Variable Interest Entities

6 Months Ended

Jun. 30, 2022

Variable Interest Entities [Abstract]

Variable Interest Entities

NOTE 13. VARIABLE INTEREST ENTITIES

The Company formed certain special purpose entities (each, an “SPE”) to purchase and sell residential properties. Each SPE is a wholly owned subsidiary of the Company and a separate legal entity, and neither the assets nor credit of any such SPE are available to satisfy the debts and other obligations of any affiliate or other entity. The credit facilities are secured by the assets and equity of one or more SPEs. These SPEs are variable interest entities, and the Company is the primary beneficiary as it has the power to control the activities that most significantly impact the SPEs’ economic performance and the obligation to absorb losses of the SPEs or the right to receive benefits from the SPEs that could potentially be significant to the SPEs. The SPEs are consolidated within the Company’s condensed consolidated financial statements.

The following summarizes the assets and liabilities related to the VIEs as of the respective period ends:

	June 30,		December 31,
($ in thousands)	2022		2021
Assets
Restricted cash	$	44,474	$	24,616
Accounts receivable		11,862		4,845
Inventory		1,289,426		1,132,571
Prepaid expenses and other current assets		5,143		2,871
Total assets	$	1,350,905	$	1,164,903
Liabilities
Accounts payable	$	6,909	$	2,810
Accrued and other current liabilities		3,553		3,537
Secured credit facilities and notes payable, net - current portion		1,141,911		1,026,196
Total liabilities	$	1,152,373	$	1,032,543