Building with GU: Payment Plan and Guarantees

Did you also get mixed up in the lines? - Rough installation after finished interior plastering actually can't quite be right ;-)

I wouldn't put too much stock in the order. For us, it was listed the other way around (so interior plastering after the rest), but then other things were basically reversed. Windows, for example, relatively low down even though they were installed relatively early. They were requested beforehand as well (and at least didn't bother us). Some items can also run in parallel or the order isn't that critical.

Otherwise, I can't say much, our plan looked different, but since it's a developer project, it's somehow understandable (because the plot of land is included, for us a big chunk was due right at the beginning – which initially felt a bit scary...)

Whether the general contractor agrees to a 10% guarantee, you just have to see.

There will certainly be more insolvencies coming

For fun, we looked up our developer in the Federal Gazette and read through some reports. If it's organized over many subsidiaries, it can be tough, and generally the question is how much a layperson can glean from that (that they sometimes pre-finance things on credit is, I believe, quite normal at first) but for peace of mind it was a "at least we tried" ;)

We had a bit of fun looking up our BT in the Bundesanzeiger and read through the reports there. If it's organized over many subsidiaries, it can be difficult and generally the question is how much a layperson can read from it (that partly they pre-finance something on credit is, I believe, completely normal at first) but for one's own conscience it was a "at least we tried" ;)

I just tried that too. Thanks for the tip! You can't read much from it now, but at least there are no big warning signs. A limited partner contributed €400k equity last year. Now the only question is whether that is a positive, negative, or just a neutral sign...

Not much can be read from this, but at least no major warning signs either.

You just don't recognize them ;). KG = GmbH & Co. KG as a project company? What are the inventories and how are they accounted for? Very low equity ratio for a project company. To whom are the very short-term liabilities owed? What is shown in the income statement? No, nothing can be recognized. You can interpret a lot, but you also need the figures from the past and especially the income statement as well as the explanations of individual items. The text section is always more interesting - in the case of Traumhäuser, for example, the text section practically screamed of a possible insolvency.

You just don't recognize it ;). KG = GmbH & Co. KG as a project company? What are the inventories and how are they accounted for? Very low equity ratio for a project company. To whom are the very short-term liabilities owed? What is stated in the income statement?

No, you can't see anything. You can interpret a lot, but you also need the numbers from the past and especially the income statement as well as the explanations for individual items. A text section is always more interesting – for Traumhäuser, for example, the text section practically called out for a possible insolvency.

GmbH & Co KG, correct! Unfortunately, apart from the balance sheet, there are no publications in the Federal Gazette, no income statement, and no helpful explanations in the text. No idea what the inventories are; it only states, "The inventories were determined based on an inventory count. The inventories were recognized at acquisition or production costs in accordance with the lower of cost or market principle."

You just don't recognize them ;). KG = GmbH & Co. KG as project company? What are the inventories and how are they accounted for? Very low equity ratio for a project company. To whom are the very short-term liabilities owed? What is in the profit and loss statement?

No, you can't see anything. You can interpret a lot, but you also need the figures from the past and especially the profit and loss statement as well as the explanations for individual items. A text part is always more interesting – with the dream houses, for example, the text part practically screamed of a possible insolvency.

Just saw, they belong to the "small capital companies" and therefore do not have to publish a profit and loss statement.

(1) Small capital companies are those which do not exceed at least two of the following three characteristics: 1. 6,000,000 euros balance sheet total. 2. 12,000,000 euros revenue in the twelve months before the balance sheet date. 3. An average of fifty employees per year.

Not much can be read from that now,

Financial statements of only one year practically say nothing. Here it seems to me that the KG was still dormant in 2020 and was munitioned in 2021 for a (revived?) business activity. A limited partner contribution of 400k doesn’t sound meager, but can certainly be explained by the requirements of the house bank for providing the credit line.