WHY BUY A SECOND HOME?

Our family’s love affair with The Sea Ranch began in 1986, when we first visited this magical stretch of California’s coast. From that first trip, we were captivated by the ocean views, the serenity, and the beauty of the trails. We kept returning, year after year, until one day — three years later — we mentioned to our real estate broker Cindy Kennedy, how much we loved the place. She told us about a lot where only the foundation had been poured. On the drive back to San Francisco, we decided to stop and take a look.

As I stood there, looking at that foundation and reviewing the drawings, I told my family: “This is our house. ” Of course, the question was: How can we buy it? My first thought was to use a line of credit on our San Francisco home and take out a mortgage. But the real solution came when we decided to sell one of our rental properties in San Francisco, using the proceeds for the down payment.

For the next ten years, Sea Ranch became our family’s favorite destination. Eventually, when it was time to move on, we sold the house but never stopped returning, often renting from others. As the years passed and our finances improved, we began thinking again about buying. But Cindy, now a friend, reminded us of something important: she would only sell us a home if we intended to live there permanently. And she was right — houses on the coast require constant maintenance, and the costs add up quickly.

Today, renting a home big enough for four of us — including our daughter and her husband — can cost $2,000 for just four nights. Buying is even more of a challenge, with most homes at Sea Ranch selling for well over $1 million. Currently there are about 1200 people reside in The Sea Ranch. Some of them are artists. Both myself and my wife are artists as well, however I am not ready to retire yet. For now, we will continue renting other people’s second homes

Three images you can see above, are showing what attracts us to The Sea Ranch.

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“LOW MORTGAGE RATE” SCAM ALERT

Two years ago, I helped my client secure a mortgage. Now that interest rates have come down, he can refinance with two excellent options:

• 6% fixed for 30 years
• 5.75% fixed for 5 years

Both would lower his monthly payments.

But last night, he told me he received a letter from his current lender, Rocket, offering 4.5%. Since that rate was far below market, I suspected it was a scam. When he sent me a photo of the letter, it became clear—the whole thing was designed to lure borrowers into giving away personal information. So, he called Rocket directly at their 800 number, and they confirmed the letter was not from them.

Be careful—if you receive a similar letter, don’t fall into the trap.

Good news is you can call me instead. I’ll verify the information and review your mortgage options. Together, we may be able to lower your payments and save you money.

Give me a call anytime — I promise to help: (415) 225-7920

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

NMLS #205637
DRE #00874630

 

 

 

WE ARE SURROUNDED BY BEAUTY

It was last Thursday evening, and we just returned from an hour-long walk along the ocean trail in The Sea Ranch—one of the most beautiful places our family knows, just three hours north of San Francisco. The drive along Highway 1 winds through rolling countryside, past idyllic farms where animals graze peacefully in the fields.

As we walked, our daughter kept pointing out how beautiful everything was—and she was right. The beauty here is everywhere.

The Sea Ranch is a unique 10-mile coastal community that began in the 1960s. Private homes, carefully designed to blend into the meadows, forests, and rugged shoreline, attract visitors from near and far. Just to the north is the charming town of Gualala, where you can find everything needed to enjoy a stay in this remarkable place.

We have been coming here for many years. At one point, we even owned a home in the meadow, which we eventually sold, though our connection to the Sea Ranch never left. Now, whenever we have the chance, we return.

Our last four-day stay there was no exception. It gave us time to rest, breathe the fresh ocean air, and immerse ourselves in the scenery. As a bonus, last weekend was the Open Studios event, a wonderful opportunity to meet local artists and experience the creative spirit of the community.

If you’ve been here, you already know what I’m describing. If you haven’t, and you’re looking for a place of beauty, serenity, and mild weather— the Sea Ranch is waiting.

The three images enclosed with this story are just a small reflection of our experience.

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REPETITION IS THE MOTHER OF LEARNING

Every week, we at Pacific Bay Financial Corporation meet with a different lender. At first, many of them seem to offer similar programs, but each time we discover something new that can help our current and potential clients.

This week was no exception. Kyle Schmidt and Diego Velez from theLender presented DSCR programs for rental properties—with a new twist. Please take a moment to view the video available at this link.

