Tag Archives: note investing

4 Ways to Make Non-Performing Notes Work for YOU!

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Note investing is a little known investment strategy that allows you to basically be the bank. As a note investor, you purchase debts from financial institutions and then collect interest on the debt until it is repaid. Some types of notes you can purchase are credit card notes, store financing debts, auto loans, and even home mortgages. Once you own the note, you collect the interest. Depending on what type of note you purchase, note investing is a very safe and passive investing strategy. You buy a note and sit back and make money.

However, not all notes are created equal. Credit card notes and store debts are unsecured, meaning there is not collateral to fall back on in the case of default. They usually earn you higher interest but come with a much higher risk. Mortgage notes are usually fairly safe because the physical property can be used as collateral in the event of default.

If you are interested in purchasing mortgage notes, you can make your money work double or even triple by purchasing non-performing notes. Non-performing notes are pretty much exactly what they sound like, debts that are currently in default. While this may sound like a crazy idea, it has many benefits. Here are a few benefits of purchasing non-performing notes that you NEED to consider.

1. Non-performing notes can maximize your profits while minimizing your initial investment. A $200,000 note will cost you significantly less because it is currently in default, meaning the borrower is not repaying their debt.

2. Once you own the note, you can set about the process of rehabbing it. Just like you would fix up a house, you can fix up a note. Depending on your end goals, there are a few ways to go about this. If the note is for a property you would like to own as an investment, you can foreclose and take possession of the property. Since you got the note at a discount this means you get the property for a significant discount as well.

3. If owning the property is not your end goal, you can re-negotiate the terms of the non-performing note with the borrower. This basically involves changing the terms of the note so that the borrower is able to start making payments and get out of default on the note.

4. Once the non-performing note is performing again, you can either hold onto it and earn interest, or you can sell it as a performing note for a considerable profit.

While non-performing notes are a great way to make money, it is important to remember that there is still risk involved, especially if this is your first time investing in notes. The laws and regulations surrounding note investing are complex so don’t try to go it alone. Call the professionals at Level 4 Funding today to get started purchasing non-performing notes.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

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How to Earn More and Work Less with Note Investing

Uncategorized, , , , , , , , ,
Whether you
know it or not, you are probably already involved in note investing but on the wrong side of it. Investing in notes is the process of buying debt in the form of
credit cards, student loans, mortgages, or car loans. But instead of making
payments, you collect payments from the borrower, which include a higher than
average interest rate.
Many
investors think that note investing
sounds too good to be true, or may even think it is a scam. This could not be
further from the truth. Note investing
is simply the process of purchasing debts that borrowers owe. Once you purchase
the debt, you earn interest each month until the debt is paid in full by the
borrower. This interest can range anywhere from 3% on a mortgage note to well
over 15% on a debt like a credit card. The interest rate is not subject to
changing market conditions so you earn the same rate over the life of the loan,
which can be anywhere from a few months to 30 years, depending on the terms of
your investment.
While there
are many types of note investing
like credit cards or car loans, there are some specific advantages that come
with investing in real estate notes. Investing in notes that are tied to the real estate market is very similar to trust
deed investing. Basically, you purchase a mortgage debt from a bank. The bank
benefits because there is less of a risk of loss in the case of default because
it has capital from you. You benefit because you can now start earning the
interest that is paid by the borrower each month. While this may be a
relatively low rate, it is usually a high payment due to the amount of money
involved in the transaction. You can earn hundreds every month compared to a
credit card note which may have a higher interest rate but generally a lower
balance so the monthly interest payment is less.
Higher
monthly payments makes real estate note investing one popular way to start investingin notes is to invest in real estate notes. In this situation you basically
buy a promissory note that is part of a mortgage. You hold the note and earn
interest. You receive payments each month until the mortgage is paid in full
and then you get back your initial investment. You don’t have to work for your
payments, you sit back and let the cash flow in.

Risks and Benefits of Non-Performing Notes

Real estate
note investing also has an extra opportunity for smart investors to earn high returns,
non-performing notes. A
non-performing note is exactly what it sounds like, a debt that is currently
not being paid. When a mortgage is not being paid, the bank has two options,
foreclose on the property or sell the note to an investor. While several years
ago foreclosure was the first choice, many banks are now opting to sell non-performing notes.  By selling the note rather than
going through the expensive and sometimes drawn out process of foreclosing, a
bank stays out of the chain of title, doesn’t become liable for the property’s
environmental conditions and doesn’t have to worry about ownership issues. The
sale of non-performing notes is a
cheaper alternative to foreclosure.
Once you own a non-performing
note, you basically fix up the note the same way you would fix up a
property. You can renegotiate the terms of the note with the borrower if you
goal is long term monthly payments and interest earning. Or, if you would
prefer to own the actual property that you hold the note on, you can foreclose
on it and take possession. From here you can rent it out, fix and flip it, or
hold onto it until it appraises for the amount you want to sell it for.
Regardless of which avenue you take, you will make a profit on your non-performing note.
The greatest risk with non-performing
notes is that you will lose money during foreclosure. You can help make
this less likely by knowing all the laws related to foreclosure in the state
where you own the note. Make sure to take into account any extra expenses the foreclosure
process may entail.

