Obie has partnered with proptech company Flock, better enabling investors to purchase fractional shares of real estate by simplifying the insurance process. This new partnership enables Flock to obtain insurance for their high volume of properties through Obie, meaning a more efficient process and the most competitive rates for coverage.
Why has Obie teamed up with Flock?
In teaming up with Flock, Obie is bringing insurance as it should be to a team also improving the real estate investment experience.Through integration with the Flock transaction management process, Obie will increase the ease of Flock’s seamless exchange of homes into shares of ownership, while easily managing their high volume of properties. This means less lift and waiting on paperwork for the Flock team, resulting in a more efficient process for Flock investors.
“With companies like Flock bringing new advancements to proptech, investors have more options than ever in crafting their investment strategy and level of involvement in managing the properties in their portfolio. It’s for that reason Obie is excited to partner with Flock and enable their team to even more efficiently bring solutions and increased agility to investors.” —Aaron Letzeiser Obie, Co-Founder
Who is Flock?
Flock is an up-and-coming proptech company who is enabling landlords to retire from the day-to-day responsibility of managing a building, while still reaping the benefits of being a real estate investor. The company is the first of its kind, bringing the mechanism for the 721 Exchange direct to individual owners. With Flock you are able to exchange your current rental property for shares of a portfolio of homes, all managed for you. Through this seamless exchange Flock prevents depreciation recapture and capital gains taxes, meaning you gain ease, at no cost to you, while also benefiting femur efficiencies at scale.
Most recently, Flock has gained momentum in the news for securing $26 million in Series A funding, led by Andreessen Horowitz (a16z). Financing also included other big names, such as 1Sharpe Ventures, which is led by Gregor Waston, Co-Founder and Chairman of Rooftstock.
How Does Flock Work?
Flock makes the transition from landlord to property investor seamless. Simply share your property details and have an offer within 24 hours. In two weeks or less post-offer, Flock will seamlessly exchange your title and remaining mortgage into shares for you to invest in their portfolio of properties. As far as management, Flock will take care of everything, with properties also operating under an LLC to keep you protected. You’ll then have access to an owner portal, enabling you to view quarterly income and other important information. When you are ready to liquidate your assets, Flock enables you to redeem shares at once, over time, or even pass them on to heirs. This allows you to spread out your tax bill over time, or even time your redemptions with lower tax brackets by utilizing the 721 Exchange.
What is the 721 Exchange?
The 721 Exchange is a tax code that allows for the exchange of property into shares of a Real Estate Investment Trust (REIT). This allows investors to avoid traditional taxes and transaction fees associated with the sale of a property while maintaining income, appreciation, and depreciation through completely passive ownership.
Partner with Obie
Obie is providing leaders in the proptech space a solution to aid in providing a more efficient process and seamless customer experience as they scale. Contact our Partnerships Team by clicking here and learn more about how partnering with Obie can add value to your platform.
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