Grocapitus - Anyone have experience with them?

Houston, TX · Member since 2018 · 29 posts · 5 votes

Hello,

Has anyone worked with Grocapitus and were their revenue estimates accurate? Any comments on things worked out? I tried searching the forum expecting to find something but was having trouble. Please PM if you've worked with them.

Thanks in advance,

Ryan

3 Reply

3,191 views

Most Popular Reply

Jeff Pollack

Real Estate Investor · Redwood City, CA · Member since 2012 · 272 posts · 399 votes

Do 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.

31 Reply

See this reply in the discussion

217 Replies

Jump to latestLatest

Sort by

Mark L Weglarz
Member since 2024 · 6 posts · 13 votes
2y
I am an investor in the Grocapitus/UGro Build to Rent (BTR) Texas Fund and the "Pre-Seed" Fund. Both have different names now - I believe they are Mission Texas and Mission 10k. I have to say I have been investing in commercial real estate since 1997 and have never been more gravely concerned about an investment I have made than these two. It feels like almost as soon as we invested the "wheels came off". And it also feels like I invested in a virtual company where there is nothing solid. No office to just call where someone knowledgeable answers and tries to help you. Last time I scheduled time with Neal Bawa he just plain did not attend the call. Extremely, extremely disappointing. And when my tax info (K-1s) have come out they have sent me K-1's with other people's private info. Even after I sorted out the info on my K-1s the first time, the next year the info came out incorrect AGAIN. And again there is no office to just call to resolve the problem. All virtual assistants etc and GoogleForms. Anyone else here in these same two investments - or either one?
3 Reply
Basit SiddiqiBusiness Member
Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
2y
I am not an investor but I remember hearing his name a few years ago on multiple real estate related podcasts and the hosts always mentioning how intelligent he is and how much information he has.

I guess not...

I am sorry to hear everything that is invested.
[email protected]917-280-8544
Basit Siddiqi CPA4.979 Reviews
View Page
2 Reply
Jay P.
Member since 2020 · 18 posts · 19 votes
2y
Quote from @Mark L Weglarz:

I am an investor in the Grocapitus/UGro Build to Rent (BTR) Texas Fund and the "Pre-Seed" Fund. Both have different names now - I believe they are Mission Texas and Mission 10k. I have to say I have been investing in commercial real estate since 1997 and have never been more gravely concerned about an investment I have made than these two. It feels like almost as soon as we invested the "wheels came off". And it also feels like I invested in a virtual company where there is nothing solid. No office to just call where someone knowledgeable answers and tries to help you. Last time I scheduled time with Neal Bawa he just plain did not attend the call. Extremely, extremely disappointing. And when my tax info (K-1s) have come out they have sent me K-1's with other people's private info. Even after I sorted out the info on my K-1s the first time, the next year the info came out incorrect AGAIN. And again there is no office to just call to resolve the problem. All virtual assistants etc and GoogleForms. Anyone else here in these same two investments - or either one?

Very similar experience. The projects that were supposed to have been complete by now hasn't even started and there is no response to any emails. Given the number of projects and funds that have lured investors but have made no progress and keeping all the investors at dark, it feels like a well planned out scheme to swindle investors of their investments.
2 Reply
Account Closed
Member since 2016 · 5 posts · 8 votes
2y
It certainly feels like a well planned scheme to swindle investors.
2 Reply
Harish V.
Investor · Fremont, CA · Member since 2015 · 211 posts · 125 votes
2y
It’s a well oiled operation to collect money then give you vague updates and excuses. No income statement, no balance sheet, nothing that can give you correct financial picture. You never know how much is LP equity, how much is GP equity (paid up vs sales incentive). How much money is paid to GP’s for work done?

They stop responding to questions as soon as questions become serious.

1 Reply
Harish V.
Investor · Fremont, CA · Member since 2015 · 211 posts · 125 votes
2y
Quote from @Eric Bleau:

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.
I was waiting to challenge you on this. Time just proved everything I said here is right.
1 Reply
Mark L Weglarz
Member since 2024 · 6 posts · 13 votes
2y
Yes Harish!
Also - just to convey what it feels like to be an investor in these funds:
When the Pre-Seed Fund needed to be restructured, Neal said he was appointing new Board members so that we as LPs would have more representation. BUT - Neal would not show us their full names - just their first name and an initial. Why? He obviously did not want us to be contacting them. And then when asked how these new Board members are being compensated he said "That is confidential." What? So we cannot have contact or know anything about the Board Members representing us. How is that supposed to help us? That is not right at all.
3 Reply
Account Closed
Member since 2016 · 5 posts · 8 votes
2y
So he could be appointing his family members to represent investors and compensating them as he pleases.
2 Reply
Harish V.
Investor · Fremont, CA · Member since 2015 · 211 posts · 125 votes
1y
Updating Failed/troubled projects stastistics with some more info from community and public sources:

