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around. Driving and walking are the most common modes of transportation, but prospective buyers and renters are also increasingly considering public transportation.

In 2018, only 30% of buyers said a new home’s proximity to public transit was “very important” or “extremely important,” according to the 2023 Zillow Consumer Housing Trends Report. But in 2023, 43% said so — the largest increase of any neighborhood characteristic. 

Thirty-seven percent of renters said living near public transportation was “very important” or “extremely important,” the highest level in the past six years. While many people may want to be close to public transit for career purposes, the benefits may extend beyond work.

“Living near public transportation is more important to today’s buyers and renters than it’s been in at least the past several years. 

Still, it’s likely not the deciding factor for many movers — more say living in a walkable neighborhood, living near leisure amenities and living near family are important to them,” Zillow senior economist Nicole Bachaud told ConsumerAffairs.

“While the importance of living near public transportation has been on an upswing for homebuyers, the importance of commute times has stayed relatively steady. That could indicate buyers are interested in public transit for more than just their trips to the office and back.”

Knowing how you’ll get around your new hometown is vital before hiring moversto take you there. To help, the ConsumerAffairs Research Team investigated and ranked the nation’s 50 largest cities to see which have the best public transit systems. The analysis is based on 2022 data from the U.S. Department of Transportation’s National Transit Database, and it takes into account how useful, safe, affordable and efficient transit services are in the nation’s top cities.

Key insights

Bigger isn’t always better. While the country’s most populous metro area, New York City, had the highest-scoring transit system, second place went to the much smaller San Francisco metro area. 

Only three of the top 10 transit systems are in the nation’s top 10 most populous cities. Good transit spans the country.

Among large cities, the top 20 for transit include locations on the Atlantic and Pacific Coasts, the South, the Mountain West, the Midwest and along the Great Lakes.

Transit is safe. The average rate of major safety events across the 50 largest U.S. cities’ transit systems is 3 per 1 million miles traveled by transit vehicles.

Transit is affordable. The average transit trip in the nation’s largest cities costs $2.56 one way, even when accounting for varying prices by distance, peak hours and monthly passes.

Major advantages of public transit

Some advantages of public transit systems include their eco-friendliness, shorter commute times and connectability. 

Transit vehicles emit far fewer greenhouse gases per passenger mile than a regular car, and you don’t have to fight traffic yourself or pay for parking at your destination.

Transit lines also usually connect, making longer trips possible, such as weekend getaways.

Personal advantages abound, too. Riding on local public transit can allow you to see diverse neighborhoods and meet other people you share the city with. Relieved from driving, you can also rest, read or otherwise relax during the journey.

Artificial intelligence can also make public transit systems more efficient and save riders time by analyzing different routes and schedules to get you to your destination faster and without as much of a hassle.

A 2020 report from the International Association of Public Transport found AI offers the potential to adjust transit services in real time, responding to heavy traffic, heavy ridership and sudden emergencies. 

The report found that AI systems can also help users plan journeys that combine multiple stops and interconnecting services and adapt fares to meet specific goals for both revenue and equity. They can also save agencies money by optimizing fuel efficiency and maintenance services.

Since that report came out, the U.S. federal government has spent millions of dollars helping transit agencies around the country develop AI systems that aim to improve service, reliability and cost in transit systems. 

The starting point for many of the nation’s most populous cities is already quite good — but there is still much room for improvement everywhere.

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U.S. public transit systems, ranked

In this study, we examined a range of data points from the U.S. Department of Transportation’s National Transit Database and calculated a score for each city, with a maximum number of 100 points achievable. You can read the full methodology below.

Here’s how the cities stacked up:

1. New York, New York

• Annual public transit trips per metro area resident: 144.2
• Share of stations ADA-compliant: 51.4%
• Safety score (combining fatalities and serious injuries): 13.07 out of 20
• Average fare revenue per trip: $1.75

The nation’s most populous metro area is served by a large number of transit agencies, with trains and buses covering the five boroughs of New York City itself, as well as areas well into New Jersey, Connecticut and downstate New York. While the average fare revenue is higher than most, it’s still cheaper per trip than in Pittsburgh, Pennsylvania, and Buffalo, New York.

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2. San Francisco, California

• Annual public transit trips per metro area resident: 53.6
• Share of stations ADA-compliant: 97%
• Safety score (combining fatalities and serious injuries): 13.91 out of 20
• Average fare revenue per one-way trip: $1.63

With the third-worst commuter traffic in the nation, San Francisco residents might be desperate for other ways to get around. Fortunately, Bay Area Rapid Transit connects the city with its suburbs, and the Muni bus and train system – including the city’s famous cable cars – gets people around the city itself. There are also free shuttles to get people to and from public parks.

