LINE OF CREDIT vs LINE OF CREDIT

I have read recently that Lines of Credit (L/C) became the most popular mortgage products. Two obvious reasons. First, low interest rates on the first mortgages, second – need for money, thus accumulated income in the property became the savings bank.

Recently I received a phone call from the client whom I helped to get a mortgage (with the interest rate of 3.75%) during her divorce. Now she needs money to finish construction of an ADU (accessory dwelling unit). The problem is that because of her limited income, she cannot get conventional L/C or 2^nd loan from a bank of a credit union. She found out about this after reaching out to them.

“Can you help?” was her question. At the beginning, the only solution I had was reverse mortgage second loan. However, she was concerned about the interest rate of 9.99%. Then, during the presentation in our office by Robert Rodriguez from REMN Wholesale, we found out that there are other options available. You can learn more about those options from today’s video posted onto my YouTube Channel.

In the meantime, if you have questions, please feel free to call me directly at (415) 225-7920 or email me at [email protected].

I promise to help.

Manny Kagan,
President,
Pacific Bay Financial Corporation

NMLS #205637
DRE #00824602

VERY SPECIAL MONTH

August is a very special month in our family. 57 years ago on August 8th, both Elfa and I said, “I do”. And then on this month 44 years ago, we immigrated to the United States. August was also a month when 39 years ago, my wife and I started our mortgage brokerage business, Pacific Bay Financial. I am grateful for all three of these events which happened in our lives and call them blessings.

Each event reflects the number which has a specific meaning in numerology. Online I learned that the number 8 is associated with infinity, and represents authority, self-confidence, inner-strength, social status and ego. This year there are actually three number 8’s. By adding the individual numbers in 2024, we have another number 8.Number 57 (the number of years we’ve been married) signifies change, transformation and spiritual growth, but when you add the numbers 5 and 7, you get the number 12, which signifies perfection, entirety or cosmic order. Of course, number twelve consists of 8 + 4, where number 4 signifies what was solid, what could be touched and felt.

Number 44 carries the spiritual meaning of strength, self-discipline, balance, positive energy and achievement. And 4 + 4 adds up to the number 8. The last number 39 is an auspicious symbol of guidance, protection and divine intervention in our lives. And of course, 3 + 9 is again, 12.

Is your head spinning from all these numbers? Mine is. Perhaps, all of these numbers is just trivia information, however, for me it means that you and I are fortunate to be here and now and to enjoy every day regardless of the number.

To stay with The Number Four theme, I am including 4 images of beautiful Matilija poppy flowers. By the way, the word Matilija has 8 letters.

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WHICH BUYDOWN TO CHOOSE

I am currently helping one of my clients to buy a condominium. Since it has been on the market for a while, the seller, instead of lowering the price (staying at $900,000), made a $35,000 offer, which could be used for the buydown by the buyer.

Buydowns have been around for a while, but there is still a certain amount of confusion about which one to choose.

The 3-2-1 temporary buydown is used to lower monthly payments. If, for example, the rate is 7.5%, it can be reduced to 5.5% the first year and 6.5% the following year, and then going back to the initial rate. The cost of the buydown can be paid by the seller or the developer. These programs can be attractive to anyone, especially those whose circumstances change through the years. When rates come down, the loan can be refinanced.

However, the qualifying process is based on the initial rate of 7.5%. In the meantime, the 2-1 permanent buydown allows to permanently lower the rate, in our example to 6.5%. Thus, it allows clients to qualify easier.

We had a conversation about the above two options during our recent staff meeting with Wendy Flynn from NewRez Wholesale. I encourage you to watch a video cut of her presentation if you want to understand how buydowns can help clients.

If you have a question, feel free to call me at (415) 225-7920 or send me an email at [email protected].

I promise to help.

