All Forum Posts by: Harish V.

 For reasons mentioned above the post will not be removed for transparency reasons but thank you for sharing your experience and clarifying the situation. 

 Hello all, I've actually communicated with both Josh and Larry since the new year as Josh was out of the country for a family-related event and Larry was unfortunately in the hospital. They are working with me to get this resolved. Other than the miscommunicated eviction, they have actually been very accomodating through the process and the issues with this one unit get resolved, then I would have nothing but positive things to say about the purchase. The other 2 duplexes I have purchased have had no issues.

I just purchased from Josh Gilmore and SDIRA wealth. Personally I think Josh himself is innocent but the company definitely is involved in shady and deceptive business practices. They provide fake checklists saying units are repaired according to agreed-upon inspection reports only to walk in to a home that is more damaged than it was during escrow. They filed an eviction on a tenant mid-escrow and withheld information on eviction until I saw a posted eviction notice on the door after closing. His crony Hatti Day is the “real estate manager” of the property and actively avoids addressing any of the lies she makes related to the unit. DO NOT go into business with 

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.

@Harish V., I can only comment on reporting of sales price versus actual.  I am making an educated guess based on working on more than a few purchases and sales as an employee of operators.  Most sales are done through an entity transfer, in order to avoid having to record an actual sale price and being reassessed to full purchase price.  

Many taxing authorities are wise to this, and so require some form of disclosure on the sale price of the holding entity.  I have seen more than a few syndicators underwrite real estate taxes to 80% of purchase price, which this equates to, presumably based on a tax consultants recommendation.

Put simply: when the parties disclose the value of the real estate being transferred, they put own 80% of actual purchase price, with the remaining 20% likely going to goodwill or other intangible assets.