Mark Harding: So Lennar has probably got — I’d say they’ve got 2, call it, 10 town homes under construction. And I would say 6 or 8 detached single-family homes under construction. So the — they just haven’t opened yet as a for sale. They have a — they’re not doing sales trailers, they’re going to be selling out of a model home. I think their model home will be open before, say, the holidays. D.R. Horton is really — they have yet to start out there. They were a little bit slow on getting their approvals for their home products through the county. So I think that they’re set to get out there within the next 2 or 3 weeks to start their product. Horton typically has a more aggressive build cycle on that. They build more spec homes than most, but we’ll see what they do in this market.
Unidentified Analyst: Okay. So with Lennar actually building homes, obviously, they’ve purchase tap fees from you, but they haven’t sold the homes yet. And — I mean, how many tap fees have you sold in Phase 2, I’m wondering about.
Mark Harding: Of the 230 lots, I think we’ve sold about 110 taps. That will give you an idea of the building permits that are in that.
Unidentified Analyst: Is there likely to be a lull then with — it sounds like you’ve kind of got a — you’re ahead of the ball there with a lot of tap fees already being sold and for homes that have not yet been sold. So I assume there might be a bit of a low on tap fees in the next couple of quarters. Is that.
Mark Harding: Yes. If you’re looking at a quarter-over-quarter, I probably wouldn’t disagree with that. I try and caution you as well as the rest of the market that quarterly management of a company like ours is a little bit harder, but we still look at a great year, year-over-year.
Operator: Our next question is coming from John Rosenberg, who is with Lachlan Water.
John Rosenberg: Most of my questions have been covered. Also, congratulations on your year and your results and your strategy. One of your last callers talked about — questioned you and talked about your flexibility in moving more towards the rental segment as market conditions demand. And I just want to — Well, first, I wanted to congratulate you on that segment and also ask you. So drilling a little bit more. So you have absolute flexibility in doing that. Is there any cap on how much you can do that per period or.
Mark Harding: No, we really don’t. And the reason we like it so much is that we have an advantaged to roll forward some of that cost. And so as Greg was mentioning, when we’re carrying forward the equity value of the land and the water on that and really that’s a tax-efficient strategy to be able to do that. And he’s right. We’re delivering a home that might be $550,000 home, if you take a look at the standard detached product base, and we’ve got a number of different categories. The reason we like really concentrating a bit more into the rental market here in the second phase is we’ve got 6 different product classes. And so we’re not constrained to just the same type of rental customer. Right? It can be just — it can be an individual that comes out and is taking a look at a town home or a duplex.
It can be — we got duplexes together, and it could be a family with bringing, say, renting both sides of it, where the parents may be on one side and the new family would be in the other side. And you have great opportunities for them shared spaces and things like that. So that’s why we like, not only is that it’s a great opportunity for us, but the diversity of the product mix in our second phase of this thing gives us a ton of optionality in what we’re offering to the marketplace. It’s not a homogeneous customer for us.
