Manny Kagan

Where to Find Real Estate Bargains

“Investing in real estate can make you richer or poorer. Timing makes the difference.”

If you want to make a killing—buy in Havana, Cuba. According to the article,“Real estate market booming despite hurdles”, you can buy property which will need a lot of repairs in a country where there is a scarcity of everything for the bargain price of $250,000.

The moment that the U.S government lifts the embargo (hopefully soon), and the Cuban government realizes that socialism does not work (in most countries), the value of properties in Havana will sky rocket. Havana’s buildings are dilapidated, but when they will have money from the expats currently living in South Miami, or perhaps investors from China (there are 2,000 people from China studying Spanish in Cuba), the faded beauty of the city’s real estate will return. Cubans have a joyful spirit, and when their fortune turns around, it will be like a hidden jewel.

In the meantime, you have the choice to be joyful in our own backyard.

According to the article in the SF Chronicle on May 1^st, 2013, “Home Prices in 20 U.S Cities Climb by Most Since May 2006”, property values in 20 cities rose 9.3 percent since February 2012. Meanwhile, according to the article “Getting Squeezed” in the SF Chronicle, “finding an apartment (for rent) in San Francisco can be harder than finding a job”.

For instance, one can’t help but notice on Market Street in San Francisco, there are 5 or 6 new residential construction projects, adding some 4,000 new available rental and condo units on the market. A new one has broken ground recently on the corner of Octavia and Market, close to the San Francisco Jazz Hall.

My friend Ildiko Pali, a real estate agent, who is the Queen of the short sales and foreclosures, told me that there are less and less foreclosures and thus fewer bargains. She can be reached at 415-923-7628 /[email protected]

I am sure it helps that the Fed is keeping the interest rates artificially very low. Rates recently dropped again and we could refinance those who’ve previously “missed the boat”. Do not wait. Without notice, the tide can rise again. (It actually did last week and rates went up, and we are now waiting for them to come down again; but we need to have your loan documents to lock the rate.)

P.S.

I photographed a lot of dilapidated buildings in Havana, as well as some that already look very nice after their restoration.

build5

build6

P.P.S

Meanwhile, if you want to check real estate opportunities (and to listen to good music at the same time), join us on a trip to the Havana Jazz Festival on December 15^th-23^rd.

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How Many Mom’s Do You Have?

“Since we traditionally give flowers on Mother’s Day to show our appreciation and love to our mother, how do we say “Thank you” and “I love you” to our Mother Earth, who gives those flowers to us?“

My beautiful wife and daughters a few years ago.

How many children do you have?” is a rhetorical question. My wife Elfa and I have two daughters. For Mother’s Day, we celebrated with our youngest daughter Tamar in LA. The next day when returned to San Francisco, and our eldest daughter Alona, flew in from Paris. But I also was blessed with two mothers (unfortunately both passed on). Mama Liza, a very loving person who gave birth to me, and with whom I lived with until I got married at age 20. At that time I moved into my wife’s mother’s apartment, who for the next 20 years became my Mama Masha. We traveled together on our life’s journey until her passing in 1987, as I describe in “The Mortgage Game: The 5 C’s and How to Connect Them”.

The title of this week’s writing was inspired by a talk given by a Family Law Attorney, Vivian Holley, who specializes in resolutions of friendly divorces and child custody, among other things, and whose name I’ve mentioned before. For a presentation to the bar association, Vivian wrote an article regarding the “40+ types of Parents Making up Today’s Family”. She mentioned that in our modern society, the old perception of what a family is, parenthood, and motherhood has changed. That transformation has an effect on today’s family relationships and on the court resolution of such disputes.

But there are also surprises in how many children one can have. On May 11^th, The Wall Street Journal reported that “Mrs. Dumont has 69 kids”–a remarkable woman from whom all of us can learn how to bring up children.

One of our societal phenomenon’s are single women choose for various reasons to be or become single moms. I am honored to be a Godfather to a boy whose mother, a personal friend, divorced her husband who did not want to have children, and gave birth to a beautiful son, who is about to go to college.