If you ever have questions, face challenges, or need assistance, I’m here for you. Give me a call anytime — I promise to help: (415) 225-7920

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

NMLS #205637
DRE #00874630

START WITH WHY

I’m reading a book by Simon Sinek called Start with Why. In it, he writes about companies—some succeed, some don’t. What makes the difference? The successful ones start with a simple but powerful question: Why are we doing what we’re doing?

This lesson is true in business, but also in life. Recently I met a client, the same age as me—78. He sold his home, but now wants to buy another one. At first, you may wonder: Why would someone at this stage of life take on a mortgage, property taxes, and insurance? His answer is simple. He plans to buy two units, rent one out, and use the income to offset his mortgage payments. He asked why and found a solution that makes sense for him.

I face the same question myself. A young woman at one of our lenders recently asked me: Why are you still selling mortgages at 78? My answer is also simple. In Japan it is called IKIGAI

• I do what I love.
• I do what I’m good at.
• I do what helps others.
• I do what generates income.

That’s my why. Every morning, I wake up and ask myself again: Why? and How can I help more people today?

To stay focused, I meditate three times a day using my book “Reflections”. It helps me listen to my own inner voice. If you’d like, you can find it on Amazon.

So, I’ll leave you with this: always start with why. It makes the what and how so much easier.

Three images are from my next book I am currently  working on: “Joyful Retirement”. Stay tuned to my weekly news.

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AI AND I

CAN ARTIFICIAL INTELLIGENCE REPLACE
MORTGAGE PROFESSIONALS LIKE MYSELF?

Honestly, no one really knows what tomorrow will bring. Things are moving very fast—AI can already write stories, compose music, and even control complex systems. But in my experience, there is still no substitute for the human brain, human expertise, and—most importantly—human relationships.

Every transaction I handle is different. Right now, I’m working on three purchases and a refinance. Each one requires a unique approach, because every client has different needs, circumstances, and challenges. That’s where experience, knowledge, and personal attention truly matter—something no machine can fully replace.

So, let’s wait and see where technology takes us. In the meantime, my advice is simple: enjoy your life. And if you ever have questions, face challenges, or need assistance, I’m here for you.

Give me a call anytime — I promise to help: (415)-225-7920

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

NMLS #205637
DRE #00874630

 

TIME FLIES

Recently, during lunch with a friend, he asked me, “How long have you been in America?” “We came to San Francisco in August of 1980,” I replied.

“That means you’ve been here 45 years!” he exclaimed. “We need to celebrate. I’m buying your lunch—but can I keep this 42 Encounters with San Francisco book I picked up in your office?” he asked with a smile. I thought it was a fair exchange.

“How did you manage all these years?” he continued. “Well,” I said, “we came to the United States to study. My wife Elfa enrolled in a fashion design  college and I pursued an MBA. I had a dream at the time—to start our own fashion business.

This might sound fantastic; however, my first official job was as vice president of a women’s high fashion company in San Francisco . I quickly learned that in that industry, to make $1 million, you often had to invest $2 million. I didn’t have either.

In the evenings, I become a distributor for a network marketing company Amway. That’s where I met my future sales manager—the person who introduced me to the mortgage business. He had a simple but powerful argument: “In sales, your commission can be far more than a manager’s salary.”

It was September 1983. He was right. I quickly learned the mortgage business, became a top producer, and a year later, we launched our first company with partners—driven by the high-interest rates of the time.

Elfa, who had been pursuing her fashion career, joined me to help run the business. In September 1985, we started our own company: Pacific Bay Financial Corporation. Forty years later, we’re still managing it together.

In addition to that, just  recently, we celebrated our 58th wedding anniversary.

People often ask us, “Do you always agree?” Of course not. Disagreements happen. I might say something is black, and Elfa might insist it’s white. But in the end, we often realize it’s actually black and white with the touch of grey, like the three images I chose to illustrate this story. They are going to be in one of my future books called “42 Encounters with Light”.

Meanwhile you can enjoy my latest very special book “Reflections”, which you can order on Amazon.

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WHICH MORTGAGE LOAN PROGRAM TO CHOOSE?

One of the fun parts of the mortgage business is that there’s always something new to learn—new programs, new tools, and new tricks of the trade.

