Manny Kagan

My Secret Revealed

Seek for seeds of victory in every defeat.”–Chinese Proverb

At the end of my last email, I wrote about our next trip to Cuba and invited you to join us. What has happened is that you received the draft before the final version–thus you discovered the secret of my “Good News” email production.

Usually, I pick up an idea or read about something that I think might interest you. Then I write it by hand on the back of recycled paper (to save trees). Sometimes, I do it after work at home, or in a coffee shop, or even when I get inspired on the napkins in restaurants. Sometimes, I rewrite it with more current ideas, especially related to mortgages. My assistant, Samantha, types out my scribbles, I check and make corrections, and it is emailed to my daughter Tamar who lives in L.A. She is a good writer and makes stylish grammar recommendations. Then, I choose photos to support the weekly theme. Samantha puts everything together and every Friday morning you are sent my “Good News”.

Since I wanted to bring your attention to our trip to Cuba, this gives me an opportunity to email you again with the corrected revision:

After browsing through the Smithsonian magazine, my wife Elfa, asked me if I want to go to Cuba again and I immediately said, “Yes!”, but it is pricey. I also remembered that awhile ago I saw a website talking about jazz trips to Cuba. On the web, I found cubaexplorer.com, an organization located in Vancouver, Canada that offers educational tours to Cuba and has many monthly trips including one for 9 days this year, on December 15-23. You can find more information at jazzcuba.com.

Will you join us? My list is growing. I already have 10 referrals and each has their significant other and friends. Let’s have fun together!

Now let’s talk about mortgages.

Let me share with you how we recently helped Rachel refinance her loan and the screw-ups we had to deal with. Mistakes are often a result of misinformation. Rachel worked for a non-profit organization that helps sick people whom she visits during the day. In 2010 and 2011, she was able to use her job related expenses to lower her taxable income by filing an IRS 2106 form. In 2012, she changed companies and her new employer reimburses her for the expenses, which then increases her take home income.

When we submitted her loan to a lender, it was turned down because of the “losses”–deductions based on the IRS 2103 in the previous two years. Her new paystub showed that she received reimbursements, but we did not yet have her 2012 tax returns. In my book, “The Mortgage Game: The 5 C’s and How to Connect Them”, I write that the mortgage industry lost the 6^th C–Common Sense. Knowing the problem, we discussed it with another bank and were assured that it would not be a problem. Guess what? The loan was declined again. We did not despair and since as mortgage brokers, we can work with many different banks, the loan was submitted to a third one–and this time it went through. I describe many stories and solutions like that in my new forthcoming book “Mortgage Solutions for Smart People: 5 Easy Ways to Get Your Loan Approved”.

P.S.

Someone asked me if there are many bicyclists in Havana. I did see and photographed a few but not as many as in some other countries. But there are many three-wheel, two seater taxis, pedaled by very friendly tricyclists.

P.P.S

I am not sure if you care very much, but I misspelled the name of the Venezuelan president, his name is Hugo Chavez. Since my email, he has returned to Cuba, and still has difficulty to talk; but, it was also reported that he requested his diplomats to seek the ways to improve the relationship with the United States.

Is Cuba next?

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Best Wishes,

Cuba, Cars, and Mortgages

“The slower you drive, the farther you get.”–Russian Proverb

Last week, I wrote about life in Cuba, which as I’ve noted, is “complicated”, as well as how getting loan approval in the U.S. can be complicated as well. By law, Cubans cannot buy a new car, or have a mortgage. There is a shortage of housing, and many people in Havana live in challenging conditions. Many families share old, beautiful, but dilapidated buildings, each occupying one room with very few amenities. This reminds me of the way we lived in Riga, Latvia during the former Soviet Union.

The majority of people work for government owned enterprises and are paid in local currency, the National Peso, which they can use in stores with limited supplies and empty shelves. There is also the Convertible Peso, known as the CUC and commonly referred to as “kooks, to tourists. The US Treasury department doesn’t allow Americans to buy anything in Cuba, but tourists from other countries do not have these restrictions. There are better stores, which sell products and merchandise in CUC, which are also used by foreigners in the hotels and restaurants. There are 24 pesos to a CUC. Our travel guide told us that her monthly salary is enough to buy food for a week. Thanks to the tips that she receives in CUCs, she can afford more.

