All Forum Posts by: 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

Once again, it's important to use numbers when making quality decisions. Please check the Grocapitus track record above.  In addition, I would suggest that people making decisions about Grocapitus read investor reviews. It's common for syndicators to have 1 or 2 reviews from investors on their website, however, Grocapitus has been lucky enough to receive dozens of reviews from actual investors. Read more at https://grocapitus.com/testimo... and make up your own mind.

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.

William Woodring brings up very good points, so here is detailed context. Firstly, we have to grudgingly agree with William that 30% down payment was onerous. Our Fourplex 100% ownership strategy has evolved over time, and based on feedback from William and others, we now charge a 20% down payment, instead of 30%.

Secondly, we now pay the investor interest on the down payment, as a discount on the final price. These changes have been made in January 2022. Since the changes were made, demand for the product has roughly doubled.

With regards to actual demand vs ‘implied demand’, the demand for our fourplexes is actually very high. We have launched five fourplex projects, and of all the fourplexes in all of those projects that were offered, only two are available for sale in Feb 2022. So, over $40 Million of fourplexes were sold in the last 14 months. The typical project sells out in 30-45 days, though one of them took longer.

All of our projects have a detailed Purchase and Sale Agreement (PSA) that buyers sign with details on terms and construction timelines. Perhaps William did not review the entire document.

With regards to William’s comments about rosy financials, we have to disagree. I purchased a fourplex myself (Grocapitus did not give me a discount), and have seen projected rents spike by over $200 per month beyond what was projected). Later this year, as a bunch of Fourplexes from different projects deliver, I will post budgeted financials vs actuals, and also post multiple unedited reviews from the buyers. We can say with confidence that those buyers will not consider the financials rosy, but conservative.

Quote from @Harish V.:

Quote from @Harish V.:

Park Canyon shows up in Exit list from Eric, not sure why they are still raising funds - 
SEC FORM D

2M raised, 8M to go.

Found the reason, they have new project on site

PARK CANYON (ROUND 2) · DALTON, GA

Hi Harish Verma,
We did exit Park Canyon, giving our investors 50% annual return. But since the market is so hot, while looking for another value-add project, we already had a project in Park Canyon. So upon sale, we had the option to match the highest and best offer, so we formed a new syndication and bought it back. We knew something that no buyer could possibly know. In addition to the 29 new units that we already had built (which doubled the value), we had rights to build 48 more units, and had city approval. Also, Dalton, GA is a great community that we have been very happy with, the project has the opportunity to do super value-add by adding additional units, and best of all, the former investors got the opportunity to 1031 the profits into the new project, which is extremely rare in the syndication industry. So in fact it was a win-win-win for everyone involved in the project.

Please note that the Park Canyon syndication is fully subscribed, and the overwhelming percentage of the money came from original investors. That’s the best compliment ever.

Quote from @Harish V.:

SEC FORM D - 12.6 M still to raise. Just filed Feb 8, 2022.

New Braunfels is a for sale fourplex project.  I don't understand your point?  Why would you think there is an SEC issue, given we are selling fourplexes?

Quote from @Chad Rappaport:

I just read on this thread that someone was told  3 weeks ago that the New Braunfels project was "sold out". Funny I was just invited to send in a $5k binder 10 minutes ago........ 

Chad, thanks for pointing this out.  I don't know who said they were sold out, but I can assure you that at this time there are still buildings available. 

Quote from @Harish V.:

Had an interesting update on Buffalo on rails project. Neal and Financial Attunement have both quit the project. Probably they do not want to be answerable to investors they roped in first place with their charm and wild promises of high returns. I am still paying for Mr. Neals learning experience. Anyone investing now should pray that it does not become a learning experience for Neal Bawa. If it does, the investor will have a learning experience of their own that they should listen to people having negative reviews.

Harish varma,

You are a vicious troll. You take every piece of information and spin it one way. Your last post was the most one sided of all. Neal Bawa withdrew from the Buffalo project last night (only as a general partner) to accommodate a new partner. This partner, McGuire is a heavy hitter, is in an excellent position to move the project forward, and they spent an hour on zoom last night (Feb 21, 2022) explaining why they are investing $7-8 Million of their money into the project. You were present for the entire session, so you know this.

However, as McGuire came in, the general partner pie shrank. Since Dave Freeman is the lead partner in the project, Neal gave $600K worth of his profit shares to Dave Freeman (both as a thank you for Dave, who spent over a year getting McGuire and their money in) and as an incentive for Dave to continue spending time on the project, despite the general partner pie shrinking. Further, Neal also announced last night that he is making a limited partner investment (cash injection) into the project, even as he gave away all of his general partner shares to a deserving partner. Neal and Dave also communicated that Neal is hard at work on a key part of the project, which will take several months to complete.

Anyone on this thread should note that Harish Varma is not credible. He is only interested in making one-sided statements, not in representing both sides of the picture. While there is good reason for the frustration caused by the delay in this project, last night, proof was provided that the project is moving forward in form of the presence of a successful and powerful local company joining the project. Note that Harish neglected to mention any of this. Its very likely that all subsequent posts will be equally one-sided.

Neal would never speak out against Financial Attunement. He doesn’t believe in the blame game. If you hear his podcasts where he talks about his failures, he always brings up these projects. To him, everything is a learning experience so you will never hear a bad word about Financial Attunement from him, ever.  And yes, he is still involved in one project from Financial Attunement. The project is still running, so his obligations haven’t changed. Leaving the company does not change his responsibilities for past projects, only future ones.

Guys, I am a partner in Neal’s company. So, I am a vested party, but am not an employee, so have no employee type pressure. One of the challenges with this string is that it is clubbing together two VERY different companies. The only company that Neal has had full control over is called Grocapitus. The projects discussed on this string are from a previous company called Financial Attunement, where Neal was a junior partner, and a senior partner was CEO of that company and primary decision-maker.

So, I feel that for a balanced discussion, this string can benefit from knowing Grocapitus' returns, since Neal founded it in February 2018, when he resigned from Financial Attunement. I happen to know that Neal left that company because he was not comfortable with the analysis and underwriting of their projects. Listed below are all the project exits Grocapitus has had, and I also happen to know that Grocapitus investors are very happy with their returns. I also happen to know that Grocapitus has three exits coming up in the first half of 2022, and all of these are expected to beat the leader in this table below (Park Canyon - 50% AAR) easily. Grocapitus expects to have a total of six profitable exits this year, and expects to make investors about 38% IRR on those six exits. As they say, the proof is in the pudding.

I reviewed our current investor list and Harish Verma is not an investor with Grocapitus, he was an investor in Financial Attunement. With the data-driven approach Neal developed, Grocapitus has a strong track record based on the actual return investors received. I will update the table below with three additional exits by or before July 2022.