HOW TO BUILD THE STAIRS

Tuesday morning, I heard a lot of noise outside our breakfast room. When I looked out the window, I saw a huge cement truck trying to squeeze through the parked cars. We live in Monterey Heights, a hilly San Francisco neighborhood with narrow streets, so getting a large vehicle through can be quite a challenge. The truck made it through, and later, when I went for a walk with our labradoodle Max, I noticed not one but two cement trucks parked nearby. The sound of construction filled the air. Curious, I walked over to see what was happening. A neighbor was building a staircase down a steep hill as part of a property improvement project. Watching the activity made me realize how much effort goes into something as simple as a set of stairs.

First, someone has to decide they want the project. Then an engineer designs it. Plans must be submitted to the city, permits obtained, and a contractor hired. Materials and equipment must be delivered, and crews have to coordinate the work. Finally, after all the planning, effort, and expense, the stairs are built. When the project is finished, most people will simply see a staircase. Few will think about everything that happened behind the scenes to make it possible. As I watched the construction, I thought about our work in the mortgage business. When a loan closes successfully, it often looks simple. The client gets the money, the property is purchased or refinanced, and everyone moves on.

What people don’t see is all the work that took place beforehand. There are buyers, sellers, loan officers, processors, underwriters, appraisers, escrow officers, and lenders. Documents must be gathered, reviewed, and approved. Problems must be solved along the way. Recently, I closed a mortgage transaction in just 16 days, which is remarkable. To the client, it may have seemed straightforward, but it required the coordinated efforts of many people working together behind the scenes. Whether it is building a staircase, closing a mortgage, developing a property, or growing a business, significant accomplishments rarely happen by themselves. The visible result is often only a small part of the story. The real achievement lies in all the planning, teamwork, and persistence required to make it happen. Enjoy the results, but also appreciate the work that made them possible.

Three images illustrating this story are self-explanatory.

Manny Kagan
(415) 225-7920

 

ENCOUNTERS IN THE LAND OF ICE

I am writing this story on the plane as we fly home after two unforgettable weeks in Iceland. Before coming here, I knew only two things about this island: nature and friendly people. To be honest, I was not very enthusiastic about the trip. It was my wife’s idea, and I simply went along with it.

We arrived two weeks ago, and after recovering from jet lag, we boarded an HX Expeditions ship in Reykjavík. For the next eight days, it carried us around the coast of Iceland.

I would not call what we experienced sightseeing. We certainly saw many remarkable places, but what we had were experiences. How else can you describe walking through a landscape created by volcanic lava, covered with snow, while strong winds blew snowflakes into your face like tiny needles? Then, a short time later, sitting in the warmth of a bus, looking back at the same wild scenery on my phone and feeling nothing but joy from having lived through it.

It may sound crazy, but that is what adventure is all about. The beauty that surrounded us often left me without words. Some places cannot truly be described. They must be experienced.

After eight days at sea, we returned to Reykjavík for four more days. We attended a concert at the remarkable Harpa Concert Hall and enjoyed dinner there. My wife turned to me and said, “For this experience alone, we have to come back.”

The next day we immersed ourselves in the warm waters of Sky Lagoon. Two hours later she said, “We have to come back for this experience too.” Along the way, we met and befriended a local couple who spoke Russian. The following day, Viktor took us to Þingvellir National Park, where the North American and Eurasian tectonic plates are slowly separating. We actually walked between two continents. What an experience that was!

Then, during our final hours before leaving Iceland, we met a woman President of Iceland Halla Tomasdotir, who proudly described Iceland as a country with a wonderful sense of community. Our conversation reminded me once again that Iceland is not only about breathtaking landscapes. It is also about the people who call this island home. After all these experiences, I realized that I need more encounters, more stories, and more images before I can write one of my next books.

The working title is: “42 Encounters in the Land of Ice.” And for these, I need to come back. So, stay tuned. And if you have not yet visited Iceland, put it on your list.

Meanwhile, for this story I have chosen three photographs featuring Iceland’s amazing skies.

Enjoy and share.

THREE REVERSE MORTGAGE CALLS FROM ICELAND

While on vacation in Iceland, I still found time to work for a few hours each day. Because Iceland is seven hours ahead of California, I was able to handle business between 4:00 p.m. and 6:00 p.m., before heading to dinner.

During those two hours, I spoke with existing clients, a new client, and received several calls. Three of those calls involved reverse mortgages, and each demonstrated how this financial tool can help people facing very different life situations.

The first call involved an inheritance issue. My client needed enough money to buy out the interests of relatives who had inherited property. A reverse mortgage provided the funds needed to complete the transaction. Without it, there was no practical way to obtain the required cash.

The second call came from a former client who wanted to sell his home in Oakland and purchase another property in San Francisco. Because of his age and health situation, he could no longer work full-time, and his income was not sufficient to qualify for a conventional mortgage. After reviewing the numbers, we determined that a reverse mortgage could provide approximately $300,000 in financing. By combining the proceeds from the sale of his Oakland home with the reverse mortgage, he could purchase an $800,000 property and have no required monthly mortgage payments for the rest of his life.

The third call came from another former client on behalf of his ex-wife. She lived in a manufactured home, had health problems, and needed additional funds to pay for her care. Since she was no longer working, qualifying for a traditional mortgage was not an option. A reverse mortgage offered a solution that could help her access the equity in her home and cover her healthcare expenses.

These were three completely different situations, yet in each case a reverse mortgage provided a practical solution. One lesson I have learned over the years is that it is often better to prepare before a financial need arises. Establishing a reverse mortgage line of credit while you qualify can provide a valuable source of funds later in life. If obtaining a conventional line of credit becomes difficult because of retirement or reduced income, your home equity may still be available to help meet future needs.

If you have questions about reverse mortgages or would like to discuss whether one might be appropriate for your situation, please give me a call.

Manny Kagan
(415) 225-7920