Grocapitus - Anyone have experience with them?
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Real Estate Investor · Redwood City, CA · Member since 2012 · 272 posts · 399 votes
6yDo NOT invest with Grocapitus. Neal Bawa sounds like he knows what he's talking about, but his track record is terrible. Their underwriting is pie in the sky unrealistic and puts little or none of his own money into his deals. I have a buddy who invested in a project in Las Vegas that crashed and burned. They are now selling resulting in a 100% loss for investors.
I invested in a project with Neal Bawa and his former partner Jean-Marc Landau on a project in Buffalo, NY three years ago. Neal and Jean-Marc were supposed to secure construction funds. They were unable to do so and have ostensibly walked away from the project leaving their partners to clean up the mess. Despite their track record, both these guys continue to peddle their snake oil. They have become good at marketing out of necessity as nobody invests with them twice. Avoid them like the plague.
210 Replies
- Investor · Fremont, CA · Member since 2015 · 209 posts · 124 votes4yUnlikeMorris, i do believe they are trying. But i will never invest with them. I can accept a lower return but meeting some time commitments and returm commitments is paramount. Chance of deal success needs to be high- 95%+. I am not buying lottery, i am investing.
Quote from @Kaustubh Johri:
Whats the latest on Grocapitus ? Is there still any steam left in the company or is just another marketing gimmick..like Morris Invest. Google Morris Invest and you will be shocked.
- Investor · Atlanta GA · Member since 2018 · 188 posts · 71 votes4y
Thanks !
Morris was disappointing. Slick talker, pleasant demeanor and he just fled to Portugal to make you tube videos from 'Morning Invest'
- Investor · Fremont, CA · Member since 2015 · 209 posts · 124 votes4y
Quote from @Harish V.:
UnlikeMorris, i do believe they are trying. But i will never invest with them. I can accept a lower return but meeting some time commitments and returm commitments is paramount. Chance of deal success needs to be high- 95%+. I am not buying lottery, i am investing.Quote from @Kaustubh Johri:
Whats the latest on Grocapitus ? Is there still any steam left in the company or is just another marketing gimmick..like Morris Invest. Google Morris Invest and you will be shocked.
Oh yes and selling to yourself does not count as selling, even if you match highest bidder. You could have as well restructured deal and provided deal improvement instead of trying to milk 5-6+% commissions on the new deal from invetors. Long term intelligence of this move is to be seen.
- Rental Property Investor · Sacramento, CA · Member since 2017 · 26 posts · 12 votes4y
Important note - All the negative comments about Grocapitus in this string are not related to Grocapitus performance. They are for a past company called Financial Attunement, where Neal was a minority partner from late 2015 to Feb 2018. Grocapitus has an absolutely stunning profit track record over 7 exits (see below) and 800+ happy investors in 31 projects.
- Real Estate Attorney · Manhattan, NY · Member since 2014 · 129 posts · 106 votes4y
Neal Bawa is an intellectual cheat. He likes to present figures and will burry you with data and at the end his performance is way off. Talk to any investor other than me and hear the confusion and BS we are getting. It is a matter of time for Grocapitus to get fined or get shut down. or He may rebrand once more or try to hide behind someone else. he does not do the underwriting, just the power point. Have you ever even tried to ask questions on their live presentations? they never have an answer. Over promise and under pay then keep delaying. Investors get stuck and cannot cash out because of tax complications. He is never reachable.
- Investor · Fremont, CA · Member since 2015 · 209 posts · 124 votes4y
Quote from @Pat Marco:
Neal Bawa is an intellectual cheat. He likes to present figures and will burry you with data and at the end his performance is way off. Talk to any investor other than me and hear the confusion and BS we are getting. It is a matter of time for Grocapitus to get fined or get shut down. or He may rebrand once more or try to hide behind someone else. he does not do the underwriting, just the power point. Have you ever even tried to ask questions on their live presentations? they never have an answer. Over promise and under pay then keep delaying. Investors get stuck and cannot cash out because of tax complications. He is never reachable.
I hope more people come forward to bring forward the reality. I have been branded as just no-fact Cryer to undermine my valid experience based on technically of junior partner, old company etc. I am sure rest of you will have learning experience of your own soon and will agree with me. The post above is in line with everything I have said in this thread.
- Rental Property Investor · Sacramento, CA · Member since 2017 · 26 posts · 12 votes3y
Once again, it's important to use numbers when making quality decisions. Please check the Grocapitus track record above. In addition, I would suggest that people making decisions about Grocapitus read investor reviews. It's common for syndicators to have 1 or 2 reviews from investors on their website, however, Grocapitus has been lucky enough to receive dozens of reviews from actual investors. Read more at https://grocapitus.com/testimo... and make up your own mind.
