All Forum Posts by: Harish V.

I contacted Grocapitus a few days after their webinar presentation on Botanica Southpark.  I was told that the deal was full within minutes after the webinar ended.  Apparently 200 some people sent in signed paperworks within minutes.  I am puzzled how people were able to complete proper due diligence that quickly.  Or is Grocapitus really is that solid that people just have that much faith.  I am new to syndication investing so I really don't know which is the case here.  I looked at their Houston Fourplex presentation deck and it appears that the Southpark project is almost the same in terms of building design etc (the interior pictures of the fourplexes are exactly the same).

I too am considering investing in their Southpark fourplexes so would definitely appreciate people sharing their thoughts and investment experiences.

Quote from @Harish V.:

Some of you have reached out to me to see if we can connect on zoom or other means to pursue legal options. If anyone can point us to resource or would like to join please PM me.

I will be happy to connect.   How can I privately message you?

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. 

Quote from @Jeffrey Liou:

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 incompetence.

 Hi Jay,

May I ask if you invested in the Botanica SouthPark?  Or was it another project in TX?

 Yes to both.

Quote from @Harish V.:

Quote from @Manoj Mathew:

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.  

 Can you please provide some context on which project you participated in? What was the change.

I had invested in the UGRO Texas BTR fund.  The offering document indicated certain projects which is what I subscribed to invest in.  It turns out that they only did some of the projects which they indicated in the offering documents and then invested in a different project which lost money.   Then they are changing the nature of investment by investing in sometime called Mission 10k.  They did not have my approval to invest in these new projects.  I assume that other investors who invested in the Texas BTR fund are suffering the same fate.  Now Neal is talking about lending the monies in the fund for some other project.   Grocapitus should be returning the cash available and not yet utilised instead of diverting the investment into projects without investor approval. 

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.