HAPPY NEW YEAR 5787!

If you are reading this on Friday, this evening begins the celebration of the Jewish New Year—Rosh Hashanah.

The Jewish calendar follows a different system from the Gregorian calendar most of us use every day. The year 5787 represents, according to Jewish tradition, the number of years since the creation of the world—and, symbolically, the creation of the first human beings, Adam and Eve.

Rosh Hashanah is much more than simply the beginning of another year. It is a time of awakening. In the synagogue, we hear the blowing of the shofar, the ram’s horn. Its sound is like a wake-up call, reminding us to stop, listen, and look at ourselves.

Ten days later comes Yom Kippur, the Day of Atonement, when Jews traditionally reflect on their actions during the past year, ask forgiveness, and seek to make things right. But the ten days between Rosh Hashanah and Yom Kippur are especially meaningful. They give us time to acknowledge our shortcomings and think about what we would like to change or improve in our lives. Perhaps that is a lesson we can all take from the holiday.

Sometimes we need to slow down before we move forward. We don’t always need to start a new business, begin a new relationship, or make another major decision. Sometimes the most important thing we can do is pause and ask ourselves:

What can I do better this year?
How can I become a better person?
What would I like to change in my life?

Rosh Hashanah is also a celebration. Traditionally, we eat apples dipped in honey, symbolizing the hope for a sweet new year, and gather with family and friends for festive meals.

The holiday is traditionally celebrated for two days. It is connected with the Jewish practice of determining holidays according to the new moon. After the destruction of the Second Temple in 70 CE, observing the new moon became more difficult, and the two-day observance became established for communities outside the Land of Israel, with many Jewish communities continuing this tradition today.

So, Rosh Hashanah is both a beginning and a reminder: life is precious, time moves forward, and every new year gives us another opportunity to improve ourselves.

And now, a personal connection to the apples you see in these images. The three apple images came from our recent visit to Portland, Oregon. While we were there, I visited a farmers’ market with an incredible variety of apples. I photographed 17 different apples, and from all those images, I chose these three to share with you and with my friends. It seemed especially appropriate to share them now—at a time when apples and honey remind us of our wish for a sweet new year.

So, as we begin the year 5787, my wish for you is simple: May you have a joyful, healthy, peaceful, and prosperous New Year, surrounded by people you love.

Shanah Tovah! May it be a good and sweet year for all of us.

WHY OWN AN ADU?

Accessory Dwelling Units, or ADUs, have become increasingly popular in the San Francisco Bay Area and beyond. Because for years, many additional living spaces were built without permits. Today, cities recognize that bringing these units into compliance can create additional housing—and additional tax revenue. But if you want to use an ADU legally and have it recognized for financing purposes, it generally needs to meet current building codes and permitting requirements. There are also homeowners who have enough space in their backyard to build a completely new ADU.

I recently came across an interesting example. We are financing a mortgage for a client who owns a two-unit rental property. She also built an ADU legally, with the proper permits. Because the property is outside San Francisco and the ADU was legally built, we can treat it as an additional dwelling unit and, under applicable lending guidelines, use the additional rental income to help her qualify for the mortgage.

I recently came across an interesting example. We are financing a mortgage for a client who owns a two-unit rental property. She also built an ADU legally, with the proper permits. Because the property is outside San Francisco and the ADU was legally built, we can treat it as an additional dwelling unit and, under applicable lending guidelines, use the additional rental income to help her qualify for the mortgage.

I am writing this from Portland, Oregon, where we came to celebrate our granddaughter’s birthday. We rented what is essentially an ADU—a cottage, studio built many years ago behind the main house. It had everything we needed: a little kitchenette, bathroom, and, most importantly for me, a king-size bed. I had a very good night’s sleep!

For the homeowner, that small additional space creates additional rental income. But an ADU doesn’t have to be small. Depending on the property and local regulations, it can be large enough for an owner to live in while renting out the main house. That can create a significant additional source of income, particularly during retirement.

So, why own an ADU?

It can provide housing, flexibility, and another source of income—and in some situations, it can even help with mortgage qualification.

ADUs are becoming an important part of addressing the shortage of rental housing in San Francisco and many other communities. And there are even financing programs available to help homeowners build them.

