HOW TO GIVE BIRTH TO A BOOK

Unless one has experienced it firsthand, it’s hard to truly grasp what it means to give birth. And yet, for me, the moment I hold a newly published book in my hands, I imagine it must feel something like that—a culmination of labor, love, and the miracle of creation.

My latest work, Reflections: The Healing Images™, is my tenth “child.” Just as every human child is unique, so is each of my books. They are deeply personal expressions of who I am—each one born of inspiration, nurtured through effort, and now released into the world. All of them are available on Amazon, placed there with the hope that they will find their way to those who need them.

But Reflections is unlike any of the books that came before it. It is not merely a collection of images or words. It is a tapestry of ancient wisdom—drawn from traditions that span over three thousand years—interwoven with my personal reflections and the delicate, powerful beauty of roses. These healing images are more than visual art. They are spiritual companions—designed to draw you into a meditative state that invites calm, clarity, and transformation.

The potential benefits are real: fewer headaches, reduced anxiety, deeper sleep, and an overall sense of peace. But for the healing process to begin, there must be an exchange—an offering of energy in return. In this case, that energy comes in the form of money, a symbolic investment in your own well-being.

So, I invite you: Buy this book and let it serve you for years to come, as both a source of beauty and a pathway to healing.

And while you consider that journey, enjoy these three rose images from Reflections. May they bring you a moment of quiet grace.

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With love and light,

BUYING AND RENOVATING YOUR DREAM HOME: A SMART FINANCING OPTION

Are you dreaming of owning a home that’s perfect for you, but needs a little TLC? You might be surprised to learn that there are specialized loan programs that can make your dream a reality. Unlike fix-and-flip programs, which are designed for investors looking to turn a profit, these programs are tailored for homeowners who want to buy and renovate a property to live in.

Imagine finding your perfect home for $800,000, but it needs some work. With a traditional loan, you might struggle to secure financing for the purchase price plus the cost of renovations. But with these special programs, lenders use the property’s value after renovations are complete to calculate the loan amount. So, if you spend $100,000 on improvements, the lender will consider the property’s new value to be $900,000.

With just 5% equity required after renovations, you could secure a loan of up to $855,000 (95% LTV). That’s a significant amount of financing available to help you create your dream home. We recently learned about this program from Scott Johnson of Towne Mortgage, who shared its benefits with Pacific Bay Financial team during our recent conference call. Whether you’re looking to update a fixer-upper or add some personality to a new build, this financing option could be the key to making your homeownership dreams a reality.

Who do you know that could benefit from that?  Send this information their way or call me: (415) 225-7920, or email to: mannykagan@comcast.net

Best wishes of good luck,

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

NMLS #205637
DRE #00874630

THE MOST COMMON LANGUAGE IN THE WORLD IS… NOT WHAT YOU THINK

“What’s the most common language in the world?” It’s a question that seems simple – until you actually try to answer it. Most people I ask instinctively say English, and that makes sense. On our recent cruise through Europe, my wife and I found ourselves surrounded by passengers from all over the globe. Despite the different accents and backgrounds, English was the thread that tied us all together – it was everyone’s second language, and yet somehow, the one that connected us.

But statistically speaking, Mandarin Chinese holds the top spot in terms of native speakers. English comes in third, even though it dominates in global communication, business, and travel. And then there’s a lesser-known contender: Esperanto – the world’s most widely spoken constructed international language. It was designed to bring people together, regardless of nationality. Around two million people speak Esperanto today.

I learned Esperanto as a teenager in Riga, Latvia, where I grew up. Back then, it felt like a secret code shared by dreamers who believed in unity. I remember just two phrases: “Homo kio esperas Esperanto estas Esperantisto.” (“A person who speaks Esperanto is an Esperantist.”) And my favorite: “Mi amas vi.” Any guesses? It means: “I love you.”

