Exit Your Real Estate. Keep Your Wealth.
Flock Homes is a tax-deferred exit platform for real estate: exchange your rental property for shares in a diversified fund and defer capital gains and depreciation recapture taxes.
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Being a Landlord Costs More Than You Think
From late rent and midnight repairs to surprise tax bills, being a landlord eats into both your wealth and your time.
Flock Homes offers a better way to retire from active rental property ownership without giving up real estate returns.
How a 721 Exchange Works in Four Steps
Get Your Valuation
Get a clear, data-driven assessment of your property’s market value and see if it’s a fit for Flock's managed Fund.
Mutual Due Diligence
We confirm details with a property inspection while you dive into our portfolio and reference us. Our team streamlines everything so the process feels effortless.
Your Path to Tax-Efficient Real Estate Ownership
Exchange & Grow
Exchange your property for shares in Flock's managed Fund—defer taxes, start earning passive income, keep long-term appreciation potential.
Preserve Your Wealth
Pass Fund shares to heirs with built-in tax advantages and lasting security.
Our Carefully Constructed Portfolio
Our portfolio is carefully curated by Flock’s Investment Committee. We focus on quality over quantity, selecting properties that protect wealth and deliver lasting value.
The 721 Exchange: Real Estate's Best Kept Secret
With a 721 Exchange, you can trade your rental property for shares in a diversified real estate Fund—deferring taxes, keeping your equity working, and saying goodbye to the headaches of being a landlord. It’s a long-established provision of the U.S. tax code (Section 721), used by institutional investors for decades, now available to individual property owners.
A 721 Exchange lets you exchange ownership of physical rental property for shares in a professionally managed real estate Fund, similar to swapping one stock for shares in a diversified mutual Fund. You keep your full equity, defer capital gains taxes, and step away from direct property management.
By using a 721 Exchange, you defer the tax hit from selling outright, while gaining instant diversification across a nationwide pool of professionally managed properties. Instead of late rent checks and repair calls, you enjoy steady quarterly income and long-term growth—without the stress of being a landlord.
Unlike other tax-deferred exit strategies, such as a 1031 Exchange or Delaware Statutory Trust (DST), there are no strict timelines or "like-kind" property rules, nor rigid structures and finite investment periods.
The process is simple: get your property valued, complete a quick due diligence review, exchange into Flock’s Fund, and start earning. We handle the inspection, legal work, tax details, and ongoing management—so you move seamlessly from active landlord to passive investor.
FAQ
Founded in 2020, Flock Homes is a real estate company and Fund operator empowering landlords to exit from their rental properties through the 721 exchange.
Through Flock Homes, real estate investors can use the 721 exchange to exchange their single-family, duplex, triplex, or fourplex rental properties for ownership in Flock's Fund without triggering capital gains taxes. While in Flock's Fund, investors benefit from continued access to steady cash flow and residential real estate appreciation, without any responsibilities of managing rental properties.
721 exchange refers to Section 721 of the US Internal Revenue Code, the same tax code that stipulates the commonly utilized Section 1031 (also known as the 1031 exchange). Section 721 was established in 1954 and has been used for decades by institutional investors to minimize taxes on real estate. Flock Homes has pioneered a platform that empowers individual landlords to access the same benefits of the 721 exchange. See our 721 exchange page for more details.
No. Once you join Flock, title of your homes is transferred over to the Fund and you now own equity in Flock’s diversified Fund. As a result, you retain all of the benefits of real estate ownership, including access to cash flow and appreciation potential. However, you do not hold liability for managing any singular home.
Flock’s Fund accepts single-family, duplex, triplex, and fourplex rental homes. All rental homes that join Flock’s Fund must meet our financial return requirements. Homes with lower mortgage balances (generally, less than 50% of the home’s value) are more likely to be accepted into the Fund. To see if yours qualifies, click here to submit valuation for an evaluation and our team will connect with you to discuss your valuation.
With your ownership in Flock’s fund, you have the ability to access cash flow from the rental income collected from the Fund's portfolio of homes, and you continue benefitting from potential real estate appreciation based on the price performance of the homes in Flock's fund. You also transition into a fully passive approach to real estate investing, which has given Flock clients back countless hours of time and invaluable peace of mind. All operations of the homes in Flock’s fund, including leasing, repairs, and even HOA payments are fully managed by our team of professionals.
The 721 exchange allows you to defer substantial capital gains and depreciation recapture taxes you might otherwise trigger in a traditional sale of property. Following the minimum hold period, you can also access greater cash flow quarterly and better control your tax liability by liquidating Flock equity over time. Finally, Flock equity also benefits from a step-up in tax basis upon inheritance, which can provide your heirs significant tax savings when they choose to liquidate their equity. We recommend you consult with your tax advisor, attorney, and/or the IRS website to understand how Flock can complement your personalized tax planning.