All Forum Posts by: Harish V.

Update on my post

As pointed out, the initial terms on my contract in Oct 2021 were beyond industry standards. It took a posting from me fir Grocapitus to make adjustments?? What’s that say about Grocapitus and their business model. 

Grocapitus had an ephipany about industry standards? 

So I would assume the San Antonio project is sold out if the terms have been adjusted to be more reasonable. However, as of June 2022, I see these properties are still being advertised. When I made my earnest money deposit, in Oct, I was told production would be in 2022 and completed by 2023. That was the only production schedule I was given even though I specifically earmarked the buildings I was purchasing in the project. I was told ( I better hurry, the project is just about sold out) 

As of June, the project is still selling and now the timeline has moved to the right by another year, 2023-2024. If I hadn’t got out of the project, I would have tied up $500,000 for potentially 3 years. 

Industry standards are currently between earnest money to ownership is 12 months. 
Grocapitus is saying it’s ok to tie up hundreds of thousands of $$ for 3 years. Incredibly poor business deal. 

As for the increase in rental potential on the properties. That means nothing until the properties are sold and rented. Even with a bump of $200 in rent. That will most probably be offset by an increase in new mortgage costs and increased rates. 
It seems there are still issues with the San Antonio project. I am glad I walked away. It wasn’t a good deal and since the project production keeps moving to the right and there seems to be an unlimited number of properties available, one has to wonder what’s going on.  I find that amusing as I was told I was buying the last “two” buildings and I better hurry or they would be gone. I would caution any investor to beware and run the numbers independently of the spreadsheets provided by the Grocapitus sales team. 

 Yes to both.

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 am not happy with Grocapitus because they are changing the purpose regarding the use of funds which they raised Capital for without my permission.  

Hi everyone,

I'm posting on behalf of my friend Alex, who is seeking advice from experienced real estate investors. Here’s a bit about his profile and what he’s looking to achieve:

- Alex is 30 years old and works as a software engineer in San Francisco, earning $167,000 annually. His goal is to grow wealth through real estate investments with a balanced approach, minimizing time commitment, and maximizing returns.

- He recently inherited a 3-bedroom single-family home in Fremont, CA, valued around $1 million, currently rented out for $4,000/month.

Alex's main concerns are balancing his full-time job with the demands of real estate investment, managing cash flow effectively, and understanding the potential tax benefits.

- What investment strategies should he consider?

- Should he invest in another rental property or consider REITs for a more passive approach?

- What tax strategies should he consider?

How would you structure investment strategy with his  current assets? 

Thank you for your help!

Harish, since you recently asked for the status of our other Buffalo project (The Grid, see status above), this is also a good time to bring this string up to date on the current status of the project that you are invested in (Rails on Main). The attached snapshot tells the whole story, and the pictures of the near-complete project. My fingers are crossed for a fast lease up !!