But here’s the twist: when it comes to the most commonly communicated language in the world, I’d argue it’s none of the above. It’s Love. It crosses borders, cultures, and dialects. It’s the glance between two people in Lisbon, the hand held tightly in Berlin, the kiss stolen on a bridge in Paris. During our travels, I had the joy of photographing three couples, each in a different country, each speaking the universal language – without saying a word.

If you’re looking for a little more love in your life, check out my new book “Reflections” – a collection of stories, moments, and yes, a few kisses. It’s available now at online stores. If it doesn’t meet your expectations, I’ll happily refund your money – and you can still keep the book or pass it along to someone you love.

MI AMAS VI!

I LOVE YOU!

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THERE’S GOOD NEWS!
You can now qualify for a mortgage based on your 1099 income only.

In 2023, nearly 2.2 million Californians — 11.5% of the workforce — reported being primarily self-employed. (Nationwide, it’s around 10%.) That’s a massive group of entrepreneurs, freelancers, and contractors — including real estate agents, consultants, creatives, and gig workers — who often face one major hurdle: qualifying for a mortgage. Why? Because traditional lenders rely on tax returns, which can be tricky for self-employed with lots of write-offs.

BUT THERE’S GOOD NEWS!

At a recent staff meeting at Pacific Bay Financial, Blanche Esteban of Clear Edge Lending shared an innovative solution from NON-QM lenders: 1099-Only Mortgage Qualification. That’s right — you can now qualify based only on your 1099 income, not your full tax return.

Click on this link to watch a six-minute video piece of Blanche’s presentation posted on my YouTube channel. Indeed, this is a big opportunity for contractors and others who aren’t traditional W-2 employees.

Who do you know that could benefit from that?

Send this information their way or call me: (415) 225-7920, or email to: mannykagan@comcast.net

Best wishes of good luck,

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

NMLS #205637
DRE #00874630

 

LET’S REMEMBER

While visiting Berlin recently with my wife, I found myself once again drawn into the quiet, persistent presence of history that lingers in the city’s streets. We were there to visit her brother and his family, a familiar trip we’ve made many times before. Yet, each time we walk through the neighborhoods, history seems to be whispering from beneath our feet.

Embedded in the sidewalks are small, brass plaques—Stolpersteine, or “stumbling stones”—bearing the names and fates of Holocaust victims. They’re easy to miss if you’re not looking for them, but once noticed, impossible to forget. Each plaque tells a story: the name of a person who once lived there, their birthdate, deportation, and, if known, the date of their death. A silent memorial, initiated by artist Günter Demnig in 1992, they number over 5,000 in Berlin alone.

As we paused by one such stone, my eyes drifted upward to a large sign on the wall above a doctor’s office. It marked the former home of Walter Serner, a writer who contributed to the expressionist journal Aktion. The sign read that Serner, a Jew, was deported to Riga and murdered…

…Riga. The name struck a deep, personal chord. I was born and raised in that city. There, on November 30 and December 8, 1941, no less than 25,000 Jews were murdered in the Rumbula forest. The massacre was executed by Nazis, aided by Latvian collaborators. Among those murdered were around 1,000 German Jews—perhaps including some of the very individuals memorialized on Berlin’s Stolpersteine. Today, in a post-war Germany where antisemitism is punishable by law, the contrast to that dark chapter is stark. Yet the past lives on in quiet reminders scattered throughout the cities.

Just days ago, on April 23–24, Israel held its Holocaust Remembrance Day—Yom HaShoah. Three weeks later, on May 14, the nation marked the anniversary of its independence declared in 1948. The memory of the Holocaust and the founding of Israel are threads in the same historical fabric. They are not separate stories but one deeply interconnected journey.

Standing in Berlin, beside a Stolperstein and beneath that plaque for Walter Serner, I asked myself: how many people walk by without noticing? How many pause long enough to remember? Then I saw them—two red roses laid gently by a plaque. No words. Just remembrance. Some things speak for themselves.

Let’s Remember, Care and Share!