Manny Kagan,
President,
Pacific Bay Financial Corporation

NMLS #205637
DRE #00824602

Find a Happy Ending
in Every Story

I am writing this story on the last day of our week-long vacation at Mountain Retreat. It is a timeshare resort in Calaveras County, not far from Arnold, CA. It is located at a beautiful setting in the woods. If you would like to relax to go for walks, this is the place for you; or you can visit Big Trees Park nearby, or drive to Murphy, a small town with many stores, restaurants and wine tasting. Not far from there you can explore Mercer Caverns. There are many other attractions. If you prefer to play golf, there is a gorgeous golf course – just across the road across from the resort. Or if you’d rather go skiing in the winter, Bear Valley is a short drive away.

Of course, you can explore one of the five lakes, or visit small towns with the rich history of California’s Gold Rush. Now you can see why in May 1985 we bought a timeshare week here. For thirty-nine years, we’ve visited this place with family members and friends. But we also used this high in demand resort to exchange our week to visit many resorts in other parts of the world and the United States. However, we are not the only ones who are getting advanced in age. As a result, other homeowners stopped paying their dues, and the resort ran out of money to keep it going.

The only solution seems to be to convert the resort into condominiums and sell them on the open market. So, where is the happy ending? We are not planning to buy our unit, however $1,300 of yearly dues will be enough to rent our unit for $200 per day whenever we want. Plus, we might net with a few thousands of dollars after the sale. Meanwhile, we are considering to come back to rent for the weekend on October 19th. You are invited to experience this very special place as well. Hope to see you there. Meanwhile, you can see three images of natural beauty in beautiful local lakes.

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CONDO CHALLENGES AND SOLUTIONS

In my conversation with the real estate agents, I heard that houses sell, but condo market is slow. Many reasons are cited – high interest rates, high HOA dues and, as a result, difficulty to qualify. While you can buy a low-priced house with as little as 3.5% or 5% down payment, for condos it is 20% or even 25%. For example, today interest rate for 80% LTV is 7.5%, but for 75%LTV – 7.125%. There is a number of types of financing options available for the purchase or refinance of condominiums, which depends on if it is warrantable or non-warrantable.

In the recent past, it was relatively easy to assume to which category a condo project belongs. However, recently Fannie and Freddie created  the “unavailable” list. If a condo is on this list, it automatically becomes unwarrantable and thus requires unconventional financing terms. The status can be changed, but this requires time and dealing with a specific lender who can sell loans to Fannie and Freddie.

We found out about this from the presentation delivered in our office by JD Meadows of Ameris Bank. Please follow this link and watch a 10-minute video to the end if you want to get a bigger picture.

If you have a listing or are planning to buy a condominium, feel free to call me at (415) 225-7920 or send me an email at [email protected].

I promise to help.

Manny Kagan,
President,
Pacific Bay Financial Corporation

NMLS #205637
DRE #00824602

FIVE SECRETS TO A LONG LIFE

While browsing through YouTube, I stumbled (or probably the algorithm found me) into an interview with 103-years old Doctor Gladys McGarey, who shared her secrets to a long life. Turns out, it can be summarized by five letters “L” – Life, Love, Laughter, Labor and Listening. I watched many of her videos and bought her book “The Well-Lived Life”.

In numerology, each letter has an assigned numerical value. The letter “L” has a value of 3, and signifies creativity, expression, communication and social connection. According to the Kabbalah, the letter “L” stands for the principle of power.

I used this letter in two of my books so far: “42 Encounters with Laughter” and “42 Encounters with Love”.

My new book, which is about light (another “L”), is titled, “42 Encounters with Illumination”. Like in the book about love, in this one I used my poems as a way to illuminate or to emphasize light. You can preorder it on Amazon. While there, you can start building your “L” collection. Who knows, maybe it will help you to have a longer life.

Please enjoy these three images which did not make it to the new book.

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HOW TO BUY CONTRACTOR’S DREAM

There are some properties which are called fixers. They are often built many years ago and have some deficiencies or old plumbing and electrical wiring or leaking roof. Conventional lenders cannot make loans for this kind of properties, and lately insurance companies require updates in the building as well.

