FAQ

Step 1: We find an investment opportunity that meets our strict investment criteria.

Step 2: We notify you of the upcoming investment opportunity and invite you to invest.

Step 3: You review the investment and decide if it meets your goals.

Step 4: If you decide to invest, you buy shares in the LLC that owns the property. You never wire money directly to Cloudline or anywhere else.

Step 5: We manage the investment throughout its lifecycle, distributing income, preparing tax documentation and providing progress updates along the way.

For more detail on each step, check out All About Syndications.

Usually, the minimum required investment is $50,000. However, minimum investments vary and are fully outlined in the Private Placement Memorandum.

A typical timeline for an investment is 3-5 years. The timeline varies based on the specific investment strategy. The target timeline for each investment is outlined in the Private Placement Memorandum.

Yes. All of Cloudline’s investment opportunities are Rule 506(c) offerings, which require participants to be accredited investors.

An accredited investor is anyone who has a net worth of at least $1,000,000, excluding the value of their primary residence, or anyone who has had an income in excess of $200,000 in each of the two most recent years or joint income with that person’s spouse or spousal equivalent in excess of $300,000. You can read the SEC’s complete definition of an accredited investor here.

Yes. You can invest with a self-directed IRA or 401k.

Cloudline invests in every deal. While the amount we invest varies depending on many factors, we never invest less than 5% of the total capital raised, and we vet and evaluate each investment as if we were going to be the sole investors.

Distributions will typically be made on a quarterly basis. This interval can vary from investment to investment. The anticipated distribution schedule is discussed in the Private Placement Memorandum.

Typically, each investment will also have a mortgage that is 50-70% of the purchase price. Our belief is that leverage is an advantage of direct real estate investments. We aim to use leverage to a point where we believe the benefits outweigh the risks. The specific leverage amount varies between investments and is detailed in the Private Placement Memorandum.

While target returns vary based on the type of investment, we generally look for investments that project a greater than 15% annual rate of return on invested equity.

Cloudline’s investment strategy is based on finding high cash flowing assets in growing markets with supply constraints and submarkets that exhibit growth trends. We believe that this combination of criteria creates a compelling risk/return profile for investing.

Investing is not without risk and investing in real estate is no different. Prior to investing, there are a number of real risks you should take the time to fully understand and consider. All known risk factors are more properly described in the Private Placement Memorandum, but below are some common risk factors to consider:

• Market risk – economic downturn, nationwide or within the market or submarket where an investment property is located, can adversely affect the investment’s returns.

• Property risk – there are a number of risks that come with owning a property, such as unforeseen maintenance costs or environmental issues.

• Operational risk – each property is effectively its own business. Revenues can be lower than projected, and operating expenses can be higher.

• Liquidity risk – investment properties, compared to widely traded stocks, are illiquid investments. Selling either a share of an investment or the investment property itself can take considerable time and expense.

• Governmental risk – changes in property zoning or local regulations can adversely affect an investment property’s revenue or value.  

Cloudine charges a 2.5% acquisition fee based on the purchase price of the investment property, a 1% transaction fees for dispositions or refinancing and an asset management fee of 2% of gross revenue. These fees are intended to “keep the lights on”, by paying for overhead costs and reimbursing expenses incurred while pursuing new investment opportunities. Then, after investors have been paid their preferred distribution and all invested capital has been returned, remaining profits are split 75% to investors and 25% to Cloudline. This profit split acts as a reward for a successful investment and ensures alignment of interest between Cloudline and its investors.