BECOMING A MONEY ATTRACTOR

Money – or more accurately, having money—seems to drive just about everything in our lives. Yet, interestingly, I’ve never chased after it. Somehow, money always showed up when I needed it. So did the opportunities to do meaningful work that produced income. Still, my becoming what some call a “money magnet” didn’t happen overnight. It took me years to develop that mindset and relationship with money.

Years ago, I joined a coaching group – 250 top real estate and mortgage professionals from across the U.S. – led by a business coach who helped us focus on two key aspects of financial success:

• Aspect A – How to generate sales
• Aspect B – How to save money

To my coach’s surprise, I ended up having the highest savings rate in the group. There were two things about my approach that made the biggest difference:

1. Tracking every penny I spent – manually. I didn’t round up or skip over small expenses. Every cent mattered.
2. Paying myself first—putting aside at least 10% of my income before doing anything else with it.

That second point may sound familiar – it’s a time-tested savings method that’s been around for centuries.

Now, some of you might be arguing: “But shouldn’t I pay off my high-interest credit cards first?” Here’s a simple answer: You should only use your credit card if there’s money left after you’ve paid yourself. The key word here is budget. When you track your spending over several months, you start to see patterns. You realize that many expenses – things you thought were essential – can actually be eliminated or reduced. Yes, some costs are fixed, like your mortgage or rent. But others aren’t. You can lower your electricity or water bills, cancel subscriptions you no longer use, and adopt more mindful spending habits.

If you’re not sure where to start, I recommend watching YouTube videos from one of the world’s wealthiest and wisest investors – Warren Buffett. His advice is simple, timeless and incredibly practical.

Need assistance? Don’t hesitate to contact me – call (415) 225-7920, or email at mannykagan@comcast.net 

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

NMLS #205637
DRE #00874630

LESSONS I’VE LEARNED IN HAMBURG

After eleven days cruising from Lisbon to Hamburg, we’ve arrived at the final mooring: one of Germany’s three city-states and a place with a rich maritime legacy. Hamburg has been a major port for centuries, and it still feels like a global crossroads. I’ve met people from all over the world here—many of them speak English so fluently, you’d never guess it wasn’t their first language. In fact, I read that you can live here quite comfortably without ever speaking German.

But as vibrant and cosmopolitan as Hamburg is today, it carries the weight of a painful history. Just eighty-two years ago, during World War II, British and American forces bombed this beautiful city, destroying nearly three-quarters of its buildings and taking at least 37,000 lives. Thousands more were injured. It’s hard to imagine such destruction when walking through Hamburg’s peaceful streets now.

The same sense of contrast followed us throughout the cruise—whether in Portugal, Spain, France, or Germany. Each stop had its own scars from that war. And now, fittingly, as we prepare to travel to Berlin, our arrival will coincide with May 8th – Victory Day in Europe.

Eighty years later, Europe is still standing. Not only that—it’s standing together. Despite internal challenges, the continent speaks in a shared voice, often in the language of the very nations that once tore it apart.

History is full of cycles—conflict, rebuilding, peace, and hope. The devastation may feel overwhelming when you look at the numbers or read the accounts. But if Hamburg can rebuild, if Europe can unify, then maybe one day other regions, like Israel and Middle East, can, too. I hope so. I pray so. And I invite you to join me in hope and prayer.

Take a look at the three photos I placed inside this story. They show how old and new buildings coexist in Hamburg. If buildings can do it, why not people?

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WHAT IS PIGGYBACK?

Piggyback is the technique used in the mortgage business to accomplish very specific results when the first mortgage is combined with the second at line of credit. For example. I had a client who was buying a house for $1.9М. He only had 10% for the down payment. Since his loan amount was slightly over $1.7М, which is called jumbo, it had higher interest rate, required mortgage insurance, had a qualifying ratio of 43% and required 6-month reserves, which he did not have.

