HAPPY HOLIDAYS!

The first thing which I noticed when we arrived at our timeshare in Kauai this December, was a Holiday symbol — an inflatable snowman decoration in front of the office. This year, three holidays which all represent light, are celebrated at the same time. On December 25^th, Christmas and coincidentally (because Jewish holidays follow the lunar calendar) the beginning of the Jewish weeklong holiday, Hanukkah, as well as the celebration of the African and African-American holiday, Kwanzaa, which also lasts for a week.

Each holiday follows certain traditions. And of course, for blended families, there are multiple celebrations. When I was growing up in Riga, the capital of Latvia, in the then Soviet Union, we didn’t celebrate Christmas; but instead, we celebrated New Years with similar decorations as on Christmas, known as Jesus’ birthday. Interestingly, December 25^th is not his birthdate. It is not the date when the Jewish preacher Yeshua, whose name was translated into Greek as Iesous, was born. During my vacation in Kauai, I was reading “Thou Art That: Transforming Religious Metaphor.” by Joseph Campbell.

According to Joseph Campbell, “The Christmas date was placed on December twenty-fifth, which was solstice time, in order to compete with the Lord of Light, Mithra. No one really knows when Christ was born. It is settled on December twenty-fifth for mythological, not historical reasons.”

Regardless of the reason and whose holiday it is, let’s celebrate and have a good time. In spite of the 80° F weather, the snowman is not going to melt in Kauai, where I encountered other various holiday decorations as well.

Enjoy and Share!

LOAN HAS THE LIMIT

According to the National Association of Realtors, as of 2023, two government owned agencies, Fannie Mae and Freddie Mac, were responsible for 70 percent of the mortgage market. Both have very specific underwriting guidance but are slightly different.

Loans are purchased from banks and mortgage lenders. Many of these organizations are getting their business from mortgage brokers, like our company. Every year these entities together with FHA and VA set new loan limits. Usually, new loans are funded after January 1^st.

Follow this link to look at some conforming loan limits in 2024 vs 2025. Just for the sake of comparison, in 1983, when I became a mortgage broker, the confirming limit was $108,300. Two years later, in 1985, when we started Pacific Bay Financial Corporation, it went up to $115,300. Things do change. You should also keep in mind that loan limits might vary in different US states and counties.

To learn more about confirming loans, call me at my cell number below.

I promise to help!

Manny Kagan,
President,
Pacific Bay Financial Corporation

Cell: (415) 225-7920
Email: [email protected]

NMLS #205637
DRE #00874630

HONEY, WHERE IS OUR MONEY?

Recently, the New York Times and other sources reported that over the fifteen weeks of her Presidential Campaign, Kamala Harris spent $1.5 billion and now her campaign owes about additional $20 million, and her staffers were not paid.

I am writing about this because she is not alone in spending more than she had. When I look into our company’s balance sheet, I see that we owe some money to one of the banks. Perhaps, there are less zeros, but the issue is the same – how to pay it back? I had to borrow some funds from the bank and some more from my own retirement account to keep our company going and keep paying salaries to our employees with the hope that interest rates will come down bringing more clients and commissions to Pacific Bay Financial Corporation – the company I have been running since 1985.

Unfortunately, this is not only Ms. Harris’s and my problem. Lately, many of my clients have come to me because they needed to get second loans, lines of credit or to refinance their low-interest rate loans to pay off accumulated debts. One of the clients, who has a $1.3 million mortgage at 3%, is now getting a new $2.5 million loan to pay off all of his debts.

As we come closer to the holiday season, and retailers get excited with the anticipation of improved cash flow, please, please be mindful of your spending. At the same time, if you are looking for a great, unique present, please order one of my books on Amazon or call me at (415) 225-7920 for your personalized copy.

Meanwhile, take a look at the three pictures above, which I took to illustrate my latest books.

Enjoy and Share!

Every week, I share with you one or a few specific programs presented by lender companies during our weekly staff meetings held on Zoom. Last week, we met with Foundation Mortgage Corporation.

This Wednesday, for a change,  I decided to share with you a discussion we had with our agents about different programs as part of Foundation Mortgage’s presentation.

Click this link to watch a  nine-minute cut of our conversation. Perhaps, this will help you understand how we assist our clients.

Manny Kagan,
President,
Pacific Bay Financial Corporation

Cell: (415) 225-7920
Email: [email protected]

NMLS #205637
DRE #00874630

DO YOU WANT TO RETIRE?

I decided to write about retirement because of an article I had read in The Wall Street Journal, titled “The Best Things About Retirement”, written by Demetria Gallegos. The story was based on reviews from readers on what they liked most about their retirement. At the top of the list was “The freedom to do what they want”. And this brings me to the idea that we are not supposed to retire from, but rather going into the retirement.

On January 13, I am going to be seventy-eight, which by some standards, is long past retirement age. Nevertheless, I do not plan to retire. Though the thought creeps in my mind. Perhaps, in two years I might change the way I run my life, i.e. to plan what kind of life I would like to live my next forty years. In my case, it means – how many people I can still assist.

For many people, retirement is finally the start of living for themselves without worrying about others. However, studies indicate that some people do not live a long time after their retirement; perhaps, because they do not have a compelling reason to be around. At the same time, we need to realize (regardless of our age) that sooner or later, our bodies need to slow down, simply due to wear and tear.

For example, one of my hips was replaced, and both of my knees might need surgical intervention. Instead of succumbing to my physical limitations, I started a routine of daily stretches. To keep my body healthy, I eat healthfully, in small portions, and as a result, my body is ten pounds lighter. And I do not wait for my retirement to write, photograph and publish new books. The latest one, “42 Encounters with Illumination” (which can be a great holiday gift), is available at the above clickable link.