3. Los Angeles, California

• Annual public transit trips per metro area resident: 29
• Share of stations ADA-compliant: 100%
• Safety score (combining fatalities and serious injuries): 16.48 out of 20
• Average fare revenue per one-way trip: 49 cents

Los Angeles, well known as a sprawling car-oriented metropolis, has a transit system that doesn’t get as much use per capita as other cities’ services. However, it’s one of the safest and most affordable transit systems nationwide.

4. Richmond, Virginia

• Annual public transit trips per metro area resident: 8.5
• Share of stations ADA-compliant: 100%
• Safety score (combining fatalities and serious injuries): 18.27 out of 20
• Average fare revenue per one-way trip: 24 cents

With free local bus fares across the city, including high-speed buses with some dedicated lanes that provide service every 10 minutes on weekdays and every 15 minutes on weekends, Richmond’s public transit system is safer and more efficient than many other large cities’ services. Unfortunately, it is used less frequently than any other system mentioned in our top 10 list.

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5. San Diego, California

• Annual public transit trips per metro area resident: 21
• Share of stations ADA-compliant: 100%
• Safety score (combining fatalities and serious injuries): 14.74 out of 20
• Average fare revenue per one-way trip: $1.10
• A new safety initiative, expanded service and upcoming investments in new vehicles, including electric buses, are drawing riders to San Diego’s trolleys and buses, which serve the downtown area and the surrounding communities.
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• 6. San Antonio, Texas
• Annual public transit trips per metro area resident: 12.6
• Share of stations ADA-compliant: 100%
• Safety score (combining fatalities and serious injuries): 18.44 out of 20
• Average fare revenue per one-way trip: 58 cents
• San Antonio’s bus service spans the city and is set to expand in the coming years. The agency that runs it, VIA Metropolitan Transit, is also working to make its service schedules and maps more comprehensible to prospective users. The city is also considering new zoning rules that would make denser housing along high-capacity bus lines easier for developers to build.
• 7. Boston, Massachusetts
• Annual public transit trips per metro area resident: 47.5
• Share of stations ADA-compliant: 78%
• Safety score (combining fatalities and serious injuries): 14.57 out of 20
• Average fare revenue per one-way trip: $1.63
• In Boston, a city well known for confounding even local drivers with one-way streets and hairpin turns, it’s tempting to let someone else handle navigation. Even with a relatively expensive average fare and incomplete ADA compliance at stations, the city’s MBTA trains and buses are relied on more heavily than transit vehicles in other large cities.

8. Seattle, Washington

• Annual public transit trips per metro area resident: 36.7
• Share of stations ADA-compliant: 99.1%
• Safety score (combining fatalities and serious injuries): 14.52 out of 20
• Average fare revenue per one-way trip: $1.57

Seattle’s public transit system, which includes buses, trains, and ferries, links its suburbs, downtown area and nearby islands. In 2024, the city is asking voters to raise their taxes to pay for a 20-year transportation plan that includes pothole repair and expanded transit services.

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9. Washington, D.C.

• Annual public transit trips per metro area resident: 36.7
• Share of stations ADA-compliant: 100%
• Safety score (combining fatalities and serious injuries): 15.41 out of 20
• Average fare revenue per one-way trip: $1.29

The D.C. area’s roads are so famously congested that people joke there is no rush hour at all — except all the time. Fortunately, the Metro system encompasses trains, buses and subways run by city officials and state and local agencies in neighboring Maryland and Virginia.

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10. Salt Lake City, Utah

• Annual public transit trips per metro area resident: 26.7
• Share of stations ADA-compliant: 100%
• Safety score (combining fatalities and serious injuries): 11.83 out of 20
• Average fare revenue per one-way trip: $1.07

Bus and rail lines crisscross the city and the surrounding county. The city’s plans for transit expansion call for additional services by 2030 and are being used to tempt Olympic officials to consider it as a location for the 2034 Winter Games.

Why you should consider moving to a city with a good public transit system

When you’re looking for your next place to live — whether near where you already call home or somewhere farther afield — it’s worth noting how close transit services are and how well they’ll get you where you want to go.

According to Nicholas Julian, the senior program manager for land use at the National Association of Home Builders, builders and developers are noticing this interest. He observed that the move toward “transit-oriented development” has been decades in the making, with governments and private companies working to build housing along existing transit routes to reduce traffic and pollution.

 He noted that many cities are also rethinking minimum parking requirements to reflect residents’ desire to drive less and discourage additional cars from clogging the roads.

Although Julian works most directly with people involved in suburban development projects not designed explicitly around transit, he notes that “any type of access to public transit …  will be advertised” to prospective buyers or renters.

He pointed out that some developers are stepping forward to reduce driving while improving people’s ability to get the services and experiences they want. For example, Culdesac Tempe, in Arizona, is a development that actively discourages residents from owning cars while providing free transit, reduced ride-sharing costs and free e-bikes to at least some residents.