Call us today to get started with note investing and non-performing notes!

At Level 4 Funding, we specialize in alternative investment
strategies like investing in notes.
We can help you through the process to help you start working less and earning
more!


Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

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Investing in Non-Performing Notes: A Win-Win for Borrowers and Investors

Uncategorized, , , , , , , , ,

Investing in notes is a relatively safe
investment strategy that pays consistently high interest rates with low risks.
While note investing can yield high
returns, investing in non-performing
notes can have even bigger payouts. However, there are more risks involved in
non-performing notes so it is important for investors to be aware of all risks
and benefits.
Have you
ever heard of investing in notes?
Probably not, but you are most likely already doing it. If you have a credit
card, car payment, student loan, or mortgage, you are in the note investing business. But, you are
on the wrong side of it. You are paying interest on a note to a bank or note
holder instead of earning high interest rates by being the bank. When you
purchase a note you become the bank and have many of the advantages like high
interest rates and security that the bank has. This includes the ability to
renegotiate the terms of the note in some cases, earn higher than average
interest rates, and have a consistent interest income that is not dependent on
market conditions. If this sounds like it is too good to be true, it is not. Note investing is a little known but
very legitimate type of investment that money savvy investors and banks take
advantage of regularly.
One popular
type of note is a real estate note. Real estate notes are generally safe
investments because they are backed by actual physical collateral, the property
that they represent the title to. Real estate note investing also has an extra
opportunity for smart investors to earn high returns, non-performing notes. A non-performing note is exactly what it
sounds like, a debt that is currently not being paid. When a mortgage is not
being paid, the bank has two options, foreclose on the property or sell the
note to an investor. While several years ago foreclosure was the first choice,
many banks are now opting to sell non-performing
notes.  By selling the
note rather than going through the expensive and sometimes drawn out process of
foreclosing, a bank stays out of the chain of title, doesn’t become liable for
the property’s environmental conditions and doesn’t have to worry about ownership
issues. The sale of non-performing notes
is a cheaper alternative to foreclosure.
Benefits for Investors and Borrowers
As an investor, you can purchase the non-performing note from the bank for a discounted price. Once the
note is purchased, the investor goes about rehabbing the note to turn it into a
performing note that can greatly increase in price. As the investor you have a
couple options when it comes to rehabbing the non-performing note. You can work with the borrower to negotiate
different loan terms. This is a good option if you don’t want to own the actual
property but you want to earn monthly payments, including interest. It can also
work out well for the borrower who can avoid foreclosure and further negative
marks on his/her credit.
A second option to rehab a non-performing note is to foreclose on the property. This is
a good option if you want to sell the property for a profit or if you are a
developer looking for cheap land and buildings for a new project. This is only
a good option if you want to own the actual physical property at a discounted
price. Many experts advise that this can be a great strategy to get a
multi-family or commercial property for much less than the appraised value.
Danger, Buyer Beware!
Like any
investment, non-performing notes
have some risks associated with the investment. You can help yourself risk less
by taking a few critical steps to protect your investment:
·        
Know the foreclosure laws in the state where you
purchase the property. Some states require you to go to court and go through
the process of judicial foreclosure with takes longer and can cost more money.
If you are getting a great deal it may still be worth it, but it is important
to know about all the issues upfront.
·        
Get as much information about the physical asset
as possible. Know the location, market value, condition, and any other
pertinent details about the property.
·        
If possible, get a home inspection and appraisal
done prior to purchasing the note, especially if you want to own the actual
property. This will help protect your money.
·        
Find the right lender who knows the ins and outs
of the non-performing note business.
Not just any bank will do, make sure your financial professional understand
note investing and has done it before.


Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

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Take the Advice of Financial Experts, Start Investing in Notes Today!