1. Buffalo rails: running 4+ yrs behind estimates.

2. Botanical chase hill, San Antonio - Original completion June 2023

3. Botanical South Park - Original Projects completion Oct 2023

4. Park lane, Houston - Original projected completion 2022.

5. Rtp nova project - all principal at risk (failed project)?

6. Equinox, New Braunfels, Tx - delayed no work started?
7.Park Canyon, Dalton, GA - bad assumptions, reaulted in need for secondary 1 yr back. Truth will reveal as soon as next year
8. The Falls at crimson commons, preferred needed - again due to bad original assumptions, cost overruns etc.
9. Avondale Commons - caught in bad assumptions. Requiring raising preferred, probably impairment to early investors may happen. Will know in 2 years.
Good luck to people still signing up for preferreds on day one. They don’t have any rights except are senior to early investors, which is useless.
- cannot force exit
- cannot force to open books
- have to pay legal costs for Grocapitus if they ever take action
- are indemnifying Grocapitus against false statements.
3 Reply
Seema Maheshwari
Member since 2024 · 3 posts · 6 votes
1y
5 yrs and waiting for crimson commons, meanwhile Neal and Anna and doing their own personal deals.
3 Reply
Mark D.
USA · Member since 2019 · 21 posts · 6 votes
1y
Been with them since 2001. Invested in Avondale, UGRO, BTR and Delos. Delos fell through and thankfully their legal team fought hard for us and returned our capital and profit. Other projects are behind schedule and without returns. All I can do is continue to wait and be hopeful.
1 Reply
Seema Maheshwari
Member since 2024 · 3 posts · 6 votes
1y
Sane here, did one investment in 2020, still waiting for the payoff. Meanwhile the head honchos are making money.
3 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
1y
Quote from @Basit Siddiqi:

I am not an investor but I remember hearing his name a few years ago on multiple real estate related podcasts and the hosts always mentioning how intelligent he is and how much information he has.

I guess not...

I am sorry to hear everything that is invested.

I met him at an event in Oakland and was not impressed personally all he would say is he does big deals for big money.. and I know how hard it is to do business with those in his community it really surprises me how people followed and invested as much as they did.
Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
2 Reply
Harish V.
Investor · Fremont, CA · Member since 2015 · 211 posts · 125 votes
1y
Quote from @Jay Hinrichs:

Quote from @Basit Siddiqi:

I am not an investor but I remember hearing his name a few years ago on multiple real estate related podcasts and the hosts always mentioning how intelligent he is and how much information he has.

I guess not...

I am sorry to hear everything that is invested.

I met him at an event in Oakland and was not impressed personally all he would say is he does big deals for big money.. and I know how hard it is to do business with those in his community it really surprises me how people followed and invested as much as they did.

I feel is there is lot of money looking for hands-free investment and good returns. Neal manages to advertise exceptional returns and quietly ignores the risks. Sometimes using instantaneous data when it suits, other times projecting rosy future.
That’s certainly what worked on me. But also was a costly lesson for me. For Neal it may be win-loss of 50-50 or 60-40, both not bad on average for funds. But for me sets me back few years on my goal.
I also think he lacks financial knowledge to see that something is out of ordinary and should not be used as basis for future returns (e.g. low interest rates of 2022 resulting in low cap rates).
2 Reply
Jay Bru
Investor · Scottsdale, AZ · Member since 2017 · 3 posts · 8 votes
1y
I'm looking for other investors that are involved with the Nova RTP1 deal with Gro Capitus, can you please reach out to me if you or know of anyone, thank you.
2 Reply
Mark D.
USA · Member since 2019 · 21 posts · 6 votes
1y
Quote from @Jay Bru:

I'm looking for other investors that are involved with the Nova RTP1 deal with Gro Capitus, can you please reach out to me if you or know of anyone, thank you.
What and when was that deal?
0 Reply
Dan Rowley
Investor · Cary, NC · Member since 2012 · 218 posts · 196 votes
1y
there's a fairly new 'syndicator review' site and I'd encourage those in this thread who have invested with them to publish their review: https://investclearly.com/sponsors/grocapitus-investments
3 Reply
Joseph M.
Member since 2025 · 53 posts · 34 votes
1y
@Jay Bru
Can you explain when that investment took place?
0 Reply
Jonathan G.
Investor · Denver, CO · Member since 2009 · 17 posts · 7 votes
1y
I am a current LP with them in their Texas UGro BTR fund, which has been halted for years, and is scaring alot of their LPs. They have plans to build affordable housing in other cities but those are slow as well. I hope they redeem themselves in this BTR fund otherwise their entire reputation will be ruined.
4 Reply
Harish V.
Investor · Fremont, CA · Member since 2015 · 211 posts · 125 votes
1y
Based on feedback here. There are many people waiting for projects to complete and get money back. The success stories are probably very less as we have not heard from many people of positive experience here.
0 Reply
Joseph M.
Member since 2025 · 53 posts · 34 votes
1y
As of July 2025- their Avondale Commons project in Arizona is behind and at risk of losing LP money. They are doing their best with the current and past economics. EST scenario they are attempting to recapitalize with Viking Capital but they only have 60 days. I wish them the best. They seem experience but there’s been many economic factors the last 3-5 years.
1 Reply
- Harish V.
  Investor · Fremont, CA · Member since 2015 · 211 posts · 125 votes
  1y
  Quote from @Joseph M.:
  
