Investment in Unconsolidated Entities

9 Months Ended

Sep. 30, 2018

Equity Method Investments and Joint Ventures [Abstract]

INVESTMENT IN UNCONSOLIDATED ENTITIES

In August 2017, the Company expanded into the Colorado Springs, Colorado market through a 49.9% equity interest in GB Challenger, LLC (“Challenger Homes”) which constructs townhomes, single family homes and luxury patio homes.

In March 2018, the Company formed a joint venture with a title company in Georgia to provide title closing and settlement services to our Atlanta based builder. The Company, through its controlled builder, The Providence Group of Georgia, L.L.C. (“TPG”), owns a 49% equity interest in Providence Group Title, LLC (“Providence Title”).

In June 2018, the Company formed a joint venture with PrimeLending to provide mortgage loan origination services to our builders. The Company owns a 49% equity interest in Green Brick Mortgage, LLC (“Green Brick Mortgage”) which initiated mortgage loan origination activities in September 2018.

A summary of the condensed financial information of the unconsolidated entities that are accounted for by the equity method is as follows (in thousands):



Balance Sheets (Unaudited)	September 30, 2018		December 31, 2017
Assets:
Cash	$	15,825	$	3,981
Accounts receivable	400		1,494
Bonds receivable	5,864		2,850
Inventory	50,731		57,841
Goodwill	4,615		4,615
Noncompete intangible asset	159		202
Other assets	2,652		2,248
Total assets	$	80,246	$	73,231
Liabilities:
Accounts payable	$	4,464	$	5,060
Accrued expenses and other liabilities	5,373		2,857
Notes payable	34,209		36,923
Total liabilities	$	44,046	$	44,840
Owners' equity:
Green Brick	$	20,476	$	16,592
Others	15,724		11,799
Total owners' equity	$	36,200	$	28,391
Total liabilities and owners' equity	$	80,246	$	73,231



Statements of Income (Unaudited)	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Revenues	$	43,758	$	21,955	$	120,710	$	21,955
Costs and expenses	38,308		20,015		107,328		20,015
Net earnings of unconsolidated entities	$	5,450	$	1,940	$	13,382	$	1,940
Company's share in net earnings of unconsolidated entities	$	2,719	$	968	$	6,534	$	968