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See how simple it is to exchange your property through Flock’s 721 Exchange platform—from initial consultation to fund ownership. Understand each step, what to expect, and how we handle the details for you.
Exit Your Real Estate. Keep Your Wealth.
Tax-efficient, hassle free, and built for growth—the way your wealth should work.
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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 offers a better way to retire from active rental property ownership without giving up real estate returns.
From Landlord to Investor 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.
Simple Due Diligence
We confirm details with a home inspection and share financial references. 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.
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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.
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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 an IRS-approved strategy 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.
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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.
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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.
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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 quadplex 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.
Many real estate investors utilize the 1031 exchange to sell their home for proceeds, and use those proceeds, tax-deferred, to purchase other investment real estate. With Flock Homes, investors can use the 721 exchange to seamlessly exchange their homes, tax-deferred, for direct ownership in Flock's managed real estate Fund. With a 1031 exchange, investors commonly continue to be active investors and operators of real estate properties. With Flock, the 721 exchange enables investors to take a long-term, passive approach to real estate investing.
[NEEDS REVIEW] A DST is typically a 1031 replacement solution tied to a specific asset, strict timelines, and limited flexibility. It often concentrates risk in a single property and follows a defined sponsor exit timeline. A 721 exchange allows clients to contribute property into a diversified, professionally managed fund without 1031 identification pressure. Instead of solving a transaction deadline, it provides a long-term portfolio transition — moving clients from active landlord exposure into institutional management with broader diversification.
For advisors, it’s generally a more strategic planning tool rather than a transaction-driven solution.
[NEEDS REVIEW] A direct sale triggers capital gains and depreciation recapture, reducing investable capital. A 721 exchange defers those taxes while preserving full equity inside real estate. Clients maintain exposure to income-producing assets while transitioning from active management to passive ownership.
For advisors focused on tax efficiency, concentration management, and long-term compounding, the 721 structure often provides a more capital-efficient outcome than a taxable exit.
[NEEDS REVIEW] Clients typically receive a Schedule K-1 and participate in partnership-level allocations, similar to other private real estate funds. The initial contribution is generally non-taxable, allowing advisors to reposition concentrated real estate exposure without triggering immediate gain recognition.
[NEEDS REVIEW] Section 721 of the Internal Revenue Code has long permitted the tax-deferred contribution of property to a partnership in exchange for partnership interests. It has been part of federal tax law for decades and is the statutory foundation behind UPREIT structures used by public REITs and institutional real estate platforms since the 1990s.
For financial advisors, this is not a novel or untested strategy — it is a well-established provision of the tax code that has been widely used in institutional real estate roll-ups and recapitalizations for many years. Practically, that means 721 can serve as a powerful unlock: it allows you to reposition highly appreciated, concentrated real estate without triggering immediate capital gains, creating flexibility for portfolio construction, risk management, and long-term planning — all within an established and time-tested legal framework.
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