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Investing in notes is a way to invest
in real estate without the hassle of actually buying a property. It has many
advantages including less maintenance, higher interest, and more versatility
than purchasing an actual property.
Smart
investors know that it is better to get a mortgage payment than a rent check.
This means that they understand that investingin notes is more lucrative than purchasing a property and dealing with
tenants. With notes you can get monthly cash
flow and also have the potential to earn higher returns. With real estate, as
opposed to notes, it’s not as passive because you have to deal with tenants,
maintenance, broken leases, and a number of other headaches. Even if you buy a
property to fix and flip, you still have to fix up the property and sell it,
which is much more work than simply purchasing a note investment and letting your money do the work for you.
If investing in notes sounds intriguing, there are a few things you
should know about the logistics of noteinvesting before you get started. When you buy a note, you basically are
buying someone’s debt or mortgage. Each month, you earn the interest payment on
the mortgage note. You earn a consistent rate that is stable for the lifetime
of the note. This means you investment is protected from market fluctuations or
crashes in that the interest rate won’t drop. Since the note is backed by the actual
property, you are even protected in the event of borrower default.

Many new note buyers are afraid of
Foreclosure. However, if you are note investing,
you are often more protected than if you are a landlord. For example, if a
tenant of a rental property doesn’t pay rent, you have to take the tenant to
court by filing for eviction. Not only do you lose rent, but you have to evict
them, pay court costs, fix the property and re-rent the unit. Usually, these
expenses will never be reimbursed because many tenants do not have assets
(usually the reason they are renting instead of buying). With a homeowner, if
they miss any payments and there’s equity in the property, you can collect the
missed payments, late fees, corporate advances and any attorney fees. You can
draw up your note documents to cover these fees using equity in the property. There’s
also a significant difference between a homeowner’s mentality and a tenant’s
mindset. The homeowner usually has more invested into the property due to pride
of ownership. Most people do not want to lose their home and will make paying
their mortgage a priority, even during times of financial stress.

3 Easy Ways to
Risk Less with Note Investing

While real estate note investing is a relatively safe investment strategy because it
is backed by physical collateral, there are still risks involved. Mainly, there
is a risk that the borrower will default and the home will have no equity. This
will lead to you losing money. While this is a risk, there are ways to make
this risk less likely.

1.       Do
your research on the note you are buying. Don’t buy a note on a house that you
would not want to own. Now, this does not mean you would want to live there,
but only purchase notes that would also be good real estate investments. Choose
properties that are in good areas of town and that have consistently
appreciated in value. This will help ensure that there is equity in the property
if it ends up needing to be foreclosed on. The more equity in the property, the
more likely you will be to get all of your money back as well as any fees
incurred during the foreclosure process.
2.       Work
with a financial professional. Note investing
can be very lucrative, it is not something most people can manage on their
own. It is well worth the small monthly fee you pay to a private investor to
help you manage your note portfolio.
3.       Know
your options. There are many ways to make money investing in notes. You can rehab a note, buy non-performing notes, sell your notes, or even borrow against your
notes. Make sure you know all the ways your note can work for you.

If note investing soundslike a great way to earn money, that’s because it is!

Follow the
advice of smart investors and financial advisors by investing in notes. Call Level 4 Funding today to find out the
types of notes that will fit into your budget and start making your money work
for you!

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

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How to Be Successful and Make Money with Note Investing

Uncategorized, , , , , , , , ,
Whether you
know it or not, you are probably already involved in note investing but on the wrong side of it. Investing in notes is the process of buying debt in the form of
credit cards, student loans, mortgages, or car loans. But instead of making
payments, you collect payments from the borrower, which include a higher than
average interest rate.
Many
investors think that note investing
sounds too good to be true, or may even think it is a scam. This could not be
further from the truth. Note investing
is simply the process of purchasing debts that borrowers owe. Once you purchase
the debt, you earn interest each month until the debt is paid in full by the
borrower. This interest can range anywhere from 3% on a mortgage note to well
over 15% on a debt like a credit card. The interest rate is not subject to
changing market conditions so you earn the same rate over the life of the loan,
which can be anywhere from a few months to 30 years, depending on the terms of
your investment.
While there
are many types of note investing
like credit cards or car loans, there are some specific advantages that come
with investing in real estate notes. Investing in notes that are tied to the real estate market is very similar to trust
deed investing. Basically, you purchase a mortgage debt from a bank. The bank
benefits because there is less of a risk of loss in the case of default because
it has capital from you. You benefit because you can now start earning the
interest that is paid by the borrower each month. While this may be a relatively
low rate, it is usually a high payment due to the amount of money involved in the
transaction. Even at 3.5%, you can earn hundreds every month compared to a
credit card note which may have a higher interest rate but generally a lower
balance so the monthly interest payment is less.