In the mortgage business, the problem arises when a single parent does not have enough income to qualify for a new loan. Another friend of mine, a single mom, who owns a two-unit building, and who incidentally, invited me to her son’s bris, the Jewish tradition of circumcising a boy on his 8^th day of life. She lives in one unit and rents the other. The rent almost covers her mortgage payments and property taxes. Nevertheless, she is not qualified to get a new mortgage, which could reduce her payments about $200/month.

In my work, I have helped quite a few people who are going through a divorce, which diminishes two qualifying incomes to one. There are many challenges that require creative solutions. With one client, a woman whose divorce procedure was going to be complete in six months, I suggested that she use her own money now to buy a condo with cash. In a few months after the divorce, when we could establish and show proof of the alimony, I would get her a cash out mortgage.

In another instance, a man wanted to keep the house but had to give his ex-wife money as part of the settlement. We refinanced his home and got a separate line of credit, which had to close after the first loan is in place, to satisfy her demands.

Yet in another one, a divorced woman, who wanted to keep her house until her children were grown, but was not qualified on her own. We found a solution by having a friend offer to co-sign for her mortgage. The problem was that he had not filed his taxes since 2009. We have to wait until he brought his affairs into order.

Co-signing, which I describe in detail in my forth-coming book “Mortgage Solutions for Smart People: 5 Easy Ways to Get Your Loan Approved,” can help in certain situations, but not always.

Since Mother Earth is so generous with us by giving us so many flowers, why limit Mother’s Day to one day a year?

P.S.

As you can see from my images from Cuba, there is nothing more powerful in the world as the love of a mother.

P.P.S

I will start teaching a course “How to Play The Mortgage Game and Win” on Sunday, June 2^nd. If you know someone who wants to get into the exciting mortgage world, please let me know.

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Best Wishes,

Where Are Sales People Born?

“To sell or not to sell–is not the question. We all do. The question is what? And what is our reward?“

Walking through the streets of Havana, we noticed that many doorways of the dilapidated buildings were converted into stores during the day. Some sold clothing, but many offered plumbing and home supplies. The sellers were mostly young people, who became entrepreneurs after the Cuban government gave them permits to run their own business. The older people sold their wares on the streets. This reminded me of images of the emigrantsfrom Eastern Europe, who came to the shores of America at the beginning of the last century. You might have seen their photos or movies showing life in New York during those years.

Who taught these people to sell?

Zig Ziglar, a popular motivational teacher who recently died, remarked that there was never an announcement made in the newspaper that the salesman was born.

I thought about this when on my visit to Costco, I met my old friend Joe Farsight. He owns an engineering and construction company located on Treasure Island. Joe’s children work in the company primarily in design and management positions.

“But who is getting the business? Who is selling?” I asked.

Joe smiled to me.

“Who do you think it is?” he asked.

“The young generation,” he added, “They think that the sale happens by itself if you have the right product.”

sales4

In my past life, I was an engineer and a project manager. I never had to “sell”. After getting into the mortgage business 30 years ago, I quickly realized that I am in the selling business and had to learn how to sell–I took many courses, read books, and basically learned by trial and error.

Today I do not have to sell, but I do by telling many of my sale stories. You can read some of them in “The Mortgage Game: The 5 C’s and How to Connect Them” and read more in the forthcoming “Mortgage Solutions for Smart People: 5 Easy Ways to Get a Loan”.

Selling is not a profession, but rather a skill which needs to be developed. We learn how to sell from early childhood. Those who have children know it firsthand. A friend of mine told me that his son, who is three, would hug his legs and sweetly say, “You are the best dad”, and then innocently ask for some game he just saw advertized on TV. I do not think that this boy will have difficultly learning how to sell later on in life.