“If you can build a car-free community in Tempe, it’s probably possible just about anywhere,” Julian said. That may also mean you can live a car-free or car-light lifestyle in just about any other city, too.

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Methodology

The ConsumerAffairs Research Team conducted a comprehensive analysis of the public transit systems in the 50 most populous metropolitan areas across the United States and scored each on a point scale from zero to 100. To determine which cities had the best public transportation, we looked at the following metrics:

• Usefulness to riders: We defined how useful a transit system was to its city’s residents based on three factors:
  • First, we calculated how many independent passenger trips the population took in 2022 in relation to the metro area’s population. This information was based on the National Transit Database annual metrics for 2022. (25 possible points)
  • Second, we calculated how far passengers traveled in 2022 per resident in the metro area. (20 possible points)
  • Third, we looked at how easy the main public transit system was to access for people with physical disabilities. We used the 2022 National Transit Database information on transit stations to calculate the percentage of all ADA-compliant systems. (10 possible points)
• Safety: Based on the National Transit Database’s Safety & Security Major Event Time Series data for 2022, we calculated the number of major events, including collisions and derailments, per vehicle revenue mile in 2022. (10 possible points)
  • We also calculated the rate of fatalities and injuries in major events per 2022 vehicle revenue mile. (5 possible points each)
• Affordability: We looked at the fare revenue per unlinked passenger trip based on the National Transit Database annual metrics for 2022. We compared that with the median household income in 2022 for that metro area according to the U.S. Census Bureau’s American Community Survey. (15 possible points)
• Efficiency: We determined the average operating cost per passenger mile based on the National Transit Database annual metrics for 2022. (10 possible points)

CHICAGO – As National Homeownership Month comes to a close, the Illinois Housing Development Authority (IHDA) wants to remind individuals that free assistance is available to overcome the financial barriers to owning a home. IHDA currently offers up to $10,000 to help individuals, families, veterans, and others realize that the dream of homeownership is achievable and more than within reach.

“Every Illinoisan deserves the opportunity to become a homeowner regardless of their zip code,” said Governor JB Pritzker. “That’s why my administration is committed to helping prospective homeowners—especially those from historically disadvantaged communities—overcome the financial barriers of owning a home. Through IHDA’s Access Mortgage programs, Illinoisans who would otherwise not be able to afford a down payment or closing costs can apply for forgivable or deferred assistance loans.”

Launched in 2018, the IHDA Access Mortgage programs are open to both first-time and repeat homebuyers. Available statewide, each mortgage option comes with an affordable, fixed interest rate and up to $10,000 to assist eligible borrowers with their down payment and closing costs for the purchase of a new or existing home. The unique program offers three tiers of assistance depending on the needs of the homebuyer.

“Last year, one in every thirteen people who bought a home in Illinois utilized an IHDA program to help overcome down payment costs and other hurdles,” said IHDA Executive Director Kristin Faust. “Homeownership helps foster strong communities, create generational wealth, and provide family stability. Everyone in this state deserves the opportunity to buy a home for their families and IHDA is ready to help make that a reality.”

Eligibility for an IHDA mortgage is based on the borrower’s credit profile, household income, and the purchase price of the home. In addition, potential homebuyers are required to complete pre-purchase homeownership counseling to ensure they are making the best decision for them.

Roushaunda Williams, a resident of Chicago utilized IHDA Access Mortgage in 2023. “If I hadn’t received assistance from IHDA, this purchase would not have taken place for some time,” said Williams. “Everyone was very helpful throughout the purchase of the property. I am now a homeowner, and this dream may have been deferred if it wasn’t for IHDA.”

“The IHDA Access program gave me the opportunity to give my kids a better life,” shared Jose Alberto Gonzalez Ramirez of Crestwood. 

All IHDA Mortgage programs are offered through a vast network of more than 180 lenders throughout Illinois. Many of these loan officers have worked with IHDA for years and are experts in affordable mortgage financing. IHDA programs can be stacked with local assistance programs to add even more value to the homebuyer. If you are interested in buying a home with help from IHDA Mortgage, you can find a participating lender near you to discuss your options at www.ihdamortgage.org.

Additionally, for those still uncertain if owning a home is the right step, IHDA has partnered with the Federal Home Loan Bank of Chicago to administer the Community First® Housing Counseling Resource Program (HCRP) who can help answer those questions and determine if it is the right time for you. HCRP is a three-year program that provides grants to nearly two dozen HUD-approved housing counseling agencies in Illinois to expand service to minority and low- and moderate-income homebuyers. These agencies have already provided free counseling to more than 15,250 individuals and helped 1,955 households purchase a home in Illinois after receiving housing counseling services.