This time, we learned from Brett Scott and Trish Gonzales of Newfi Lending, who shared a range of lending options to help us serve our clients better. I’ve attached one of their flyers with details about these programs.

You can also watch their video presentation from our office meeting to catch all the valuable insights.

If you’re thinking about getting a loan, send me a message. I’ll help you figure out the best financing option to make it happen.

Call Me — I’m Here to Help:  (415) 225-7920

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

NMLS #205637
DRE #00874630

HOW DO YOU SPELL THE WORD “LOVE”?

Eight years ago, on August 8, 2017, I gave my wife, Elfa a very special gift to celebrate our 50th anniversary labradoodle puppy.

The announcement of the gift came a little earlier, since we were planning a Celebrity Cruise to the Norwegian fjords. Elfa’s immediate reaction to my idea was rejection. Her argument made sense: our last dog, a Welsh Corgi, had passed away 15 years earlier. A new puppy, she said, would take too much of our time—we were still working, and we wanted to travel more.

As always, she was right. But sometimes, my crazy ideas work out.

The day after we returned from our trip, we drove to Monterey to visit a breeder. There we met Max, an Australian Labradoodle. He was an adorable brown puppy with big, questioning eyes. On the drive home, Max curled up in Elfa’s lap and slept peacefully. That was the beginning of something special.

I decided to start recording Max’s daily life and dove into every dog training book I could find. I wanted to learn how to help Max grow into a happy, obedient dog. Whether it was the training or simply his personality, Max turned out to be more than we could have imagined. From his very first day with us, he was a pure expression of love.

So, if someone asks me how to spell the word love, my answer is simple:
M-A-X.

Max inspired much more than joy—he became the heart of my creative work. His presence led to the writing of my second book, 42 Encounters with Dog Lovers, followed by 42 Encounters with Love. And now, my latest book, Reflections, is also available online.

The three images you can see inside this story are just a glimpse of the vast collection I’ve taken of Max over the years.

If you’d like to give a meaningful gift to yourself or someone special, feel free to call me at (415) 225-7920. And don’t forget to check out Reflections—a celebration of life and love.

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Thank you.

HOW TO BUY A PROPERTY WITH LITTLE OR NO MONEY DOWN –
AND FINANCE REPAIRS

Many people dream of owning property, but the biggest question is:
How do you buy with minimal cash, and how do you finance the repairs?

Let me break it down:

There are several ways to buy a property with little or no money out of pocket:

• 100% Financing:Some lenders offer programs with zero down for qualified buyers.
• 1% Down Programs:These are rare today, but have existed.
• FHA Loans (3.5% Down):One of the most popular low down payment options.
• Conventional Loans (5% Down):Great if you have a stronger credit profile.
• Gift Funds:You can use 100% gift money from a family member or relative for your down payment.

So yes, you can absolutely buy a home even if you don’t have all the money saved up yourself.

Financing Property Repairs – The FHA 203(k) Loan

One of the most powerful tools if you’re buying a fixer-upper is the FHA 203(k) loan.

Here’s how it works:

• You can borrow money not just to buy the home, but also to repair or improve it.
• The repair funds can go up to $75,000or more (based on property value).
• All you need is a contractor’s bid, which the lender reviews and approves.
• The loan closes as one mortgage—purchase + repair costs included.

Yes, the monthly payments and interest rate will be slightly higher, often around 6.875%, depending on the lender and market conditions. But this lets you buy and renovate at the same time.

Refinancing Later

Once your renovations are complete and the property has appreciated in value (typically in 6+ months), you can consider refinancing to:

• Lower your interest rate
• Remove PMI (if applicable)
• Convert to a conventional loan

Making the Right Choice

This isn’t for everyone. Some buyers prefer to do light cosmetic updates using their own savings or credit cards. Others want the full renovation loan upfront to avoid the hassle.

It all comes down to:

• How much work the property needs
• Your comfort level with borrowing more
• Your ability to refinance in the future

If you’re unsure, I’m here to help walk you through your options and guide you to the best solution for your situation.

Let Me Know If You’re Ready

If you’re thinking about buying—or fixing—a home, send me a message. I’ll help you figure out the best financing strategy to make it happen.

Call Me — I’m Here to Help:  (415) 225-7920

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

NMLS #205637
BRE #00874630