Grocapitus - Anyone have experience with them?

Buying & Selling Real Estate
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Grocapitus - Anyone have experience with them?

Ryan Goff
Houston, TX · Member since 2018 · 29 posts · 4 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

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Jeff Pollack
Real Estate Investor · Redwood City, CA · Member since 2012 · 272 posts · 399 votes
6y

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. 

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  • Mark L Weglarz
    Member since 2024 · 6 posts · 13 votes
    1y

    BTR and UGro and whatever those ones have become... Mission 10k etc.

    1Reply
  • Joseph M.
    Member since 2025 · 52 posts · 33 votes
    1y

    Is there any legal recourse to all of this? 

    1Reply
  • Mark L Weglarz
    Member since 2024 · 6 posts · 13 votes
    1y

    There are many people considering this approach - and working on it.  Since Neal has had many deals go south on his investors - my feeling from what I have experienced is that he learned to make money  (or at least survive unscathed) even when his investors are getting crushed.  And despite all these deals struggling to do anything positive for so many investors - he is still continuing to raise money for more deals.  He just recently (last 3 weeks) touted his ability to raise $600m+ in investment equity as proof that he is good at this - but he does not show you the results that he has delivered for all those investors.  NEAL - you should show what has happened to ALL your investors.  Not just the ones you exited during the boom times while cap rates were declining and everyone was making money.   I would suspect based on what I have read here that he has hundreds of millions of investors funds where the investors would all just want it back even at a loss.  But to do this -that would bring his track record of successful exits down - so by just 'freezing' these investments, it's better for his record of exits and he does not need to show those.  Just my feeling based on my experience and other investors that I have read about here.  NEAL - give a presentation where you show the status of ALL your deals - including those that are currently locked up and FROZEN.  And have this record audited by a real auditor so we could all have faith in it.  Since he just eliminated the auditor from the deals I am invested in - i doubt he would ever do this.  

    2Reply
  • Harish V.
    Investor · Fremont, CA · Member since 2015 · 210 posts · 124 votes
    11mo

    Another Quarter another punt on Buffalo Rails project. Project going good, but cash flow… sorry one more year delay.. 

    How would you like that for investor update if you got it? If you invest with Grocapitus get used to great updates telling you cash flow and returns are delayed, everything else is going very well.

    0Reply
    • Matthew Irish-JonesBusiness Member
      Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
      11mo

      @Harish V. I stopped by the property and asked the on site staff about vacancy.  They told me they are around 60% occupied.

      The building in general is finished and looks pretty good.  However, it has a dorm room feel to it and I couldn't help feeling it was specifically designed to attract college students or young professionals.

      That is a feasible business model, but Buffalo is not Seattle.  Our young professionals don't have a huge tech industry with high paying entry level jobs, and large apartment complex, while they exist, are up against a large inventory or multifamily buildings that are 2-4 units.  Many of these small mom and pop places offer 3 bedrooms, a basement, private quarters, and other things that seem to be more popular in Buffalo than other cities.  

      My unsolicited opinion is the Rails is a great looking project, highly ambitious, interesting... it's just located in the wrong city. 

      Irish Jones Realty4.947 Reviews
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    • Harish V.
      Investor · Fremont, CA · Member since 2015 · 210 posts · 124 votes
      11mo
      Quote from @Matthew Irish-Jones:

      @Harish V. I stopped by the property and asked the on site staff about vacancy.  They told me they are around 60% occupied.

      The building in general is finished and looks pretty good.  However, it has a dorm room feel to it and I couldn't help feeling it was specifically designed to attract college students or young professionals.

      That is a feasible business model, but Buffalo is not Seattle.  Our young professionals don't have a huge tech industry with high paying entry level jobs, and large apartment complex, while they exist, are up against a large inventory or multifamily buildings that are 2-4 units.  Many of these small mom and pop places offer 3 bedrooms, a basement, private quarters, and other things that seem to be more popular in Buffalo than other cities.  

      My unsolicited opinion is the Rails is a great looking project, highly ambitious, interesting... it's just located in the wrong city. 

      That is something general partners should have researched and not promised the 32% plus rate of return. 

      It’s a disaster - just like Neal’s other projects. All overpromise under deliver. Investor beware. You just confirmed the same.
      0Reply
    • Matthew Irish-JonesBusiness Member
      Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
      11mo
      Quote from @Harish V.:
      Quote from @Matthew Irish-Jones:

      @Harish V. I stopped by the property and asked the on site staff about vacancy.  They told me they are around 60% occupied.

      The building in general is finished and looks pretty good.  However, it has a dorm room feel to it and I couldn't help feeling it was specifically designed to attract college students or young professionals.

