THE BENEFITS OF
TENANCY-IN-COMMON FINANCING

Tenancy in Common (TIC) financing has become popular over the years because it can offer buyers opportunities that are sometimes difficult to find with traditional condominiums.

One of the main advantages is price. In many cases, a TIC unit can be purchased for $100,000 or more below the price of a comparable condominium. In some situations, if the building is later converted into condominiums, individual units may sell for significantly higher values.

Another benefit is that many TIC properties are located in older buildings with unique architecture, charm, and desirable locations that newer condominium developments may not offer.

When clients ask me about purchasing a TIC unit, I never discourage them. However, I always recommend comparing it with condominiums as well, because financing for TIC properties is different.

TIC mortgages are usually offered by specialty lenders who provide what is called a fractional loan, meaning the loan is secured by your specific unit rather than the entire building. Because of this structure, loan terms can differ from traditional mortgages.

For example, in one of the banks, their program typically requires around 25% down payment with interest rate which depends partly on the borrower’s banking relationship and deposits with the institution.

One of our lenders offers financing up to 85% loan-to-value, allowing buyers to purchase with as little as 15% down, although the interest rate may be higher. With 20% down, terms are usually more favorable, and loan amounts may go up to $2.5 million. There is no need to keep the money in this particular bank.

 

If the client doesn’t have sufficient income to qualify for the loan mortgage, some of these programs also offer flexible qualification options, including:

• bank statement income
• profit and loss statements
• asset depletion programs

These alternatives can be very helpful for buyers who do not fit traditional income documentation guidelines.

If you are considering purchasing a property under a Tenancy in Common (TIC) structure or simply want to explore your options, feel free to contact me. I would be happy to help guide you toward the best financing strategy. Meanwhile, click this link to view my weekly YouTube video. 

Warm regards,

Manny Kagan,
President,
Pacific Bay Financial Corporation
Your professional mortgage broker since 1983

 

WHAT DOES IT TAKE
TO WRITE A BOOK?

Many people tell me, “I have a book in my head.” They share their life stories, their experiences, their wisdom. I always encourage them to write it. But an important question follows: Who is going to read it? Are we writing for ourselves, or for others?

For me, writing is self-expression. I feel like there is an artist and a writer living inside me. Some of my books are pure text; others combine words and photographs. Every book begins the same way — with an idea. Once the idea develops, it must go on paper. If it’s fiction, you create an outline and build the story step by step.

My daughter writes fiction. She spent long time working on her first novel and has now completed her second. Her approach is different from mine — from the beginning, she thinks about publishing, agents, and reaching a broad audience. That path requires persistence, connections, and patience. It’s competitive.

My approach is simpler. I write for the people I know — my friends, clients, and community. I created my own small publishing company, Encounters Publishing. My “team” is small: a graphic designer, an editor, my daughters, and my wife — my final reviewers who give me the green light.

Because of this structure, I can create freely. I’ve published three books related to the mortgage business. I’ve also produced seven photo-story books, each on a different subject. For me, creating a book is a joy. It feels like giving birth to an idea.

I just finished my latest book, “How to Enjoy a Comfortable Aging. 42 Manifestations.” It’s almost ready to be introduced to the world. The three images that you can see above, are from my new book.

If you have a book inside you and don’t know where to start, I’d be happy to share ideas and guide you.

Stay in touch.

THE RIGHT WAY TO RIGHT-SIZE

Last Sunday, I was in Oakland, visiting a property at 3990 Fairway Avenue, located not far from the beautiful Sequoyah Country Club golf course. It is a lovely, quiet neighborhood.

The home I am talking about has two bedrooms, a nice living room, and – most importantly – a wonderful covered outdoor deck, perfect for relaxing or entertaining. It’s a charming property, and there is also space on the lot with potential to build an ADU (Accessory Dwelling Unit).

I was there because the property has been recently listed by Fernando  Acosta and Gerard Guarriello. They asked me to prepare a flyer explaining how this home could potentially be purchased with only 5% down. Yes, it is possible. With a realistic interest rate and an income of around $200,000, a buyer may qualify with 5% down. Of course, you can always put more down if you wish.

This home could be especially attractive for right-sizing—for example, if you currently live in a larger house with many stairs and are looking for a simpler, more comfortable lifestyle.

Please click this link to view the video I took there. If you are considering something like this, give me a call: (415) 225-7920. I’ll be happy to help you understand how to structure the purchase and arrange the financing if needed.

Best wishes,

Manny Kagan,
President,
Pacific Bay Financial Corporation
Your professional mortgage broker since 1983

RATES ARE DOWN -BUT
WILL IT LAST?

On Sunday, the San Francisco Chronicle real estate section reported that, for the first time since 2022, long-term mortgage rates have dipped below 6%. Another article asked: “Are mortgage rates finally declining?” The information is correct — rates have improved.

Will this trend continue? No one can predict. We are hopeful, but markets don’t move based on wishes. One colleague told me his client paused a refinance, saying he’ll wait for President Donald Trump to lower rates. The truth is, no single person fully controls mortgage rates.

