Mike: Well we give construction loans for people building houses and also for builders that are building spec homes. We do that, we make commercial loans both for owner property like a doctor building a building or an insurance company building a building. We do interim construction loans for commercial and in fact I am doing about $10-15 million right now interim construction loans for builders and people and we do everything. If there is a loan out there available like a HELOC loan, home equity line of credit loan, we do those. So if there is any type of loan in the real estate business, we don’t like it.
Brad: So let me ask you this, what is the difference in the process of a commercial loan, so you are going to build a doctor’s office versus a loan, is it easier.
Mike: It is not. Getting a commercial loan is easier than getting a residential loan. A lot of my people…
Brad: You heard it here.
Mike: It is true. A lot of my people think they can join the FBI, CIA or Secret Service with no other credit checks or any information after they go with a government loan. Or any kind of loan for that matter. Commercial loan, they are not looking for debt: income rations, or credit particularly, they are looking for loans to value and if the property cash flows so commercial loans quite frankly are a lot less paperwork and there is a lot less regulation with commercial loans but they don’t fall in the category of residential lending.
Brad: Gotcha. And that is another Mike’s Mortgage Minute here with Mike Anderson and Reliance Mortgage.