Cubans also get subsidized vouchers for special rationing stores which exchange vouchers for meat, fish, and bags of rice. Hugo Shaves, president of Venezuela, who is currently hospitalized in Cuba, is considered a friend and benefactor. I photographed his poster in one of those stores. There is also a popular barter system. A ballpoint pen that a person might receive as a gift from a tourist, can be exchanged for something else, and after a number of transactions, that person might end up as a piece of chicken for dinner.

On the streets of Havana, one can see many newer cars that are owned by various government agencies, each with differently colored license plates to distinguish who is who, as well as old American ones, some in very good condition. Those cars are privately owned since they were purchased before 1959. They have yellow license plates and often serve as taxis. To get around, Cubans and tourists can hire a two-seater motorcar or rickshaw-like bicycles. The problem with owning a car in Cuba is the same as it was in the former Soviet Union–the lack of spare parts. In my book, “The Mortgage Game: The 5 C’s and How to Connect Them”, I wrote that car owners in the Soviet Union, as well as home owners in the US have two joys in their life–when they get a new car/mortgage and when they get rid of it.

Cubans are very clever at fixing those old beauties with parts from other cars. Cuban life can be really complicated. Seeing their challenges brings to mind the saying “One cries for the lack of shoes, until meeting the person who does not have legs.” If next time you want to complain about anything in your life, just find a group traveling to Cuba.

American car owners might have different problems. In my new e-book that I am currently writing, titled “Mortgage Solutions for Smart People: 5 Simple Ways to Get Your Loan”, I discuss an issue of how to lower high qualifying ratios.

Car payments, like student loans and mortgages are called installment debts and are part of the second qualifying ratio, and in most cases cannot exceed 45% of one’s income, which also includes other obligations resolving debts like credit card payments. What most borrowers do not realize, is that if the ratio is over 45%, the loan request is going to be declined. In my book, I offer different ways on how to improve the chances and at the loan approval, steps to eliminate a lot of unnecessary headaches. One piece of advice that I give–never co-sign for other people’s car loans, unless you are willing to make the monthly payments yourself. One of my clients learned this lesson the hard way. After the son of his girlfriend to whom he helped buy a car, missed two payments, my client’s credit score dropped over 50 points and I could not help him lower monthly payments by $250. Car owners’ life in the United States can be complicated as well.

P.S.

Before my trip to Cuba, a friend asked me to photograph American cars on my trip. You can see some of them in this email. Since I do not photograph objects but life on the street, these images might give you an additional view of Havana. When I have time to put together a website dedicated to Cuba, you will be able to see more images including more cars.

P.P.S.

A few days ago, we received the Smithsonian Travel Magazine in the mail. They offer many great trips including a new one to Cuba. We met tourists at our hotel who were visiting Havana on a National Geographic Tour. Our trip through the Santa Fe Photographic Workshop was the best way to travel to Cuba for those interested in photography. (The one in April is sold-out.) The cost of those three companies (including a flight from Miami, FL) varies between about $4,000 to $6,500 per person.

After browsing through the Smithsonian magazine, my wife Elfa, asked me if I want to go to Cuba again and I immediately said, “Yes!”, but it is pricey. I also remembered about the website talking about Cuba and jazz trips. On the web, I found cubaexplorer.com, an organization located in Vancouver, Canada that offers “Cuba Educational Tours” and has many monthly trips including one for 9 days on December 15-23, as part of the Havana Jazz Festival. The cost (including air fare from Cancun, Mexico) can be about $2,100 per person. Check out jazzcuba.com.

We Are Going.

I joined their Club Cubano and for each referred guest, they offer $150 discount. After 10 of my friends will join, my daughter can come for free. When we will have a group of 25, we can have our own bus and travel together. Are you joining us?

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Best Wishes,

What Cuba and The Mortgage Business Have in Common

“I am not a has-been. I am a will be.”–Lauren Becall

I am writing this newsletter at the airport in Havana, Cuba. We spent one week here on the “People to People cultural exchange trip” organized by The Santa Fe Photographic Workshops. I’ve taken classes with them before, but this was a different experience.

A group of about 25 Americans, amateur photographers, traveled to Cuba to meet local people, experience life in a country which has a U.S. embargo since 1960, and to interact with local photographers. Usually after any trip, travelers asked if they would come back.

For me, the answer is a definite “YES”.

