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How to Locate Properties (Part 1 - For Sale By Owner Sites)
2007-08-30 18:48:00
Hello everyone, this is Bill Flood, and welcome to another edition of the Coast to Coast Real Estate Investor. Today I am going to start a multi-part series on where to locate properties across the country. Let me begin by saying that as you start using any of the resources I’m providing - or any other - your ultimate job is to get to know the market in which you are investing. Don’t try to shortcut that by using a website! Your job is to look, and look, and look, and to research, and then research some more to get a clear understanding of prices, values, best communities in which to invest, and what’s happening in a given market. Don’t jump into some deal prematurely without having a real good sense of where you are planning to buy. Don’t take anyone’s word that a property is worth a certain amount. Basically, don’t make the speculator’s mistake of buying anything just because you can.For Sale By Owner Properties and For Sale By Owner Sites I’m going to begin thi


Researching Markets in Which to Invest
2007-07-29 13:55:00
Hello everyone, this is Bill Flood, and welcome to another edition of the Coast to Coast Real Estate Investor. Last week I provided an 8-step formula for how to approach out of state investing. This week, I want to look in more depth at the first step – that of researching markets in which to invest.Let me start by identifying what I think are three critical components that determine where an investor should be looking.They are: Employment trendsHousing factorsPopulation shifts (particularly by baby boomers) -and-Overall affordability.Employment TrendsEmployment trends deal with whether an area is experiencing job growth, stagnation, or decline. Many areas I discuss are experiencing growth in employment, which brings people into an area for jobs, placing pressure on the existing stock of housing and pushes up rents and property values. Declines in employment have the opposite effect as is being seen in places like Detroit. Unless you are hedging for a turnaround in an area, your
Read more: Markets

The Game Plan For Buying Properties Out of State
2007-06-08 09:21:00
Welcome to another edition of the Coast-to-Coast Real Estate Investor. Last week I wrapped up the overview of the various states to invest in. If you haven’t read any of those, or heard the Podcast versions yet you can go back and access them. The blog entries are located here in the archives, and the Podcasts can be accessed at:http://www.talkshoe.com/talkshoe/web/talkCast.jsp?masterId=20058&cmd=tcThose “where to buy property” episodes will be real useful to you for laying the groundwork on where to invest.Today, I am covering a basic game plan for buying property out of state. This game plan is structured around long-term holding, but those of you interested in flipping properties can still make use of much of it. Today, I’ll be presenting the overview, and in the following weeks, I’ll be examining each step much more thoroughly.So, let’s begin!Step 1. Researching Markets –Before you ever invest in an area other than your own home market, you need to have a clea
Read more: Buying , Properties , State

Where to Invest (Part 5) – The Mid Atlantic and New England
2007-06-01 10:51:00
Welcome to another edition of the Coast-to-Coast Real Estate Investor. Last week we discussed the Midwest, and how although it’s not a raging market, you can make sensible investments there. To make last week’s material short, look at properties in the Midwest as kind of a blue-chip investment that plug along at steady rates and produce solid cash flow.This week we’re going to look at the Mid-Atlantic and New England areas – another set of regions for which that “blue-chip” nametag could apply.Make no bones about it – that great megalopolis from Washington, DC and up through most all of New England is pricey. And, much of it – DC, New York, Boston, Hartford, Philadelphia, etc., has suffered the effects of speculative buying, running prices up so high that the markets are priced out of the range of the median buyers in the area. Prices in the big cities are more related to the effects of the greater fool theory, which I’ve talked about in prior episodes, than any r


Where to Invest (Part 4) - The Midest
2007-05-25 10:30:00
Welcome to another edition of the Coast-to-Coast Real Estate Investor!Last week I discussed the Pacific Northwest. This week I’m going to take you on an unusual investor’s look at the Midwest region.Before I begin, let me set the stage for understanding the Midwest as an investing arena. Unlike a lot of markets which over the last few years have seen meteoric appreciation - particularly in the Sunbelt - the Midwest tends to be, on whole, a very conservative and stable market. Appreciation rates don’t tend to spike astoundingly, or come crashing down with a vengeance. Instead, in states like Ohio and Michigan appreciation plugs along at constant rates around 4% per year (in good years or bad). While that may not seem like much when compared to a burst of 15% or 18% rate like so many places experienced, the effects of compounding, over time, make consistency equate to a great effect. It’s very much like holding a blue-chip stock over time as opposed to short-term trading of


