HOW TO BUILD RELATIONSHIPS

I recently spoke with a representative from one of our mortgage banks. He told me that before joining the bank, he had spent 17 years as a mortgage broker—just like us. When I asked why he left the business, his answer surprised me: he said he couldn’t stand working with real estate agents.

I’ve heard this sentiment before, but I see it very differently.

I value working with real estate agents. First, they are an important source of referrals. More importantly, I see them as partners. We share the same goal—helping our clients achieve their dreams.

Good agents work incredibly hard. They find the right property, guide the client through the process, and stay committed all the way to closing. Of course, not everyone operates at that level. And yes, agents can be anxious about timelines—but that’s understandable. There’s a lot at stake.

From my perspective, success in this business comes down to communication and relationships.

I prefer real conversations—face-to-face or voice-to-voice. Recently, someone ,who works for the major bank, told me their bank only communicates in writing—emails. That may be efficient, but it’s not how you build trust.

Relationships are built through human connection.

When you take the time to understand people, when you find common ground, when you genuinely care—you create something stronger than just a transaction.

Every deal I’m working on right now requires problem-solving, patience, and collaboration. You can’t do that effectively without strong relationships—with clients and with real estate agents. That personal touch still matters. In fact, it matters more than ever.

To learn more about my most recent mortgage transactions, click this link to watch my weekly YouTube video. 

If you ever want to talk, ask a question, or just connect, just give me a call at (415) 225-7920.

Manny Kagan,

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

 

 

GRANDCHILDREN

I got married at 20, and my wife was 21. Soon after, our first daughter was born. Several years later, our second daughter was born in Israel. When we later came to the United States, we considered having another child, but financially it was not very practical. Life has its seasons, and eventually we began looking forward to the possibility of grandchildren.

Fortunately, we are blessed with one granddaughter. She lives with her parents in Portland, Oregon, and this week, for the first time, she came with her mother to visit us in San Francisco. She is five and three-quarters years young, and spending time with her brought a special feeling that is difficult to describe.

During the three days she stayed with us, I even managed to work from home while enjoying her presence. We took her to some of our favorite places — Golden Gate Park, the ocean, and Cinderella Bakery & Cafe. Every outing became a memory. At home, she drew pictures, played, and simply enjoyed being together with us. Sometimes the greatest joy comes not from grand adventures, but from quiet moments shared.

Some grandparents are fortunate to live close to their children and grandchildren, giving them more opportunities to spend time together. In some families, grandparents even play an active role in helping raise their grandchildren. For others, visits are less frequent, making each moment even more precious.

I count my blessings. In September, when she turns six, we will travel to Portland to celebrate with her. Until then, these joyful days remain in my memory — a reminder of how precious family truly is.

Count your blessings, and thank your children for giving you such a beautiful gift.

The three images that accompany this story are from our granddaughter’s visit.

Enjoy and share it with the friends.

 

ASK ME, BUT LISTEN TO YOUR HEART

We all face moments when we need to make a decision. And in those moments, advice is everywhere. Friends, family, professionals—everyone is willing to offer their opinion. Most of it comes from a good place. People genuinely want to help. But here’s the truth: No one is living your life but you.

In my experience, people process decisions differently. Many men rely on logic—numbers, facts, analysis. Many women are more in tune with something deeper—a feeling, an instinct, a quiet inner knowing. Both approaches have value. But sometimes, the most important voice gets lost in the noise. Your own.

I recently spoke with a potential client. His father had passed away, and he, along with his sisters, inherited a house. He wanted to keep it—partly for emotional reasons, partly as a future place to retire. But to do that, he needed a mortgage to buy out his sisters. Financially, it wasn’t a simple decision. So, I asked him, “What does your wife think?” He wasn’t sure.

Then I gave him a different kind of advice—something I often use myself. Step away from the noise. Go somewhere quiet. A park. A lake. A place where your mind can slow down. And then ask yourself the question. Not your head—your heart.

At first, it may feel like nothing is happening. But if you give it space, an answer often comes. It might sound like a thought… but it feels different. Clear. Calm. Certain. That’s the voice we tend to ignore. So yes—ask people. Learn. Gather information. But in the end, listen carefully to the one voice that truly knows what’s right for you.

Three images illustrating this story are of the nature where your heart might find an answer.

If you ever want my perspective, I’m always here. But even then, I’ll remind you of the same thing: Make sure your final decision comes from within…

LOW INTEREST RATE?

Today I received a call from a client whose loan I refinanced about a year ago. The question was simple: “Is it time to refinance again?”

I’ve been hearing the same thing from many people—that interest rates are already in the 5% range. I wish that were true. As I told my client, from your mouth to the decision-makers’ ears—but we’re not there yet.

That said, I have a sense—not a guarantee, not a prediction—that we may see some improvement as we move into May. Why May? I can’t point to a specific reason. Sometimes experience and intuition just guide you.

Right now, rates are still fluctuating, generally in the 6% range depending on several factors:

• Loan amount
• Credit score
• Type of property
• Overall financial profile

Despite that, activity remains strong. This month alone, I’m on track to close 12 loans. People are still buying, refinancing, and moving forward—because the opportunities are still there.

Would it be great to see rates in the 5s? Absolutely. And when that happens, we’ll all be very busy.

My simple advice: If you want rates to come down—for yourself, your family, or your clients—put that intention out there. Ask for what you want. As the saying goes: Ask, and it shall be given to you.

And if you have questions about your specific situation, I’m always here to help.