For me–selling is serving. Through the years, I taught many people how to become mortgage brokers, but never knew who would make it and why. Knowledge of the product is essential. In the mortgage business, it is the essence of the 5 C’s. But there has to be something else. I think it is love of people, desire to help, optimism, drive, and constant learning. Different people accomplish results different ways. We have twelve agents between two companies and each has a different style, but all the elements have to be there to become good at selling.

After finishing my second book, “Mortgage Solutions for Smart People: 5 Easy Ways to Get a Loan”, I decided to create a course based on both books. The goal is to teach a new generation how to become mortgage professionals and (if I am lucky) how to sell. The title of the course is–“How to Play and Win the Mortgage Game”. I will teach four consecutive Sundays in June from 12 to 4pm. You might know someone who has worked in the mortgage industry before, or if he/she would like to learn it, please ask this person to contact me. Interested parties would need a real estate / corporate license, or be willing to obtain one.

The mortgage business is still going through challenges. At the same time, for me and my colleagues who have been in the business for many years, it is enjoyable and a financially rewarding opportunity.

P.S.

I recently met with Helen Chao–Recruitment Consultant. She summarized qualities of sales professionals.

Intense confidence in themselves
In the moment they put their mind on something, they know it is going to happen
Connect both ends of the deal, while thinking about the bottom line
Manage emotions in negotiations
Friendly personalities
Care about clients
Scout the opportunities
Think differently
Care about money
Have return business

P.P.S

Talking about my trip to Cuba…Are you joining us in December?

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Best Wishes,

How to Look at a Tree…and at a Mortgage

“The small seed, from each mighty tree is grown, contains the memory of every tree which came before it–so are people.“

A group of blind people were brought to the zoo to “take a look” at an elephant. Each of them would touch different parts of the elephant and then describe what they felt. One, who touched a tail, claimed that the elephant “looked” like a rope. One, who touched the trunk, thought the elephant was like a pipe. One, who held a foot, claimed that the elephant was like an electrical pole.I thought about this story on our recent trip to Big Sur, where we took a photo workshop with Eddie Soloway, a great photographer, whom we met on our trip to Cuba and whose poetic images led my wife Elfa to decide to take his weekend class, as her birthday (April 17^th) present. There was a group of 14 very talented photographers (each showed samples of their work). Our lessons consisted of “child-like” exercises and trips to photograph images in nature. One of the exercises was to look at the mighty cypress tree growing next to our classroom, which was located on the site of the Big Sur Lodge. Eddie had given us small paper frames, and placed us in different positions, where we were told to share two words about the images we saw in our frames. After I finished my assignment, I went around and took different shots. One was through a double plastic cover of a laundry delivery vehicle parked nearby. Another was a group shot. I came back in the evening and photographed a tree, without my tripod, to capture a mysterious image in the dark.

On Sunday morning, our last day, I came to the tree, touched it, and said “Thank you” and “Good-bye”. At that moment, I could see a part of the bark with its’ beautiful colors. It was the tree’s present to me and now to you. Since most of what I do brings my thoughts back to mortgages, below you will find some of the images with the mortgage story:

Clients’ circumstances are veiled and hidden and sometimes it is difficult to see the tree (a mortgage), but I know it is there.

At the beginning, it can look fuzzy and mysterious, but there is always some light.

Some parts and documents that the borrowers present might be unusually colored, or be covered with cobwebs.

A team of different experts and mortgage professionals will take a careful look at the mortgage.

Finally a beautiful tree (mortgage) will appear in its full glory.

P.S.

One weekends, I often walk downhill from my house to the West Portal library. Last time I visited the library, the book displayed on the table in front of me was “The World of Trees” by Hugh Johnson. It is a great book from which you can learn a lot about trees. If you are interested in photography, Eddie Soloway will teach two workshops this summer at the Santa Fe Photo Workshop.