We met some of the participants who’ve been back every year. One woman in the group was there on her sixth trip to Cuba. Because of the embargo, American visitors can only visit in organized groups under a special one-year license issued by the Treasury department; unless one wants to violate laws and sneak in through Mexico or Canada. Because each airline has to report each passenger, the fines can become costly if one gets caught. Because the rest of the world does not have any restrictions for travels to Cuba, our hotel was filled with tourists from all over the world.

I can write a book about my impressions, thoughts, and feelings about Cuba, and share photos out of about 4500 images that I took there. But for the sake of the brevity of this email, I will just stick to a few stories, which I will spread out in some of my next week’s writing.

Before going on the trip, we received a letter describing what we can bring along. We were also advised to have presents to give away on the streets while taking photos, and to leave some old clothing in the hotel after our departure. We collected soaps brought from other trips; tooth brushes received from visits to the dentist, bought crayons, and grabbed extra lollipops from the neighborhood bank.Phil Wiseman contributed over 20 pens left over from his clients. At the end, we had a substantial bag with the stuff.

Our first story started in the San Francisco airport. My suitcase was two pounds overweight, which would have cost an extra $100 to check on, in addition to the $25 charge. So, I took the gift bag out and stuffed it into my camera bag, which thankfully solved the problem.

The group met and stayed in Miami for one night before our trip, where we received an overview of our itinerary and some instructions on how to manage our stay. This is where we heard the words of wisdom from our trip leader.

Remember he said, “It is Cuba. It is complicated.”

After only a few days in Havana, while encountering a glimpse of local life, it suddenly dawned on me. The only way to explain what is going on in my business is just to say, “It is the Mortgage business. It is complicated.” It also seems that the complication is due to the fact that the government for “the benefit” of the people controls Cuba as well as the Mortgage business. Cubans do not have a choice…do we?

At the end of our trip, a group of us got together to talk about what was the biggest impression from the trip, and everyone had the same answer–the people: friendly, beautiful, and very poor. Some asked for a dollar after posing for a photograph and after receiving a small gift, were very grateful. Many spoke in English and after finding out that we were from San Francisco, California, would happily exclaim, “America!” and showed thumbs up. They would add “We love you!”

Cuba’s history is full of complicated events. From 1790 to 1880, it was a distribution center for the slave trade to America. Havana was a cultural center and has a lot of beautiful buildings, most of which are now dilapidated.

After the collapse of the Soviet Union in 1991, which according to our travel guide was “breast feeding” Cubans, by subsidizing the sugar cane trade, there was literally a famine for four years. Today, Cuba’s economy depends on tourism and help from Venezuela. Cuba has oil refineries, which process Venezuelan oil, Canadians built an airport in Havana, with high-end hotels and restaurants owned jointly by the Cuban government and business men from Spain. China supplies Cuba with many products, including cars and there are 2500 Chinese who study Spanish in Cuba. Cuba and the United States are only 90 miles and a 45-minute flight apart. Through the years, many Cubans have managed to cross over. I believe that soon more people from the United States will be able to go the other direction without restrictions.

P.S.

Next week, I will share with you more of my encounters in Cuba and why there are so many old American cars over there. At the end of our trip, I had to choose four of my images for the group show. It was challenging to choose from all of the snaps that I took. Here they are. You be the judge, and please let me know your impressions.

P.P.S.

While I was travelling, my office staff was finding solutions and closing loans for my clients. Upon my return, I was very happy to set up an appointment with a new client the first day back in the office.

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Best Wishes,

I Love You

“Being deeply loved by someone gives you strength, while loving someone deeply gives you courage.”–Lao Tzu

Next week on February 14^th, widely known as Valentine’s Day, is the busiest day of the year for the flower business. It seems that everyone suddenly remembers that there are people in our lives to whom we can express our love. What about the rest of the year?

Flowers grow year-round and candies come in forms other than heart-shaped red boxes. When I grew up in Riga, Latvia, we celebrated “Women’s Day” on March 8^th. I remember being about 7 or 8 years young when I saved up 3 rubles, which was enough to buy my mom a chocolate bar (of my favorite brand of course) as an expression of my love.

Now that I’m a little bit older, I feel that every time I help someone get a new mortgage and save them a lot of money, or help someone move into their new home, is the greatest expression of my love to people with whom I rarely have the opportunity to be together with. I do not want to wait for the exact day on the calendar–I’m telling you today, “I LOVE YOU.”

My daughter, Tamar, who edits all my writing suggested to include“10 Things You Might Know About Love” article to this week’s newsletter.

