Variable Interest Entities

9 Months Ended

Sep. 30, 2021

Variable Interest Entities [Abstract]

NOTE 12. 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 (in thousands):


	September 30,		December 31,
	2021		2020
Assets
Restricted cash	$	20,024	$	6,804
Accounts receivable		8,345		1,638
Inventory		900,283		171,212
Prepaid expenses and other current assets		2,879		1,036
Property and equipment, net		4,377		2,772
Total assets	$	935,908	$	183,462
Liabilities
Accounts payable	$	4,561	$	716
Accrued liabilities		2,442		575
Secured credit facilities and notes payable, net - current portion		751,041		173,539
Secured credit facilities and notes payable - net of current portion		—		653
Total liabilities	$	758,044	$	175,483