Manny Kagan

Mortgage Solutions for You

*Divorce settlement special. Cash-out is usually up to 60% LTV. Interest rates are subject to change without notice and do not constitute a commitment to make any loan at any specific rate.

A couple was going through a divorce where a husband wanted to keep the house. They agreed that the value of their home was $800,000. The current mortgage had a balance of $350,000.

To enable him to keep the property, he had to give his ex-wife his share of the difference or $225,000. As a result, his new loan was $575,000 or 72% LTV. For most of the lenders, this transaction is called a “cash-out refinancing”. This triggers an increase in the rate and limits the LTV to 60%.

We found a different solution.

Our lender did not consider it as a cash-out because of the divorce and we were able to close the loan with a low 30 year fixed rate.

To help couples find tailored mortgage solutions, please contact Manny Kagan.

Whom do you know that might benefit from our tailored mortgage solutions?

Do not keep me as a secret.

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Can You Afford To Retire?

“Retirement is not a physical act, but rather a mental state. ”

Next week on March 11^th, two financial experts (Larry Weiss CFP®, CPA, and Kathryn Amenta,Financial Advisor) and I, will conduct a seminar, “How to Retire Within Your Comfort Zone”.

What prompted me to bring the subject of retirement to your attention was a conversation we had with Peter Karp, who is doing a very good job managing our retirement account. Peter shared some good news with me: “You are not ready to retire. You need to generate revenue for at least two more years.”

I call it “good news”, since I am not planning to retire for another 30 years. Not only that, but I am not even planning to slow down. I would rather start building what I call a “start-up”.

Who said that only young people can do it?

Sure, I do not have their energy anymore, but I have something more valuable—wisdom about how to enjoy my life while doing it. I call my new idea “We R Village”. I will write more about it as we progress.

In my work, I see the whole financial picture of our clients. Not many are ready to retire, even when after working for many years for the same institution, they are laid off. Only a few companies offer pensions nowadays, and it is usually not enough. Real estate properties often become a source to supplement retirement income, if they have enough equity. Some homeowners choose reverse mortgages.

I had a conversation recently with a friend who will retire after working for a major bank for 40 years. Her 401K plan has a significant amount of savings as a result of matched contribution throughout the years. She told me that younger employees are opting out and not participating in this opportunity. They want to have money—NOW! What will they do years later?

Do not get caught! It is never too late to get yourself ready. Look at me!

Hope to see you at the event!

EVENT INFORMATION:

Date: March 11th, 2014
Time: 6:30 pm to 8:30pm
Where: 33 Arroyo Drive, South San Francisco, CA 94080
What: Retirement Seminar

Click here to reserve your seat today!

Call 415-794-4360

(Click to enlarge)

P.S.

In Havana, I met some men, who looked like they were in their retirement age, that either continue to work, or just enjoy life.

DO NOT KEEP ME AS A SECRET.

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Meet Up with Manny!

Meet up with Manny and his friends for a night of sharing common interests and ideas. You will have the opportunity to meet people with common real estate interests who own or want to buy commercial or apartment buildings, share, or address any ideas and concerns.

This month’s Meet up event will take place on:

March 13th at 2345 24th Ave, San Francisco, CA 94116, from 6:30-8:30pm.

Our special guest speaker, Lawrence Souza, will present on “Managing Real Estate Portfolio Risks”.

Lawrence Souza has over 23 years of experience in institutional real estate and securities strategic research. He is a real estate and financial professional, professor, economist, advisor and broker. Mr. Souza has undergraduate and graduate degrees in political science, public administration, economics, finance, and information systems; is an adjunct professor at University of San Francisco, San Francisco State University, and Golden Gate University; and is a registered representative and investment advisor.

Interested? Let’s meet up!

Please spread the word and remember to RSVP.

Looking forward to seeing you on March 13th!

MEET UP DETAILS:

Date: Thursday: March 13, 2014
Address: 2345 24th Ave, San Francisco, CA 94116
Time: 6:30pm to 8:30pm

RSVP on Meetup.com:
http://www.meetup.com/Bay-Area-Commercial-Real-Estate-Financing/events/169662052/

See you soon,

Retirement Seminar

Do you want to retire?

Or are you just not ready?

Ready or not, learn to do it with style.

Join me and two other experts (Larry Weiss CFP®, CPA, and Kathryn Amenta,Financial Advisor) as we share our personal experiences.

Please invite your friends!

(click to enlarge)

MEETING DETAILS:

Date: March 11th, 2014
Time: 6:30 pm to 8:30pm
Where: 33 Arroyo Drive, South San Francisco, CA 94080
What: Retirement Seminar

Click here to reserve your seat today!

