Eddies new property fund.

[Gatelodge]

Eddie Hobbs was on the Pat Kenny show talking about his new business venture.He said that there was a lot of risk attached to it for investors and this was explained over many pages in the prospectus.
But what he had to say at the end was most interesting.
He bluntly said that FTBers had got it in the neck from developers in relation to new house prices in recent years but that he expects a sharp drop in prices before the end of the year after a poor autumn selling season.
The reason for this is that the banks are going to start calling in their massive loans to developers and to raise money the developers will be forced to drop prices sharply to shift inventory.
The way he said it sounded to me as if he regarded this as a racing certainty.

[Thing_Fish]

@Gatelodge

Eddie Hobbs was on the Pat Kenny show talking about his new business venture.He said that there was a lot of risk attached to it for investors and this was explained over many pages in the prospectus.
But what he had to say at the end was most interesting.
He bluntly said that FTBers had got it in the neck from developers in relation to new house prices in recent years but that he expects a sharp drop in prices before the end of the year after a poor autumn selling season.
The reason for this is that the banks are going to start calling in their massive loans to developers and to raise money the developers will be forced to drop prices sharply to shift inventory.
The way he said it sounded to me as if he regarded this as a racing certainty.

saw that as well. there was another thread that detailed that Irish banks lent more to developers than than to house buyers. the two-bit developers are exposed in all this.

Once the developers get squeezed , that’ll be the sharp correction.

[johnny_utah]

What the fck.
I give up i really do, Eddie Hobbs is using peoples borrowed money to invest in property. When are people in this country going to start doing some honest work and stop trying to get rich building fcking river islands and nexts in poland. We have feck all sucessful technology start ups here in what is supposed to be a knowledge economy. I look at this country and all i see is people “making money” selling each other houses and moving money around in circles or overpaying unproductive civil servants.

[geckko]

@Gatelodge

Eddie Hobbs was on the Pat Kenny show talking about his new business venture.He said that there was a lot of risk attached to it for investors and this was explained over many pages in the prospectus.
But what he had to say at the end was most interesting.
He bluntly said that FTBers had got it in the neck from developers in relation to new house prices in recent years but that he expects a sharp drop in prices before the end of the year after a poor autumn selling season.
The reason for this is that the banks are going to start calling in their massive loans to developers and to raise money the developers will be forced to drop prices sharply to shift inventory.
The way he said it sounded to me as if he regarded this as a racing certainty.

I generally wouldn’t rate this guy’s opinion.

[geckko]

@johnny_utah

What the fck.
I give up i really do, Eddie Hobbs is using peoples borrowed money to invest in property. When are people in this country going to start doing some honest work and stop trying to get rich building fcking river islands and nexts in poland. We have feck all sucessful technology start ups here in what is supposed to be a knowledge economy. I look at this country and all i see is people “making money” selling each other houses and moving money around in circles or overpaying unproductive civil servants.

And there you have it. Brendan Investments, limited liability for directors and shareholders (Mssr Hobbs) will be reaping handsome returns, regardless of the performance of the fund.

Incidently, I took a peak at the fees and even for a retail product these are at the top end.

annual ad valorum fee of 1% of AUM. Doen’t forget that this is 4xgeared, meaning that this is 4% of the investors NAV. That is creamed right off any return you get (positive or negative).

Also, the performance fee is relatively generous, with lowish hurdle.

It makes me think of one of those books:

“How to get rick quick”

You buy it and inside it say:

“Write and market a book on how to get rich quick”

[HouseBuyer]

bp1.blogger.com/_3Yb3JoRSrzo/RuKw5R889sI/AAAAAAAAAA4/TU91_1O6l3Y/s400/eddiehobbs.jpg

[Thing_Fish]

good one!

[Green_Bear]

Speaking of property investment funds see todays Sindo

The value of property investments is generally a matter of valuer’s opinion rather than fact.
In addition, property investments may not always be readily saleable and occasionally there may be constraints on cashing in units.
Even the manager admits that yield compression will lead to lower returns from 2008 onwards. It is forecasting growth of 10 per cent in 2007 falling to 7 per cent in 2008 and an average of 6.4 per cent from 2007-2011.
sindo

[Gatelodge]

Eddie Hobbs had a two day exhibition in the RDS over the weekend and some exhibitors have just been on to Joe Duffy complaining that it was a wash out. 20000 people were expected to turn up and I heard one caller say only 2000 attended and he’s not at all pleased as his stand cost 10000 euros.
I didn’t hear the full conversation but the consensus was that the low attendance wasn’t due to lack of advertising, and I think it was more an indication of the slump in the property market.
When this exhibition is in cork one exhibitor said he would expect a stand for free to compensate for the Dublin disaster.

[plaudit]

Is Eddies house still on the market?

[hi5]

@Gatelodge

Eddie Hobbs had a two day exhibition in the RDS over the weekend and some exhibitors have just been on to Joe Duffy complaining that it was a wash out. 20000 people were expected to turn up and I heard one caller say only 2000 attended and he’s not at all pleased as his stand cost 10000 euros.
I didn’t hear the full conversation but the consensus was that the low attendance wasn’t due to lack of advertising, and I think it was more an indication of the slump in the property market.
When this exhibition is in cork one exhibitor said he would expect a stand for free to compensate for the Dublin disaster.

Yes,I heard it,lots of denial from exhibitors,Joe kept pushing the opinion that maybe the public have’nt got the money or interest for property investment anymore but the vested interests were’nt having any of it,kept blaming the organisers for not marketing it properly.

[The_Unwelcome_Guest]

Won’t someone please think of the vested interests???

