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Investors in Kev McCloud's projects told they face huge losses - Grump Designs


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97% loses.

Investors money and future profit floated away on a McCloud!

There is going to be a lot more of this in the sector. 

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97% loss takes some doing. Literally could have done better giving the money to a chimp and sending it into a casino. 

“HAB housing limited owes money to HAB land limited”.  You want to build a house...so set up a company to acquire land, another to source materials, one to design architecture and intelligence, one to build the house etc etc. If it’s as big and complex as that for such a simple idea...then you know it’s being over complicated by the guys running the money and the set up. 

Yep, sounds like a limited company segmented scheme where the money has gone on Exec wages...and now there’s nothing left.  

Genuinely a real shame though....sounded like a nice vision. Probably needs a business partner who is trustworthy, shares the vision, didn’t over promise (eg 9% returns) and keeps things simple. Then investors would only lose maybe 30% of their money but create a legacy. (See,  that’s how you don’t over promise). 

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6 hours ago, Pop321 said:

97% loss takes some doing. Literally could have done better giving the money to a chimp and sending it into a casino. 

“HAB housing limited owes money to HAB land limited”.  You want to build a house...so set up a company to acquire land, another to source materials, one to design architecture and intelligence, one to build the house etc etc. If it’s as big and complex as that for such a simple idea...then you know it’s being over complicated by the guys running the money and the set up. 

Yep, sounds like a limited company segmented scheme where the money has gone on Exec wages...and now there’s nothing left.  

Genuinely a real shame though....sounded like a nice vision. Probably needs a business partner who is trustworthy, shares the vision, didn’t over promise (eg 9% returns) and keeps things simple. Then investors would only lose maybe 30% of their money but create a legacy. (See,  that’s how you don’t over promise). 

It does.

Even if I was to flush £50 note down the bog I reckon the toilet would block by ~£20k.

 

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Looking at the development in Winchester, I must say I’m not surprised. The homes are styled to a very urban look and modern on the outskirts of a village. Looking at the style and I’m guessing they are new house types to them with various eco tech in them, they were probably a nightmare to build on scale and costs were high. The problem is he just wouldn’t be able to compete with mass volume builders ever on estate building. He would need to simplify design, and cut costs on material and labour specification. Something I think he couldn’t do as that’s the whole idea of the company to be different than the rest.  Business could of worked well possible with small scale with developments of 5 etc.

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It is sad that a company wanting to build decent quality and decently designed houses not only couldn't make any money, but lost a shed load.  You'd have though that once they had three or so designs and a supply chain, they could have just rinsed and repeated at the various development sites. I seem to remember reading there were 'teething troubles' and disputes and delays on some of the projects, which puzzles me because I recall watching the Grand Designs episodes where he and his company built 'The Triangle' development in Swindon. It should have gotten easier from thereon in.

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On 24/08/2019 at 22:18, hamish1985 said:

They were probably a nightmare to build on scale and costs were high. The problem is he just wouldn’t be able to compete with mass volume builders ever on estate building. He would need to simplify design, and cut costs on material and labour.

Once you’ve bought land in the U.K. the margin for profit must be a very tight squeeze. Many new builds are like a trinket to enable selling land at a profit. Like the cheap tat in Christmas crackers. You can’t as easily justify selling empty cardboard tubes wrapped in shiny paper.

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