwriting a deal and why you need to understand the typical ratios in your market.
– Nathan shares why you can not just rely on a T12 and that you must be aware of other factors in deals.
– We discuss the variants in rent growth and why it is crucial in underwriting deals.
– Nathan explains how he attains estimates for CapEx to successfully underwrite multifamily deals.
– We discuss why reserves are essential to keep a deal running properly.
– Nathan shares his favorite resources that add efficiency to his day to day tasks.
CONNECT WITH NATHAN
https://www.linkedin.com/in/nathancloud/
https://www.cloudcapitalllc.com/
CONNECT WITH AXEL
https://www.instagram.com/multifamilywealth/?hl=en
https://www.linkedin.com/in/axelragnarsson/
Download my investor toolkit (cash flow calculator, investor pitch deck, scope of work template, and renovation checklist) here.