P.P.S

In response for last week’s TIC story, one of our clients responded:

“Our story was even better than that, and, the only correction I would make to your prenuptial metaphor is as follows:

“TIC is like marriage except, it is a group one with multiple wives and multiple husbands. Untangling that equates to a divorce court in which you can only get the divorce if all ex-spouses find a new partner…“

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Best Wishes,

Warning TIC–Proceed with Caution

“Neighbors do not have to be friends…and vice versa“

While in Sedona, we visited Jerome, an old mining town. We drove through it to the end of the road that ended at a Ghost Town. This place and the junkyard that people pay money to visit belong to an incredible man, Don Robertson. Some of the images I took there reminded me of the TIC loan process.

At the beginning everyone minds their own business and lives in peace with one another.

For those who have never heard of a TIC (sometimes called “tick”) it stands for “Tenancy in Common”. It is a type of real estate ownership that was quite popular a few years ago. It is used to buy a property consisting of 2 to 4 units (and even more in rare cases). The cost of each TIC unit is usually less than compatible to condominium units. Those who own such buildings have figured out that the combined value of the TIC is greater than the cost of a regular 2-4 unit rental property.

Until one person with a strong Character starts setting his own rules.

The lending for these properties has evolved through the years. A few years ago, there were three portfolio lenders who could offer TIC loans. (Now there is only one left.) The potential advantage for an owner of a TIC is to convert the building into condominiums, which would increase the value of each unit. Some real estate agents have refused to deal with TIC’s because of the complications involved and I have personally never liked to arrange loans for them. The reasons were very simple. In our times when so few people stay married to just one person, getting into a TIC is similar to getting married to many different people (as many units in the building)–often to complete strangers. The building maintenance has to be shared, without any real arrangements, like HOA dues in a condo building. But the worst situation is when one of the partners wants to get out. The unit can only be sold as a TIC, with very limited finance options. And who needs another stranger as a partner?

Some couples simply don’t agree with each other.

The real nightmare actually starts when the building wins the lottery and can be converted into a condominium. Conversions require certain changes in the building which costs money. And when everything is done, each owner would like to have their own low interest mortgage (TIC loans have higher interest rates).

The bank that has suffered through tough years has to sort out their own old junk and have difficulty to issue new loans.

I was recently asked to help a client who lives in a 4 unit TIC, which was recently converted into four condominiums. (One of the conditions is that all of the refinance transactions have to close simultaneously to pay off the existing loans.) She is a self-employed borrower and has a relatively small mortgage. She applied with a number of lenders and was turned down before coming to me. I found out that I could help her, but it had to be done in conjunction with the other TIC partners. In the second unit, the owners received a loan approval from a lender. Because other units are not ready, the loan commitment expired, and they have to start all over again. The third unit is for sale. The sale financing on this unit depends on what is happening with the other three units. On top of all this, the owner of the fourth unit does not want to communicate with anyone in the building. At the end, everything will work out, but who needs all of this hassle? If you know someone who needs help with their TIC, I might be the right person.

P.S.

Before getting married, couples are advised to get a prenuptial agreement. It can be a good idea to have similar arrangements for a TIC or any situation where two (or more) parties are involved. Vivian Holley, who is a very experienced attorney, can help in any of these cases. She can be reached at 415-474-1011 / [email protected]

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Best Wishes,

Timeshare and Mortgages

“God created beauty in nature and a sense of appreciation in humans. It is our task to experience and enjoy it.“

We own a few weeks in various timeshares. We purchased our first timeshare in 1984 in a place called Arnold, located in the foothills of Calaveres County. We have only stayed in that timeshare two times–the rest of the years we’ve exchanged it through the RCI System. Someone recently asked me if it was a good investment. For our family–it was. We have traveled the world, visiting places we would probably never get to if not for this “mandatory” timeshare vacation. On each trip to a new location, promoters try to sell us yet another resort or another deal. And through the years, some of them were successful. My wife Elfa became an expert in finding our next vacation through the timeshare websites. Internationally, we have traveled to various parts of England, Germany, Austria, Whales, the South of France, Holland, and many beautiful locations in Canada…not to mention Hawaii and Mexico. And we have travelled throughout the United States as well. Each resort has a different charge for the yearly maintenance fee. Extra weeks can be banked for future use. We have used our weeks in the bank to get additional units to allow our family to join us. When we weren’t going to use our weeks, Elfa has sold the extra week for the cost of the maintenance.