      That is a feasible business model, but Buffalo is not Seattle.  Our young professionals don't have a huge tech industry with high paying entry level jobs, and large apartment complex, while they exist, are up against a large inventory or multifamily buildings that are 2-4 units.  Many of these small mom and pop places offer 3 bedrooms, a basement, private quarters, and other things that seem to be more popular in Buffalo than other cities.  

      My unsolicited opinion is the Rails is a great looking project, highly ambitious, interesting... it's just located in the wrong city. 

      That is something general partners should have researched and not promised the 32% plus rate of return. 

      It’s a disaster - just like Neal’s other projects. All overpromise under deliver. Investor beware. You just confirmed the same.

       No doubt about that, but they don't get paid to pass on projects :( 

      Irish Jones Realty4.947 Reviews
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  • Joseph M.
    Member since 2025 · 52 posts · 33 votes
    11mo

    Any legal recourse if we all join together?

    1Reply
  • Dan Rowley
    Investor · Cary, NC · Member since 2012 · 217 posts · 194 votes
    11mo

    Here is another bit of bad news for anyone who may have invested in their Nova RTP project (Durham, NC).  The builder has gone bankrupt and seems the project is unfinished.  links to some resources/articles about this (one may be behind paywall)

    https://x.com/TriangleBIZJrnl/status/1984315727499706700

    https://www.bizjournals.com/triangle/news/2025/10/31/abranov...

    https://www.bkalerts.com/recent-bankruptcy-cases/north-carol...

    1Reply
  • Jay Bru
    Investor · Scottsdale, AZ · Member since 2017 · 3 posts · 8 votes
    9mo

    Oh great, i'm in this project, and about 1 month ago, Neal went from waiting to sell the last 5 units to make 30% appreciation in 2 years with his math skills, you know he's a math genius, to that plan didn't work and were selling the last 5 units without telling me this information.  If Neal would just stop pretending to be a math genius to just being honest. For all you operators out there, we investors just want honesty with facts for our minds sake, we understand.  The mental anguish neal has put us all through is your principal x's 5 in downside.  That will be his downfall.  

    2Reply
    • Harish V.
      Investor · Fremont, CA · Member since 2015 · 210 posts · 124 votes
      9mo
      Quote from @Jay Bru:

      Oh great, i'm in this project, and about 1 month ago, Neal went from waiting to sell the last 5 units to make 30% appreciation in 2 years with his math skills, you know he's a math genius, to that plan didn't work and were selling the last 5 units without telling me this information.  If Neal would just stop pretending to be a math genius to just being honest. For all you operators out there, we investors just want honesty with facts for our minds sake, we understand.  The mental anguish neal has put us all through is your principal x's 5 in downside.  That will be his downfall.  


       Yes Mad Genius of Data driven. I guess it means he will use data to drive you mad and siphoning your money.

      How is this different from Pig Butchering schemes you hear about..

      0Reply
  • Jason Merchey
    Investor · Hendersonville, NC · Member since 2013 · 755 posts · 281 votes
    7mo

    It's funny/scary...I've been reading a lot about GPs who apparently ran their assets into the ground (vintage 2020-2021). I'm looking at paused distributions and discomfitting levels of communication with two assets/one sponsor. 

    It goes from an academic matter to a real deal/emotional concern real quick! As they say, "**** got real" when $300k of investment dollars are stuck in purgatory.

    I guess I was somewhat unprepared for how a very glossy and optimistic sponsor (the "best ever" sponsor) could run the ship on the shoals so many times with so many assets (if what I read on BP is true)(I only really know about my own case). 

    I guess some lessons are hard-won and cost about as much as the loss of capital does....

    1Reply
    • Jay HinrichsBusiness Member
      Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
      7mo
      Quote from @Jason Merchey:

      It's funny/scary...I've been reading a lot about GPs who apparently ran their assets into the ground (vintage 2020-2021). I'm looking at paused distributions and discomfitting levels of communication with two assets/one sponsor. 

      It goes from an academic matter to a real deal/emotional concern real quick! As they say, "**** got real" when $300k of investment dollars are stuck in purgatory.

      I guess I was somewhat unprepared for how a very glossy and optimistic sponsor (the "best ever" sponsor) could run the ship on the shoals so many times with so many assets (if what I read on BP is true)(I only really know about my own case). 

      I guess some lessons are hard-won and cost about as much as the loss of capital does....


      this company had issues way before those dates its a long running saga for investors.
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      1Reply
  • Joseph M.
    Member since 2025 · 52 posts · 33 votes
    7mo

    @Jason Merchey

    Can you share more? What 2 deals are you involved with? What happened or what went wrong with them? What’s Neal saying now about return of capital?

