Plan, roles and risks
Who does what, when things happen and what could put the project at risk.
Timeline
Kickoff in November 2026, homes sold in 2029–2030. Diamonds mark go/no-go gates that must be passed before the next phase.
Structure and roles
No company: Radim and Jonathan co-own the land and homes as individuals in an agreed ratio, and one partner files VAT. Both are personally liable for project debts and buyer warranty claims (up to 5 years), so an LLC structure is worth comparing.
Funds the project, approves the budget and major spending, and reviews the numbers. Decides how the homes are sold, their prices and any discounts.
Land, permits, architect and design, hiring and managing trades, site supervisor, materials, schedule, budget, final inspection and sale preparation.
Agreed
- Homes are listed with an agent; Jonathan has the final say.
- If a home is unsold after 6–9 months, Jonathan decides between a discount or renting it out.
- Sale proceeds pay VAT and costs first, then return capital, and the remainder is profit split as agreed.
Still to agree: the profit split and how Radim’s work on site is valued.
Risks and mitigations
Slow sales, falling prices
The model absorbs a 10% discount; pre-sales from the shell stage; pricing guided by the agent.
Construction overrun of up to CZK 1M
Fixed-price trade contracts and a CZK 0.5–1M contingency for overruns.
Partner disagreement
Partnership agreement covering decisions, exit and buy-out terms.
Personal liability without an LLC
Liability insurance, a warranty reserve, and consider an LLC.
Zoning blocks semi-detached homes
Zoning review and a purchase contract conditional on approval.
Buyer warranty claims up to 5 years
Site supervisor, trade warranties, part of profit held in reserve.
Undocumented labor, site injury
Licensed contractors only, insurance, a safety coordinator.
VAT and tax errors
Accountant and tax advisor from day one.
Investor web app
The project will run on a web app where Jonathan and Radim can see, at any time, what every work item costs and the current estimate of what the homes will sell for.
- Costs by work item with budget vs. actual, plus invoices and contracts attached.
- Plan vs. actual with overrun alerts and contingency drawdown.
- VAT summary for input tax recovery.
- Sale prices of comparable new townhomes and an estimate per home.
- Running profit recalculated with every invoice.
- Approvals of major spending and discounts by Jonathan, plus site photos.
| Work item | Budget | Actual | Used |
|---|---|---|---|
| Land | 5,000,000 | 4,850,000 | |
| Design and permits | 450,000 | 430,000 | |
| Earthwork and foundations | 1,150,000 | 1,210,000 | |
| Shell | 3,200,000 | 1,940,000 | |
| Roofing | 1,050,000 | 0 | |
| Windows and doors | 1,150,000 | 0 | |
| Contingency | 750,000 | 60,000 |
Earthwork came in CZK 60,000 over budget; the contingency covers it.
Next steps
- Agree the profit split and Radim’s compensation
- Tax advisor: individuals vs. LLC, VAT registration
- Confirm construction funds are available in 2028–2029
- Meet a local real estate agent
- Vet the Pardubice-Hostovice and Borek sites
- Launch the web app before buying land
- Hire a site supervisor and vetted trade crews
Sources
- Sreality (opens in a new window)
- Reas (opens in a new window)
- Reality Čechy (opens in a new window)
- Pozemky Pardubice (opens in a new window)
- Rezidence Češkova (opens in a new window)
- Nejřemeslníci 2026 (opens in a new window)
- ESTAV (opens in a new window)
- Hyponamíru, 10/2026 (opens in a new window)
- Stavební dozor (opens in a new window)
Frequently asked questions
Short answers to what investors ask most often. Details are in the chapters above.
How is the project funded?
From the lead investor’s own capital, with no bank loan. Peak capital in the base case is about CZK 11.7M at the end of 2029; pre-sales with deposits reduce it.
What if construction runs over budget?
Construction may run over by up to CZK 1M. The budget includes a CZK 0.5–1M contingency for that.
What if a home does not sell?
If a home is unsold 6–9 months after completion, Jonathan decides between a discount and renting it out. Both cases are calculated in the Profit calculator chapter.
How is the profit split?
Sale proceeds pay VAT and costs first, then return capital, and the remainder is profit. The partners’ split and how Radim’s work is valued have not been agreed yet.
Who is liable for the project?
Without a company, both partners are personally liable, including for buyer warranty claims for up to 5 years. That is why we recommend comparing an LLC structure with a tax advisor.
How will I know what the project costs?
The project will run on a web app with costs by work item, budget vs. actual, a VAT summary and a running profit estimate. Claude AI will watch the whole project flow: it tracks costs, deadlines and budget variances and flags problems early. Radim integrates the system. Jonathan approves major spending and discounts.
When will the homes sell?
According to the timeline in 2029–2030: pre-sales from the shell stage and sales 3–9 months after completion, through a real estate agent.
How is the profit taxed?
It depends on the structure and on how the tax office classifies the income. An indicative comparison of individuals and an LLC is in the calculator. Jonathan decides, with a tax advisor recommending the best option.