- Rental Property Investor · Sacramento, CA · Member since 2017 · 26 posts · 12 votes3y
But what if the testimonials were not handpicked happy investors? This link has over 11,000 data-driven investors taking Neal’s real estate data science course, and there are over a thousand reviews from people that Neal doesn’t even know. Udemy Link
- Investor · Fremont, CA · Member since 2015 · 209 posts · 124 votes3yI wish all the best for those investing real money based on course reviews.
Quote from @Eric Bleau:
But what if the testimonials were not handpicked happy investors? This link has over 11,000 data-driven investors taking Neal’s real estate data science course, and there are over a thousand reviews from people that Neal doesn’t even know. Udemy Link
- Member since 2022 · 38 posts · 26 votes3y
Quote from @Eric Bleau:
Quote from @Harish V.:
Had an interesting update on Buffalo on rails project. Neal and Financial Attunement have both quit the project. Probably they do not want to be answerable to investors they roped in first place with their charm and wild promises of high returns. I am still paying for Mr. Neals learning experience. Anyone investing now should pray that it does not become a learning experience for Neal Bawa. If it does, the investor will have a learning experience of their own that they should listen to people having negative reviews.
Harish varma,
You are a vicious troll. You take every piece of information and spin it one way. Your last post was the most one sided of all. Neal Bawa withdrew from the Buffalo project last night (only as a general partner) to accommodate a new partner. This partner, McGuire is a heavy hitter, is in an excellent position to move the project forward, and they spent an hour on zoom last night (Feb 21, 2022) explaining why they are investing $7-8 Million of their money into the project. You were present for the entire session, so you know this.
However, as McGuire came in, the general partner pie shrank. Since Dave Freeman is the lead partner in the project, Neal gave $600K worth of his profit shares to Dave Freeman (both as a thank you for Dave, who spent over a year getting McGuire and their money in) and as an incentive for Dave to continue spending time on the project, despite the general partner pie shrinking. Further, Neal also announced last night that he is making a limited partner investment (cash injection) into the project, even as he gave away all of his general partner shares to a deserving partner. Neal and Dave also communicated that Neal is hard at work on a key part of the project, which will take several months to complete.
Anyone on this thread should note that Harish Varma is not credible. He is only interested in making one-sided statements, not in representing both sides of the picture. While there is good reason for the frustration caused by the delay in this project, last night, proof was provided that the project is moving forward in form of the presence of a successful and powerful local company joining the project. Note that Harish neglected to mention any of this. Its very likely that all subsequent posts will be equally one-sided.Be honest, I consider this forum to be professional place for discussion. You and other people are entitled to state each side of story. But, Eric, you are the one calling names. I am actually search on Grocapitus for one the projects the company is promoting. This "troll" word is just a huge turn-off... All discussions are good except this ...
Thanks!
- Member since 2020 · 17 posts · 19 votes3y
I wish I had read this thread three years ago. I have invested in Grocapitus' project in Texas and it has been three years now. They couldn't get a construction loan and were constantly blaming the cities being tough on their permit process. After three years, they have put a pause on the construction for another year stating that the labor costs are too high now. I don't know if they will ever start construction and if they do how long will my money be locked with them.
At this point, I would recommend to stay away from them until they can show some results with new constructions.
In the meantime, I had invested in another syndication in the same time frame in the same Texas market. They have completed construction and 90% of the units are leased up. A payout of 8% has already been made and they have an exit plan in the works.
So, there is no reason why Grocapitus was not able to get going other than their incompetence.
- Investor · Fremont, CA · Member since 2015 · 209 posts · 124 votes3y
Quote from @Jay P.:
I wish I had read this thread three years ago. I have invested in Grocapitus' project in Texas and it has been three years now. They couldn't get a construction loan and were constantly blaming the cities being tough on their permit process. After three years, they have put a pause on the construction for another year stating that the labor costs are too high now. I don't know if they will ever start construction and if they do how long will my money be locked with them.
At this point, I would recommend to stay away from them until they can show some results with new constructions.
In the meantime, I had invested in another syndication in the same time frame in the same Texas market. They have completed construction and 90% of the units are leased up. A payout of 8% has already been made and they have an exit plan in the works.
So, there is no reason why Grocapitus was not able to get going other than their c
Can I ask which project in Texas?
