Reality Impact Group

Build-To-Rent Real Estate

December 24, 20242 min read

Business Plan

Reality Impact Group is a real estate investment firm specializing in acquiring, developing, and stabilizing Build-To-Rent (BTR) properties across prime Southeast US markets. By sourcing shovel-ready, off-market lots, Reality Impact Group creates value through land acquisition, entitlement, construction, and sales. The Build-To-Rent sector addresses a growing housing supply gap and caters to increasing demand for single-family rentals. Reality Impact Group’s scalable strategy enables swift project execution and consistent investor returns.

Competitive Advantage

Reality Impact Group has exclusive access to 2,000 entitled, shovel-ready lots in high-growth Southeast markets. Few competitors can match this scale and immediacy, providing Reality Impact Group a significant advantage in an increasingly competitive sector. The leadership team’s track record of developing over 10,000 homes demonstrates proven experience in executing large-scale projects efficiently. With rising land costs and scarcity, Reality Impact Group’s off-market pipeline positions it to capitalize on surging rental housing demand.

Traction

Reality Impact Group is actively managing the development of 2,000 residential lots across the Southeast. The team has a history of delivering projects on time and within budget, ensuring consistent returns for investors. Their expertise in identifying and developing high-potential projects reflects strong operational performance and reliable execution.

Why Now

The Southeast US is experiencing historic population growth and migration trends, driving strong demand for rental housing. Rising mortgage rates and home prices have made renting an increasingly attractive option for many families. This demand is amplified by limited new housing supply, creating a favorable environment for Build-To-Rent investments. Reality Impact Group’s current pipeline offers investors a rare opportunity to participate in this growth phase.

Why Here

The Southeast US, including Florida, Georgia, and the Carolinas, remains the nation’s fastest-growing region. Atlanta alone added over 50,000 new residents in 2023, reflecting strong migration and economic opportunities. These trends, combined with limited housing supply, drive significant demand for new rental communities. Reality Impact Group’s ability to secure prime lots in these markets enables it to deliver projects aligned with regional needs.

Team

  • Jim Thomas: Founder with decades of experience in land acquisition, development, and Build-To-Rent projects.

  • Leadership Team: Proven success in developing over 10,000 homes and managing 2,000+ active residential lots.

  • Expertise: Specialized skills in entitlement, permitting, financial strategy, and construction management.

  • Operational Excellence: Strong industry relationships and a history of successful project execution.

Deal Terms

  • Preferred Equity: $25,000,000 - 20%+ Levered IRR

  • Common Equity: $5,000,000 - 20%+ Levered IRR

  • Short-Term Debt: $5,000,000 - 12%/year plus 2 points (12-24 months)

  • Long-Term Debt: $65,000,000 - 10%/year plus 2 points (5-10 years)

  • Use of Funds:

    • 15% Land Costs

    • 12% Horizontal Construction Costs

    • 58% Vertical Construction Costs

    • 2% Amenity Construction Costs

    • 13% Soft Costs

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