    0Reply
  • Jason Merchey
    Investor · Hendersonville, NC · Member since 2013 · 755 posts · 281 votes
    7mo

    I beg your pardon, I wasn't referring to Neal or Grocapitus. I didn't actually end up investing with them. 

    0Reply
  • Jason Merchey
    Investor · Hendersonville, NC · Member since 2013 · 755 posts · 281 votes
    7mo
    Ok, well I guess I dodged a bullet--since Neal seemed so "on top of things and knowledgeable and active.
    0Reply
    • Harish V.
      Investor · Fremont, CA · Member since 2015 · 210 posts · 124 votes
      7mo
      Quote from @Jason Merchey:
      Ok, well I guess I dodged a bullet--since Neal seemed so "on top of things and knowledgeable and active.
      Neal is selling incorrect lofty assumptions. The issue is that assumption allows for higher costs and projects get stuck. Even achieving lower return and exit will be better in current environment.
      1Reply
  • Harish V.
    Investor · Fremont, CA · Member since 2015 · 210 posts · 124 votes
    7mo

    What I want to say is that instead of big promises if a modest return with exit is better than  no exit at all. 

    I got another disappointing update from buffalo project. No hope of cash flow for 9th year, next year does not look good either. Judge Neal in this Data..

    1Reply
  • Joseph M.
    Member since 2025 · 52 posts · 33 votes
    6mo

    @Harish V.

    What specific deals did you invest in with Neal and Grocapitus?

    0Reply
  • Harish V.
    Investor · Fremont, CA · Member since 2015 · 210 posts · 124 votes
    6mo

    I see Grocapitus posted another round for Avondale common which is senior to the preferred they raised just last year. It shows how much data driven deception is fed to investors by Grocapitus.

    There is no guarantee that new investors will get their money back.

    There is no guarantee there will be timely exit

    There is no guarantee that there will not be another more senior raise. 

    Be extra careful.

    1Reply
  • Adam C.
    Member since 2015 · 3 posts · 7 votes
    5mo

    Neel Bawa is a snake-oil salesman. He has magically self-positioned himeself as the mad-scientist of multi-family or some type of data-scientist who has poored through reems of data to find the next hot-investment. The truth is, I am in 4 of his projects and every SINGLE ONE is a loser. Unfortunetly, it took 3 years to figure this out. One issue after another, whether it be blaming interest rates, tax increases, cost overruns, market changing even still blaming COVID, this knuckle-head is scrambled so bad he will say anything to excuse his severe underperformance. All is lying and double-talk have left him looking incredibly haggered as of late. He looks terrible in his webinars and video-email pleadings to investment more to save the project soundbites. "We need everyone to contribute" sure buddy, will do! His Townhomes in NC NOVA RTP project was my first investment, what an ugly product, no-suprise its a total failure. Total Failure. 

    3Reply
    • Harish V.
      Investor · Fremont, CA · Member since 2015 · 210 posts · 124 votes
      5mo
      Quote from @Adam C.:

      Neel Bawa is a snake-oil salesman. He has magically self-positioned himeself as the mad-scientist of multi-family or some type of data-scientist who has poored through reems of data to find the next hot-investment. The truth is, I am in 4 of his projects and every SINGLE ONE is a loser. Unfortunetly, it took 3 years to figure this out. One issue after another, whether it be blaming interest rates, tax increases, cost overruns, market changing even still blaming COVID, this knuckle-head is scrambled so bad he will say anything to excuse his severe underperformance. All is lying and double-talk have left him looking incredibly haggered as of late. He looks terrible in his webinars and video-email pleadings to investment more to save the project soundbites. "We need everyone to contribute" sure buddy, will do! His Townhomes in NC NOVA RTP project was my first investment, what an ugly product, no-suprise its a total failure. Total Failure. 


      I have heard rumors that he wants to hand over the projects to others so he can remove them from his list like he did on Buffalo Rails. Good luck all investors. 

      1Reply
  • Harish V.
    Investor · Fremont, CA · Member since 2015 · 210 posts · 124 votes
    2mo

    Some reviews of recent projectsh ttps://armchairlp.substack.com/p/investment-review-preferre...

    another:

    Live deal equinox at Lincoln phase II

    1Reply
  • Mark Allison
    RIVERSIDE CALIFORNIA · Member since 2020 · 1 post · 0 votes
    1d

    I invested $100,000 in a syndication with Grocapitus headed by Neal Bawa in 2021. To make a long story short, the project went to foreclosure auction on October 6, 2026 resulting in 100% capital loss for all investors. Factor this information into any future investments with Grocapitus or Neal Bawa.

    0Reply
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