The Houston Rockets and the Toronto Raptors have been talking about point guard Kyle Lowry for quite some time, initially revolving around Toronto’s eighth pick in last week’s NBA draft. When the Raptors got the sense that they might be able to land Steve Nash in free agency they decided to keep the pick and hold off on a trade for Lowry.

The news that Steve Nash was traded to the Los Angeles Lakers put the Raptors back in the market for an upgrade at point guard, and it didn’t take long for them to resume talks with Houston, where the Rockets were looking to shed contract dollars.

According to multiple reports, the Rockets have done just that, sending Lowry to the Raptors in a deal that returns a lottery-protected first round pick, and Gary Forbes is also said to be part of the package coming over from the Raptors.

Meanwhile, the Rockets are working on two more deals, one being an offer sheet for New York Knicks restricted free agent Jeremy Lin and the other being a five-year, $32 million offer for Courtney Lee. The Rockets rescinded their qualifying offer and will now seemingly be forced to renounce their rights to Lee in order to get under the salary cap by the $16.1 million they will need to enable the Omer Asik offer sheet as well as the Jeremy Lin offer sheet, said to be worth 8.36 million and 7.75 million average over three years, respectively.

The Rockets currently have a cap hold of $6.6 million on Lee that only comes off the books if Houston renounces his rights.

Of course, there’s no guarantee that Lee will wait around to accept Houston’s offer, and if they renounce his rights and he gets a better offer elsewhere the Rockets have no control over the situation. That’s a risk the Rockets are willing to take as they continue what has been  an active summer, to say the least.

Update: HOOPSWORLD’s Alex Kennedy reports that the Rockets have reached out to Aaron Brooks’ camp and will be meeting with them this weekend. The Rockets have missed out on several of their free agent options, and while Brooks was not to keen on Houston when they traded him to Phoenix, time and money seem to have changed his feelings. Perhaps a little time In China also helped change his perspective.