The three images you can see above illustrate my encounters with various retired couples.

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HOW IS YOUR CREDIT?

The other day, I came across an article in “The Wall Street Journal” of November 30 – December, 2024 titled “Know the Score on Fair Isaac”. The article pointed out that “Fair Isaac’s shares have been among the top performers in the S&P 500 over a decade, returning in excess of 40% annualized. Quite impressive. And all of this starts with a simple question,  «Do you know how is your credit?». This is one of the first questions we ask potential borrowers.

Credit scores are a critical part of decision making. They affect loan-to-value (LTV), as well as the interest rate, and even the ability to qualify for the mortgage. Nevertheless, in most cases we find solutions. When one of the partners had bad credit, we used the other to qualify for the mortgage; however, both of them were on the title. In another case we found a lender, who was able to lend to a couple by issuing a loan to the wife apart from her husband, who had a low credit score, but had income. Yet in another situation, the client decided to delay running her credit report until she paid down her credit card debts.

Every case requires a different solution. To find what it is, we need to order our own credit report, which is acceptable to the lenders and costs about 70 dollars, since the reports offered for free do not report scores. The credit report shows three sources, and the lenders use the middle number, regardless of the source. Please contact me by phone or email for free evaluation before you decide to get a mortgage.

I promise to help!

Manny Kagan,
President,
Pacific Bay Financial Corporation

Cell: (415) 225-7920
Email: [email protected]

NMLS #205637
DRE #00874630

 

WHY IS FRIDAY CALLED BLACK?

For years I was thinking that Black Friday was related to the brisk sales that stores offered after Thanksgiving Day, since that is always on a Thursday. I read in a story that in the older times when ledgers were filled by pencil, red indicated a loss of income and black revealed profit. This made perfect sense. But then, browsing online, I have found some other explanations associated with historic facts.

For the first time the term Black Friday was used in financial context on September 24, 1869, when the price of gold plummeted causing stock market panic resulting in significant economic disruption. Sixty years later, on Tuesday of October 29, 1929, yet another “black” weekday occurred –  on that day the collapse of the market ignited a major economic downturn known as the Great Depression. Additionally, there is a Black Friday in July, which refers to major mid-year sales, also known as Amazon Prime Day.

But, according to numerous historical records, the name “Black Friday” actually came to prominence because of logistical nightmares caused by the annual Army vs. Navy football games in Philadelphia during the 1960’s. The game took place every year the day after Thanksgiving, and cab drivers, police, and drivers bemoaned the massive influx of people into the Philadelphia infrastructure and referred to the day as “Black Friday.” Storeowners, on the contrary, considered it one of their most profitable days of the year.

I was surprised to have read about that. The lesson for me – never say that you have the answer, regardless of the question.

The three images I am posting for you today, were taken on a Black Friday in San Francisco.

Enjoy and Share!

DEAR FRIENDS,
ESTEEMED CLIENTS AND PARTNERS! 

In this season of gratitude, I am wishing you a great holiday filled with appreciation, love and laughter. 

May your Thanksgiving be full of happy moments, good food, and great company.

Thank you all for the years of support and confidence in our business! 

Enjoy this wonderful holiday and share your joy with your nearest and dearest!

TRADITION

In the musical “Fiddler on the Roof”, the opening number is the well-known song “Tradition”, sung by Tevye the milkman. Many things, which surround our lives, are based on traditions. When I checked online what was served at the First Thanksgiving in 1621, I learned that though there were turkeys around, pilgrims, who came from England, more likely had more familiar foul, like ducks, geese and even swans, which were plentiful in the region. They were welcomed by the local Native American Wampanoag tribe, who likely shared the food they ate with the newcomers.

For meat, it was deer, as well as sea food, such as bass, cod and shellfish, like fresh clams and mussels. Of course, there was corn, beans, squash, oats, herbs, nuts and fruits. And there were definitely no potatoes, nor cranberry sauce or pumpkin pies.

Then, where from did the tradition of eating turkey come from? Turned out that it was George Washington who encouraged Americans to celebrate the holiday, and Alexander Hamilton said, “No person should abstain from having turkey on Thanksgiving Day.” This was on October 3^rd, 1789. There are also reasons for how cranberry sauce and pumpkin pie joined the Thanksgiving tradition, which you can explore on your own.

Meanwhile, I am going to share with you another Thanksgiving tradition. A husband noticed that his wife was cutting the ends of the holiday turkey. When he asked her about it, she referred him to her mom, who, in turn, sent him to her grandmother. “Why were you cutting both sides of the turkey?” he asked. “Well, this started many years ago. I had only one pot and it was too small for the turkey. So, I had to cut both ends of it to fit.”

What are your traditions?

The three images you that can see above are related to the holiday.

Enjoy and Share!

COMMERCIAL LOANS
MADE EASY

Many of you are familiar with the residential lending through the process of getting your own mortgages.

Though mortgage business evolved through the years, the basic premises, i.e. underwriting guidance, which I outlined in my book “The Mortgage 5 C’s and How to Connect Them”, remained the same.

But, as we all know, we are surrounded by commercial buildings. And there are completely different rules how to finance them; and different lenders who are the players in another “mortgage game”.

If for the residential loans we check a few lenders to find who can offer a better rate, in the commercial arena the question is who gets/gives the money to a borrower.

Our strong suit is in knowing the banks and players, and we know exactly how to package the file.

The attached flyer highlights a number of property types that we can help you get financing for.

With any questions, please call:  (415) 225-7920.

I promise to help!

Manny Kagan,
President,
Pacific Bay Financial Corporation

NMLS #205637
DRE #00824602