In our culture, the word “love” is widely used. Brian Weiss wrote a very interesting book, “Only Love is Real”. This is actually a sequel to his first book, “Many Lives Many Masters”, which describes his encounters with reincarnation.

I am currently reading a book by Dr. Joe Vitale and Dr. Ihaleakala Hew Len titled “Zero Limits: The Hawaiian System for Wealth, Health, and More”. It describes an experience of Dr. Hew Len curing insane criminals by the process of cleansing and utilizing the words “Thank you, I am sorry, please forgive me, I love you”. In Hawaiian, this process is called “ho’oponopono”. One needs to read the book to realize the power of those four phrases. But just saying, “I love you”, to people you are surrounded by, can change the world.

P.S.

I am back from Cuba and will give you a report next week. Meanwhile, I am giving my roses to you together with my love. Like people, all flowers are different. And like people, a little touch of love can create different feelings.

P.P.S.

If you want to give someone a special gift or a nice flower arrangement, please call my friend Phil Wiseman from UPP. He is very creative and can satisfy any budget. He can be reached at (415) 817-1057. If your friends feel that they cannot afford his services, it means that they need to refinance their mortgage to free extra money to say, “I Love You” to someone very special. For a sample, please make sure to check out his specials here or visit his website for more information.

(click to enlarge)

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Best Wishes,

You Exceeded My Expectations

“If you paint in your mind a picture of bright and happy expectations, you put yourself into a condition conducive to your goal.”–Norman Vincent Peale

Last week, I wrote about the challenges of getting loans for non-owner occupied investment properties. But as always, there is light within the darkness. Somehow, we can always find creative solutions.

Dr. Dan is a dentist who was referred to me by my friend who is his patient. He came to my office very well prepared with all the necessary documents. His middle credit score was 815 (this is excellent) and he has a good income. Besides his own residence, he owns a second home and two rental properties. He is a typical middle class professional, who can easily handle his mortgage payments.

His objective was to lower his monthly payments by about $300/month. First I showed him that he can get savings of about $370/month, just by getting a 3.50% fixed rate loan with no out of pocket closing costs for his home. He was very happy, but I suggested taking a look at his other properties. At the beginning, he was reluctant. But after I compared myself to a good dentist, who not only fixes one tooth, but also examines the whole mouth, he accepted my suggestions.

After reviewing the monthly payments on all of his properties, I offered to increase his loan amount on his house to $417,000 and get a cash-out of about $120,000. Then I suggested refinancing his rental property with the maximum of $50,000 cash out limited to 75% loan to value. After that, he would combine both amounts and pay off a loan of $165,000 on his second home. As a result, this mortgage payment on his residence would only be $200/month higher, but his rental property would be $100/month lower. After paying off the mortgage on his second home, it would be free and clear with an overall savings of about $1200/month. If he would apply this amount to the mortgage payment, he could have his own home free and clear after 14 years.

Dan’s response was, “You exceeded my expectations.”

As it happened on the same day, one of our new agents brought a loan where the client wanted to refinance a $130,000 loan. He owned six properties, which created a limitation (only a few lenders can lend up to 10 properties).

When I analyzed his entire portfolio, I offered a completely different approach–to consolidate all the mortgages into two. One for the owner occupied home for $417,000 at 3.500% and another for $230,000 for his single-family rental property at 3. 75%. By doing that, four properties will not have any mortgage and the overall savings on the monthly payments would be $1,413.

How impressive is that?

P.S.

By the time you read this email, I will be in Havana, Cuba with my wife and a group of photographers. To improve my photographic skills, every year I take a week off to attend different photo workshops. This year will be a completely different experience.

Americans can go to Cuba on a cultural exchange or through other countries, and this will be my first trip there. So far, most of the images I have shared with you were without people, and I’ve mentioned that I do not specialize in any particular photographic field. This is only partially true; I love to photograph people, and not only when I travel. As a matter of fact, my photo exhibition titled “French Baguette” is still on the walls of the restaurant Chouchou. You can see more of my older images atMannyKagan.SmugMug.com

The images you see today were taken recently in the Britex fabric store in San Francisco, when I accompanied my wife to buy some fabric.

Please let me know which one is your favorite. You will see images from Cuba upon my return.

Special thanks to Douglas Davis (pictured above) and the rest atBritex Fabric. Please make sure to visit Britex!

