Portfolio

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Here’s a collection of our frequently asked questions. Questions not answered? Call us today.

A Flock Home in
Denver, CO
We are currently active in Colorado, Kansas, Missouri, North Carolina, Texas, Washington, Arizona, Georgia, Florida, Tennessee, Louisiana, and Mississippi. We're selective with contributions to the fund, only taking houses that add value to all Flock Owners. Submit your property information and we'll let you know if your house is currently a good fit!
Depending on how long you've owned your property, selling could lead to the loss of nearly 1/3 of your value to taxes, fees, and lost months' rental income. Joining Flock allows you to avoid the taxes and hassles associated with a traditional sale.
As long as you own your asset, there's always something to worry about. While some property managers offer great service, there is no substitute for being the actual owner of the property. Flock holds title to the houses in the portfolio and operates like a long-term owner; we're incentivized to generate the best returns for our owners, deliver our residents the best experience, and act in a way that is consistent with the long-term interests of the community and environment.
Rental property owners who own single-family rentals (including duplexes, triplexes, and fourplexes) and qualify as Accredited Investors can contribute to Flock. Contact us directly to learn more.
No, you'll own shares in a Partnership which owns every house in the Flock portfolio. You'll no longer be tied to the performance of your individual asset or be responsible for any maintenance costs or tenant needs for the individual house.
Yes. You can contribute a tenanted property to Flock. We will honor the lease until it expires, and work with the tenant (or tenants) on renewal.
Joining Flock is similar to selling your house and buying shares of a REIT. One major difference is that when you join Flock, you avoid the tax consequences of a sale. Instead of buying shares with after-tax proceeds, you'll preserve value through a tax-deferred exchange for shares in a diversified, managed portfolio of houses.
Flock goes a step beyond property management. When you exchange your rental with us, our fund assumes its ownership, meaning we are fully responsible for its taxes, insurance, maintenance, and leasing. Your real estate investment becomes truly passive.

In contrast, property managers handle the day-to-day operation of your property, but any major expense, liability, or legal action like an eviction is ultimately your responsibility.
Flock will pay off your existing mortgage with your lender at the time of closing.
Income is calculated based on the appreciation of all the houses and the rental income of the portfolio. As an owner with Flock, your shares will appreciate in value generally based on the appreciation of the portfolio, and your cash distributions will be based on the rental income collected (less operating expenses like insurance, property tax, maintenance reserves, etc.). For owners who contribute lower risk, historically greater appreciating assets, the cash flow from Flock typically exceeds what they were receiving prior. For owners who contribute higher risk, historically less appreciating assets, the cash flow from Flock is typically less than what they were receiving prior. Submit your property for an offer or contact us directly to find out more.
Flock distributes the portfolio's net operating cash flow after accounting for factors such as expenses, debt service, management fees, and capital expenditures on a quarterly basis. Flock Owners can elect to receive distributions or have distributions reinvested. Flock targets a 3% annual cash distribution yield (net of management fees).
Most owners come to Flock with a long-term vision to continue to receive income and ultimately pass their shares on to their heirs for a step-up in basis. Shares can also be redeemed for cash, either all at once or spread out over a number of years to potentially reduce tax liability. Just like a traditional sale, redeeming your shares for cash is a taxable event.
Yes, if your contributed property had an unclaimed depreciation balance, you will continue to receive depreciation.
Flock's houses are valued on a quarterly basis using leading third-party appraisals, broker's price opinions, and automated valuation models (AVMs). Flock never profits from the valuation of a house. We'll never negotiate valuations–we created a system that is fair for everyone.
After an initial 3-year holding period and with 180 days' prior written notice, you may redeem your Flock Shares, either in part or in full, for taxable cash.
The sale of any shares will be treated like the sale of any property, meaning regular capital gains and depreciation recapture taxes apply. One of the benefits to joining Flock is the ability to spread out tax liabilities across years, which could result in lower costs over time.
Flock is excited to be a long-term owner of every property that joins the portfolio. That being said, our fiduciary duty is to generate the best returns for the portfolio, and we will strategically cull the portfolio if an attractive opportunity presents itself.
Your Flock stake is treated much the same as a typical rental property – your heirs will receive a step-up in basis upon inheritance. The flexibility afforded by owning shares in a portfolio of assets rather than one illiquid property makes Flock an attractive estate planning instrument. However, we recommend that you consult with your personal tax advisor and/or attorney to understand your own unique situation.
No. Once a property has been exchanged for partnership interest in Flock, the proceeds from its sale cannot be applied to another like-kind exchange.
Founded in 2020, Flock is a real estate technology company that helps owners seamlessly exit from their investment properties.

With Flock you can exchange your rental for shares in a managed portfolio of homes without triggering capital gains or depreciation recapture taxes. Flock takes care of all expenses and responsibilities, while you continue to participate in income and appreciation as a passive investor.
Flock Owners make money from the income and the appreciation of our portfolio properties.

For income, we collect rent from these rental homes, then pay for all associated expenses, including property taxes, insurance, and maintenance. We also assess a 1% asset management fee. The net income is paid out to our owners in the form of a cash distribution. This is directly deposited into their bank accounts each quarter.

For appreciation, we revalue each asset in the portfolio on a quarterly basis. The portfolio's aggregate value determines our owners' share price.
Flock has created the first direct-to-consumer, tech-enabled platform to allow anyone who owns investment property to take advantage of a tax-deferred exchange. Section 721 of the Internal Revenue Code provides that no gain or loss is recognized when property is contributed into a partnership in exchange for interest, or ownership, in the partnership. In other words, Flock enables owners like you to exchange your rental property for shares inour portfoliowithout triggering a taxable event.
You will receive shares in the Flock Homes Operating Partnership, which owns aportfolio of professionally managed rental properties.
Flock charges a one-time onboarding fee, which is typically less than the cost of a traditional sale. Flock also charges an annual 1% asset management fee.
Flock offers risk diversification, both from a geographic and tenant perspective. While it is impossible to predict how your Flock stake would fare compared to a traditional rental property, owning many rental properties instead of one eliminates the risk of a prolonged vacancy. This is an attractive feature to most owners.
Flock has raised more than $30 million in venture capital to date from Andreessen Horowitz along with other leading investors and partners with industry experts across legal, fund administration, and tax services. That being said, if the company goes bankrupt or shuts down, the portfolio of houses will be orderly sold and the cash will simply be distributed to existing owners. Flock was intentionally built to protect the portfolio in dire scenarios, and has incentive structures in place that mitigate excessive risk taking.
You can see our most recent Quarterly Report here.

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Disclaimer: All content presented here is purely informational. It is not personalized investment advice, nor should it be construed as financial, legal, or tax advice. It is intended for information gathering only. The information presented here is not an offer to buy or sell securities or a solicitation of any offer to buy or sell securities. "Shares" are in reference to partnership units. A professional financial advisor, attorney, and/or tax professional should be consulted regarding your specific financial, legal, and/or tax situation.
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