At the end of March, I had a marketing conference in Phoenix, Arizona. On the spur of the moment, Elfa asked me if I can have a week off. I knew that I needed a rest, besides I had to work on my book, “Mortgage Solutions for Smart People: 5 Easy Ways to Get Your Mortgage Approved”. Luckily, she was able to find us a timeshare in Sedona, which is about a two hour drive from Phoenix. We’ve been to Sedona before. It is a secret ground for Native Americans, known for its’ energy vortexes in the red cliffs around the area. I wrote for eight hours a day, only going out for a few hours in the afternoon. The result–a finished book and only a few photos. In between, I had to put out a few “fires” with some closing loans for sales transactions.

What prompted me to write about this subject was a very unusual email my office received a week ago from one of our lenders. After we refinanced a mortgage for a client, his loan was, as it is customarily done, sold to an investor–who could be Fannie Mae, Freddie Mac, or another bank. Two months later, our lender was notified that after the quality control procedure, the investor found some missing information in our clients’ file. If this information is not provided on time, the file is returned to the lender. If (God forbid) this happens, it is a very big problem for everyone. The investor claimed that apparently our client owns a co-op in San Francisco, which he did not disclose. I refinanced for this client a number of times, and I did not remember him ever mentioning any other properties (usually clients tell me everything).

What turned out was that this co-op building was transferred many years ago into a timeshare project. Our client owned a week of time not physical space. Though there is a yearly maintenance fee, which included a prorated tax, it is basically a prepaid vacation plan. The solution to this “big” discovery was very simple–to write an explanation letter. But what it demonstrated to us was that when lenders require so many documents or verifications, which takes our extra time and drives everyone crazy, it is not so much the lenders, but the Government owned investors. After losing billions in the reckless lending before 2008, the screws are getting tighter and tighter.

In spite of this, we close most of our loans and most importantly get clientsVERY LOW INTEREST RATES.

P.S.

I just had a few images to share with you where I usually showcase my artistic interpretation. Hope you like them…let me know. You can see more beautiful Sedona images (not mine)–right here.

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Best Wishes,

A Genuine Grin Can Help the Heart

“Smile more–feel better, live healthier. A smile does not guarantee that you live longer, but why not try?“—Manny Kagan

When we stepped out from our hotel on the streets of Havana, we were greeted with a smile. Young people walked toward us with a genuine grin on their face. They did not notice us, and the smile was not for us…just for themselves.

We spoke with an American guide, who lives in Havana, and asked him , “Are Cubans happy?”

His answer was “Yes… are they content? No.”

People have very little, materially. Life there can be tough with much fewer resources and opportunities than we have here in the US. So, what makes them happy?

As I wrote before, the reason I want to go back to Cuba in December is because I would like to be in the presence of these people and their smiles. I’ve provided more examples of what I’m talking about in these images. I decided to write about “Stress-Busting Smiles”, after reading the article with this title, which appeared in the Wall Street Journal on February 26, 2013. We went to Cuba with a US Treasury Department permit for travel with the “People to People” exchange. We were supposed to bring them ideas of the US way of life. I am sure Cubans can learn a thing or two from us, but what I’ve learned from them is to be happy in any adversary situation.

After reading the Wall Street Journal article, I try to remember to smile whenever I can. According to the article, this is not only beneficial for your health; but also, the physical act of smiling actually lifts your mood. Next time, try to smile and be angry, or depressed at the same time. Mission impossible.

Read the article to live a healthier life.

P.S.

The mortgage business is plagued with a lot of new government regulators imposing changes. In my humble opinion, these new regulations–while they are called Consumer Protection–have an anti-consumer reality. But what can I do about it? After a trip to Cuba and reading the article, I found a solution.

I smile.