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Best Wishes,

Rules for Lenders Relaxed

“A man’s treatment of money is the most decisive test of his character–how he makes it and how he spends it.“–James Moffatt

(Image 1)

When I saw this title in The Wall Street Journal article on January 7^th, I got excited. It is about time for regulators to release their grip on lenders. But my joy was premature. The actual story was about a meeting in Basel, Switzerland. There, global banking regulators succumbed to the banks’ pressure and eased the “liquidity coverage ratio”. In other words, banks can keep less money in reserves since they need as much capital as possible to make risky investments to generate hefty profits.

After the global financial meltdown was caused by the reckless activities of banks and large financial institutions, the pendulum has swung in the other direction. It seems that the concern about the banks’ lack of capital liquidity became an international issue. After reading the article, I thought that this ruling had very little to do with you and me, but then I changed my mind.

As I mentioned before, I am in the middle of writing the sequel to“The Mortgage Game”. The title of my new book is going to be“Mortgage Solutions for Smart People: 5 Simple Ways to Get Your Loan Approved”. In my book, I write about the ways to increase the probability of getting a mortgage by improving each of the 5 C’s. One of the “C’s” is Capital.

While researching for materials, I came across a good book–“The Smartest Way ™ to Save: Why You Can’t Hang on to Money and What to Do About It.” by Samuel K. Freshman and Heidi E. Clingen. While reading the book, I realized that the Banks’ lack of capital liquidity has a great deal to do with all of us. It is a reminder that for many borrowers the lack of liquidity or “Capital” has caused a lot of problems while attempting to get a loan approved.

(Image 2)

The only difference is that there is only one regulator for each of us and this person is looking at you in the mirror. In my new book, I will give specific solutions for each of the “C’s”.

In our consumer society, where government keeps interest rates artificially low, to enable homeowners to refinance and to spend more, it is difficult to save and build the liquidity necessary to survive the challenges of home ownership.

In his book, Mr. Freshman points out, “It is not your income that makes you rich–it’s your savings habits.” The book has many ideas and suggestions on how to save and manage money. One of the suggestions in the book is to hire a coach or have an accountability partner to help to develop “savings habits”. While I will strongly recommend buying the book to all my clients, if you think you need a coach, Kathryn Amenta, I wrote about before, can be the right person. She may be reached at 415.333.6972, email, or website.

(Image 3)P.S.

We celebrated my 66^th birthday in Los Angeles with both of our daughters last weekend. Our eldest daughter, Alona, flew in from Paris. As always, I combined business with pleasure. It was a fun weekend meeting friends and clients.

One of my new clients–a well-known doctor–had a setback in his life. He is trying to refinance his jumbo mortgage and the main obstacle–if you can guess it–is personal cash liquidity. He told me about his friend–a famous actor who lost his house in a foreclosure for the same reason.

Unfortunately, this person is not alone. In my view, every foreclosure can be avoided if borrowers just had money for a rainy day. You know what to do, “Just do it”.

P.P.S

In the photo poll last week, the winner was Image #2.

This week I continue our photo game with a small quiz.

#1–Which image do you like?

#2–Where was this photo taken?

a) Carpathian mountains

b) Near Los Angeles

c) Patagonia in Argentina

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Best Wishes,

Can Interest Rates Go Even Lower?

“A wise man will make more opportunities than he finds.“–Sir Francis Bacon

(Sun rise at The Sea Ranch // Image 1)

We were at dinner with friends whose mortgage I refinanced six months ago. Before leaving for dinner, I checked if the interest rates were low enough to justify another no cost refinancing, and they were. They could lower their monthly payments by another $107/month.

When I shared the exciting news with them, the wife asked me the question–“Can the rates go down even lower?”

We could have asked the same question six months ago, but who knew? According to a recent article in the Wall Street Journal, the interest rates could be lower at the present. However, big banks who control interest rates keep them higher, to make more profits. Since overall interest rates are quite low, no one complains. To stimulate the economy, the Federal Reserve continues to buy Fannie Mae mortgages in the rate of 40 billion a month. As long as banks continue to make huge profits and consumers have extra cash every month by refinancing, why lower interest rates even more? Actually, rates started to go up in the first week of 2013, possibly as a result of the good feeling from averting the “fiscal cliff”. Refinancing has become “a big business”. Why else would the article, Refi, Save, Repeat be in the San Francisco Chronicle‘s Business Report Section?

