Overview

Flock Homes helps landlords exit property management while keeping income. It purchases rental properties from individual owners and converts them into shares in a diversified real estate fund using the 721 Exchange, a tax-deferral strategy. The fund is managed by Flock and generates income from rents and property appreciation, distributed to shareholders quarterly. The company earns through property management fees and gains from the fund’s appreciation, aided by economies of scale from operating a large portfolio. Flock Homes differentiates itself by offering a tax-deferral exit option centered on the 721 Exchange, a specialized, scalable solution that reduces owners’ hassles and diversifies their investments. The goal is to provide a hassle-free way for landlords to retire or lower tax burdens while continuing to receive steady income.

Significant Headcount Growth

Simplify's Take

What believers are saying

• Multifamily expansion into secondary markets reduces concentration risk and improves yields.
• Partnership ecosystem with insurtech creates cross-selling opportunities and customer stickiness.
• $10M revenue with 400% growth approaching positive unit economics at scale.

What critics are saying

• Rising interest rates compress cap rates and increase acquisition borrowing costs.
• Roofstock launches competing 721 platform undercutting Flock on fees and speed.
• IRS audits 721 funds for Section 721(b) diversification violations, triggering tax liabilities.

What makes Flock Homes unique

• First-mover democratizing 721 exchanges for individual landlords with regulatory moat.
• Integrated platform combining tax deferral, property management, and passive income.
• Institutional backing from Andreessen Horowitz and Redwood Trust validates model.

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Funding

Total Funding

$46M

Meets

Industry Average

Funded Over

2 Rounds

Notable Investors:

Andreessen HorowitzBoxGroup

Notable Investors:

Andreessen HorowitzBoxGroup

$20,000,000

Series B

May 2025

Series B funding is typically for startups that have proven their business model and need more funding to expand rapidly—often by entering new markets or adding more products. Investors are usually venture capital firms that specialize in later-stage investments.

Series B Funding Comparison

Below Average

Industry standards

Ind Avg. $35M

$4M

$20M

$30M

$45M

$65M

$100M

View all funding stages