Where to Invest (Part 3) - The Far West and Pacific Northwest
2007-05-16 20:24:00
Welcome to another edition of the Coast-to-Coast Real Estate Investor. In the last edition I discussed the desert southwest states. In this edition I’m going to continue looking at the West, this time with the Far West and Pacific Northwest states.Let me begin by discussing an important influence – I want to point out a significant demographic shift that effects the Western US. California investors, retirees, and those fleeing the state for various reasons (ie. crime, congestion, etc.) tend to go north to Oregon and Washington, and to adjacent states east. Thus the California population shift has dramatic effects on the neighboring states. We’ve seen some of that with Arizona and Nevada.With that in mind, let’s go back to Nevada and consider some areas other than Las Vegas.NevadaLast edition, I mentioned Las Vegas. Today, I’ll begin by discussing Reno, which I believe will share the destiny of Las Vegas. As Vegas continues to be popular, with associated escalating prices, I b


Where to Invest (Part 2)
2007-04-06 20:11:00
Welcome to another edition of the Coast to Coast Real Estate Investor. In this edition we’re on to Texas and the far west!In the last edition, I mentioned Texas briefly. I want to start this episode by going back and looking in some more depth at the state. Texas, in my mind, represents the best investment value in the continental United States. Prices are among the lowest in the country, and you get good value for the money. And, that fact is coupled with an amazing quality of lifeNow, understand that Texas has come into the sights of all those speculators who wrecked the Las Vegas and Phoenix markets, sending them sky-high. As those markets got too expensive, those same investors turned their attention to Texas because of the perceived value.Personally, I don’t think the same thing can happen in Texas because there’s simply too much land – to much room to build. However, Texas is attracting a lot of attention, and prices are rising steadily, fortunately at sustainable rates.


Where to Invest (Part 1)
2007-04-02 14:00:00
You know, people ask me all the time – where should I invest? What are the hot markets? Are there places that have any good deals left?Well, that’s where I am going to take you today; this posting is the first in a two-part overview I’m going to write on what markets have good potential. In this part I, I’ll be taking a look at the first 4 of several states that have fantastic investment potential. Part II and forward will continue the examination to the states I don’t cover today.But, first, I want you to understand some of the forces that are driving the areas I'm highlighting. If you’ve read the prior two postings, you saw the references I made to places like Phoenix and Las Vegas. Understand that those fast and furious run-ups were more driven by speculation than anything else. Fix and flip style investors (actually, more appropriately the “buy and flip” speculators), primarily from California were going into those markets en-masse buying property with the expectat


Why Look Beyond Your Backyard?
2007-03-16 12:57:00
I thought I would begine my first real edition presenting reasons for why a real estate investor would want to look beyond their backyard for properties.If conventional wisdom - if the gurus and supposed experts - suggest you should stay within about a 30 minute radius of your home, why do we see people investing in distant areas? Is it really a bad idea, or is there something else you should know?First, let me assure you that it isn’t a bad idea…in reality, it’s the opposite…it’s a very good idea. Understand that the late-night infomercial guys (I have nothing against them, by the way), and most of the real estate authors in print are presenting their material for novices and newbies. For the beginner, with little to know experience, concentrating on the backyard is vitally sensible! Folks who are not yet familiar with cash flow, financing, and managing properties do themselves great justice by staying local until they get their feet a bit wet. If, say, you’ve never rented


Welcome to The Coast to Coast Investor
2007-03-11 19:54:00
OK…today is inauguration day for the Coast -to-Coast Investor .So, what’s this blog all about anyway? My intention here is to create a one-of-a-kind blog dedicated to real estate investors who are interested in investing outside of their backyards.After getting the blog successfully launched, I’ll be pairing it with a Podcast, which I’ll introduce in a future edition. A website is in the works, and a book on out-of-state investing is forthcoming.Since this is as much my blogging initiation as it is the launch of The Coast to Coast Investor, I thought I’d provide a bit of insight on where I’m going with this thing. What’s the purpose, anyway? Let me start by noting that I am an out-of-state investor myself. In fact, I never had much interest in investing in my backyard. There are just too many exciting, compelling places to invest – recreational areas, the beaches, golf course communities in nice sunny places…you get the idea!The challenge is, nothing has been written ou
Read more: Welcome

