All Forum Posts by: Harish V.
Harish V. has started 3 posts and replied 191 times.
Post: Grocapitus - Anyone have experience with them?
- Investor
- Fremont, CA
- Posts 195
- Votes 112
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.
Post: Grocapitus - Anyone have experience with them?
- Investor
- Fremont, CA
- Posts 195
- Votes 112
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.
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Post: Grocapitus - Anyone have experience with them?
- Investor
- Fremont, CA
- Posts 195
- Votes 112
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.
Post: Grocapitus - Anyone have experience with them?
- Investor
- Fremont, CA
- Posts 195
- Votes 112
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.
Post: Grocapitus - Anyone have experience with them?
- Investor
- Fremont, CA
- Posts 195
- Votes 112
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?
Post: Grocapitus - Anyone have experience with them?
- Investor
- Fremont, CA
- Posts 195
- Votes 112
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
Post: Grocapitus - Anyone have experience with them?
- Investor
- Fremont, CA
- Posts 195
- Votes 112
After some bad experiences I have learnt not to rely on testimonials to make decisions.
Post: How to loose 30k on flipping in Columbus Ohio warning to Newbie
- Investor
- Fremont, CA
- Posts 195
- Votes 112
Quote from @Tchaka Owen:
Originally posted by @David S.:
Originally posted by @Tchaka Owen:
Originally posted by @Gaby Liu:
Originally posted by @Todd Pultz:
@Gaby Liu I understand your frustrated, but a lot of people have partners and have a lot of success. You have to choose the right partner, do your due diligence and ensure partnerships are vetted through an attorney. You also need to choose partners that compliment you and are as invested in the deal as you are. I’ve partnered on many deals that were all successful and easy enough. My current partner however was in your shoes before him and I met. It took awhile to find someone I enjoyed working with that I trusted but you can do it as evidenced by many other investors.
Don’t let one deal jade you! True investors have had conquer some hurdles in their career but it is the bounce back that’s so important!
the one who don't spend money would vote the partnership of course, the fisher. the one who spend the money on the partnership are the fish. would you partner with someone that you pay the money and he don't. but 50% /50% ownership?
Yes. However, that's not what you did. You set it up as a 33.3%/33.3%/33.3%
If I read the original post correctly, the original deal was set up as Gabi and her friend Reni providing all of the cash to finance the purchase of a property to be rehabbed and flipped. S got 1% of the equity for finding the property and she and the original contractor (R) would get 66% of the profit for doing the rehab and selling the property...I am not sure if the second arrangement after they booted out the first contractor R would leave S with only 1/3 of the profit.
Whatever the profit arrangement was, I think @Gabi Liu's advice in the end was not to partner with anyone who does not put in cash in the project in return for a piece of the profit (50% in her last example).
Nope, it's written that she and Rene would own 99% of the company and S would own 1%. As far as profits go, S & R would get 66.7%, she and Rene would get 33%. THAT is a problem. While there's no one way to structure a deal, the traditional route when one provides all financing and the other does all work, is 50/50. You can deviate, but to go that far is not what most would term "fair".
And yes, her point is clear. While many feel that way, to me it's not what's most important. Having a trusted partner, an extra set of eyes OR making visits to see progress is more likely to yield success as work will not deviate far from amount of allocated funds.
Seems like what syndicates do, with a twist. Anyway my view is to be very careful when giving money to someone else. Testimonials are not enough.
Post: Grocapitus Real Estate Syndication (Avondale Commons Apts)
- Investor
- Fremont, CA
- Posts 195
- Votes 112
Quote from @Brian Weissinger:
Has anyone had recent experience with this RE syndication? I'm a fairly new investor, and have about 7-10 years before retirement. Dropping $100K on an unknown entity is a little scary for me.
Post: Housing crash deniers ???
- Investor
- Fremont, CA
- Posts 195
- Votes 112
Quote from @Michael Wooldridge:
Quote from @Harish V.:
Quote from @Carlos Ptriawan:
I am a buyer for credit investment now, but not for equity investment as the market can whipsaw anyone.
The only thing you can do is be strong in financials to be able to buy cash/without loans. From 2008 to 2012 no bank will give a loan even to buyers strong enough. 2013 banks changed all of sudden, and so did market.
Lets see how long it takes this time.