Benefits of Real Estate Note Investing

As discussed
above, high monthly payments are one key benefit of investing in notes that are related to real estate. In addition to
high payments, there are several other benefits that are unique to real estate note investing.
1.      
Borrowers are less likely to default completely on
their home loan. While foreclosure does happen and is a risk, most borrower are
emotionally tied to their home. Even if other debts end up being defaulted on,
they are less likely to want to risk losing their home so a mortgage payment
will often be a priority, even during times of financial stress.
2.      
The note is backed by a real, tangible asset. In the event
of default, the property can be foreclosed on and some of your investment can
be recouped. This is simply not the case in many other types of note investing. Take credit cards for
example, if a borrower defaults, his credit will be impacted but credit cards
are unsecured debt, meaning that there are no physical assets that can be used
to recoup your funds.
3.      
Note investing can
be very profitable. Especially if you buy a non-performing note and spend time to rehab it. This means you buy
a note that is close to or in default and renegotiate the terms of the loan
with the borrower to avoid foreclosure. You then earn interest and the note
itself becomes more valuable. In some cases, these notes can be worth nearly
12% interest each month.

4.      
Less competition. Investing in notes is a niche investment market. There are only a few private equity
firms and hedge firms that use this investment strategy and the pool of
individual investors is even smaller. This means no bidding wars and often puts
you in a great position to negotiate price and terms.
5.      
Easy, passive investing. You can have a financial
company manage your note for you for a flat fee that is usually quite small. In
addition, if the note is performing there is almost not managing necessary. You
get to sit back and earn money every single month.

Call Level 4 Funding to learn more about investing in notes today!

Note
investing is a great strategy to build your investment portfolio and has the
potential to help you earn big bucks. Call us today to get started!

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

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How to “Be the Bank” by Investing in Notes

Uncategorized, , , , , , , ,
 Note investing is a little know
investment strategy that can provide high returns and low risk. You can get
started investing in notes by
learning the basics of the investment strategy and finding a private lender who
specializes in alternative investment strategies.
Have you
ever heard of investing in notes?
Probably not, but you are most likely already doing it. If you have a credit
card, car payment, student loan, or mortgage, you are in the note investing business. But, you are
on the wrong side of it. You are paying interest on a note to a bank or note
holder instead of earning high interest rates by being the bank. When you
purchase a note you become the bank and have many of the advantages like high
interest rates and security that the bank has. This includes the ability to
renegotiate the terms of the note in some cases, earn higher than average
interest rates, and have a consistent interest income that is not dependent on
market conditions. If this sounds like it is too good to be true, it is not. Note investing is a little known but
very legitimate type of investment that money savvy investors and banks take
advantage of regularly.
If you want
to get started in note investing, it
is important that you learn the basics about the types of notes you can
purchase and what your role as the investor is. Note investing has a number of
advantages, but perhaps the most appealing is that it creates passive cash
flow. This means that you don’t have to do anything to earn the money beyond
your initial time commitment to obtain the investment. The capital you invest
then begins to work for you, earning you interest each month without requiring
time or additional money.
One popular
way to start investing in notes is
to invest in real estate notes. In this situation you basically buy a
promissory note that is part of a mortgage. You hold the note and earn
interest. You receive payments each month until the mortgage is paid in full
and then you get back your initial investment. You don’t have to work for your
payments, you sit back and let the cash flow in.

Benefits of Investing in Notes

Passive cash
flow, as mentioned above, is probably the most appealing benefit to most
investors who engage in note investing.
It is truly a way to let you money work for you, rather than you working for
your money which is often the case. In addition, investing in notes is a relatively safe investment because the note
you invest in has a fixed interest rate. If you sign on for a 5% note, the rate
is always 5%. It is exempt from market fluctuations and you will not lose money
if some catastrophe occurs to close the Chinese stock market, or of Wall Street
crashes. Your interest is fixed and you can earn high percentages. Think about
the interest you pay on your credit card every month. If you own the note, you
get paid that instead of paying it to Visa.
Aside from
consistent cash flow that you don’t have to work for and high interest rates, note investing is also an easier
investment that can be cashed out quickly, if need be. Think about real estate,
if you own an investment property you have to maintain it and if you want to
sell it, it can take months or even years to find the right buyer. If you own
the note on an investment property, you have absolutely no maintenance and a
note is easier to sell than a physical piece of property.
Investing in notes is also a versatile investment
strategy. You can flip a note like in the case of a non-performing note that is
sold as performing, you can rehab a note by working out a loan modification if
a borrower is struggling to make payments, or you can even borrow against a
note and use it as collateral. Each type of note investing has various advantages that can help you make your
money work for you.

