All Forum Posts by: Rob Block

Harish, what Chattanooga project are you talking about?  The only one I'm aware of is an existing property that they bought.

Hi Chris.  How would I go about finding a 3rd party track record verification company?  That would be awesome since I can't find any investors.

For this deal, their underwriting shows an assumed loan that is fixed at 5.3% for 5 years.  Assuming that is the case, that doesn't seem very risky.  That was one of the attractive points for me, since several other deals I joined in the last few years have had capital calls due to increased debt costs.

One concern I have is that, while they claim vacancy at the property is 7%, I see quite a few listings on apartments.com for the complex that indicate a higher number.  Is there a way to obtain a reliable number?

Thanks, Rob

What is the point of your comment?  Why do you have a problem with what I'm asking.  I'm trying to validate the completed projects advertised by a sponsor.  Unless you have relevant information, please don't comment further.

That's true.  But people have said on this forum that his track record isn't good, so I'm trying to find people who have invested in his full lifecycle deals to get more perspective.

The deal I mentioned has an assumable fixed interest rate (for 5 years) of 5.3%, so interest rate jolts are less of a concern there.  I have looked at the underwriting and it mostly looks reasonable.  But I'm not an expert and could be missing something.

I'm considering investing with Grocapitus for the first time in their value add syndication in Chattanooga TN (https://grocapitus.com/funds/mtr/investor-kit/).  I read through a long thread from several years ago about Neal Bawa and GC but didn't see anyone giving feedback on a project that had sold to completion.  There were complaints about a new construction in New Braunfels, but that is different from a value add.

At this point, their website (https://grocapitus.com/our-portfolio/) shows 6 completed MF exits, in GA, FL, TX, AZ and SC, with IRR from 16 to 21%. Most have exited since the earlier thread's activity, so I'm starting a fresh thread asking members here, did you participate in any of the completed deals and was your experience and return as advertised?

Please respond only about Grocapitus deals, not ones from Neal's previous operator or general comments about him or his underwriting methodology.  I'm only interested in the Grocapitus track record.  Thanks.

Thanks for those tips, I'll check them out.

"this is no more risky than buying the property for all cash at the price point equal to the loan balance"

But TBH, that seems fairly high risk of turning into a time sinking headache if the borrower's project fails.  That's the part I was trying to avoid, especially as an out of state investor.

Still, I appreciate your reply, definitely something to consider.  How have your initial note investments worked out?

I've been looking for a 4-unit property to buy in SA for a few months now, but haven't found anything where the numbers look great.  After factoring in taxes and insurance, the cap rate tends to be around 5-6, which seems like a paltry premium over what a HY savings account yields at the moment.  It might make sense if expected appreciation was as high as in the last few years.  But from what I've heard rents have mostly leveled off.  And listings are on the market for months with frequent price cuts, which seems to indicate that prices are on a downward trend in the near term.  That's my high level take anyway.

Hey all,

I was planning to purchase a small MF property in San Antonio, but have had trouble finding anything that would have much cash flow, even if I pay over 50% in cash.  Rate caps are around 5-6 for 4-plexes in decent areas.  So I'm considering pivoting to the lending side for the next 1-2 years.  I have around 300-400K to invest and don't want to put it all in one property.  I'm also a newbie and not confident in evaluating projects and borrowers, so would prefer to partner and diversify.

I'm looking at debt funds at crowd funders like Fundrise, as well as business development (BDC) ETFs like Ares, Blue Owl, Golub. Ares (ARCC) in particular seems to have good stability along with high yield.

Does anyone here have experience or recommendations on potential investments?

Thanks, Rob 

KS, were you renting the same house for the same 1K rent the whole 16 years?  Shouldn't the rent have roughly doubled in that time period?