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

 

 

CAN YOU MANAGE STRESS?

Stress is a feeling of emotional and physical tension. It can be triggered by a variety of factors—some we can control, and others we can’t. What’s clear is that stress affects our well-being and our health.

I don’t know about you, but I’ve made the decision to reduce stress by eliminating negative sources of information. That’s one of the reasons I stopped reading newspapers or checking my phone while eating. Instead, I use mealtime as an opportunity to focus on what really matters—nurturing my body.

Likewise, instead of listening to the news while driving, I now listen to educational podcasts. One of my favorites features recordings of Jim Rohn, a motivational speaker who passed away in 2009. In the early days of my career, I listened to his cassette tapes during my commute. Recently, I was reminded of his simple morning routine in the program “Three Morning Moves.” He started his day with 30 minutes for himself, including 10 minutes of just being quiet.

That simple idea inspired me. I now begin my mornings with meditation—and I end my day the same way, using my book “Reflections” as a guide.

Another helpful insight came from Dr. Shi Heng Yi who pointed out that if we eat dinner right after coming home from work, we’re not just eating food—we’re consuming our stress. That idea led me to add a short meditation before dinner to transition from a hectic day to a peaceful meal.

All of this became possible once I decided that I want to live a stress-free life. It takes discipline, consistency, and building habits—but for me, it’s worth it. I want to live a long, healthy, and productive life.

If you’d like to follow my example, start by learning how to meditate. You can order “Reflections” on Amazon just by typing my name and then please call me after you get it,  and I’ll personally teach you how to begin.

Three images you can see above are from the book.

Share and care. Thank you.

 

 

Manny Kagan
(415) 225-7920

One of the biggest concerns many homeowners face when upgrading to a new home is: “How can I buy a new property without selling my current one first?”

This is a common dilemma, but the good news is that there are several practical solutions available.

Bridge Loans

Here’s how it works:

• The lender considers the equity in your current home and uses it to help fund the down payment for the new purchase.
• You can get approved for the full purchase price of the new property.
• Once your old home is sold, you use the proceeds to pay down the bridge loan or refinance it into a traditional mortgage.

Note: Bridge loans usually come with higher interest rates, so they work best when you are confident your current home will sell soon.

Buy With Cash or Savings (If Available)

If you already have enough savings for a down payment, or access to other liquid assets, some lenders may approve your new loan as long as:

• Your current home is listed for sale, and
• You can qualify for the new mortgage based on your income and assets.

This way, you can move into your new home without being forced to rush the sale of your existing property.

Which Option Is Right for You?

Not every solution fits every situation. That’s why it’s important to discuss your options with a professional who understands the local market and loan products available.

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

If you’re in this situation and not sure where to begin, I’d love to help you explore your options and guide you through the process.

Let’s talk and see what’s possible for you.

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

NMLS #205637
BRE #00874630

HOW TO SEE THE BEAUTY

The idea of seeing beauty has been embedded in human nature since the beginning of creation. In the Bible, we read that the woman “saw that the tree was good for food and a delight to the eyes” (Genesis 3:6). This early moment reveals an innate human ability to recognize beauty.

Interestingly, while beauty is present throughout Scripture, its opposite—”ugly”—is never mentioned. The word “ugly” did not even exist in biblical times. It entered the English language in the 13th century, borrowed from Scandinavian roots, where it originally meant “fearful.” This historical shift suggests that the concept of ugliness was introduced later, shaped by fear rather than truth.

Just as we are born with the senses of smell and touch, we are all born with the capacity to perceive beauty. We use phrases like “beautiful music,” “beautiful nature,” or even “a beautiful act,” recognizing that beauty is not limited to appearance—it is an experience that touches the heart and soul.

So why do some people seem unable to perceive beauty, and instead focus on what is broken, unpleasant, or fearful? It is said, “Beauty is in the eye of the beholder.” But perhaps beauty also lives in the heart—and a fearful heart may block the view. When fear, pain, or disconnection take hold, it can become difficult to see the beauty that surrounds us.

The Bible contains at least 20 different Greek and Hebrew words that are translated into English as “beauty” or “beautiful.” This rich vocabulary shows how important and multifaceted the idea of beauty is in sacred texts.

Let us choose to focus on beauty and open our hearts to it. Even the fallen leaves on the ground—dried, crumpled, and seemingly discarded—can reveal extraordinary beauty to those willing to see. Nature reminds us that beauty is not perfection; it is presence, as you can see in three colorful images “woven” into the text flow of this story.

If you like have permanent presence of the beauty in your home, please go to Amazon, type Manny Kagan and order my beautiful book Reflections. Thank you in advance.

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HOW TO BUY REAL ESTATE WITH LOW DOWN PAYMENT

Last week, I shared some insights on how to purchase a home with no down payment. While several programs are available to help make this possible, not everyone qualifies.

I’m currently working with clients who are purchasing a home they plan to live in. We explored a number of 100% financing options, but unfortunately, none of them worked in this case. Here’s why:

Credit Score Requirements: Most zero-down programs require a minimum credit score of 680. In this case, the clients had  score 679 —just below the threshold.

Income Limits: Some programs set a maximum income limit to qualify, which the clients exceeded.

Debt-to-Income (DTI) Ratios: Other options were disqualified due to strict qualifying ratios.

Loan Limits: There are also maximum loan limits set by agencies like Fannie Mae and FHA. In the area where the property is located, the loan limit is $685,000, which further narrowed the options.

The Solution: An Old-Fashioned FHA Loan

In the end, the most practical and accessible solution was an FHA loan. FHA loans require only a 3.5% down payment, offer competitive interest rates (in this case around 6% to 6.25%), and can include lender credits or seller contributions to cover closing costs.

Now, they are just negotiating the final sales price with the seller.

If you’re considering buying a home and are unsure how much you need for a down payment—or if you qualify for any low or no-down-payment programs—let’s talk. Every situation is unique, and there may be more options than you think.

Have questions? Call me anytime: (415) 225-7920 Let’s find the right loan for you! I promise to help! Meanwhile, click on this link watch and listen to my brief remarks on the subject and beyond.

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

NMLS #205637
DRE #00874630