About the Illinois Housing Development Authority

IHDA is a self-supporting and mission-driven state agency dedicated to financing the creation and preservation of affordable housing in Illinois. IHDA offers affordable mortgages and down payment assistance for homebuyers, provides financing for the development of affordable rental housing, and manages a variety of assistance programs to create communities where all Illinoisans can live, work, and thrive. Since it was established in 1967, IHDA has delivered more than $27.8 billion in state, federal, and leveraged financing to make possible the purchase, development, or rehabilitation of more than 327,000 homes and apartments for low- and middle-income households. For more information on IHDA programs, visit www.ihda.org.

New YorkCNN — 

Help may not be on the way for first-time homebuyers frustrated by high mortgage rates and even higher home prices.

Economists at Bank of America warned this week that the US housing market is “stuck and we are not convinced it will become unstuck” until 2026 — or later.

The bank said home prices will stay high and go even higher. The housing shortage will persist. And mortgage rates may not fall much — even if the Federal Reserve finally delivers long-delayed interest rate cuts.

“This will take many years to work itself out. There isn’t a magic fix,” Michael Gapen, head of US economics at Bank of America, told CNN in a phone interview. “The message for first-time homebuyers is one of patience and frustration.”

Housing affordability is a major problem in America.

Home prices spiked during Covid-19 and then the Fed’s war on inflation sent mortgage rates surging.

The one-two punch has made it a historically unaffordable time to buy a home.

“It’s been a weird combination. Mortgage rates rose substantially but so did home prices. That typically doesn’t happen,” said Gapen.

The supply of homes simply cannot keep up with demand. Prices have had nowhere to go but up.

The median price of a previously owned US home climbed in May for the 11th month in a row to a record $419,300 — up 6% from a year earlier.

Bank of America expects home prices will climb by 4.5% this year and then by another 5% in 2025 before eventually dipping by 0.5% in 2026.

‘Lock-in effect’ could persist for eight years

One major problem hurting supply is the “lock-in effect.”

People who already own their home are effectively locked into their property after refinancing or getting a mortgage during the pandemic when ultra-low rates were available. Buying now at current rates would require them to pay hundreds of dollars more per month on interest alone. Plus, home prices have gone up.

For many, it just doesn’t make sense to move. And because those homeowners are not moving, the supply of existing homes on the market is limited.

“Why would I sell unless I have to?” said Gapen. “Prices have gone up and the mortgage rate is a lot higher. So, I’m content to stay where I am.”

Bank of America warns the lock-in effect could persist for another six to eight years, keeping a lid on supply during that time.

That’s because the mortgage rate of people who already own is historically low. And the rate for new buyers is elevated. Bank of America doesn’t think that gap will shrink much for years.

This problem helps explain why pending home sales fell in May to a record low, according to data released on Thursday. Pending sales, tracked by the National Association of Realtors since 2001, are a forward-looking gauge of home sales that measures contract signings.

‘They can’t take their mortgage rate with them’

Dave Liniger, who co-founded real estate giant RE/MAX with his wife in 1973, said the lock-in effect means people who want to size up to a bigger home can’t, and the next generation can’t even get their foot in the door for a starter property.

“The move-up market does not exist,” Liniger told CNN. “Starter homes have doubled in value and the owners would like to move up but the problem is they can’t take their mortgage rate with them.”

Liniger agrees that the housing market is stuck, for now at least.

“We have to muddle our way through this for a period of time,” he said.

But Liniger urged first-time homebuyers to remain patient. “Don’t give up the dream,” he said.

In theory, a flood of supply of new homes would help unstick the market.

However, Bank of America expects housing starts — which is a measure of newly constructed homes — to remain flat for the coming years. And housing starts have still not recovered from the bursting of the housing bubble in the mid-2000s.

Divide between haves and have-nots

The forecast for a “stuck” housing market cuts both ways.

The spike in home prices has padded the net worth of existing homeowners and given them additional financial flexibility.

The longer they are prevented from buying, the more time they miss out on wealth creation.

In a recent Gallup poll, just 21% of Americans said it is a good time to buy a house, tied for the worst reading in Gallup history. An overwhelming majority — 76% — say it’s a bad time to buy.

Gapen, the Bank of America economist, said if the US economy achieves the soft landing that he expects, meaning that inflation cools without triggering a recession, there is a risk that home prices will rise even more than anticipated.

On the other hand, if the durability of the recovery has been overestimated and a recession is on the way, home prices could tumble and affordability would ease.

“But, obviously, you don’t want to go through a recession to have better housing affordability,” he said.

TAMPA, Fla. – A recent report is unpacking the impacts of rising homeowners insurance costs in Florida. 

According to a new report from online realtor Redfin, nearly three-quarters (70.3%) of Florida homeowners say they or the area they live in have been affected by rising home insurance costs or changes in coverage (e.g., their insurer dropped them) in the past year. This compares with less than half (44.6%) of homeowners nationwide.

