LESSONS FROM LAG BA OMER

Every religious tradition is based on a story. In Judaism, many of the stories come from the Torah. For instance, it is written that from the second day after the Passover holiday, which celebrates the Jews’ Exodus from Egypt, and their fight for freedom, the Jews count seven weeks, called Omer.

This culminates with the next holiday called Shavuot. During the time of the Temple, it was customary to come to Jerusalem and to bring the crops from the early summer grain (the word “Omer” means “sheaf of barley”). The Temple was destroyed by the Romans in 70 AD, however the tradition of counting Omer continued. And then in 132 AD, during the rebellion of Israelis led by Bar Kohba against the Romans, many Jews were killed. This occurred during the counting of Omer time. Therefore, the 7 weeks of Omer became a time of mourning. In spite of this, rabbis decided to introduce a new tradition. It was announced that on the 33rd day of Omer, there would be a break in the mourning. Instead, it would be a day of joy with barbecues and bonfires to celebrate the Jewish unity and pride. It is the day to have weddings and for children to get their first haircut.

For me, this minor holiday is a good reminder that in our lives there are many events which can cause feelings like mourning. What rabbis taught us is that life goes on, but we do not need to forget others. This is one of the reasons why during a Jewish wedding ceremony it is customary to break a glass. This symbolizes the memory of the destruction of the Holy Temple.

Lighting a bonfire has its own tradition. I do not have photo images of bonfires, instead I am sharing with you these three beautiful images of the fire from a gas burner. Look carefully at the game of fire, I am sure you will find many interesting images there.

 

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CREATIVE WAY TO CALCULATE INCOME

One of the most important concepts of the mortgage loan underwriting is called “paid as agreed”. In other words, lenders need to be convinced that borrowers’ source of income will ensure that. And this can be tricky. It seems that the best guarantee is employees who receive a salary. But what happens if they lose their jobs, as it happened to hundreds who were let go by the large public companies? As a result, lenders constantly seek for the alternative ways to how to calculate clients’ ability to pay on time. These programs are called Non-QM (i.e. non-qualified mortgages, which do not require government scrutiny, and therefore have higher price (interest rate).

One of these options was introduced to us by Debra Kidder-Steere from Newfi Wholesale during our regular staff meeting. Income is calculated based on the funds invested into the retirement account. Thus, if the borrower has $360,000 in IRA or 401K retirement program, this can be translated into$10,000 a month as an income. Follow this link to watch a video recorded during our conversation with Debra.

There are many other ways we can use to qualify borrowers, especially borrowers who have limited (reported) income, like these who are self-employed clients.

Feel free to contact me on the phone or by email provided below.

I promise to help!

Manny Kagan,
President,
Pacific Bay Financial Corporation

(415) 225-7920;
[email protected]

NMLS #205637
DRE #00824602

I AM VERY GRATEFUL

In 1969 we lived in Riga, Latvia. At that time, my wife Elfa and I were twenty-two, and we had a one-year young daughter. Latvia was part of the Soviet Union. Socialism and antisemitism were a part of our life. It is impossible to go back in time and to understand why we decided to immigrate to Israel. At that time, it was unfeasible even to think about it. Nevertheless, the next step of our life journey began. Our request to immigrate to Israel was refused. For the next three years, we became refuseniks, with many challenges connected with this status.

Elfa took it upon herself to fight with the state. She demonstrated with other refuseniks and was arrested twice, while I worked at a garage to feed our family. We were refused again and again, until January 1972, when our family finally received permission to emigrate to Israel. What we did not know at the time the extent to which the American Jewish Community demonstrated in support of the Soviet Jews with the slogan, “Let My People Go”, which made our liberation possible. After moving to San Francisco in 1980 and settling down, I joined “The Bay Area Council for Soviet Jews”, an organization which continued to help Jews, who still were trapped in the USSR and met the people who helped us.

I decided to write about this experience after attending a fundraiser for the “Soviet Jewry Movement Archives Project”. This event brought back memories from over fifty years ago. Our life in San Francisco has been very rewarding. We learned, we grew, we created a business and helped many people. Despite the fact that we lived and worked in different countries before, over the last forty-four years, we became Americans. And I am very grateful to be part of the best country in the world.

The three images are of the American flag that I have encountered in various places.

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Best Lines of Credit

Are you among thousands of homeowners who benefited from the low interest rates on their home mortgages? Do you need extra money to pay off high interest credit cards or for any other needs? One of the possible solutions is to get l/c – line of credit or second mortgage, without touching the first mortgage. Last week we had a presentation of Stacie Cappadona of Spring EQ who shared her company’s second loans and lines of credit options.