Like any investment, there are also risks involved in note investing.

You can help
minimize these risks by working with a private lender who specializes in
alternative investment strategies. Here at Level 4 Funding we work investors to
reap the benefits of note investing while helping to mitigate the risks
involved. Call us today to have all your note investing questions answered.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

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How to "Be the Bank" by Investing in Notes

Non-Performing Notes, Non-Performing Notes for Sale, , , , , , , ,
 Note investing is just a little know
funding technique that may present excessive returns and low threat. You may get
began investing in notes by
studying the fundamentals of the funding technique and discovering a private lender who
specializes in various funding methods.
Have you ever
ever heard of investing in notes?
In all probability not, however you’re almost definitely already doing it. You probably have a credit score
card, automotive cost, scholar loan, or mortgage, you’re in the word investing enterprise. However, you’re
on the unsuitable aspect of it. You’re paying curiosity on a word to a financial institution or word
holder as a substitute of incomes excessive rates of interest by being the financial institution. While you
buy a word you turn into the financial institution and have a lot of the benefits like excessive
rates of interest and safety that the financial institution has. This consists of the capability to
renegotiate the phrases of the word in some circumstances, earn increased than common
rates of interest, and have a constant curiosity revenue that isn’t depending on
market circumstances. If this feels like it’s too good to be true, it isn’t. Be aware investing is just a little recognized however
very official kind of funding that money savvy traders and banks take
benefit of recurrently.
In order for you
to get began in note investing, it
is essential that you just study the fundamentals about the kinds of notes you’ll be able to
buy and what your function as the investor is. Be aware investing has quite a lot of
benefits, however maybe the most interesting is that it creates passive money
circulation. Because of this you don’t have to do something to earn the money past
your preliminary time dedication to receive the funding. The capital you make investments
then begins to be just right for you, incomes you curiosity every month with out requiring
time or extra money.
One common
approach to begin investing in notes is
to make investments in actual property notes. On this state of affairs you principally purchase a
promissory word that’s a part of a mortgage. You maintain the word and earn
curiosity. You obtain funds every month till the mortgage is paid in full
and you then get again your preliminary funding. You don’t have to work to your
funds, you sit again and let the money circulation in.

Advantages of Investing in Notes

Passive money
circulation, as talked about above, might be the most interesting profit to most
traders who interact in word investing.
It’s actually a approach to allow you to money be just right for you, quite than you working for
your money which is usually the case. As well as, investing in notes is a comparatively protected funding as a result of the word
you make investments in has a set rate of interest. In case you signal on for a 5% word, the fee
is at all times 5%. It’s exempt from market fluctuations and you’ll not lose money
if some disaster happens to shut the Chinese language inventory market, or of Wall Road
crashes. Your curiosity is mounted and you’ll earn excessive percentages. Take into consideration
the curiosity you pay in your bank card each month. In case you personal the word, you
receives a commission that as a substitute of paying it to Visa.
Except for
constant money circulation that you just don’t have to work for and excessive rates of interest, note investing can also be a better
funding that may be cashed out shortly, if want be. Take into consideration actual property,
in the event you personal an funding property you could have to preserve it and if you would like to
promote it, it will possibly take months and even years to discover the proper purchaser. In case you personal
the word on an funding property, you could have completely no upkeep and a
word is simpler to promote than a bodily piece of property.
Investing in notes can also be a flexible funding
technique. You possibly can flip a word like in the case of a non-performing word that’s
offered as performing, you’ll be able to rehab a word by understanding a loan modification if
a borrower is struggling to make funds, or you’ll be able to even borrow towards a
word and use it as collateral. Every kind of note investing has varied benefits that may provide help to make your
money be just right for you.

Like every funding, there are additionally dangers concerned in word investing.

You possibly can assist
reduce these dangers by working with a private lender who specializes in
various funding methods. Right here at Degree four Funding we work traders to
reap the advantages of word investing whereas serving to to mitigate the dangers
concerned. Name us right now to have all of your note investing questions answered.

 

 

Dennis Dahlberg

Dealer/RI/CEO/MLO

Degree four Funding LLC
Arizona Tel:  (623) 582-4444 Arizona Tel:     (512) 516-1177 

dennis@level4funding.com

www.setabay.com


NMLS 1057378 | AZMB 0923961 | MLO 105737822601 N 19th Ave Suite 112

Phoenix AZ 85027

 
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