If you are considering building an ADU, converting an existing space, or using rental income from an ADU to help with financing, I’d be happy to discuss your options. Give me a call: (415) 225-7920

Manny Kagan,
Your professional mortgage broker since 1983
(415) 225-7920; mannykagan@comcast.net

LIFE GOES ON

As you’re reading this, we are in Portland Oregon celebrating our granddaughter’s sixth birthday. She lives here with her mom and dad, and having her in our life gives me a wonderful opportunity to see how much a child can change from year to year. We see her every year, and every time we come back, she seems to be a little different. She is growing, learning, changing, and transforming into a new human being right in front of our eyes.

Of course, we communicate regularly through FaceTime, but it’s not the same. There is something about being together in person that allows you to see the changes you might otherwise miss.

Recently, we attended friend’s birthday party. There were people around our age whom I hadn’t seen for many years. Some of them I probably wouldn’t have recognized if I had passed them on the street. And then I realized something. This is how I have changed, too. The difference is that when I look in the mirror every morning, I don’t see it. I see the same Manny. But the difference is there. Time is moving. Life is moving. And we are moving with it.

On Wednesday I opened the San Francisco Chronicle and saw a rendering of a huge new building—175 units planned for our neighborhood in West Portal. West Portal has been a sleepy neighborhood for generations. Much of it has looked and felt the same since the 1920s. And now someone wants to bring a major change. Do I like the change? No. I don’t think this building belongs there. It wasn’t designed for this kind of development. But whether I like it or not, sooner or later, it will probably be built. And maybe that is the lesson.

How do we relate to change? How do we recognize that change is coming? Sometimes, all we have to do is look around us. Watch a child grow. Meet someone you haven’t seen for years. Look at your neighborhood. Look in the mirror.

We may not notice the changes happening to us every day, but they are happening. And perhaps the greatest evidence that life is going on is not what we see in the mirror. It is what we see when we look around us. Our granddaughter is six now. Next year she will be seven. And I will be another year older. The neighborhood may look different. The world will certainly be different. And that’s okay. Because whether we like it or not— life goes on. 

The three images you see here are self-explanatory.

Enjoy and share.

“REVERSE MORTGAGES ARE BAD!” — UNTIL YOU NEED ONE

Last week, I had lunch with a client I hadn’t seen for quite a while. He had previously referred his daughter and son-in-law to me for a line of credit, and I was able to help them. During lunch, we started talking about mortgages, and I mentioned reverse mortgages. His reaction was immediate: “Reverse mortgages? They’re bad!” I asked him why, but he couldn’t really explain it. He simply had a very negative impression.

Then I started telling him about some of the people I had helped with reverse mortgages. After hearing the stories, he admitted, “I’m an ignoramus. I really don’t know much about reverse mortgages.” And that conversation stayed with me because he is not alone. A lot of people have strong opinions about reverse mortgages without really understanding how they work or how they can help.

When I got back to my office, I received a phone call from another client. Ten years ago, she came to me wanting to buy a home. Her financial situation was a mess, but I figured out a way to get her a mortgage. She bought the house, and for the next ten years, she lived there.

Now her daughter called me. She said, “My mother doesn’t have enough money to make her mortgage payments. I’m afraid the house could end up in foreclosure.” I looked at her situation and said, “Maybe a reverse mortgage is the solution.”

She owed about $280,000. I ran the numbers, and the reverse mortgage could provide about $180,000. That left a $100,000 gap. So, what did we do? I remembered that about three months earlier, the daughter’s mother had also come to me for a reverse mortgage. I had helped her obtain a line of credit. I called her and asked, “Would you be willing to help your daughter with the $100,000 she needs?” After some hesitation, she agreed.

Think about that. A mother and daughter—both homeowners, both using reverse mortgage solutions—and one was able to help the other avoid a serious financial problem. This is why I don’t like it when people simply say, “Reverse mortgages are bad.” They are not for everyone. But neither is a conventional mortgage, a refinance, or a home equity line of credit.

The important thing is to understand your options and see whether one of them makes sense for your situation. And you don’t have to wait until you are in trouble. Sometimes the most valuable thing you can have is a reserve—a line of credit you can use when you need it.

If you have questions about reverse mortgages or home equity, or you know someone who might benefit from understanding their options, give me a call.