Call us at 415-794-4360

map

Cheers,

*Interest rates are subject to change without notice and do not constitute a commitment to make any loan at any specific rate.

A contractor was looking for a lot in San Francisco to build a house for sale. The seller needed a quick close. We were able to arrange financing and close in 30 days.

Whom do you know that might benefit from our tailored mortgage solutions?

Do not keep me as a secret.

SMILE AND PLEASE SHARE IT WITH A FRIEND

Please remember to LIKE us on Facebook for additional information!

Do You Have Faith?

“Plant seeds of opportunity and help them grow.”

I’ve been wanting to write about the subject of faith for a while. Not the faith for some deity or certain religious traditions, but rather faith in life. The kind of knowing that regardless of what happens; everything will turn out all right.

I do have this faith—and my life is the proof.

If you read my first book, “The Mortgage Game: The 5 C’s and How to Connect Them”, you know that I had many ups and downs in my life.

After working with us for over 20 years, two of our top producers decided to leave the mortgage bank we were affiliated with for another mortgage bank—the greener pasture. Despite the financial blow to our bottom line, I saw this as an opportunity to get rid of the old way of doing business, where we were heavily dependent upon the whim of the people, markets, economy, or regulators, and to rebuild ourselves as a commercial mortgage broker, while continuing residential mortgage brokerage the way it always worked—“only by referrals”.

After placing an ad in Craigslist, we immediately got responses. What was remarkable was that two candidates called without seeing the ad. As a result, five new associates who will focus on commercial loans, joined our team and this number will continue to grow.

But there is of course another faith, which probably has similar roots to the one I described before–faith in a higher power. We might call it either “Hashem”, “Allah”, or “God”, but it is all the same.

Faith can manifest in various forms. On the morning of the day that he passed, my friend Alex was unconscious. He lay down in his bed, his eyes closed, without any reaction. At 3 pm, the rabbi came and started to pray. Suddenly, Alex opened his eyes and started to repeat the words of the prayer as though the rabbi was following him. Alex never learned how to pray before. But he always had faith and at the last hours of his life, he knew what to say.

Have faith. Everything will be all right.

I have faith in your sharing this message and my ability to find tailored mortgage solutions for your friends.

P.S.

In Cuba, after over 50 years of the Socialist regime, not many people demonstrate their faith to God, but I was lucky to capture a few who wore a cross, as a symbol of their faith.

DO NOT KEEP ME AS A SECRET.

SMILE AND PLEASE SHARE IT WITH A FRIEND

*Interest rates are subject to change without notice and do not constitute a commitment to make any loan at any specific rate.

A single mom with a daughter wanted to buy her own house. She felt she was over the bitter divorce, which left a short sale on her credit records.

She had $54,000 in her bank account. We could get her an FHA loan, which would have high MI monthly payments. Instead, I decided to chose the program without mortgage insurance.

Her real estate agent found a house for $568,000. With 10% down payment (her sister lent her $10,000 to cover the difference and the closing costs), her new mortgage payment was $2,477 less than her current rent.

Whom do you know that might benefit from our tailored mortgage solutions?

Do not keep me as a secret.

SMILE AND PLEASE SHARE IT WITH A FRIEND

Please remember to LIKE us on Facebook for additional information!

Do Not Sell, Serve

“Selling is not an art–serving is.”

A friend asked for advice. He has some skills, but did not know how to sell them. In my view, despite the general notion—salesmanship is not a profession. Though there are ads in newspapers claiming that a company needs sales people to sell some products, it can be misleading. The candidates for hire do not actually need to know how to sell, despite their experience in selling and sales training on their resume.

Those people need to be caring individuals, who first of all need to know how to relate to other people’s needs and desires. They will need to know the product of course, but only in relationship to the people who will benefit from it.

Lately, many of those who were involved in the mortgage industry as loan originators, who were supposedly selling mortgages, left the business. Some went to sell real estate, since it requires the same license and seems more lucrative (2.5% commission versus 1%). Some switched from residential loans to commercial loans because the loan amounts are higher and there are no regulators. (Thank God) Regardless of what the area is, some are going to be more successful than others, regardless of the field.

According to the 1964 study of David Mayer and Herbert Greenberg, successful salesman must have two qualities: empathy and ego drive. They must have enough empathy to listen and understand what is in the customer’s head, but enough ego to close the sale. I read about it in a book, “The Art of the Sale: Learning from the Masters About the Business of Life” by Philip Delves Broughton. If you are in sales, or planning to be, read this book.

Before getting into the mortgage business in 1983, I was an engineer and a manager. I did not have direct sales experience, but I was successful in selling myself. When I started, I was told that I would close my first deal in 6 months.

