Flock, a retirement solution for landlords, announced a $20 million Series B round, led by Renegade Partners, with participation from existing investors Andreessen Horowitz (a16z), Primary Ventures, Susa Ventures, 1Sharpe Ventures, and others.
Flock is scaling at a notable time for real estate investors, as more landlords seek tax-efficient exits. Estimates indicate that $6 trillion to $8 trillion or more in equity is trapped in long-held, low-basis real estate owned by non-institutional landlords who lack clear, cost-efficient exit strategies.
Plus, interest rates and shifting demographics are reshaping the market; insurance premiums are skyrocketing, and owners with low mortgage rates are reluctant to sell. And this lock-in effect is occurring simultaneously as the Great Wealth Transfer is expected to pass more than $84 trillion in real estate assets from baby boomers to younger generations over the next 20 years, accelerating the need for tax-efficient exits and simplified solutions for real estate portfolios.
Flock offers real estate owners with an exit without compromise. And the company manages over 860 homes across 17 states nationwide, nearing $200 million in total real estate value. With today’s announcement, the Flock platform now offers dedicated funds across key real estate sectors:
— Flock Homes: Single-family rentals
— Flock Multifamily: Multifamily buildings with 5-200 units
— Flock Manufactured Housing: Mobile home communities with 5-500 units
— Flock Storage, Small Bay Industrial, Retail, and more: Coming soon; join the waitlist
Flock utilizes the 721 Exchange, which is a powerful wealth preservation mechanism historically reserved for ultra-high net worth investors, to enable everyday landlords to exchange their properties for shares in Flock’s diversified and professionally managed fund without triggering capital gains taxes. This solution helps preserve cash flow and price appreciation while avoiding the headaches of direct, day-to-day management.
Flock’s platform offers landlords a tax-efficient transition from active to passive ownership and it also seeks out stronger returns. And the company employs a data-driven approach to optimizing rental income, utilizing scale and technology to outperform typical landlords in terms of economic vacancy, loss to lease, and credit loss. Plus, Flock properties consistently generate higher total rental income compared to traditional landlords, while offering investors the diversification and stability of institutional management.
Flock’s platform offers landlords a tax-efficient transition from active to passive ownership and it also seeks out stronger returns. And the company employs a data-driven approach to optimizing rental income, utilizing scale and technology to outperform typical landlords in terms of economic vacancy, loss to lease, and credit loss. Plus, Flock properties consistently generate higher total rental income compared to traditional landlords, while offering investors the diversification and stability of institutional management.
Flock’s long-term vision is to offer all landlords with the most cost-efficient and seamless exit through a single platform that spans multiple asset classes. And by enabling property owners to step away from day-to-day management while driving stronger performance from their assets, Flock is positioned to create lasting value for owners, residents, and investors.
What the funding will be used for: The funding will support Flock’s expansion into new real estate asset classes, starting with multifamily and manufactured housing, following early success in single-family rentals.
KEY QUOTES:
“Real estate has been a way to build wealth for many Americans, but at a certain point, it becomes a burden. When we founded Flock four years ago, we embarked on an ambitious mission – to help millions of American landlords unlock equity and transition from headaches to hands-off investing. With strong momentum in single-family, we’re bringing this model to multifamily and manufactured housing owners, and eventually to every landlord ready to retire, seeking the most cost-efficient and seamless exit. We’re building a platform that meets property owners where they are – and where they want to go next.”
Ari Rubin, Founder and CEO of Flock
“We believe Flock is building a category-defining company at the intersection of real estate, technology, and wealth management. Flock is modernizing how real estate wealth is unlocked and managed by transforming complex, burdensome assets into passive, tax-efficient investments accessible to everyday landlords. As demographic and market pressures accelerate, Flock is uniquely positioned to lead this new era of wealth preservation and freedom for property owners.”
Renata Quintini, Co-Founder and Managing Director of Renegade Partners