Actually, I have a lot of compassion for those hard working regulators, who also have children in private schools, have to pay mortgages, and are simply lucky to have a job in today’s economy. As far as mortgages are actually concerned, we need to find solutions in the given circumstances, like the one I describe below.

We just closed a mortgage for a client, who bought a pre-foreclosure property. We had very limited time, and our client had a number of personal issues and problems–solutions for which I describe in my forth-coming book, “Mortgage Solutions for Smart People: 5 Easy Ways to Get a Loan”. We submitted the loan to a bank, but because of the date of a possible foreclosure, (which was actually postponed), the lender declined the loan. We only had three weeks to close the loan. As it often happens in my life, at the last moment, I found a bank that could close a mortgage in three weeks on a no income (remember the ol’ good days?) loan. Where there is a will, there is a way.

P.P.S.

If you want to meet smiling people, join us in December for a trip to the Havana Jazz Festival.

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Best Wishes,

What is Good About Good Friday?

“The gem cannot be polished without friction, nor man be perfected without trials.”—Danish Proverb

In the Torah, the process of creationis divided into six days with the seventh as a day of rest. By the end of the sixth day, all the creation was completed.

“And God saw all that He had made, and behold it was very good. And there was evening and there was morning, the sixth day.“—Genesis 1:31

According to the Jewish calendar, the daily count starts on Sunday, so Friday is the sixth day, which in God’s view was very good. In the King James version of the Bible, the word “Good”, meaning “joy and pleasure”, appears 809 times. How then is it possible to call the day when Jesus, the Son of God, who was crucified by Romans “Good Friday”? Christianity, like any other religion is full of the controversies. There is a belief that the original name for this day was “God’s Friday”, which over the years became its present name. According to Wikipedia, this day is also called “Holy Friday”, “Great Friday”, “Black Friday”, or “Easter Friday”.

After Jesus died on the cross and the Roman centurion (soldier) pierced his body with a lance and blood and water came out, he was proclaimed dead and was buried in the cave. Three days later (i.e. on Sunday), his body disappeared from his grave and there were some witnesses who claimed that they saw Jesus alive. Thus the story of the resurrection was born, which is now celebrated on Easter Sunday, which is probably the most celebrated Christian holiday. But what do bunnies and hard boiled painted eggs have to do with the resurrection?

According to GotQuestions.org, ancient Roman Catholic church authorities mixed this event with the pagan celebration of the goddess of spring called “Eastre”, whose earthly symbol was a rabbit, which was also known as a symbol of fertility, in attempt to attract non-believers.

In religion, like in other aspects of our lives, marketing and packaging sells. My concept of marketing, which coincides with Good Friday is to “Find good in any adversity”.

P.S.

On March 13, 2013, Catholic Christians learned of their next spiritual leader, The New Pope, Jorge Mario Bergoglio (Pope Francis) is Spanish speaking from Argentina. Cuba, which was occupied by Spain for many years as well, not only adopted the Spanish language, but also the Catholic faith, which often blends with some Caribbean influence. For the last 53 years, Cuba has been a socialist country which follows Karl Marx’s doctrine that the “Religion is Opium for the masses”.

On our trip to Havana, we saw many dilapidated, old and beautiful buildings. But when we visited two cathedrals, we were shocked by their beauty and opulence and perfect condition. Miracles do happen.

You can discover for yourself how beautiful these places of worship are by joining us on our next trip to Cuba in December. Meanwhile, enjoy some of the images I photographed.

P.P.S.

I do not want to spoil your Holiday spirit, therefore I will write about what is good in getting a new mortgage next week.

Happy Easter!

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Best Wishes,

Let My People Go

“We must be free–not because we claim freedom, but because we practice it.”–William Faulkner

A huge demonstration gathered in front of the Soviet Consulate on Green Street in San Francisco. There were portraits of men and women, who were trapped or imprisoned in the Soviet Union, whom people in the crowd had never met, but the crowd loudly demanded–“Let my people go!” Those events took place over 1969 to 1972, at the same time that our family challenged Soviet authorities to allow us to immigrate to Israel. In my book, “The Mortgage Game”, you can read about how we managed to leave the Soviet Union. After living in Israel for almost 9 years, we moved to San Francisco and met many of those, who protested on our behalf.

