Has anyone here heard of Flock Homes?

I got some advertisement from them and they are 721 Fund. Trade your rentals for shares in the fund, avoid some taxes, get out of the rental management business.

I saw that they have two fees both of which seem unappetizing on the surface. "A one time onboarding fee of 6%, based on the valuation of your exchanged properties" and "annual management fee of 1% based on the value of your equity"

They have a website if anyone is curious

flockhomes dot com

I can say that at this point I'd be willing to give up control of my rentals for limited partnership shares even with the tax deferred benefits. Maybe I just am not good at math.

Ad says they have 92% or so occupancy and 60% NOI.

what was the NOI? It should be a dollar amount.

I have never bought into a REIT before. I would prefer to use a DST well over a REIT. I don't like DSTs either as the returns are between 3.8-5.8% and you are not in control of when you have to exchange in the future.

When I looked over this fund one thing I saw is that they basically just put themselves in the deal as one more middleman. They use local property management companies to manage the properties. So our operating costs would be higher. Also, their returns to us look to be under about 8 percent unless, perhaps, the place is paid off.

I notice an uptick in solutions for tired landlords, like REITs. 721s. More property management folks hanging out their shingles.

But we all know the actual business of landlording itself is not a passive business so SOMEONE has to do the dirty work and get paid for it. So I am sure that the further you are from the dirty work, the lower your return.

I haven't heard of that company but it is a known strategy. I would say to explore your options through a better known DST company.

Generally the process is that you exchange into a DST and then down the line that DST turns into an REIT in which you have shares. Usually the plan to convert into an REIT is disclosed in the investor information guide.

I think many of us would like an easier way when it is time to slow down. I'm hoping one day I can just exchange in an REIT directly.