So, I divided it into two parts. The first mortgage of $1.2М was a conforming loan, hence it had lower interest rates and no mortgage insurance requirement. The remaining $500К was the second loan. It had a higher rate, but allowed combined qualifying ratio to go up to 49%, i.e. a lower income was needed to qualify, and there was no need for the reserves! That is how piggyback works.

Some clients use piggyback loans in anticipation of getting an extra money within short  period of time and the intention to pay the second loan off. We also arrange second loans and lines of credit up to 89.9%, but these serve a different purpose.

Need assistance? Don’t hesitate to contact me – call (415) 225-7920, or email at mannykagan@comcast.net 

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

NMLS #205637
DRE #00874630

CRUISING THROUGH LIFE

I had to check the date the other day (it was actually Wednesday, April 30) because I’ve completely lost all sense of time and space. We’re out in the Atlantic Ocean now, cruising and stopping at different ports in Europe aboard a ship run by Norwegian HX (formerly Hurtigruten).

This morning, we took a stroll through a tiny French town. I munched on a fresh baguette and sipped hot chocolate (honestly, I don’t even remember the town’s name). Back on the ship, I had a big salad for lunch and then took a nice, hour-long nap.

…Our journey started in Lisbon, Portugal (where I even interviewed the real real estate agent). Then we sailed to Porto, though it felt way too crowded for my taste. After that came Spain, including charming San Sebastián – a place we’d love to return to and explore more of. Yesterday we docked at a tiny fishing island off the coast of France, and tomorrow we’ll stop somewhere new (haven’t heard the name yet).

This whole voyage ends in Hamburg, Germany. During each stop, the guides often reminded us that just eighty years ago, these places were embroiled in bloody wars. Now, on this ship of 500 passengers, half of us are from various parts of Germany – and with the crew from Norway and the Philippines, basically everyone on board is chatting in English. In fact, there are people here from 23 countries.

Meanwhile, out in the world, things are pretty chaotic: wars in Ukraine and Gaza, an explosion at an Iranian port involving Chinese cargo, blackouts back in Portugal and Spain after we sailed away, a killing in Sweden, and elections happening in Canada. And through it all, mortgage interest rates stubbornly refuse to go down, and our office back home is as busy as ever.

All of this is going on while you and I are just cruising along – living our lives, encountering events (or “stops”) that we can only react to and talk about. It’s funny how it feels like life is one big cruise, isn’t it?

So, what’s my conclusion? I actually figured this out a while back after writing my book 42 Encounters with Dog Lovers – so much so that I put it on my business card. (If you don’t have the book or the card, feel free to ask for both just by sending an email to me). Here are the seven lessons I learned from Max, our beloved labradoodle:

• Life is a game.
• Life is short.
• Life is sharing love.
• Life is a journey.
• Life is making new friends.
• Life is a cycle.
• Life is learning.

I’ve picked out a few snapshots to share the expressions of love I’ve encountered along the way. You can find more stories in my book 42 Encounters with Love – I even had a reader who ordered ten copies for his whole team!

Care and share!

HOW TO BUY REAL ESTATE
WITHOUT REPORTED INCOME?

I recently helped a client secure a $1.5М cash-out loan based solely on his $6М investment account. This was made possible through an “asset depletion program.” Several lenders offer this program, which typically calculates qualifying income by dividing total assets by 60. However, one lender used a 36-month divisor, which significantly increases the calculated monthly income and makes it easier to qualify.

We discussed this program during our recent video presentation with Robin Kozelka from Acra Lending. She also introduced another option I wasn’t previously aware of: a mortgage based on remaining invested assets.

For example, if you have $1.5М in investments and are purchasing a property for the same amount, you could put down $500К. As long as you retain $1М in investments, the lender may offer a $1М mortgage—without requiring traditional income documentation to qualify.

Need assistance? Don’t hesitate to contact me – call (415) 225-7920, or email at mannykagan@comcast.net 

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

NMLS #205637
DRE #00874630