The report is based on a Redfin-commissioned survey in February of this year. The survey was fielded to 2,995 U.S. homeowners and renters.

“Insurance is top of mind for homeowners in Florida and California because those states are the epicenters of the insurance housing crisis,” Kenneth Applewhaite explained in an April 17 news release. 

Applewhaite elaborated that many homeowners have seen their premiums skyrocket, and some have lost coverage altogether because intensifying natural disaster risk has prompted many insurers to stop doing business in Florida and California. 

In the Sunshine State, 11 insurers have liquidated amid growing flood and storm risk,” he wrote. 

Mounting insurance costs and natural disasters are prompting some people to relocate. According to Redfin, in Florida, 11.9% of survey respondents who plan to move in the next year cited rising insurance costs as a reason — roughly twice the national share of 6.2%. 

But while some people are leaving disaster-prone areas, there are still more people moving in than out, a separate Redfin analysis found.

Homeowners living in areas where insurance premiums are surging are at risk of seeing their properties gain less value than homeowners in areas with stable premiums — and in some cases, they may even lose money,” said Redfin Chief Economist Daryl Fairweather. “Homes with low disaster risk and low insurance costs will likely become increasingly popular, and thus more valuable, as the dangers of climate change intensify.”

Condo prices in some parts of Florida have already started to fall amid an increase in insurance costs and HOA fees.

As a property developer or home builder, you know that time is money. While you can choose from many construction loan lenders, private or hard money lenders offer significant advantages over a traditional mortgage lender. Here are just some of the advantages of hard money loans:

• Loans close much faster than traditional mortgage loans.
• Programs range from home construction loans to condominium and multi-family construction loans.
• Terms are based on your experience and the project’s prospects for success.
• Loans come with interest-only payments and a balloon payment on completion.
• There are no prepayment penalties.

Interested? Read on…or contact us for details or book an appointment to learn more.

When financing construction projects, whether you are building or renovating, it is important to thoroughly understand your construction loan – its features, how you benefit, what’s required to qualify, and the application process. Financing a construction project is different than financing a home purchase with a standard mortgage loan. Your real estate investment in the lot, construction costs, and activities in each construction phase will affect your profit. Therefore,when choosing a lender for your construction loan, you must know your options and what considerations to weigh to help you select the right one.

At Muevo, we’re committed to educating borrowers about the financing alternatives available for their projects and helping them secure the right hard money loan to meet their unique needs. In this blog, we’ll review the ins and outs of construction loans – how they work, why they can be advantageous, what you’ll need to apply and be approved, and why you should consider a private lender like Us as your financing partner. We’ll also share some potential challenges and how to overcome them as well as several tips to ensure you successfully qualify for our construction loan program.

Understanding Construction Loans

Construction loans are used to finance the building of a range of property types. At Muevo, we offer them for the construction of:

• Condominiums
• Single-family residences
• Two-to-four units
• Multi-family homes
• Townhouses
• Other property types (on a case-by-case basis)

There are several distinct advantages of obtaining a construction loan for these particular projects. First, a construction loan provides the necessary funds to cover embedded costs including labor, materials, permits, and other related expenses. Securing such a large amount of capital upfront for a construction project would be challenging without financing.

Second, a construction loan ensures proper cash flow management via the draw process, which we’ll explain in greater detail later in this blog. Third, these loans make it possible to seize construction opportunities in high-demand areas – which yield higher returns once completed. You also stand to benefit from increased property value and rental income (if you are planning to rent once the project is completed). Finally, financing via a construction loan will help you build equity for your next project.

Qualifying for a Construction Loan

Once you’ve determined that a construction loan is the best way to get your project off the ground and ultimately completed, you must prepare to qualify with a lender.

Before all else, become familiar with the credit score and financial requirements necessary to be approved for the construction loan from your lender. And know that both your personal and business financials will be thoroughly reviewed. As such, your lender will require you to provide related documentation and paperwork for verification purposes. They will make an assessment of your financial situation by also weighing income and debt considerations.

Other important financial requirements to be aware of are the required down payment amount and your loan-to-value ratio. These also factor into whether you can qualify.

In addition, you will need to furnish information about your project and those involved in its construction, such as:

• Contractor credentials
• Property information and proof of lot/land ownership (title deeds, zoning info, property surveys, etc.)
• Insurance coverage
• Any legal contracts with the construction team, architect/engineers, or other parties involved

You may also be asked to provide even more documentation as the information a lender needs can vary by project. At Muevo, we use this property data to properly assess its value and ensure compliance with local regulations.

The Construction Loan Process

When applying and obtaining approval for a construction loan, the process is fairly straight forward.

