Grocapitus - Anyone have experience with them?

Question

Hello,

Has anyone worked with Grocapitus and were their proformas accurate? Any comments on things worked out? I tried searching the forum expecting to find something but was having trouble.

Thanks in advance,

Ryan

Justin Goodin · Answer

It's always critical to do your own extensive due diligence on the sponsor, market, and deal before investing. Doesn't matter who it is! There are risks to any investment. If someone promises a guaranteed return with no risk, RUN!

Harish V. · Answer

Guess no one has positive experience. It’s rather new company so unlikely to have successful exits. I have experience with financial attunement, the firm where Neil Bawa of Grocapitus was before. I did not have good experience. Posting this response to help and warn wandering souls.

Steven Huynh · Answer

Hmm. I mean, Grocapitus's numbers seem good. Looking at their portfolio, they've got 3.3k Units and about +500 AUM. Yes, I know those are quite the vanity metrics. Those numbers don't necessarily tell you how they deliver their returns for their investors, or how they treat and communicate their lenders, tenants, or investors, etc. Overall, they seem to be a decently experienced company looking at their team.

Correct me if I'm wrong.

Harish V. · Answer

@Steven Huynh  Numbers like these only tell you how many people have invested with them. It does not tell you anything about anyone who got their dividend or principal back.

I fell for it and invested in Buffalo project. It worked wonderfully till the dividend came due. Now they are just postponing. The IRR projected was 30%. Now they are trying to sell the unbuilt project to someone else. Already tried to restructure the deal once. If they really had 500+ investors happy, none of them can defend them here on bigger pockets?

If you really believe that.. i wish you luck, please invest with them.

Jordan Burnett · Answer

I have no personal experience, but I would suggest you join a private investment club (https://www.privateinvestorclu...) or 506Group. There are several folks who have posted about their experience with the primary operator and that particular group.

Angela Yan · Answer

I love Neal Bawa for his data presentation and his outlook on the market.  I am too much of a self RE investor doing my own thing than to handing someone money to multiply for me but not like there is anything wrong with that strategy. I just like experiencing my own returns.

Harish V. · Answer

Good for you. I have learnt that this is the best way. Neal Bawa has best fake data anyone can have. Here is proof.

PowerPoint Presentation (grocapitus.com)

34% return for phase 1, 26% phase 2. Construction loan Jan 2019, Operating period from Aug 2020. Right now they have not found anything of construction loan on this project and looks like dont intend to. They punt every Quarter. I like the data, Just hope watched from sideline and only liked not invested.

Grocapitus - Anyone have experience with them?

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