Flock Homes raises $26 million

Real estate startup Flock Homes announced a $26 million Series A round led by Andreessen Horowitz, with participation from 1Sharpe Ventures, Human Capital, Susa Ventures, Primary Venture Partners, and BoxGroup.

Started in 2020 and launched in 2021, the Colorado-based startup is giving individual landlords the opportunity to enjoy some of the benefits of institutional real estate owners. Flock Homes is leveraging the 721 Exchange (aka UPREIT), which allows individuals to exchange their properties for shares in a professionally-managed portfolio of homes. The process begins by a landlord submitting their property for valuation and if the terms are accepted, Flock buys the property from the landlord who then gets shares in a partnership which owns a bunch of homes.

Flock makes money by acting as an asset manager of the fund and charging management fees, which is 1%.

Flock has 110 homes in its portfolio across Denver, Austin,Texas and Kansas City and it plans to launch in more states throughout the year.