One of such homes went on the market recently. It was built in 1925, and the family lived there for over fifty years. It was listed for sale by the agents from Vanguard Properties with whom I’m working on a regular basis. Since it is an unusual house, I prepared for them. Here are the flyers with two options which show how this kind of building can be financed. Click on this link to download and check them out.

Either as Fix and Flip, which is often used by the contractors or speculators, or Fix and Keep for anyone who needs a home and is willing to wait until it is going to be fixed. Forty years ago, my wife and I bought such a home for which we paid $225,oo0 and spent another $600,000 to fix. We still live there.

Recently, during our staff meeting, Lynn Jackson from Plaza Mortgage shared with us one of these financial options. Click here to watch a video piece of our conversation.

If you have any questions, please give me a call at (415) 225-7920.

I promise to help!

Manny Kagan,
President,
Pacific Bay Financial Corporation

[email protected]

NMLS #205637
DRE #00824602

The differences and similarities
between people and weeds

After I posted images of weeds a few weeks ago, some of my readers liked them and wanted to see more. That led to this story.

We have a beautiful backyard in our house with many flowers. However, lately, because of problems with my knees, it has been challenging for me to remove weeds, which grow everywhere. When I finally called our landscaper, it took three people the whole day to clean them up. By definition, any plant growing where it is not wanted is a weed. And some weeds can have quite beautiful flowers. If this is the case, then why to get rid of them?

The answer depends on what type of garden we would like to have. And this is where the similarity with people comes in. There are people who perceive how the garden must look to feel and function. However, there are some who do not like the garden. They act as weeds – covering the surface and if they are tolerated, after a while it is very difficult to get rid of them, since they spread their roots.

While it is almost impossible to change the nature of the weeds, I believe that people can change. Ten years ago, I read a story about the leader of the Anti-Semitic Party in Hungary who finds out that he’s Jewish. This changed who he was and his values.

I am a perpetual optimist and believe that the change can come through education. Of course, there is always an exception: when weeds become beautiful art. As you can see in these three images.

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POOL RENOVATION AND CONSTRUCTION LOANS ARE AVAILABLE!

You might have heard the quote attributed to Mark Twain, “The coldest winter I ever spent was a summer in San Francisco.” Yes, we are blessed to have cool weather in San Francisco, however, in some areas it is close to (or over) 100 F.

For those who have space in their backyard having a swimming pool can be a good solution to cool off. And what if you have a pool and it needs a repair. To my surprise, there are construction/repair loans available for this specific purpose.

I found out about this in the recent presentation in our office from Lynn Jackson of Plaza Home Mortgage. Some loan programs also allow to get money for building ADUs.

For more information, please follow this link to watch Lynn speaking on the subject on my YouTube channel.

Have questions? Please give me a call at (415) 225-7920.

I promise to help!

Manny Kagan,
President,
Pacific Bay Financial Corporation

(415) 225-7920; [email protected]

NMLS #205637
DRE #00824602

 

 

 

 

Be Grateful and Celebrate!

4^th of July, which celebrates the United States’ Independence Day, is a joyful day with barbecues, fireworks and summer sales.

The holiday falls on Thursday this year, so many will use this opportunity to take a longer vacation. But do we remember (or know) why we celebrate Independence Day?

I decided to check online to learn more about who were the people who in 1776 laid down the foundation to build the greatest country in the world, for which I am grateful to be its citizen. Initially, there were twelve Founding Fathers with Thomas Jefferson, who wrote the first draft of the Declaration of Independence.

The process of separating from England was not easy for the thirteen colonies, that later became states, and there were disagreements among the 56 men whose signature appeared on the historic document.

And as in our time, over the following 248 years, different people had their own opinions and feelings of what is right and what is not, which even resulted in the Civil War. During these joyful days, let’s focus on what unites us and express our gratitude.

Enjoy the three images of the fireworks!

HAPPY 4^TH!