Question-and-Answer Session
Operator
(Operator Instructions) Your first question is coming from Ivy Zelman with Zelman and Associates. Please go ahead.
Ivy Zelman - Zelman and Associates
Hey, good afternoon guys.
Phil Creek
Hey Ivy.
Ivy Zelman - Zelman and Associates
Nice to be back on your conference call. I wanted to understand the outlook a little bit if you could help us, the cash flow for the quarter generating $11 million in cash was below our expectations but I'm relatively bullish on the opportunity to generate cash flow in the fourth quarter and one of the things that would help me gain confidence if you could walk us through.
I think Phil, you tried to, sort of how much money is already put in the ground, that's already been developed and even homes that have been partially built and those homes that have already been completed, but obviously reduce the need for future cash going in the ground.
And if you can kind of give us some idea of what your portfolio looks like, that would significantly change the delta in cash going in the development that had been a drain this year and why it would significantly hopefully go down in 08 allowing you to generate a lot more cash.
Phil Creek
Of course we are not getting into any type of cash projections for 08 at this stage. As far as what's happening to us in 07, most of our??
Ivy Zelman - Zelman and Associates
I realize you can't get into projections but am I right in my thought process if I understand that a lot of the money has already gone in the ground and you don't have a lot more to continue to expend on new ground?
Phil Creek
Yes, exactly, we talked about how little land we are buying this year versus last year. We are also being very careful in bringing anything out of raw into development. What's happened to us a little bit is we have been spending some money this year moving land from land under development to finished lots, Ivy, also, in the fourth quarter we should be closing more homes, also the spec homes have been progressing through the pipeline. We are closing more and more specs, which shows my percentage is also.
So we did not generate a whole lot of cash in the third quarter even though, we did not buy that much land. But that was really more in the backlog being built out further, also moving specs through the process and finishing a few lots.
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