We have other lenders who offer similar products, however, the uniqueness here is that Spring EQ can go up to 95% CLTV — combined loan-to-value (the first loan plus the second). They lend on 1–4-unit buildings and as well as the rental properties. Another unique feature can be when during the purchase transaction instead of getting (or not getting) jumbo loan with 10% down payment, which has limited options, to apply for two loans simultaneously. We recently helped to finance purchase of the house for $1,800,000. Buyers had only $200,000. We structured the first loan as conforming — $1,149,850. The second was $470,150 and the down payment was just $180,000. The remaining $20,000 covered closing costs, and there was no need for the reserves.

Follow this link to watch and listen to a fragment of our discussion. And, as usual, please don’t hesitate to contact me with any questions you may have on the subject: (415) 225-7920; [email protected].

Manny Kagan,
President,
Pacific Bay Financial Corporation

NMLS #205637
DRE #00824602

*Photo: GettyImages

HAPPY MOTHER’S DAY

There are two holidays that relate to everyone, regardless of their personal differences. One of them is Father’s Day, which is celebrated on the third Sunday in June, that will fall on June 16, this year. And Mother’s Day, falling on Sunday, May 12, this year.

There is a very interesting modern history behind both holidays; however, honoring parents goes back to Ancient Greece and Rome. More precisely, it goes back to the Commandments in the Bible, where “Honor thy Father and Mother” is mentioned twice. No doubt that the Hallmark Corporation is responsible for the popularity of both celebrations in our times.

However, this year, you have an incredible opportunity to celebrate Mother’s Day in the Pop-Up Market, which will take place in the wine bar “Grape in the Fog”. Please follow this link for details. There you will meet a group of very talented female artists and will have the opportunity to try some sweet and savory bites, and of course taste some wine. I found out about this event from one of my clients, Beth, who is the owner of the bar. She asked me if I would like to bring some of my photo-books as potential gifts for mothers. You can see book covers here. You can also order them on Amazon.

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You Can Get Insurance Coverage, But…

Last week I recorded a conversation with the insurance broker Alex Shkolnikov about current state of the Insurance business. After the interview I received many questions. Therefore, I invited Alex back to find out what are the clients’ options and to share his thoughts with my website readers and YouTube viewers.

You are probably aware that many major insurance companies left California. That means that if someone needs new insurance policy on the purchase or to renew the existing one, the process even to get a quote might take as long as two months. This creates issues, especially for the purchase transactions. We cannot qualify the client before we know how much the monthly insurance will cost. At the same time real estate agents need to write purchase transactions for the closing by a specific date. And what if there is no insurance policy yet? And what if the client is not qualified with a higher monthly insurance cost?

So, what is the good news? I lived all my life following the adage “Where there is a will, there is a way.” I will keep you posted.

Meanwhile you can reach Alex at (415) 819-8006. His email address is [email protected].

And if you have questions regarding mortgage, please contact me:
cell: (415) 225-7920;
email: [email protected].

Enjoy and share  with a friend!

Manny Kagan,
President,
Pacific Bay Financial Corporation

NMLS #205637
DRE #00824602

Why Dogs Live Less Than Humans

I received this story from a friend and decided to share it with you in its entirety.

The surprising answer of a six-year-old child

Being a veterinarian, I had been called to examine a ten-year-old Irish Wolfhound named Belker. The dog’s owners, Ron, his wife Lisa, and their little boy Shane, were all very attached to Belker, and they were hoping for a miracle.

I examined Belker and found he was dying of cancer. I told the family we couldn’t do anything for Belker and offered to perform the euthanasia procedure for the old dog in their home. As we made arrangements, Ron and Lisa told me they thought it would be good for six-year-old Shane to observe the procedure. They felt as though Shane might learn something from the experience. The next day, I felt the familiar catch in my throat as Belker’s family surrounded him. Shane seemed so calm, petting the old dog for the last time, that I wondered if he understood what was going on. Within a few minutes, Belker slipped peacefully away.

The little boy seemed to accept Belker’s transition without any difficulty or confusion. We sat together for a while after Belker’s Death, wondering aloud about the sad fact that dogs’ lives are shorter than human lives. Shane, who had been listening quietly, piped up,” I know why.” Startled, we all turned to him. What came out of his mouth next stunned me. I’d never heard a more comforting explanation. It has changed the way I try and live.

He said, “People are born so that they can learn how to live a good life — like loving everybody all the time and being nice, right?” The six-year-old continued, “Well, dogs already know how to do that, so they don’t have to stay for as long as we do.”

Live simply.
Love generously.
Care deeply.
Speak kindly.

