Flock Homes

For decades, the tax code has treated a 721 exchange differently from a sale, and for good reason. An owner who contributes a rental home to a partnership doesn't cash out or walk away. They keep an ownership stake. The home stays a rental, residents stay in place, and no family loses a chance to buy. For a long time, only large institutional investors used this tool. Today, it's helping mom-and-pop owners retire on their own terms, protecting the savings they spent a lifetime building. As policymakers work to address America's housing challenges, the 721 exchange should be part of the solution, not caught in the crossfire.

Five years ago, the Flock Homes partnership started with four homes. Today we've partnered with hundreds of families across the country and are approaching 2,000 homes. Most of our partners own one to three rentals they've held for years. They're ready to retire from being rental property operators, but they don't want to sell. A sale would force a large tax bill, displace residents and pull them out of an investment they've spent decades building. The 721 exchange gives them another option. It lets them exchange their homes for shares in our partnership, so they keep their upside while we take on the management. Institutional investors have used this tool for decades. We built Flock Homes so everyday owners could use it too. Protecting the 721 exchange means protecting their retirement, their residents and the homes themselves.

For too many Americans, selling a house is too expensive. As a result, there’s over 7.2 million homes being kept off the market and away from eager buyers, exacerbating the nation’s lack of affordable and quality housing. Flock Homes gives these owners a better way forward, helping them protect their life’s savings and put their properties to their highest and best use.

Millions of Americans have put their retirement savings in rental properties. Not a 401(k) or an IRA, and not a pension plan. But as they look to wind down from being landlords, they face a real challenge: selling means losing a large portion of their hard-earned equity. For most, that just isn’t an option. That’s why at Flock Homes, we’ve built a different path that lets mom-and-pop landlords protect their savings without losing their nest egg, while also bolstering the nation’s supply of affordable and quality housing.

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