  As of July 2025- their Avondale Commons project in Arizona is behind and at risk of losing LP money. They are doing their best with the current and past economics. EST scenario they are attempting to recapitalize with Viking Capital but they only have 60 days. I wish them the best. They seem experience but there’s been many economic factors the last 3-5 years.
  
  Interesting, finally they are not able to raise capital themselves and have to go to Viking capital.
  They already have raised preferred on Avondale last year. Looks like a house of cards. Let’s see when it blows up.
  Total 32m raised on this. Not only LPs will loose money, investors in preferreds last year may have to take haircuts too.
  
  1 Reply
Harish V.
Investor · Fremont, CA · Member since 2015 · 211 posts · 125 votes
1y
What a horrible experience with Neal Bawa and team for Buffalo project.
Years after posting warning here about buffalo project and being chased by the company and its minions. I am still waiting for good news. Neal tried to distance himself from the deal and saying he invested his money as LP (which I will not trust unless I see audited by third party) still no progress and starts keep getting more horrible each quarter as they discover more assumptions were incorrect.

0 Reply
Mark L Weglarz
Member since 2024 · 6 posts · 13 votes
1y
As an investor - I was stunned to learn that - in light of the many severe struggles the company is having delivering on any of it's plans - and all the pivots and renaming of companies - that they claim that 98% of voters wanted to change the reporting from every month to every 6 months. And - to now get rid of the audited financials requirements. Recall that Neal is borrowing from the company's fund for his own uses - and somehow the people who put the money in do not want to know what is happening except every 6 months? and doing away with a 3rd party auditor? It seems hard to believe that a majority of the people who put their money in would be in favor of this. It's insulting to your investor base for Neal to push for this - but my opinion after speaking with Neal on the struggles of Neal's companies - is that Neal thinks his investors are idiots for investing with him in the first place. NEAL - if you are reading this which I think you are - please prove me and all these many investors who are stuck in your deals wrong - that you can do the right thing and get their money back to them that they entrusted to you. So far - it does not look good at all and these changes you just made make it look even worse.
4 Reply
- Jay P.
  Member since 2020 · 18 posts · 19 votes
  1y
  Quote from @Mark L Weglarz:
  
  As an investor - I was stunned to learn that - in light of the many severe struggles the company is having delivering on any of it's plans - and all the pivots and renaming of companies - that they claim that 98% of voters wanted to change the reporting from every month to every 6 months. And - to now get rid of the audited financials requirements. Recall that Neal is borrowing from the company's fund for his own uses - and somehow the people who put the money in do not want to know what is happening except every 6 months? and doing away with a 3rd party auditor? It seems hard to believe that a majority of the people who put their money in would be in favor of this. It's insulting to your investor base for Neal to push for this - but my opinion after speaking with Neal on the struggles of Neal's companies - is that Neal thinks his investors are idiots for investing with him in the first place. NEAL - if you are reading this which I think you are - please prove me and all these many investors who are stuck in your deals wrong - that you can do the right thing and get their money back to them that they entrusted to you. So far - it does not look good at all and these changes you just made make it look even worse.
  
  Can't agree more. It is not an investment opportunity. It is just a scam in my opinion based on the responses so far. The money is locked and no progress on any of the projects for multiple years. Investors will not get their money back even at a 50% loss as he says that a poll suggests investors want him to hold on to the money. Seriously, after 4 years and no loan and no work and people still want their money to be held? Like I said before, there are still more and more emails sent out advertising for new projects. How can someone do this when they have already defrauded (not officially, but practically) so many people.
  1 Reply
Harish V.
Investor · Fremont, CA · Member since 2015 · 211 posts · 125 votes
1y
Deleting my post.

0 Reply
- Jay P.
  Member since 2020 · 18 posts · 19 votes
  1y
  Quote from @Harish V.:
  
  Deleting my post.
  
  Why?
  0 Reply
- Harish V.
  Investor · Fremont, CA · Member since 2015 · 211 posts · 125 votes
  1y
  Quote from @Jay P.:
  
  Quote from @Harish V.:
  
  Deleting my post.
  
  Why?
  
  Just tired of posting negative comments. I want to move on. This company is lost cause.
  0 Reply
Joseph M.
Member since 2025 · 53 posts · 34 votes
1y
@Mark L Weglarz
What deal specifically are you referring to? Buffalo? Avondale? BTR? UGro? Delos?
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.