The root of the belief that authorities can be challenged and that there is a possibility of achieving a different “reality”, lies in the events described in the Torah.

Next week, Jewish people are going to celebrate the first night of Passover on the evening of Monday, March 25^th. During the dinner, called a Seder–which translates to “order”–the story of events, took place according to historians, 3283 years ago will be retold for the benefits of the next generation.

It is the story about an Egyptian Pharaoh, who was afraid that the Hebrews, the people who lived in the land of Egypt for many years, would side with the enemy in a future war. His solution was to weaken and dispirit them through hard labor. Finally after many years of hard work and suffering, the Hebrew slaves remembered that it was the God of their ancestor, Jacob, son of Isaak, and Grandson of Abraham, who actually brought them there. Since Jacob’s name, after he fought with an angel, and prevailed, was changed to Israel, those Bnei Israel–the Children of Israel–complained and prayed to their God asking for salvation from their back breaking labor.

God heard their complaints and chose an 80 year old shepherd by the name Moses to go to Egypt and demand from the all powerful ruler of one of the biggest countries, at that time—in the world, to release his workers and let them leave his country after being there for 210 years. At the beginning, Moses refused to take upon himself the impossible task, but God got angry at him, and offered his brother Aaron as a partner to deal with the Pharaoh.

Then God, who called himself “Hashem”–which translates to The Name, instructed the brothers to tell the Pharaoh:

“You shall say to him Hashem, the God of Hebrews has sent me to you, saying: Send out my people that they may serve Me in the wilderness.“

(Exodus 7:16)

Those powerful words, which were transformed into “Let me people go”, resonated for thousands of years, became the symbols for liberty from any oppression.

But when the Hebrew slaves reached the Red Sea, they soon found out that the Egyptian army was pursuing them, and that only praying (crying) would not save them. “Hashem” said to Moses:

“Why do you cry out to Me? Speak to the Children of Israel and let them journey forth.“

(Exodus 14:15)

Praying is not enough–one has to act and move forward. Three months after leaving Egypt, the former slaves arrived at Mount Sinai–where Moses received the 10 commandments from God. However, it took 40 years for the Children of Israel to reach their destination. During those years, the old generation–which had a slave mentality, died. The young people who grew up in the desert, finally took over the land across the Jordan River, which became known years later as the Land of Israel.

In spite of its significance as a place where Moses received instructions and knowledge from God, which became known as Five Books of Moses or the Torah–which translates to “instruction”– no one knows exactly where Mount Sinai is located. The wise men tell us that the Torah instructions for life belong to everyone, and the place where these were given is just a humble hill in the desert and could look like this one that I photographed on my trip to Israel in 2009.

Years later, its significance as a God presence was transferred to the Temple in Jerusalem. Nowadays, people from all over the world come to the Wailing Wall, a remnant of the Temple, which was destroyed 2000 years ago by the Romans, to connect with God and leave little prayers written on notes that they stick between the cracks in the old Temple wall. But over thousands of years, the memory of the Exodus and the story of the liberation are passed on from one generation to another.

Not everyone can get to Jerusalem. However since God is where we let Him in, I pray for the economy to improve and for more people to find jobs they enjoy. I pray for interest rates to stay low long enough for properties to appreciate and to increase in value, and to enable more borrowers to refinance and improve their cash flow. And I pray for the regulators, who create a lot of unnecessary hardships, to leave the mortgage industry and allow it to flourish again.

Let my people enjoy their lives.