1. Pre-application phase – Borrower investigates requirements, gathers necessary documentation
2. Loan application and approval – Application and documents are submitted, reviewed, and approved
3. Construction contract and plans review – Lender reviews all required property-related information
4. Loan disbursement and draw schedule determination – Funds are distributed in accordance with outlined draw schedule
5. Inspections and project monitoring – Lender conducts necessary inspections and continually monitors the progress of the project
6. Transition to permanent financing – Draw schedule concludes and regular payment schedule commences

Finding a Private Lender for Construction Loans

When it comes to construction loans, there are some district benefits in working with a private lender. Private lenders offer more flexible terms and loan amounts than traditional lenders.

Their loan application and funding process is much quicker too. Private lenders are also well versed in the local real estate markets in which they operate. In addition, once you have established a partnership with a private lender, there is the potential for additional financing opportunities once your project is successfully completed.

However, to select a private lender that is a good fit for your project, you must consider a number of factors:

• Reputation
• Experience
• Loan terms
• References
• Financial stability

Research and compare private lending companies in your area based on these factors to identify where you can most easily navigate the application and approval process. For example, loan terms can vary considerably. At Muevo, our standard new construction loan terms are as follows:

• Max Loan Amount: $10,000,000
• Max LTC/ARV (Loan to Cost / Loan to After Completed Value):
  – Experienced Investors: The Lesser of 82.5% LTC or 70% ARV.
  – Inexperienced Investors: The Lesser of 65% LTC or 55% ARV.
• Rate: Starting at 10.5%
• Term: 12-24 months
• Payments: Monthly Interest Payments with Balloon at Maturity
• Prepayment penalty: None

Managing Construction Loan Funds

One of the most important steps that must be taken to complete a construction project successfully is to create a detailed budget. This is where the draw process comes in. Rather than receiving a lump sum check, construction loans pay out the loan amount over the course of the project. The installments are called draws, as the lender draws funds from the account. A draw request is necessary to ensure disbursement of the funds.

Many lenders do prorated draws, typically 80% financing/20% equity ratios on every draw. Our loans start once the 20% has been completed. Should you have investors, it is important that they understand the draw process and the difference between money spent and job completed.

In the end, the draw process ensures the proper allocation and use of funds and allows for contingency planning in case there are any unexpected costs.

You have questions. We have answers.

Who are the best hard money lenders in Florida?

Are you looking for private or hard money lenders for your construction loans? Do your research! The best private lenders, whether in Florida or anywhere else, have proven track records that are easily accessible on your County Recorder of Deeds website. Don’t just take their word for it. Ask your lender to show recent transactions they have funded and provide a link to the recorded documents. Beware of companies that advertise as lenders but are just brokers, adding additional fees. As a builder or investor, take your time to research potential lenders and ensure they are legitimate before proceeding. Experience counts. Muevo has brokered over 3,000 loans totaling more than $300 million in the last 10 years. Our loan programs have financed thousands of projects with attractive construction loan rates, reasonable closing costs, and, most crucially, flexible loan terms and speed!

Will the bank or private lender let me be my own general contractor?

Yes, many home builders and contractors utilize construction loans to fund their own construction projects. You will be subject to the same requirements as those developing investment properties using a third-party general contractor. Acting as your own general contractor should not affect your hard money loan as long as you have experience and a history of successfully repaying your construction loans.

Tips for a Successful Construction Loan Experience

Inherent to the construction process are several potential challenges that can impact your financing. These include construction delays and cost overruns, changes in market conditions and interest rates, and unexpected construction issues all of which require contingency plans. To that end, there are several things you can do proactively to mitigate these risks.

First and foremost, be sure you are engaging with professionals, such as seasoned architects and experienced contractors. And do all you can to communicate clearly and constantly with your lender and construction team. Closely monitor the progress of your project and resolve any issues that arise as promptly as possible. Finally, stay organized. One of the best ways you can do that is by maintaining accurate, up-to-date documentation throughout the course of your construction project.

Now that you have a good understanding of how construction loans work, how to qualify, how you benefit, how to select a private lender and how to ensure a smooth experience, you can confidently move forward and secure the financing you need for your construction project. Take the next steps in obtaining a new construction loan with RBI! Click here for more information.

For professionals seeking quick and flexible financing solutions, hard money lenders are an invaluable source of opportunity in the real estate industry. While these lenders offer a lifeline for those looking to seize lucrative opportunities, navigating the terrain requires caution. In this article, we’ll shed light on common mistakes professionals make when borrowing from hard money lenders and provide valuable insights to steer clear of these pitfalls.

Mistake 1: Underestimating the True Cost

One prevalent mistake is underestimating the true cost of borrowing. Hard money loans often come with higher interest rates and fees compared to traditional financing options. Professionals must meticulously analyze the total cost of the loan, including interest rates, origination fees, and any other associated charges. By doing so, borrowers can make informed decisions about whether the investment remains profitable in the long run.

Tip: Always request a clear breakdown of all costs associated with the loan and carefully assess how they align with your overall financial strategy.