I stopped being surprised, but many of our clients actually do not refinance their mortgage to lower their interest rates. They are either saboteurs who do not want to help the economy, procrastinators who do not want to deal with all the extra paper work, or own shares of the banks whom they are making higher payments to.

Can you come up with another reason why some of my clients, whom I contacted and emailed loan applications to, do not even respond to my emails? How would you react if your favorite Bank/Lender sent you a letter asking to pay them $100, $200, $300, or even more every month? But this is exactly what those who wait for the interest rates to go down even lower do. Please do not wait. Remember “a small bird in the hand…“?

(Sun rise at The Sea Ranch // Image 2)

P.S.

On January 13, I can no longer pretend that I am dyslexic. In 2012, when someone asked my age, I would say that I was 56. Now just one year later, I am turning 66. When people ask me when I plan to retire, I suggest that they should stick around for another 30 years. I actually want to follow the example of Irving Kahn—who at 107 is still a stock picker.

A client told me that when her father turned 99 and was asked his age, he would claim that he was 66. Apparently, dyslexia can be contagious.

So much to do, so little time.

As I’ve mentioned in my last email, I started writing a new book–a sequel to “The Mortgage Game: The 5 C’s and How to Connect Them”. A few copies of which can still be purchased online. I will keep you posted on the development.

Since some of you have expressed that you like my photos, I decided to show you how modern technology can help improve images to make them more interesting. Please email me and let me know which version most appeals to you–Image 1, Image 2, or Image 3.

(Sun rise at The Sea Ranch // Image 3)

And as always, please do not forget–

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Best Wishes,

The Possibility of Impossibility

“Dream no small dreams for they have no power to move the hearts of men.”–Johann Wolfgang Von Goethe

(Birds at The Sea Ranch)Happy New Year Dear Friends!

It is the morning of December 31^st, 2012. We are staying at The Sea Ranch. The house we rented is located on a bluff, a short distance from the ocean.

When we arrived here in the afternoon a few days ago, the sky was grey, it was drizzling rain, and a strong wind was blowing my umbrella away when I tried to walk along the bluff.

It was impossible at the moment to imagine that the next morning everything would change. In our bedroom, the window shades were broken and wouldn’t go down, so we woke up the following morning to see a pink sky.

Most “normal” people would stay in bed, just to enjoy the view and being on vacation, to linger in the bed a little bit longer. But for a photographer, this pink sky offered a possibility and here I was in my pajamas on the deck in the freezing morning air clicking yet another sunrise moment.

When I spoke with my daughter Tamar that night, after coming back from the bluff with another trophy of the most gorgeous sunset, she asked me, “You’re not tired of photographing all those sunsets and sunrises again and again?” “But they are beautiful,” I responded. “Yes, but why photograph them all the time?” she said. I think I do it to preserve the memory of the moment.

(Sunset // The Sea Ranch)

Men had to discover and improve the ability to “draw with light”–this is what photography means, not to create artistic masterpieces, but to record events, memories, and yes…the beauty that we are surrounded by.

And I am blessed to have the sensitivity and good tools to do it. Speaking of tools and the possibility to record photo images, this morning, the pink skyline jolted me out of bed again. I grabbed my fancy “professional” camera with a very good long lens attached to it and ran to the deck again, only to realize that I needed a different lens. Since the intensity of the light does not last long, I took out my pocket camera instead, and here you can see the result.

(Sunrise // The Sea Ranch)

It takes about three hours to drive to The Sea Ranch from San Francisco, especially if one stops for a cup of coffee or hot chocolate in my case, on the way.

To make the journey more palatable, we borrow audio books from the library. On this trip, we listened to “The Apothecary” by Maile Meloy. We thought it to be a suspense story. It is, but as it turns out, for teenagers, in the likes of a Harry Potter-type book. It is about three fourteen year olds trying to find the father of one of the boys–the Apothecary (a pharmacist in American English), who turns out to be an Alchemist.

At one moment to escape from the pursuer, they drink a magic potion and become birds to defy skepticism and disbelief of the possibility that the body can change form and actually fly away as a bird. Adults could not comprehend where they disappeared and only a little girl said that they became birds to everyone’s dismissal. Of course most of us would say that this is only possible in children’s’ books. Sure, for most of the human history, the speed of travel was equated to the speed of the fastest horse.

Last week when I wrote about making time to dream, I mentioned Darren Hardy’s book, “The Compound Effect”. It is not only inspirational; but also, a guide how to create the Possible from the Impossible in our lives, which I intend to follow.