Happy Passover

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Best Wishes,

What a Photo Story in Cuba Has in Common with The Mortgage Game

“The camera is an instrument that teaches people how to see without a camera.“–Dorothea Lange

When I came closer to the small farmhouse, a little dog with a heavy chain ran toward me loudly barking. We were exploring different areas about an hour drive from Havana, and stopped for lunch in an off the road farm area. The “restaurant” was an old building with a large porch in front and a long communal table. While everyone settled down, placed their order, and photographed a chicken with her chicks that came to feast on the scraps from the table, I ventured into the farm. An older man alerted by the dogs barking came out from the house. I greeted him and he showed that there is more to photograph in the backyard. The scenery could have been similar to any farm anywhere in the world. The rotten shed with the chain on the wall, laundry outside with a Nike t-shirt hung over a broken motorcycle. There was a barn with a locked door and its content revealed through the gap by my curious camera lens; a ladder leaning on the small house, and a rooster proudly checking his territory. When I turned around, I saw the owner in front of a red VW minibus without wheels. When he came closer, I photographed his close-up portrait.

Then, I heard an angry woman’s voice. There, in a small window at the back of the house, was a woman with only two teeth sticking out from her mouth. For me, it was a perfect photo opportunity, but despite my requests she refused to be photographed. Since I can only say a few words in Spanish, it did not help much. So I decided to bribe her. I ran back to our group where I had some give-away goodies in my bag. But when I returned with a bar of soap, she refused to take it. Meanwhile, everyone gathered on the little porch and the dog started to bark again.

There I did something which was natural for me, but probably not expected. I sat down on the ground in front of the dog. One of the rules of photography is to get on the same level when photographing animals and children and to always focus on their eyes. The dog calmed down and went back to his barrel.

But something else happened. I no longer saw an old woman, but a beautiful person. This energy transformed both of us. I turned around and had no problem photographing her. She allowed me to create her portrait, wanted to be photographed with her husband, and then asked him to photograph me and her together.

I had to go to eat my lunch and promised to come back with the interpreter. After we returned, the woman told my friend, who spoke Spanish, about her life and said that she loves me and asked her husband to give me their address requesting that I mail them the photos I took. We continued our journey. After the encounter, I photographed hundreds of other people, but when I reviewed the photos from my trip on my computer and saw the woman, a warm feeling filled my heart and I wanted to share this story with you.

Now I would like to interpret how these photos relate to my book “The Mortgage Game: The 5 C’s and How to Connect Them”, where I share my life and my clients’ stories. To see the connection, just follow my photos:

Clients anxious about their ability to get a loan complain about their circumstances, lenders, and appraisers–(bark like this little dog).

Borrowers (chicks) rush to get mortgages with low rates brought to us by the Federal Reserve (the chicken), under the watchful gaze of the government regulators (the rooster, ready to step in at any moment).

Mortgages can be a heavy burden or uplifting (the chain), connecting borrowers to the house (the shed).

Borrowers have a lot of “stuff” to deal with (the laundry) and sometimes there are issues that require correction or repairs (the motorcycle).

But first we need to evaluate the Collateral (the house). To check how additions (the ladder) will affect the condition and value. All of this is under the watchful eye of the regulators (the rooster).

We know that there is more than meets the eye (closed barn doors).

Lenders need to look behind the closed door (the stuff in the barn) to reveal what is hidden–the Credit.

After that we will take a look from a distance at the person to evaluate how he/she can handle monthly obligations (environmental portraits)–The Capacity.

We also need to check clients’ ability to save money, which is only possible through the close look (close-up portraits).–The Capital.

After we evaluate all the documents presented to us and see the whole picture (the farm) we know how to help the borrowers, and comply with the regulators (the rooster) —the Character.

As a result, the loan is approved, funded, and everyone is happy (loving embrace with a beautiful human being).

After the mortgage is in place, everyone calms down. (The little frightened dog in us can hide again and go back into his barrel.)

THE END.

P.S.

My next e-book, “Mortgage Solutions for Smart People: 5 Easy Ways to Get Your Loan Approved”, is going to be out in about two months. But please read “The Mortgage Game: The 5 C’s and How to Connect Them” to get a better understanding of what it takes to get a loan approval.

P.P.S.

Are you joining me, my family, and my friends in Cuba this December?

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Best Wishes,