Mistake 2: Ignoring the Terms and Conditions

Another common pitfall is neglecting the fine print in the loan agreement. Hard money lenders may impose strict terms and conditions, such as short repayment periods and high penalties for default. Professionals must thoroughly review the terms, seeking clarification on any ambiguities. Ignoring these details can lead to financial stress and potential legal complications.

Mistake 3: Overleveraging Without a Cushion

One critical oversight is overleveraging without a financial cushion. Some borrowers make the mistake of borrowing the maximum amount without considering unexpected expenses or market fluctuations. This can lead to financial strain and increase the risk of default.

Tip: Build a financial cushion into your borrowing strategy, considering potential unforeseen expenses, market uncertainties, and other risk factors.

Mistake 4: Failing to Have an Exit Strategy

A crucial oversight is neglecting to establish a clear exit strategy. Hard money loans are typically short-term, and professionals need a well-thought-out plan for repayment. Without a viable exit strategy, borrowers may find themselves scrambling to secure alternative financing or facing unfavorable terms for an extension.

Tip: Develop a comprehensive exit strategy before obtaining the loan, considering potential challenges and outlining specific milestones for repayment.

Conclusion

Borrowing from hard money lenders can be a strategic move for professionals in real estate and investment. However, avoiding common mistakes is essential to ensure a positive and profitable experience. By thoroughly understanding the costs, scrutinizing the terms, being cautious about overleveraging, and having a well-defined exit strategy, professionals can navigate the terrain of hard money lending with confidence and success.

ROCKFORD, Ill. – The nation’s top housing market in 2024 might come as a surprise to some: Rockford, Illinois.

According to the Wall Street Journal and Realtor.com’s Housing Market Ranking, Rockford has secured the coveted No. 1 spot.

The city’s ascent to the top ranking is attributed to its abundance of affordable housing options and its burgeoning industries in healthcare, aerospace, and logistics. Additionally, its central location, within reasonable distance of major urban centers like Chicago, Milwaukee, and Madison, adds to its allure. A forthcoming direct train line from Rockford to Chicago is expected to further enhance its accessibility.

Rockford’s remarkable growth has led to a surge in median home prices, with the average home listing in March reaching $235,000—an increase of nearly 52% compared to the previous year, as reported by the Wall Street Journal. In contrast, the national median listing price stands at $424,900.

Moreover, Rockford stands out favorably against other Midwestern cities due to its lower susceptibility to natural disasters, offering a potential reprieve for homebuyers increasingly concerned about high insurance costs associated with wildfires, floods, and hurricanes.

Social life in Rockford revolves around the scenic Rock River, dividing the city between east and west and serving as the focal point for a vibrant arts and culture scene. The city also boasts an impressive 7,000 acres of parkland and public gardens.

In terms of job opportunities, Rockford’s manufacturing sector alone employs over 20,000 individuals, underscoring its robust business environment.

The top 10 housing markets in 2024, as per the Wall Street Journal and Realtor.com rankings, include:

1. Rockford, Illinois
2. Canton-Massillon, Ohio
3. Ann Arbor, Michigan
4. Akron, Ohio
5. Springfield, Missouri
6. Fort Wayne, Indiana
7. Manchester-Nashua, New Hampshire
8. Columbus, Ohio
9. Kingsport-Bristol-Bristol, Tenn.-Va.
10. Portland-South Portland, Maine

The rankings take into account various economic and lifestyle factors, including housing supply, housing demand, property taxes, unemployment rates, and proximity to retail and restaurant establishments. Additionally, they consider the risk of extreme weather events such as heatwaves, windstorms, poor air quality, floods, and wildfires over the next three decades.

For the full list and report, click HERE.

Distress reared its head in Texas last year, and foreclosures are skyrocketing.

In March, commercial foreclosures in the state increased by 129 percent year-over-year and 31 percent from the previous month, Bisnow reported, citing property data company Attom Data Solutions. California, New York and Florida were the only states with more foreclosures last month.

Commercial foreclosures in Texas totaled 55 last month, following 42 in February and 56 in January. Nationwide, there were 625 in March, up 117 percent year-over-year and 6 percent month-over-month. 

There’s been a gradual uptick in commercial foreclosures since spring 2020, when pandemic-related moratoriums and financial aid safeguarded property owners. But with these measures now largely unavailable, landlords are facing a harsh reality.

Foreclosures and other signs of distress have been especially apparent in the office sector, which continues to get hammered by the remote-work movement that’s driving up vacancies and available sublease space to historic highs. Foreclosures are on the rise across all asset classes, though. 

 Office vacancies in Texas’ major metros were among the highest in the nation to start the year, according to the report. Notable foreclosure cases this year involve the iconic Oil & Gas Building in downtown Fort Worth, the Scanlan Building in downtown Houston and the office building at 211 North Ervay Street in downtown Dallas.