Actually, in 6 months I became the top producer. In 9 months, I became the branch manager. And in 12 months, I started our first company with partners. And 24 months later together with my wife Elfa, we founded Pacific Bay Financial Corporation, which continues to prosper after all these years.

What is my secret?

I could not formulate it until I recently read in the bible, “Ask and it will be given to you; seek and you will find; knock and the door will be opened to you. For everyone who asks receives; he who seeks finds, and to him who knocks, the door will opened“(Matthew 8:7-8).

In my mind, it means that to sell you need to figure out which questions to ask and to whom. But, the answer will only tell you where to look for your client—the door. After you will contact him, or her, find the door, then, you have to go to work: ask questions, understand their needs, come up with solutions and have a lot of patience, And then almost miraculously, the door will be opened. And it will be given to you–your share of commission.

P.S.

In Havana after the Cuban government allowed small self-owned enterprises, almost all “doorways” became stores. The owners/sales people would display their wares in hopes that someone would stop by. Another type of sales people peddle their products or sales on the streets, or just ask for a dollar. I will share their images next week. Meanwhile enjoy the doorway stores.

DO NOT KEEP ME AS A SECRET.

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Mortgage Solutions for You

*Interest rates are subject to change without notice and do not constitute a commitment to make any loan at any specific rate.

A client had a mortgage at 6.50% with monthly payments of $8,533. He needed to get an extra cash-out of $200,000. To get him his desired results, we found a lender whose loan program had a very low start rate (2.50%).

This same rate was used to qualify for a loan. Thus, with keeping monthly payments low, we were able to increase his loan amount. (With the extra $200,000 in the client’s pocket, the new monthly payments were $6,124.)

Based on the performance of the LIBOR index from the last five years (average of 0.627%), there is a good chance the rate will stay low in the long run, compared to loans fixed for longer terms. With time and the increase of revenue from rent, we can refinance into other programs since the prepayment penalty is only for one year.

Whom do you know that might benefit from our tailored mortgage solutions?

Do not keep me as a secret.

SMILE AND PLEASE SHARE IT WITH A FRIEND

Please remember to LIKE us on Facebook for additional information!

How To Know That You Are Loved

“The manifestation of love is happiness.”

My friend and a client for many years, Ken Mitchell, called with excitement in his voice: “I have a new girlfriend!” After my congratulations, he continued, “And we want to buy a house together in Sonoma. Can we have dinner to discuss the details?” I’ve been working with Ken for about 20 years. His printing company, H&H Imaging takes care of all of our printing needs. When I needed quick service, he printed my book, “Soy Cubano—I Am Cuban”, in three days and he did a great job.

Throughout the years, I helped him buy his house and refinance it numerous times. This time seemed different. He planned to buy a second home together with a partner. Over dinner at our favorite restaurant, Zuni Café, I had the opportunity to meet his girlfriend, Heather. They found each other through the dating service “Our Time”. She is smart, beautiful, and an accomplished woman. It was a pleasure to see them together hugging and kissing. She asked me to take their photos with an iPhone and said that they looked artistic. Heather shared with us that the man she was previously involved with was moody and grouchy. “Ken is always upbeat. I am happy when I am with him,” she added.

The word love was not mentioned, but if it was not an expression of love, then what is?

Then the question of what to get for Valentine’s Day was brought up. This immediately led to my curiosity to find out what this holiday really means. It began as a liturgical celebration of early Christian saints. The name Valentine in Latin means strong, healthy, and there were at least 50 saints with the variant name, Valentinus. Apparently, it had very little to do with romantic love until the Middle Ages. In the 19^th Century, handwritten cards led to the holiday popularity and were very well exploited by the marketing geniuses of Hallmark and similar companies. And of course, growers of red flowers (especially roses) jumped on the bandwagon.

Using this opportunity, I wanted to share with you my roses. Since they can be shared any time of the year, they do not have to be red.

As the writer, Gertrude Stein wrote, “Rose is a rose, is a rose.”

P.S.

For the house purchase in Sonoma, we found a solution tailored for their needs. Instead of securing one mortgage of $800,000, which is a jumbo loan and has certain limitations, I came up with a creative solution: Divide the mortgages into two—one fixed up to $417,000 for 15 years against Heather’s condo (which does not have a mortgage). They will use this money for the additional down payment. The balance of about $417,000 is going to be Ken’s loan, amortized for 30 years, since otherwise he cannot qualify. The ownership title is going to be on both names. This way, both can use interest deduction and enjoy the ownership even before marriage. (I hope that I am going to be invited to the wedding.)

Whom do you know who might benefit from creative mortgage solutions tailored to their needs and circumstances?

DO NOT KEEP ME AS A SECRET.

SMILE AND PLEASE SHARE IT WITH A FRIEND

Please remember to LIKE us on Facebook for additional information!