One of them, I mean, we take real down payments. I mean, we have — across the board, we have a minimum down payment and we’ve seen some of our competitors bend on that. And it seems like a race to the bottom. We also — we don’t finance a lot of extras. We don’t finance decks or septic tanks or storage sheds. And so a lot of those items, right, you get — they’re added onto the loan, but you don’t collect much from them. And finally, we — with our retail finance program, we have a holdback with our dealers that gives us some additional cushion. And I think all of these — all of those items contribute to the outperformance. And we’re monitoring it closely. You’ll see that the reserve actually came down in the first quarter on the retail finance side of the business.
And the reason for that is we do a look back when we calculate the reserve. And in many cases, we’re collecting more on the repos than the outstanding principal balances for homes that were sold pre-COVID and paid on for a few years. And so I feel good about the team and the performance of the portfolio. It — even if it continued to creep up, it wouldn’t worry us. I think if you started, you got closer to 5% or 6%. That’s where we’d really — we think there’s a concern, but we’re still well below that.
Jay McCanless: That’s great. And maybe, if we could, an update on Bastrop and some of the other parcels — land parcels?
Duncan Bates: Yes. We hired an internal team. We’ve been working through the properties. Bastrop continues to progress. We’re putting in the roads now phase one. We’ve got phase two working as well. We’ve got a lot of utilities in there. We’re building a water treatment plant. So the — there is a lot of focus on Bastrop. You’ll see us continuing to invest capital there. Some of the other properties I talked about on either the last call or the call before, just working through where we are on those properties and ultimately determining the highest and best use for them and — from a shareholders’ standpoint. And so we’ve received some interesting proposals to sell certain properties or to partner on certain properties and we’re working through that now. And I think you’ll start to see some movement during the second quarter on those.
Jay McCanless: Okay, that sounds great. Thanks for taking my questions.
Duncan Bates: Yes. Thanks, Jay.
Operator: Thank you. [Operator Instructions] At this time, I would now like to turn the conference back over to Duncan Bates, CEO, for closing remarks.
Duncan Bates: I want to thank everybody for joining today’s earnings call. We appreciate your interest in Legacy Housing. And if you have any questions on the quarter, feel free to give Jeff or I a call or shoot us an email. Thanks a lot. Bye.
Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.