Meanwhile, I am helping 12 clients refinance right now.

People refinance for many reasons:

• Lower monthly payments
• Divorce settlements
• Reverse mortgages
• Debt consolidation

For one client, I reduced the rate from 7.875% to 6.375%, saving $1,600 per month. For another, after consolidating debts including car payments, the total monthly savings were close to $3,000.

Every situation is different. I can help you determine whether refinancing makes sense for you. Just give me a call…

…and click this link to watch my weekly video posted on YouTube.

HOW TO USE THE EQUITY
IN YOUR HOME

Many homeowners have very low interest rates and don’t want to refinance — even when they need money. I understand. But having equity and not using it when you’re carrying high-interest debt is like owning a valuable ring while you can’t afford groceries. Equity is your asset — and sometimes it should work for you.

There are several options:

• Cash-out refinance
• Home Equity Line of Credit (HELOC)
• Special programs for homeowners 62+
• Reverse mortgage second (no required monthly payments)
• Reverse mortgage ( easier to qualify)

Every situation is different. If you need funds or want to reduce high-interest debt, let’s review your options. So, do not hesitate to call me at (415) 225-7920, or email me at mannykagan@comcast.net. And I promise to help!

For a short video on the subject, click this link to my YouTube Channel.

Best wishes,

 

 

WALKING IN THE RAIN

Presidents’ Day, Monday, turned out to be a wonderful opportunity to take a break. Because of the nature of my work, I spend long hours in the office. Even on weekends, when I walk with my wife and our dog Max, it’s family time — meaningful, but not always quiet personal time. So, almost on the spur of the moment, after dropping Max at his dog sitter, I decided to take a stroll through the San Francisco Botanical Garden.

I’ve been there before. It’s familiar. But this time was different — it was raining. With my special boots, an umbrella, and of course my phone for taking pictures, I spent about an hour and a half simply walking. Because of the drizzling rain, only a few people were there — some visitors from out of town, and surprisingly, a few mothers with young children, happily exploring despite the weather.

I noticed different trees beginning to bloom. And of course, the majestic magnolias. Magnolia flowers come early — a quiet precursor to spring. There is something noble and timeless about them. Their beauty feels both delicate and strong.

That short time in the rain gave me strength and a deep sense of relaxation. I returned to the office refreshed, able to focus on my work — yet still carrying the calm and the images of those beautiful magnolias with me. Sometimes, an hour in the rain is all it takes to reset.

If you have any questions about mortgages — or about life — you can always call me at (415) 225-7820.

SERVING THOSE WHO SERVED

September 12, 1983 was an ordinary day for most people. For me, it was the beginning of a 42-year journey in mortgage lending. That day, I joined Colwell Financial and began training in government-backed loans, including programs through the Federal Housing Administration and VA financing designed to support homeownership.

Over the decades, I’ve had the privilege of helping thousands of families achieve the dream of owning a home. Yet, surprisingly, only a small portion of those clients were veterans.

Recently, after attending a presentation by our lending partner, The Village Capital, focused specifically on veteran programs, I was reminded of how powerful these benefits truly are.

VA loans offer meaningful advantages:

• No down payment in many cases
• No private mortgage insurance
• Competitive interest rates
• Flexible qualification guidelines
• Streamline refinancing

These programs exist to honor the service and sacrifice of our veterans — and I believe more veterans should know about them.

As part of my ongoing commitment to serving the community, I am dedicating focused effort to making sure veterans understand the opportunities available to them.

As part of my ongoing commitment to serving the community, I am dedicating focused effort to making sure veterans understand the opportunities available to them.

If you are a veteran — or know someone who is — and have questions about buying or refinancing a home, I would be honored to help. Meanwhile, a brief video addressing my viewers and listeners is available at this link.

Manny Kagan

Thank you for your service. It would be my privilege to serve you.

THE COST OF LIVING —
AND THE COST OF PASSING

Benjamin Franklin who passed away in 1790 at the age of 84, when the average age was 35, said, “Nothing is certain except death and taxes.” Taxes are predictable. Death is inevitable. The real question is not whether we will die — but how we prepare while we are alive.

Today I visited the Jewish Home in San Francisco to see the husband of a dear friend. He has exhausted his savings paying for his partner’s care. Their home has plenty of equity, but without proper planning, accessing it is complicated. We were arranging the documents necessary to refinance and to use that equity to continue his care.

I’ve seen this before. A 99-year-old client was able to stay in care for two more years because we secured a Reverse Mortgage in time. The cost of dying can be overwhelming. Planning ahead — with a trust, proper powers of attorney, and financial strategy — can protect your family and avoid crisis. Think ahead. Not about death — but about peace of mind.

If you have questions about planning or mortgage options, call me directly at (415) 225-7920 or message me at mannykagan@comcast.net

I just finished working on my new book “How to enjoy comfortable aging.” It is going to be ready in about a month.

Meanwhile, enjoy and share three images from the book…