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Finalist – Entrepreneur of 2024: Flock Homes

Ari Rubin, co-founder and CEO, Flock Homes, Denver

ColoradoBiz Staff //July 5, 2024//

Finalist – Entrepreneur of 2024: Flock Homes

Ari Rubin, co-founder and CEO, Flock Homes, Denver

ColoradoBiz Staff //July 5, 2024//

Ari Rubin

Before starting Flock Homes in 2020, Rubin, 34, managed a portfolio for Denver-based Ibex Investors. “I really took a lot of pride in managing money on behalf of other people, but I thought that the vast majority of hedge funds and investment managers are, frankly, just pitching another investment product for folks,” he says. “I wanted to build an investment management business that was differentiated, that was built on the premise of solving a problem.”

It was a problem he knew from his parents’ experience as landlords in Chicago. “They’ve owned real estate for a really long time, and they don’t want to be landlords anymore, but they don’t want to sell it,” Rubin explains. “And the reason they don’t want to sell real estate is because they take a huge tax hit.”

Flock Homes allows clients to swap their rental properties, tax-free, for ownership in a residential real estate fund by way of a 721 exchange. Flock manages the properties, and owners can still access the cash they generate.

“The idea for starting Flock was this idea of joining folks together to own their real estate in a better way, which was leveraging the benefits of scale,” Rubin says. “The way we’re going to do that was through this 721 exchange. It’s been part of the tax code forever, but it has never been really accessible to a mom-and-pop owner.”

Until now, that is: Flock Homes is bringing the power of the 721 exchange to the masses. “There are 17 million Americans who own rental property,” Rubin says. “We have some clients who only own one or two homes, and we have others who own hundreds of homes.”

Now with about 25 employees, Flock Homes launched in 2021 with four homes in its portfolio and eclipsed 500 in 2023. “We’re hoping to hit 750 homes by the end of the year,” Rubin says.

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