A few years ago in a “life transformational” event I participated in, I wrote down that I will write 5 books. At that time, I did not see a possibility on how to even start, and why 5? By now as I am almost finished writing my second book, I realize that’s how the possibility works. When we find the answer to why we want to do something, the “how” comes along. In my new book: “Mortgage Solutions for Smart People: 5 Simple Steps to Get Your Mortgage Approved”, I explain my reasons for why.

Someone asked me how do I have time to work and write, and do all of the things that I do? My secret is that what I do – help clients get mortgages, over 9 to 10 hours/day, five days a week, I do not consider work. I help people to better their lives. For my writing and photography, I have evenings, weekends, and of course when we go away.

As far as the mortgage business is concerned, I see the possibility to double the number of people I can help in 2013. We have a good process to help me and there is a very good possibility that interest rates will continue to stay low, while real estate prices will rise, and more people will have jobs to qualify for a mortgage. And of course there is the possibility that you will share this message with all of your friends.

Please do not forget to say a few good words about my services and suggest that they read “The Mortgage Game: The 5 C’s and How to Connect Them”.

P.S.

The beginning of this year coincides with a weekly portion in the Torah, which describes the events which led to the Exodus of the Hebrew Slaves from Egypt. There is a famous part when Moses sees the burning bush in the desert and hears the voice of God, who tells him to go back to Egypt and lead his people out. He asks God, “But what should I tell them is your name?” God answers ,”My name is “I Shall Be, as I Shall Be.” (Exodus 3/14)\. Personally for me, this translates perfectly into “The Possibility of Impossibility”, because this is how Moses overcame his own limitations and with God’s help created the Possibility of Impossibility.

Create The Possibility for a Great Year and Share it with your friends.

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Best Wishes,

“For last year’s words belong to last year’s language and next year’s words await another voice. And to make an end is to make a little beginning.”–T.S. Eliot, “Little Gidding”

As the New Year approaches it is time to ask ourselves: “What would I like to happen in 2013? How was the previous year for you and your family? What would you like to change?” As the saying goes, “Out with the old, in with the new” (this is especially prudent for many of us, if we have a look in our closets).

I had a conversation with an old friend at a birthday party a few days ago, and I asked him:

“What would you like to happen in your business in the New Year?”

He got quiet and responded: “Is that a very good question? How about your life and business?”

What we want, usually starts with a Dream.

After being around for almost 66 years, I have learned a thing or two from many different teachers, which I summarized into a formula of 5 D’s to accomplish my desired results in life.

Dream + Drive + Demand + Discipline = Desired Life

I followed this formula at the end of 2011 when I decided to write a book, which had been my Dream for a number of years. I actually only started writing, when my Dream became a Drive (the reasons were to create a marketing tool to ensure the continuation of my business). This led to the Demand of scheduling free time in my busy life. I was able to accomplish this by having the Discipline to write every evening. The result is my first published book, “The Mortgage Game. The Five C’s and How to Connect Them,”that came out in November 2012, exactly one year later.

The key is to ask the question: “How can others benefit from my Dream?”

When you have your answer, the Universe will help you to fulfill it. Since I developed the Discipline for writing, I have continued the process and my Dream for 2013 is to write another book, as a companion to the first one. I am working on this project every day and expect to finish by my birthday, January 13th.

I will keep you posted. But first please read “The Mortgage Game. The Five C’s and How to Connect Them”. Do you have time to Dream (or read books)? Please follow my formula, and report your results!

If your Dream is to improve your cash flow, developing a Discipline can help you get a Desired mortgage and many other things in life. Most of us need a coach or accountability partner to get specific results (For my book, I had my editor).

My good friend and a client Kathryn Amenta is just the right person to do that. She is a Financial Adviser, who coaches and helps her clients save more and spend less. As I pointed out in my e-mail last week, borrowers need to have cash reserves in order to qualify for a Jumbo loan. I’m currently reading (and listening to) Darren Hardy’s book “The Compound Effect.” Darren is the editor of “Success” magazine and one of the stories he relates is about how he taught his associate to save 10% a month instead of giving her a raise. As a result, she became a wealthy woman. If you need help, call Kathryn Amenta @415-333-6972.