Remember, if a dog was the teacher, you would learn things like:

• When your loved ones come home, always run to greet them.
• Never pass up the opportunity to go for a joyride.
• Allow the experience of fresh air and the wind in your face to be pure ecstasy.
• Take naps.
• Stretch before rising.
• Run, romp, and play daily.
• Thrive on attention and let people touch you.
• Avoid biting when a simple growl will do.
• On warm days, stop to lie on your back on the grass.
• On hot days, drink lots of water and lie under a shady tree.
• When you’re happy, dance around and wag your entire body.
• Delight in the simple joy of a long walk.
• Be faithful.
• Never pretend to be something you’re not.
• If what you want lies buried, dig until you find it.
• When someone is having a bad day, be silent, sit close by, and nuzzle them gently.

That’s the secret of happiness that we can learn from a good dog.”

Our best friend, labradoodle Max, is going to be seven in June, which can be the middle age for dogs. I used his images in three of my “42 Encounters” books, which you can find on Amazon.

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Where There Is a Wish, There Is a Way

You probably heard an expression “Where there is a wish, there is a way”. The question is “How much this way will cost?” This question directly relates to the cost of insurance. When recently my insurance policy came to the point of renewal, I had a concern. I knew that State Farm Insurance stopped “writing” policies in California. Fortunately, perhaps, since we did not have any claims, it was extended. The cost obviously went up. But I did not care, since if my insurance broker had to shop for another company, the price of the insurance probably would go even higher.

One of the concerns we have in the mortgage brokerage is how the increase in the monthly insurance premium affects the qualifying ratio. This was the reason why I decided to interview an insurance broker Alex Shkolnikov. We just scratched the surface. Follow this link to watch our conversation on my YouTube channel.

Please always feel free to call or text me at (415) 225-7920 when someone you care about needs an insurance. You can also email me: [email protected]. Alex can be reached at (415) 819-8006 or at [email protected]

Best wishes,

Manny Kagan,
President,
Pacific Bay Financial Corporation

NMLS #205637
DRE #00824602

I HAVE MY HEART
IN SAN FRANCISCO

I fell in love with San Francisco since the first days we moved here on August 19, 1980. Five members of our family – my wife and two of our daughters aged 5 and 12, my wife’s mother, and I, spent our first night in an “inexpensive” hotel located on Leavenworth and Eddy in the heart of the Tenderloin district. Looking out the window at night, we saw pimps, prostitutes and their customers in action. The next day, holding our children’s hands tight, we went to Market Street where we saw many people who talked to themselves (this was long before mobile phones).

It took us some time to get to know what San Francisco and its diverse people all were about. And my love for our city became deeper. Lately, we read a lot of negative comments about San Francisco. I do not want to diminish the real problems; but, like every city, it has history. It started on January 30^th, 1847, one hundred years before I was born, with the population of 459. The Gold Rush brought thousands of primarily young men to the place where there was nothing, I mean nothing. And believe me, they had more problems than you can imagine, especially in comparison with today’s reality.

I just finished reading “Antebellum and Civil War San Francisco: A Western Theater for Northern & Southern Politics” written by Monika Trobits. The book describes many events and personalities who influenced the creation of our beloved city. Basically, whatever the problems, this too shall pass, which is the adage of Persian origin:

This too, Shall Pass

When things are bad, remember,
It won’t always be this way.
Take one day at a time.
When things are good, remember,
It won’t always be this way.
Enjoy every great moment.

Recently, when I was at a business meeting in the South of Market, I came across the indication that things are getting better – a brand new restaurant, STK Steakhouse, which looked impressive. These three images posted above will tell the story better.

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You Can Buy Before You Sell

There is a number of loans in our arsenal which allow clients to buy a new property before selling the old one.

Recently, we had a presentation in our office by David Olsen from The Loan Store, who offered different new twists to the old story. Please click on this link to watch a fragment of our conversation with David.

…He used an example where departing/selling property value was $1,000,000 with the mortgage of $500,000. In this case, the lender will take 25% off, thus the balance is $750,000 minus $500,000 leaving $250,000 for the down payment or any other needs. This loan does not have monthly payments, and the only cost for the client is 2.4% or $24,000 which is going to be deducted when the property is sold.

We, mortgage brokers, do not earn any commission on this transaction. The remaining amount is going to be used for the down payment on the purchase of the new property, which will follow a normal underwriting guidance, for which it has to be qualified…

Feel free to call me with any questions, and I promise to help!

Manny Kagan,
President,
Pacific Bay Financial Corporation
(415) 225-7920
[email protected] 

NMLS #205637
DRE #00824602