- Investor · Fremont, CA · Member since 2015 · 209 posts · 124 votes3y
I stopped updating and replying to this thread due to Mr. Eric calling me a Troll. My money is still stuck.
Mr. Neal just gave up his profit shares, which was anyway should be junior to all investors held who are hostage to the deal. With no movement towards finish line for years.
- Member since 2020 · 17 posts · 19 votes3y
If this is the playbook they use on new construction, then it feels like a scam. I checked with others who have invested with Grocapitus before and they said that they received pretty good returns, but they were not new construction. I'm yet to find someone who has made money with them on new construction.
- Investor · Fremont, CA · Member since 2015 · 209 posts · 124 votes3y
The problem is that the projections and assumptions are too rosy to make the sale. They get profit shares on sale.
They don’t get any money on executing. Luckily for Grocapitus if you invested in value add in last 3-4yrs. Market being hot helped and no permits to deal. Sometimes even selling as is may have been profitable. So they are showing record of closed properties/exits.
Now that time has gone. We will see how things shape up. I like to think, if you trust their record or numbers - good luck to you. I will not trust that. Made a costly mistake and learnt from it.
- San Jose, CA · Member since 2018 · 74 posts · 13 votes3y
Quote from @Harish V.:
The problem is that the projections and assumptions are too rosy to make the sale. They get profit shares on sale.
They don’t get any money on executing. Luckily for Grocapitus if you invested in value add in last 3-4yrs. Market being hot helped and no permits to deal. Sometimes even selling as is may have been profitable. So they are showing record of closed properties/exits.
Now that time has gone. We will see how things shape up. I like to think, if you trust their record or numbers - good luck to you. I will not trust that. Made a costly mistake and learnt from it.
Hi @Jay P. I agree with @Harish V. i was in same boat I spoke to few ppl who got really solid return but those ppl invested back in 2015-206 time frame.. I believe that is when everything was going up… if you are planning to look into now don't do it… CREI is very risky to invest now rather put money in S&P or other etf.. I lost money in CRE crowdfunding..
- Investor · Scottsdale, AZ · Member since 2017 · 3 posts · 8 votes2y
Last week Neal and the staff at Gro Capitus let us all know that ALL of our Principals were at risk now in the RTP Nova project of the newly built Townhomes. Originally it was only going to take a year after investing 3 years ago, but the excuses just kept building Quarter after Quarter with Covid Covid Covid, construction costs, interest rates, and then their Facebook Ads not working. Even as early as this August, they were supposed to send us our original investment back, and then it really took a turn last week and when I finally got Neal on a Zoom call, he was talking another 2 years before it all played out. The guy should be in jail in my mind, but even with the market and all the other problems that have come up, they could have been straight with everyone. It went from getting our principal back in the August webinar to our entire principal being at risk a few months later. The part that really upset me was their attitudes. Poor us, we worked so hard, we've tried everything, were transparent, but yet we still don't know where things went wrong and why the building still has not been completed. I really never thought it would come to this. He sounds so intelligent on webinars, but can't even calculate losses properly, how could he calculate profit? It needs to be discussed in forums like this and shut Gro Capitus down.
- Investor · Vacaville, CA · Member since 2016 · 433 posts · 249 votes2y
Quote from @Jay Bru:
Last week Neal and the staff at Gro Capitus let us all know that ALL of our Principals were at risk now in the RTP Nova project of the newly built Townhomes. Originally it was only going to take a year after investing 3 years ago, but the excuses just kept building Quarter after Quarter with Covid Covid Covid, construction costs, interest rates, and then their Facebook Ads not working. Even as early as this August, they were supposed to send us our original investment back, and then it really took a turn last week and when I finally got Neal on a Zoom call, he was talking another 2 years before it all played out. The guy should be in jail in my mind, but even with the market and all the other problems that have come up, they could have been straight with everyone. It went from getting our principal back in the August webinar to our entire principal being at risk a few months later. The part that really upset me was their attitudes. Poor us, we worked so hard, we've tried everything, were transparent, but yet we still don't know where things went wrong and why the building still has not been completed. I really never thought it would come to this. He sounds so intelligent on webinars, but can't even calculate losses properly, how could he calculate profit? It needs to be discussed in forums like this and shut Gro Capitus down.