Recently Kathryn referred me her clients with whom she has been working for almost a year. In spite of their high income, they did not have enough savings to pay off their line of credit (L/C). To enable for me to lower their mortgage from 6.75% to 3.75% with a savings of $1,300/month, I suggested that they request a short term loan from their family members, for which they would pay 3.5%, the rate of their current L/C. In turn, they could use their monthly payments savings to pay off the private loan. My new book will offer my readers practical solutions like this one, and many others.
Share my book with five of your friends, I guarantee they will be grateful.

Below is a comment I recently received:

“Manny Kagan’s The Mortgage Game is one of the best outlines of the mortgage industry to read it before applying for a loan”. – Samuel K. Freshman (Author of “The Smartest Way to Save & President, Standard Management Company).

I wish you a Happy, Prosperous, and Joyful New Year!P.S.

To work on my dreams this year we are going to what, according to my wife, is the best place in the world – “The Sea Ranch”. We rented a house and will stay there for four days through the New Year. I will continue to write and Dream about other events in my life. I will report the results of my revelations to you in my future writings. Meanwhile, please enjoy some of the images from our previous trips to The Sea Ranch.

(Low Tide at The Sea Ranch)

(Abalone Divers at The Sea Ranch)

(Dogs on the beach at The Sea Ranch)

(All images by Manny Kagan)

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Best Wishes,

What Jets, Shrimp, and Mortgages Have in Common

“Christmas gift suggestions: To your enemy, forgiveness. To an opponent, tolerance. To a friend, your heart. To a customer, service. To all, charity. To every child, a good example. To yourself, respect.”–Oren Arnold

(Image via Manny Kagan: Approaching San Francisco Airport)

The answer might surprise you, but in spite of the huge apparent difference they can all be called “Jumbo”.

When I fly across the country on a Jumbo jet, I always have my camera with me. These two images were selected from many photos I have taken throughout the years in the air and on the ground.

(Image via Manny Kagan: Landing in a snow storm in New York)

Jumbo Shrimp is of course an oxymoron.

Jumbo mortgages are loans over $625,000. They are primarily offered by portfolio lenders and have different underwriting guidance. But here is where the confusion creeps in.

In terms of the terminology, loans up to $417,000 for single-family residence (SFR) are conforming; for 2 to 4 unit properties limits arehigher. And if the property is in Alaska or Hawaii, the limits are different again. Loan limits from $417,000 to $625,000, with their own scale of limits for 2 to 4 units, can appear under different names–some are called “Jumbo Conforming”. Then there are FHA loans which can go up to $729,750 for SFR and even higher for 2 to 4 Units. Loans for units have higher interest rates and some additional restrictions. The same goes for Jumbo Conforming, while real jumbos have completely different structures. You can borrow up to $5 million with limited LTV.

All jumbos have a reserve requirement, but the amount varies between lenders. Sometimes borrowers pay the balance down to get to a conforming limit, or we break the loan into “first” and “line of credit” (L/C) to get a better interest rate.

We are currently helping clients with quite a few jumbos. The amounts vary from $675,000 to $1,500,000 and every client has different preferences. I am sure you have a few friends who could use my help to get them Jumbo mortgages.

P.S.

The holiday season is upon us!

(Image via Manny Kagan: One source can bring a lot of light)

When I wrote last week’s email, my daughter Tamar asked why I did not write about Chanukah. One of the reasons was that I did not have an appropriate image to illustrate it. I wanted to photograph all eight lit candles, which was only possible on Saturday, the last night of Chanukah. (Actually, there are nine, but the one in the center, called “Shamash” or “attendant” is there to light the other candles). The holiday of Chanukah, and the tradition to light eight lights (in ancient times, they were olive oil lamps) commemorates events that happened in the 2^nd Century BC. The nine-branched Menorah or hanukiahcomes in different shapes and forms. However, there is only one very clear message. One light (one day) at a time, with the help of others, can illuminate our lives for many, many days and years.

And since Christmas is next week and you can light all the lights at once on the Christmas tree, I included an image that I photographed from Macy’s with my iphone last week.

(Image via Manny Kagan: Union Square, San Francisco)

HAPPY HOLIDAYS!

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Best Wishes,

Category: Manny Kagan

My Secret Revealed

Cuba, Cars, and Mortgages

What Cuba and The Mortgage Business Have in Common

I Love You

You Exceeded My Expectations

Rules for Lenders Relaxed

Can Interest Rates Go Even Lower?

The Possibility of Impossibility

Do You Have Time to Dream?

What Jets, Shrimp, and Mortgages Have in Common