All Forum Posts by: Harish V.

Interesting thing is through this thread I have come in contact with many people who invested with grocapitus and now are not sure. I hope that 1st time investors will read this thread and be very careful when investing with Grocapitus and demand penalties for delays and non performance.

Another day, another disapointing update from Buffalo project by Grocapitus/financial attunement.

Stay away from these two companies is my opinion.

One question to people with knowledge. Any idea if syndicator does not perform, can we fire them. I.e. take over the project, or is it that investors have no choice but to wait for syndicator to do something.

@Anna McClure Are you associated with Grocpitus? You just joined to post this?

Originally posted by @Joseph Bramante:

@Harish V. and @Jeffrey Liou sorry to hear about your situation. You can not depend on syndicators these days to underwrite correctly since they seem to be more focused on growing large mailing list and collecting huge upfront fees for closing deals. Whether or not they perform is secondary. 

I recommend you take some courses on underwriting that are geared towards passive investors. Most of whats out there is for syndicators trying to buy deals. They are different things but with seemingly lots of overlap. 

Regarding experience, we have actually exited 5 deals for an average IRR of 23.5% and Avg Equity multiple of 2.63. I have attached 2 bell curves showing all 5 properties.

Looping you in also @Ryan Goff @Keith Meyer @Vincent Powell @Jeff Pollack @Jason Merchey @Santiago Fajardo @Gopinath Chandra @John Gatsoulas @Jay Hinrichs

 Precisely. After 5 years when exits are due the syndicators will start forming new companies to reset the clock and blame previous experience to difference of philosophy of previous partners. Its a shame, burns passive investors. I have decided to DIY and am getting good learning experience. I think DIY is worth the trouble, even if you end up loosing, you will learn a lot. In case of syndication or passive investment, its a black box and you do not learn much.

Cap rates 10+. I am not sure that can happen trouble free. Good luck

I disagree. Real Estate also goes by same valuation criteria in long run, discounted cash flow analysis. How much P/E investors are willing to provide. For last 30+ years they acceptable yield for investment has been going down. So prices went up. I believe going forward yields will go up, prices will be growing slower.

Stocks on the other hand reflect reality faster than Real Estate thats all.

Wow long thread. Lot of knowledge. This reinforced learning for me that if something is too good to be true, it probably is not true. Will add it to list of deals/situations to stay away from. 

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.
 

Oh What do you know @Eric Bleau, the buffalo investment I am talking about is on Grocapitus website too. 

PowerPoint Presentation (grocapitus.com)