I am truly sorry to hear this. I hope it works out better than it sounds. Good luck! 🍀
- Member since 2020 · 17 posts · 19 votes2y
Quote from @Jay Bru:
Last week Neal and the staff at Gro Capitus let us all know that ALL of our Principals were at risk now in the RTP Nova project of the newly built Townhomes. Originally it was only going to take a year after investing 3 years ago, but the excuses just kept building Quarter after Quarter with Covid Covid Covid, construction costs, interest rates, and then their Facebook Ads not working. Even as early as this August, they were supposed to send us our original investment back, and then it really took a turn last week and when I finally got Neal on a Zoom call, he was talking another 2 years before it all played out. The guy should be in jail in my mind, but even with the market and all the other problems that have come up, they could have been straight with everyone. It went from getting our principal back in the August webinar to our entire principal being at risk a few months later. The part that really upset me was their attitudes. Poor us, we worked so hard, we've tried everything, were transparent, but yet we still don't know where things went wrong and why the building still has not been completed. I really never thought it would come to this. He sounds so intelligent on webinars, but can't even calculate losses properly, how could he calculate profit? It needs to be discussed in forums like this and shut Gro Capitus down.
This is definitely a scam then with the same pattern in every project. I had a zoom call with Neal and nothing solid came out other than him asking me to wait for 1 more year. Given their poor execution, I asked him what would it take to cut the loses and pay the principal back and he said it would result in 50% loss of principal. Now that I see your post, I could be losing all of it.
Is there a way to reach out to all the people who have invested in these projects and think about a lawsuit? I don't know if we can get anything back as there may not be much left in the LLC, but at least he should be held accountable and not keep doing this.
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes2y
Just curious why people think they should be in jail? Reason I ask is there are going to be a lot of real estate ventures where ALL money is lost, and many are due to poor management or buying a deal they should not buy. Just like in VC, deals go under.
But if the team did nothing illegal, being stupid is not a criminal offense.
7e investments53 Reviews - Investor · Fremont, CA · Member since 2015 · 209 posts · 124 votes2y
Quote from @Jay Bru:
Last week Neal and the staff at Gro Capitus let us all know that ALL of our Principals were at risk now in the RTP Nova project of the newly built Townhomes. Originally it was only going to take a year after investing 3 years ago, but the excuses just kept building Quarter after Quarter with Covid Covid Covid, construction costs, interest rates, and then their Facebook Ads not working. Even as early as this August, they were supposed to send us our original investment back, and then it really took a turn last week and when I finally got Neal on a Zoom call, he was talking another 2 years before it all played out. The guy should be in jail in my mind, but even with the market and all the other problems that have come up, they could have been straight with everyone. It went from getting our principal back in the August webinar to our entire principal being at risk a few months later. The part that really upset me was their attitudes. Poor us, we worked so hard, we've tried everything, were transparent, but yet we still don't know where things went wrong and why the building still has not been completed. I really never thought it would come to this. He sounds so intelligent on webinars, but can't even calculate losses properly, how could he calculate profit? It needs to be discussed in forums like this and shut Gro Capitus down.
This proves everything I have said. I tried to keep the tread alive with all updates on Buffalo Project, which Neal claims to have now invested his funds.
Here are very interesting statements from Eric in this forum:
1. Negative comments in this string are not related to Grocapitus performance.
2. Buffalo investment was not sold by Grocapitus (Shown to be untrue by providing a link to grocipitus site with link to prospectus).
3. Call others vicious troll for critical reviews.
4. Neal gave $600K worth of his profit shares to Dave Freeman. (Really? Profit when there is no exit? Every prospectus I was given had profit only after investors are paid, which has not happend). So not sure what was given. Its was just show.
5. Stories about failures start coming to light.As I predicted 2 years ago, we are right on time for Neal/Eric to open a new company and have this failure on someone else name maybe Anna Meyer.
Thanks to all of us who paid for tution for his "learning experience".
======
In any case, I do believe that Mr. Neal Bawa will again change companies and distance himself from all wrongs done at Grocapitus. Its seems to be the MO, 3-5 years then new company. Grocapitus is already 3+ years, so probably 1-2 years more. Investors at this time should be extra careful.
==== - Investor · Fremont, CA · Member since 2015 · 209 posts · 124 votes2yIf you look at all the details, you will find things that should be illegal. Specifically payments to companies linked to promoters to do the work and the rates they charge. Also mail and security violations are quite likely., Someone just needs to get a lawyer and get the facts reviewed.
Quote from @Chris Seveney:
Just curious why people think they should be in jail? Reason I ask is there are going to be a lot of real estate ventures where ALL money is lost, and many are due to poor management or buying a deal they should not buy. Just like in VC, deals go under.
But if the team did nothing illegal, being stupid is not a criminal offense.
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