Subscribe to Entrepreneur for $5
Subscribe

Redwood Trust (RWT) Invests in Rental Ownership Platform Flock

Redwood Trust (RWT) invests in a real estate technology start-up, Flock, in order to bank on disruptive real estate technology for its target audience.

By
This story originally appeared on Zacks

In a bid to align its positive long-term view on disruptive real estate technology, Redwood Trust, Inc. RWT recently announced an investment in Flock Homes, a real estate technology start-up, which enhances rental ownership experience for individuals. The optimization will be done via Flock integrated platform that smoothly and tax-efficiently turns owners into passive investors.

- Zacks

The investment was successfully made through Redwood's RWT Horizons venture arm.

Through Flock’s technology-induced platform, individual rental property owners will be able to exchange property for shares in a professionally-managed portfolio of homes, without incurring any taxable events. By owning the portfolio handled by Flock, owners will be able to obtain a steady income, diversify risks as well as muster liquidity without inconveniences surrounding the conventional ownership of properties. Flock utilizes the 721 Exchange, formalized by the Internal Revenue Code, and is the first company offering this solution to the owners of individual rental properties.

Ryan McBride, chief investment officer of RWT Horizons, remarked that Flock “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.  We are impressed at Flock's initial success in the greater Denver market and look forward to their expansion into other markets across the U.S. in 2022."

Ari Rubin, founder and CEO of Flock said, "We're thrilled to partner with Redwood. Our investment philosophies and industry views are aligned, and we're equally as passionate about transforming the rental ownership landscape. 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. Redwood's deep expertise is a tailwind to our platform's development and greater mission — to create more value and better experiences for owners, renters, and communities alike."

Shares of this Zacks Rank #1 (Strong Buy) company have gained 26.2% in the past six months, as against 0.3% decline recorded by the industry.

Zacks Investment ResearchImage Source: Zacks Investment Research

Stocks to Consider

Great Ajax Corp. AJX recorded 11% upward earnings estimate revision for the current year in the past 60 days. Its shares have appreciated 22% so far this year. It currently flaunts a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

ACRES Commercial Realty Corp. ACR has witnessed substantial upward earnings estimate revision for the ongoing year in the past 60 days. Its shares have appreciated 0.7% so far this year. It currently carries a Zacks Rank of 2 (Buy).

Blackstone Mortgage Trust, Inc.’s BXMT earnings estimate revision for current quarter remained unchanged over the past 60 days. Its shares have remained flat so far this year. At present, it carries a Zacks Rank of 2.



Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>



Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

 

Redwood Trust, Inc. (RWT): Free Stock Analysis Report

 

Blackstone Mortgage Trust, Inc. (BXMT): Free Stock Analysis Report

 

Great Ajax Corp. (AJX): Free Stock Analysis Report

 

ACRES Commercial Realty Corp. (ACR): Free Stock Analysis Report

 

To read this article on Zacks.com click here.

 

Zacks Investment Research