Multifamily foreclosures have been most evident in Houston and San Antonio markets, with syndicators Applesway Investment Group and GVA being on the wrong side of numerous cases. 

Top Five Reasons to Invest in Texas

Diverse and Desirable Locations

Texas is a treasure trove of diverse locations that attract both tourists and residents. From its stunning coastline to its rich cultural experiences and natural parks, Texas offers a wide range of options for investment in vacation rentals. Moreover, with the state experiencing significant population growth, it presents an excellent opportunity for long-term rental and fix and flip investments. When considering investment locations, it’s crucial to evaluate what makes an area attractive and sustainable in terms of tourism, job opportunities, and overall desirability.

Thriving Economy and Job Market

Texas consistently ranks high in terms of economic growth, boasting a strong employment and income forecast for the foreseeable future. The state is home to a plethora of major companies, including over 100 of the largest public and private companies in the U.S. These factors contribute to a stable and appreciating real estate market. It’s worth keeping a close eye on established businesses and new enterprises moving into the area, as they indicate sustained residential demand and potential investment opportunities.

Continuous Population Growth

Population growth is a crucial factor for real estate investors as it signifies a robust demand for housing. As the second most populated state in the U.S., Texas projects continued growth in the future. By analyzing population growth data at the city or county level, investors can identify areas with the highest potential for investment and capitalize on the growing demand for housing.

Robust Rental Market and Attractive Rental Rates

Texas offers a thriving rental market with a wide range of rental rates across different locations, counties, and neighborhoods. Conducting thorough research on rental rates specific to your target area is crucial for maximizing profitability. Data from Zillow shows a significant 5.8% increase in the median rent in Texas over the past year, with rental rates projected to continue rising according to the Dallas Fed report. 

Supportive Legal and Regulatory Environment

Texas provides a landlord-friendly legal and regulatory environment, offering protections for property owners and favorable landlord-tenant laws. This ensures that investors have the necessary legal framework and support to manage their properties efficiently and protect their investment interests.

Investing in the real estate market in Texas offers a vast amount of exciting opportunities, particularly in select cities that shine as prime options. When considering real estate investment in Texas, it’s essential to take into account various factors that contribute to the overall appeal and potential profitability of each city. In this section, we will delve into some of the top cities in Texas for real estate investment.

In the dynamic landscape of real estate investment, the build-to-rent (BTR) sector is emerging as a robust and resilient opportunity for investors. The BTR boom is fueled by a shifting demographic landscape, changing work patterns, and evolving housing preferences. As we look ahead to 2024, the opportunities in BTR real estate are poised for continued growth and adaptation to the demands of the market.

Meeting the Changing Needs of Home Seekers

The surge in BTR housing demand can be attributed to a diverse range of demographics, including young families, remote workers, and empty nesters. These groups seek the benefits of homeownership but face barriers in the traditional real estate market. With high occupancy rates and steady rent growth, the BTR sector is an increasingly attractive investment avenue.

Blending Work and Home Life

With homes serving as workplaces, there is an increasing demand for multifamily communities that offer spare bedrooms and shared workspaces. BTR properties can capitalize on this trend by providing spaces and amenities that seamlessly blend work and home life. Communities located farther from major job centers may experience growing demand as renters prioritize flexible work arrangements over daily commutes.

The build-to-rent sector presents lucrative opportunities for real estate investors in 2024 and beyond. By staying attuned to market trends, focusing on property versatility, and embracing the changing needs of renters, investors can position themselves for success in this evolving landscape. As the real estate market continues to transform, BTR stands out as a resilient and forward-looking investment choice.

Versatility in Exit Strategies

One of the key advantages of investing in BTR properties is the flexibility in exit options. Investors can choose between renting or selling to individual home buyers, depending on market conditions and investment goals. This exit optionality provides a strategic advantage and enhances the overall resilience of BTR investments.

Remote Work’s Impact on Housing Preferences

The remote work trend, prompted and accelerated by the pandemic, continues to influence housing preferences. Hybrid work arrangements are becoming more prevalent, with 28 percent of all workdays still being conducted from home. This shift creates new opportunities for BTR operators to cater to the needs of high-earning and highly mobile renters.

Rental as a Practical Housing Option

As paths to homeownership become increasingly elusive for many Americans, renting is gaining traction as a more practical housing option. Even those who can afford to buy may find that renting aligns better with their financial goals. This shift in mindset is likely to continue, bolstering the demand for well-designed and amenity-rich BTR communities.

Navigating Affordability Challenges

Affordability remains a significant challenge in the real estate market, affecting both potential buyers and long-term renters. High home prices and spiking mortgage rates have kept many families in the rental market. BTR properties become an attractive option for those seeking a single-family home lifestyle, but are unable to afford a home in the current market, fostering continued rental demand.