This company enables rental property owners to exit active landlord duties by exchanging their real estate for shares in a professionally managed, diversified real estate Fund. The 721 Exchange platform allows owners to defer capital gains taxes while retaining exposure to real estate appreciation and unlocking passive income. This process transitions property owners from active management responsibilities to a passive investment structure within an established tax code framework.
Funding
$33.6M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
Founders
Product
Problem
Many individual landlords find managing rental properties time-consuming and burdensome, while also facing significant tax implications when selling. Traditional property sales can trigger substantial capital gains and depreciation recapture taxes, diminishing investment returns.
Solution
Flock Homes offers a solution for landlords seeking to transition out of active property management by enabling them to exchange their rental properties for shares in a diversified real estate fund through a tax-deferred 721 exchange. This allows landlords to defer capital gains taxes, eliminate the responsibilities of property management, and receive steady income from a professionally managed portfolio of single-family and 2-4 unit multifamily rental properties. Investors gain access to potential appreciation and cash flow without the day-to-day hassles of being a landlord. The fund targets long-term leases and value-add home improvements to optimize returns.
Target Audience
The primary target audience is individual landlords looking to retire from active property management, minimize tax liabilities, and maintain real estate equity in a passive investment vehicle.
Features
- Tax-deferred 721 exchange of individual rental properties for equity in a diversified real estate fund
- Elimination of landlord responsibilities, including property maintenance, tenant management, and administrative tasks
- Quarterly income distribution derived from the fund's rental income
- Access to a professionally managed portfolio of single-family and 2-4 unit multifamily rental properties
- Online investor portal for tracking earnings and portfolio activity
- Standby servicing agreement with Roofstock to ensure continuity of fund management