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Investment in Unconsolidated Entities
 3 Months Ended
Mar. 31, 2024
Equity Method Investments and Joint Ventures [Abstract]  
Investment in Unconsolidated Entities INVESTMENT IN UNCONSOLIDATED ENTITIES
A summary of the Company’s investments in unconsolidated entities is as follows (in thousands):
March 31, 2024December 31, 2023
GB Challenger, LLC$— $52,666 
GBTM Sendera, LLC20,773 19,866 
EJB River Holdings, LLC11,637 10,867 
BHome Mortgage, LLC1,503 1,255 
Rainwater Crossing Single-Family, LLC$788 $— 
Total investment in unconsolidated entities $34,701 $84,654 
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Sale of GB Challenger Ownership Interest
Effective February 1, 2024, the Company sold its ownership interest in GB Challenger, LLC (“Challenger”) to the entity that already held the controlling interest in Challenger for approximately $64.0 million in cash. A gain on this sale of $10.7 million is included in other income, net in the condensed consolidated statements of income.

Rainwater Crossing Single-Family, LLC Joint Venture
On February 15, 2024, a wholly owned subsidiary of the Company established a joint venture (“JV”), Rainwater Crossing Single-Family, LLC (“Rainwater Crossing”), with Rainwater Single Family S-CORP to develop a tract of land in Celina, Texas. Both parties hold a 50% ownership interest in Rainwater Crossing. The Company evaluated the JV agreements and determined that it has a variable interest in this entity, but the Company is not its primary beneficiary. Specifically, the Company determined that it does not direct the activities that most significantly impact the entity’s economic performance as key decisions are subject to the approval of a management committee where both members are equally represented. Therefore, the Company’s investment in Rainwater Crossing is treated as an unconsolidated investment under the equity method of accounting and is included in investments in unconsolidated entities in the Company’s condensed consolidated balance sheets.

As of March 31, 2024, the Company’s maximum exposure to loss as a result from its involvement with Rainwater Crossing was approximately $20.6 million, representing its $0.8 million investment and the Company’s remaining commitment to contribute to the joint venture $15.0 million in quarterly payments through March 31, 2029 and $4.8 million upon the joint venture’s initial land contribution. The Company will also fund the development costs related to this project.

A summary of the unaudited condensed financial information of the five unconsolidated entities that are accounted for by the equity method is as follows (in thousands):
March 31, 2024December 31, 2023
Assets:
Cash$7,752 $23,549 
Accounts receivable375 4,207 
Bonds and notes receivable19,487 2,838 
Loans held for sale, at fair value10,106 7,452 
Inventory65,036 182,550 
Other assets574 6,425 
Total assets$103,330 $227,021 
Liabilities:
Accounts payable$3,157 $7,151 
Accrued expenses and other liabilities2,994 10,265 
Notes payable32,058 49,701 
Total liabilities$38,209 $67,117 
Owners’ equity:
Green Brick$33,001 $80,968 
Others32,120 78,936 
Total owners’ equity$65,121 $159,904 
Total liabilities and owners’ equity$103,330 $227,021 
Three Months Ended March 31,
20242023
Revenues$29,739 $58,323 
Costs and expenses24,507 49,726 
Net earnings of unconsolidated entities$5,232 $8,597 
Company’s share in net earnings of unconsolidated entities$2,592 $4,221 
A summary of the Company’s share in net earnings by unconsolidated entity is as follows (in thousands):
Three Months Ended March 31,
20242023
GB Challenger, LLC(1)
$929 $3,025 
BHome Mortgage, LLC893 693 
EJB River Holdings, LLC770 503 
Total net earnings from unconsolidated entities$2,592 $4,221