[HouseBuyer]

@Gatelodge

Eddie Hobbs had a two day exhibition in the RDS over the weekend and some exhibitors have just been on to Joe Duffy complaining that it was a wash out. 20000 people were expected to turn up and I heard one caller say only 2000 attended and he’s not at all pleased as his stand cost 10000 euros.
I didn’t hear the full conversation but the consensus was that the low attendance wasn’t due to lack of advertising, and I think it was more an indication of the slump in the property market.
When this exhibition is in cork one exhibitor said he would expect a stand for free to compensate for the Dublin disaster.

I have a feeling that his offering will still manage to sell out.

[jake76]

I’d say they be queues out the door for this one.

investexpo.ie/autumn07/

The seminars are the place to be. How could you miss?

Bulgaria - A great investment when armed with knowledge
or
7 things you MUST do to be a successful off-plan investor
or
An insight into investing in ground level developments in Egypt
and
Maximum Profits buying New Construction in the USA - Strategic advice for Investors

So much to learn so little time.

[Fat_Bastard]

I feel that the swing in sentiment is the significant point to note in this. While The Hobbs plan probably will sell out, the amount of money that it and similar funds takes out of the hands of someone who would otherwise invest in Irish property is hard to quantify at the mo. What it does publicly highlight is that the (perceived or otherwise) boys in the know have little faith in the Irish market, not just as a short term investment, but as a 7 to 10 year minimum, investment. The investment banks tell us that property at these levels are still a good investment for the mid to long term, but it seems to differ from Mr. Hobbs and Co.s outlook on a risk/reward basis.

Sad state of affairs when sentiment overtakes financials but the damage was done over the last ten years, hence this website.

[Gatelodge]

The Sunday Times said Eddie is targeting with his fund an end of the market other providers would not touch and small investors will be the first to panic if things start going wrong. They could even force the company to be wound up instead of holding their nerve until conditions improve.
They are also the type of investors that could cause nothing but headaches, on the phone every other day wondering what’s happening to their money.

[Gatelodge]

**Hobbs investors’ 48-hour escape clause
**

The original prospectus for the property vehicle contained an investment strategy based on **a 14-month-old report **by property experts CBR Ellis on the prospects for bricks and mortar in Ireland, the UK, Germany and Portugal.
A recent update on the property markets from CBR Ellis has **made material changes to some of its original analysis, particularly in the UK and Ireland.
**
The revised view was not included in the Brendan Investment prospectus.

After they have received the update covering the changed conditions, investors in the Hobbs- led group will be given **a minimum 48-hour window to demand the return of their money.
**https://www.independent.ie/business/irish/hobbs-investors-48hour-escape-clause-1092464.html

                  :angry:

[verbatim]

Eddie Hobbs hits Homer

The indo gives Eddie a hard time

I WANT to say sorry to Eddie Hobbs.

It was last Sunday week. Eddie was in a hot snot. I had burrowed right up the great man’s nose. An article on this page had dared to question Eddie’s latest property product.

Happily, I was out walking the Wicklow hills when Eddie charged onto RTE’s Marion Finucane show. So I missed the guru’s robust defence of his controversial investment offer to the Irish public. The next day, I heard a recording of his little outburst.

It was vintage Eddie. He was busting a gut. All a bit personal, probably libellous, but good cut and thrust entertainment.

No one can blame Eddie for being tetchy. He stands to make a fortune if the foolish fish swallow his Brendan Investments bait. There is a lot of loot at stake.

He likened the Sunday Independent and its business editor to The Simpsons – a clear libel on poor Homer and Bart. My piece about his property vehicle was “spin”, “inaccurate”, “false” and “flawed”.

And then the unkindest cut of all. Eddie insisted that I “hadn’t read the documentation”.

Let me apologise.

He is right. I had been so staggered by Brendan Investments’ decision to base its strategy on a 14-month-old property report that I had not paid enough attention to other parts of the prospectus.

So in fairness to Eddie I read it again last week. He may be sorry .

The first figure that stunned me was the €750,000 costs of the Brendan launch.

The prospectus cleverly pooh-poohs this massive amount by assuming that Eddie and the boys will raise a whopping €50m. The costs of the launch would then be a mere 1.5 per cent of the total.

But what if they only raise a more realistic €10m?

The Brendan adventure will still probably go ahead. But the fixed launch costs will suddenly be 7.5 per cent.

And any investor who puts ten grand in would see the first €750 vanish, much of it spent by the promoters on advertising, trying to lure others to jump into the same property swamp.

The advertising campaign is saturation stuff. Eddie is rarely off the airwaves flogging the Hobbs unregulated property brand.

Eddie says there are no entry charges. As always, he is technically correct. The €750,000 is called something else…

[2Pack]

Actually its none other than Shane Ross.

He finishes his demolition of Eddies prospectus with the following words.

“Swim out of the swamp while you still can”

Full Article Here

independent.ie/business/iris … 16964.html

Gwan there Shane

[daltonr]

Love Shane Ross or hate him, we need more financial products to be put under the kind of scrutiny like that.

Ironically Eddie’s greatest asset is that the plain folk of Ireland trust him when it comes to money. If he says something is good then they’ll literally take that to the bank. If one of the major banks had released this product like this 3 years ago then Eddie most likely would have been the one writing the scathing article. To make it worse, 3 years ago this product might have had a chance of working.

I don’t think I can ever recall seeing a more blatant example of Gamekeeper turned poacher.

This investment vehicle MIGHT make a return for it’s investors, but if Eddie was earing his Rip-Off Republic hat he’d be pointing out that there are much cheaper alternatives, and the promoters of this scheme are being very very greedy.

After Eircom destroyed the man in the streets faith in shares, and this looking like destroying their faith in funds and property, the Credit Unions and post office savings accounts are in for a bumper few years.

-Rd