Manny Kagan,
Your professional mortgage broker since 1983
(415) 225-7920; mannykagan@comcast.net

A DOG’S LIFE

Have you ever wondered where the expression “a dog’s life” came from?

The expression is centuries old. In England, dogs were once working animals. Many lived outside, slept in rough conditions, were given scraps of food, and were expected to work hard. To “lead a dog’s life” meant to live a miserable, difficult existence. 

But a few weeks ago, when we visited Carmel-by-the-Sea, I had to smile at how completely the meaning has changed.

Carmel has only about 3,000 residents, but I cannot imagine how many dogs live there. They seemed to be everywhere. And during Car Week, when enormous numbers of visitors came to Carmel, many brought their dogs with them.

Carmel is truly a dog-friendly place. Dogs are welcomed almost everywhere, and on Carmel Beach they can even run without a leash as long as they respond to voice commands. Looking at those happy dogs made me realize that “a dog’s life” can mean something entirely different today.

Take Max, our Labradoodle. Max does not have a miserable life. Quite the opposite. He lives very comfortably. He has people who love him, good food, regular walks, plenty of attention—and,  because he is now nine years old, he even sleeps on a special bed designed specifically for older dogs. So, perhaps we need to update the expression.

For some dogs today, “a dog’s life” means being loved, cared for, comfortable and completely spoiled.

Just take a look on some of the dogs I encountered in Carmel.

You can get a dog’s bed, like Max’s, on petsupportsystems.com

Enjoy and share!

How Do You Finаnсe
a Мultimillion-Dоllar Hоme?

We live in a time when people sometimes buу hоmes for $5, $7, even $10 milliоn. In San Francisco, especially, some buyеrs can pay cаsh. But what if you have substantial invеstmеnts and a very good incоme, but you don’t want to put all your monеy into the house?

Yes, these homes can be financеd.

For example, let’s say you’re buуing a $6.9 milliоn prоpertу and want a $4.45 milliоn lоan—about 65% of the prоperty’s value. Under traditional underwriting, you might need approximately $1.36 milliоn of annual income to qualify.

But there may be another way.

Suppose you have $20 milliоn invested in stоcks, bоnds, mutuаl funds, or retirement accоunts. Depending on the lender and program, a portion of those assеts may be converted into qualifуing incоme.

For illustration, $20 milliоn divided by 36 months equals about $555К per month, or approximately $6.67М per year. The actual calculation depends on the lеnder’s guidelines and the type of assеts.

Another option is private-bаnk financing. A bаnk may offer attractive terms, sometimes at a lower lоan-tо-value, but may require you to keep a substantial amount of your invеstments on depоsit with the bаnk. That can be expеnsive in another way: your mоnеy may be earning less than it could elsewhere.

The important lesson is this:

When you’re buуing a multimilliоn-dоllar property, finanсing isn’t necessarily about how much сash you have. It’s about how your incоme, assеts, investmеnts, and the prоpеrty’s vаlue can work together.

These programs are designed for a relatively small number of bоrrоwers, but they can make a major difference for someone who has substantial wеalth but doesn’t have enough conventional incоme to quаlify.

If you’re considering buуing a prоperty for $7 milliоn, $8 milliоn, $9 milliоn, or even $10 milliоn, there may be financing options worth exploring.

Have a specific situation? Call me. Let’s see what may be possible.

Thank you.

Manny Kagan,
Your professional mortgage broker since 1983
(415) 225-7920; mannykagan@comcast.net

SEEING IS BELIEVING?

Last night, I was walking with my wife and our dog Max in our neighborhood when I pointed something out to her. She looked—and said, “I don’t see anything.” I smiled and thought: Does that mean it wasn’t there? Of course not. I saw it. She didn’t.

And that made me think about how often this happens in our lives. We see something, but we don’t recognize what it is. Or we don’t see something at all because our minds are not prepared to perceive it.

There is a famous story about Christopher Columbus arriving in America and supposedly being able to see ships that the local people could not see because they had never encountered anything like them. The story is almost certainly a myth, but the lesson behind it is fascinating: sometimes we cannot see something because we cannot imagine it.

Think about what happens when we look at a drop of water with our eyes. It looks perfectly clear. Put it under a powerful microscope, and suddenly we discover a world we never knew existed.

And now science takes us even further—to the quantum world, where reality behaves in ways that are almost impossible for our everyday minds to comprehend.