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

HAPPY BIRTHDAY 

Birthdays… we celebrate them with family, friends, a cake, and candles. But in reality, a birthday is also a reminder—that we are moving forward in age. Some call it getting older. And yes… it reminds us that there may be less years ahead than behind.

But a birthday is never a sad moment—especially when it’s someone you love. Today, Friday the 17th… is my wife’s birthday. We’ve been married for over 58 years. I was 20 when we got married. And since then, … every single day has been a celebration.

We worked together. We lived together. We built a life—together. Yes, we will go to our favorite restaurant. Yes, there will be a gift. But the real gift… is the love we carried through the years.

This year, I wanted to give her something special… something from my heart. So, I created a book. It’s called “This Is a Wonderful Life.” It’s my gift to her. And maybe… if she allows me… I will share it with you as well.

So—happy birthday, my love. And thank you… for being part of my life. And to all of you—thank you for celebrating her birthday with me.

Three images that you can see here are from the book I’ve created as a gift.

Enjoy and share…

 

 

 

 

42 PETALS OF WISDOM

I’m excited to share that my new book, 42 Petals of Wisdom, is now available on Amazon.

This book wasn’t something I originally planned to create. It began when my daughter organized an exhibit of my black-and-white flower photography—images that carry a unique depth and quiet beauty. Initially, I thought of putting together a small catalog to accompany the exhibit.

But as I started selecting the photos, something unexpected happened—I couldn’t stop. I found myself deeply moved by the images. Yes, they are my work, but they revealed a beauty that felt beyond me.

That’s when the idea for this book was born.

Inspired by meaningful comments and reflections shared with me over time, I paired these images with words of wisdom, someone coined it “Mannyisms “ And just like that, the title came naturally: 42 Petals of Wisdom.

There’s something special about holding beauty in your hands. It creates a feeling that’s hard to describe—but easy to recognize when you experience it.

That’s exactly what I hope this book will give you.

If you already have my books, I invite you to add this one to your collection. And if this is your first, I promise—you’ll truly enjoy the journey. And if it speaks to you… share it with a friend.

Three images you can see above are from the book.

Enjoy!

EARNED EQUITY PROGRAM (EEP):
A NEW PATH TO HOMEOWNERSHIP

Struggling to qualify for a traditional mortgage? You may still be able to own a home and start building equity today.

WHAT IS THE EARNED EQUITY PROGRAM?

The Earned Equity Program (EEP) is designed to help individuals and families transition from renting to homeownership—even if they don’t meet traditional lending requirements.

A unique structure allows you to live in the home, build equity, and work toward full ownership over time.

KEY BENEFITS

• Low Down Payment – Starting at just 3.5%
• Flexible Credit – Scores as low as 580+
• Higher Approval Ratios – Debt-to-income up to 60%
• Self-Employed Friendly – Qualify with 3 months bank statements
• Build Equity Now – Start benefiting from homeownership immediately

WHO THIS HELPS

• First-time homebuyers
• Self-employed individuals
• Buyers with credit challenges
• Individuals with non-traditional income
• Those facing immigration-related hurdles

HOW IT WORKS

A specialized ownership structure allows you to move into a home now while building equity and positioning yourself to refinance into a traditional mortgage in the future.

Want to learn more? Click this link to view a presentation by Norma Somers, Wholesale Mortgage Account Executive at Travisa Financial.

LET’S TALK

After 42 years in the mortgage business, I can tell you—opportunities like this are rare. If you’ve been told “no” before, this may be your path forward.

For any questions don’t hesitate to call, text or email me.

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

 

EVERY CLIENT HAS THEIR OWN
UNIQUE SOLUTION

A few days ago, I received a very interesting phone call from a real estate agent I’ve known for many, many years. He opened with a simple question: “Do you do DSCR loans?” That immediately caught my attention—because we do all types of loans. So, I asked him a few more questions to understand the situation. It turns out he was thinking about buying a four-unit property for his daughter. In his mind, a DSCR loan was the solution. But as we dug deeper, the picture changed.

His daughter is employed, has income, and can actually qualify for a traditional loan, and intends to live in one of the units. In this case, she could potentially purchase the property with as little as 10% down—and likely get better terms than a DSCR loan.

So, here’s the key point: Not every situation requires a DSCR loan—sometimes a conventional approach is the better solution.

Now, DSCR loans absolutely have their place. For example, I have a client who recently inherited a property from his mother and is buying out his brother. In that case, a DSCR loan makes perfect sense—because qualification is based on the income generated by the property, not personal income.

That’s what DSCR stands for: Debt Service Coverage Ratio—a calculation based on the property’s income versus its expenses. And there are different ways to structure it depending on the scenario. So, the lesson is simple: Every situation has a solution—but the right solution depends on understanding the full picture.

One of my lenders shared this flyer with me as an illustration of my expertise. In other words, if you ever have questions, call me. I promise — I’ll help you find the right answer. 

Warm regards,

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

 

 

 

CONSTRUCTION LENDING:
EXPERIENCE COUNTS

With over 40 years in the mortgage business, we’ve developed strong expertise in construction lending—one of the more complex areas of financing.

There are several common types:

• Ground-up construction – building a home on owned or newly acquired land
• Tear-down / rebuild – demolishing an existing structure and building new
• Home improvement – renovating or expanding a property
• Completion financing – funding to finish a project already underway

Completion financing can be especially challenging. Many lenders are cautious due to risks like mechanics liens, where unpaid contractors can place liens that may take priority over the lender.

As a result, these loans often require specialized title coverage, and not all lenders will participate.

The key takeaway: we know how to navigate these challenges and have identified solutions — even in complex situations. You are kindly invited to click this link to my weekly YouTube video.

Warm regards,

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