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Redwood Trust Invests In Flock Homes Rental Ownership Platform

Navi Persaud
Oct 07, 2021
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Redwood Trust Inc. announced its investment in Flock Homes, a rental ownership platform that converts owners into passive investors.

The Flock technology platform gives individual rental property owners the ability to exchange property, for shares in a professionally managed portfolio of homes without incurring taxable events.

Through the ownership of a portfolio managed by the tech platform, owners receive a steady income, diversify risk, and procure liquidity that differs from traditional ownership. The company uses the 721 Exchange to accomplish this, formalized by the Internal Revenue Code that was historically only utilized institutionally. It is reportedly the first company offering this solution to owners of individual rental properties.

“Ari and his team have developed a highly innovative business model that directly applies to a massive subset of the multi-trillion dollar single-family rental market — Flock has the potential to revolutionize the way rental properties are owned by small and mid-size landlords,” said Ryan McBride, chief investment officer of RWT Horizons.

“Our investment philosophies and industry views are aligned, and we're equally as passionate about transforming the rental ownership landscape,” said Ari Rubin, founder and CEO of Flock Homes. “Their investment is of meaningful strategic value to Flock's growth. Being able to leverage Redwood's BPL marketing infrastructure and vast network of relationships will help support and expand our future product development.”

Oct 07, 2021
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