So perhaps “seeing is believing” is not always true. Maybe the better question is: If I don’t see it, does it mean it doesn’t exist—or does it mean I haven’t learned how to see?

2500 years ago, Chinese philosopher Confucius observed “Everything has Beaty, but not everyone sees it.” When I walked in our neighborhood I noticed a beautiful bush of Dahlias. Some will notice them. Others will photograph a flower. For me this a beautiful object. You can see many amazing  Dahlias in the Golden Gate Park, near Academy of Flowers.

If you want to see beautiful roses every day, get my book “Reflections. The Healing Images.” on Amazon.

WE CAN DO THAT
FOR SOMEONE YOU KNOW!

Super Jumbo Loans up to $10 Million

• Qualify based strictly on investment assets
• No tax returns required
• No need to keep large amounts of cash in the bank
• Flexible financing solutions for high-net-worth borrowers

Know someone who could benefit from this? Send them our way!

Thank you.

Manny Kagan,
Your professional mortgage broker since 1983
(415) 225-7920; mannykagan@comcast.net

59 YEARS LATER

August 8, 1967. My wife said, “Yes.” I was 20, she was 21, and we were both students in Riga, Latvia. We had no idea what life had in store for us.

In August 1980 we came together with our family to San Francisco. We built our life, and eventually our mortgage company. Somehow, 59 years have passed—and yet it feels like yesterday. People often ask me how we managed to stay together for so long. I don’t really have an answer. Perhaps it is simply love, care, and sharing our lives every day.

To celebrate our 59th anniversary, we returned to Carmel, a place we have visited many times. We walked on the beach, visited galleries, enjoyed the beautiful weather, and simply enjoyed being together.

We arrived just before Carmel’s famous classic-car events, so the town was already full of visitors and beautiful cars. We were tourists too—and enjoyed every moment.

But the real celebration wasn’t Carmel, the beach, or the cars. It was simply this: 59 years later, we are still walking together, still sharing, and still grateful for each other.

August 8, 1967 — August 8, 2026. She said yes. And I’m still glad she did.

Three beautiful cars accompanying this story were among many others we saw that day.

Enjoy and Share.

INTEREST RATES ARE COMING DOWN

Notice that I didn’t say they might come down or they will come down. I said: they are coming down. How do I know? Well, it’s not really a question of knowing. It’s a question of needing.

We have owned our home for 46 years. When we bought it, it needed an enormous amount of work. I barely had enough money to buy the house, but we saved a little, hired a contractor, and started removing the stucco.  Then we discovered that underneath everything was rotten.

What began as a small project turned into practically rebuilding the house. The contractor worked on it for almost two years. If I had known from the beginning how much it would cost, I probably never would have started. But I did something important: I moved forward and figured out how to pay for it. I was earning money by closing mortgage loans, and as I earned, I paid the contractor. I didn’t wait until I had all the money before starting something that desperately needed to be done.

I thought about that today when one of the boards on our deck was lifted and we discovered that everything underneath was rotten. Next to it was a trellis and wooden stairs. Suddenly, another significant project needed immediate attention. My wife immediately said, “Why don’t you use a line of credit?” I thought about it. But I also know that I need to earn the money to make it happen. And that brings me to what I do.

There are two major types of mortgages I work with: conventional mortgages, primarily purchases and refinances, and reverse mortgages. With interest rates where they are today, conventional refinancing has slowed considerably.

But reverse mortgages are helping people do things they desperately need to do. Right now, I’m working with three very different clients. One needs a reverse mortgage to help settle an estate. Another was my client years ago. Since recently, she has been struggling with a serious malady, and her daughter doesn’t have the money to continue making the mortgage payments. And another client had an excellent first mortgage with me years ago. Now he wants to do major remodeling, and I was able to secure a reverse mortgage second to provide the funds he needs.

I’m not telling you this because I’m asking you to give me business. I’m asking you to think about the people in your life. A friend. A relative. Someone you know who has significant equity in their home but needs money for something important—remodeling, helping family, paying expenses, settling an estate, or simply making life a little more comfortable. Perhaps you can help connect them with me. And maybe, just maybe, that connection will give me what I need to rebuild my deck.

So, thank you in advance.

Manny Kagan,
Your professional mortgage broker since 1983
(415) 225-7920; mannykagan@comcast.net