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Investment in Unconsolidated Entities (Tables)
6 Months Ended
Jun. 30, 2024
Equity Method Investments and Joint Ventures [Abstract]  
Equity Method Investments
A summary of the Company’s investments in unconsolidated entities is as follows (in thousands):
June 30, 2024December 31, 2023
GB Challenger, LLC(1)
$— $52,666 
GBTM Sendera, LLC20,804 19,866 
EJB River Holdings, LLC12,156 10,867 
Rainwater Crossing Single-Family, LLC2,550 — 
BHome Mortgage, LLC1,047 1,255 
Total investment in unconsolidated entities $36,557 $84,654 
(1)Effective February 1, 2024, the Company sold its ownership interest in GB Challenger, LLC for approximately $64.0 million in cash.
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 June 30, 2024, the Company’s maximum exposure to loss as a result from its involvement with Rainwater Crossing was approximately $22.4 million, representing its $2.6 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.
Investment in Unconsolidated Entities
3. INVESTMENT IN UNCONSOLIDATED ENTITIES

A summary of the Company’s investments in unconsolidated entities is as follows (in thousands):
June 30, 2024December 31, 2023
GB Challenger, LLC(1)
$— $52,666 
GBTM Sendera, LLC20,804 19,866 
EJB River Holdings, LLC12,156 10,867 
Rainwater Crossing Single-Family, LLC2,550 — 
BHome Mortgage, LLC1,047 1,255 
Total investment in unconsolidated entities $36,557 $84,654 
(1)Effective February 1, 2024, the Company sold its ownership interest in GB Challenger, LLC for approximately $64.0 million in cash.
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 June 30, 2024, the Company’s maximum exposure to loss as a result from its involvement with Rainwater Crossing was approximately $22.4 million, representing its $2.6 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 unconsolidated entities as of June 30, 2024 and December 31, 2023 that are accounted for by the equity method is as follows (in thousands):
June 30, 2024December 31, 2023
Assets:
Cash$6,099 $23,549 
Accounts receivable561 4,207 
Bonds and notes receivable19,363 2,838 
Loans held for sale, at fair value7,328 7,452 
Inventory66,787 182,550 
Other assets570 6,425 
Total assets$100,708 $227,021 
Liabilities:
Accounts payable$3,653 $7,151 
Accrued expenses and other liabilities2,594 10,265 
Notes payable27,573 49,701 
Total liabilities33,820 67,117 
Owners’ equity:
Green Brick34,681 80,968 
Others32,207 78,936 
Total owners’ equity66,888 159,904 
Total liabilities and owners’ equity$100,708 $227,021 
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Revenues$8,078 $74,747 $37,817 $133,070 
Costs and expenses5,680 63,420 30,187 113,146 
Net earnings of unconsolidated entities$2,398 $11,327 $7,630 $19,924 
Company’s share in net earnings of unconsolidated entities$1,186 $5,699 $3,778 $9,920 
A summary of the Company’s share in net earnings by unconsolidated entity is as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
GB Challenger, LLC(1)
$— $4,487 $929 $7,512 
EJB River Holdings, LLC520 571 1,290 1,074 
BHome Mortgage, LLC666 641 1,559 1,334 
Total net earnings from unconsolidated entities$1,186 $5,699 $3,778 $9,920