How to Locate Properties (Part 1 - For Sale By Owner Sites)
2007-08-30 18:48:00
Hello everyone, this is Bill Flood, and welcome to another edition of the Coast to Coast Real Estate Investor. Today I am going to start a multi-part series on where to locate properties across the country. Let me begin by saying that as you start using any of the resources I’m providing - or any other - your ultimate job is to get to know the market in which you are investing. Don’t try to shortcut that by using a website! Your job is to look, and look, and look, and to research, and then research some more to get a clear understanding of prices, values, best communities in which to invest, and what’s happening in a given market. Don’t jump into some deal prematurely without having a real good sense of where you are planning to buy. Don’t take anyone’s word that a property is worth a certain amount. Basically, don’t make the speculator’s mistake of buying anything just because you can.For Sale By Owner Properties and For Sale By Owner Sites I’m going to begin thi


Researching Markets in Which to Invest
2007-07-29 13:55:00
Hello everyone, this is Bill Flood, and welcome to another edition of the Coast to Coast Real Estate Investor. Last week I provided an 8-step formula for how to approach out of state investing. This week, I want to look in more depth at the first step – that of researching markets in which to invest.Let me start by identifying what I think are three critical components that determine where an investor should be looking.They are: Employment trendsHousing factorsPopulation shifts (particularly by baby boomers) -and-Overall affordability.Employment TrendsEmployment trends deal with whether an area is experiencing job growth, stagnation, or decline. Many areas I discuss are experiencing growth in employment, which brings people into an area for jobs, placing pressure on the existing stock of housing and pushes up rents and property values. Declines in employment have the opposite effect as is being seen in places like Detroit. Unless you are hedging for a turnaround in an area, your
Read more: Markets

The Game Plan For Buying Properties Out of State
2007-06-08 09:21:00
Welcome to another edition of the Coast-to-Coast Real Estate Investor. Last week I wrapped up the overview of the various states to invest in. If you haven’t read any of those, or heard the Podcast versions yet you can go back and access them. The blog entries are located here in the archives, and the Podcasts can be accessed at:http://www.talkshoe.com/talkshoe/web/talkCast.jsp?masterId=20058&cmd=tcThose “where to buy property” episodes will be real useful to you for laying the groundwork on where to invest.Today, I am covering a basic game plan for buying property out of state. This game plan is structured around long-term holding, but those of you interested in flipping properties can still make use of much of it. Today, I’ll be presenting the overview, and in the following weeks, I’ll be examining each step much more thoroughly.So, let’s begin!Step 1. Researching Markets –Before you ever invest in an area other than your own home market, you need to have a clea
Read more: Buying , Properties , State

Where to Invest (Part 5) – The Mid Atlantic and New England
2007-06-01 10:51:00
Welcome to another edition of the Coast-to-Coast Real Estate Investor. Last week we discussed the Midwest, and how although it’s not a raging market, you can make sensible investments there. To make last week’s material short, look at properties in the Midwest as kind of a blue-chip investment that plug along at steady rates and produce solid cash flow.This week we’re going to look at the Mid-Atlantic and New England areas – another set of regions for which that “blue-chip” nametag could apply.Make no bones about it – that great megalopolis from Washington, DC and up through most all of New England is pricey. And, much of it – DC, New York, Boston, Hartford, Philadelphia, etc., has suffered the effects of speculative buying, running prices up so high that the markets are priced out of the range of the median buyers in the area. Prices in the big cities are more related to the effects of the greater fool theory, which I’ve talked about in prior episodes, than any r


Where to Invest (Part 4) - The Midest
2007-05-25 10:30:00
Welcome to another edition of the Coast-to-Coast Real Estate Investor!Last week I discussed the Pacific Northwest. This week I’m going to take you on an unusual investor’s look at the Midwest region.Before I begin, let me set the stage for understanding the Midwest as an investing arena. Unlike a lot of markets which over the last few years have seen meteoric appreciation - particularly in the Sunbelt - the Midwest tends to be, on whole, a very conservative and stable market. Appreciation rates don’t tend to spike astoundingly, or come crashing down with a vengeance. Instead, in states like Ohio and Michigan appreciation plugs along at constant rates around 4% per year (in good years or bad). While that may not seem like much when compared to a burst of 15% or 18% rate like so many places experienced, the effects of compounding, over time, make consistency equate to a great effect. It’s very much like holding a blue-chip stock over time as opposed to short-term trading of


Where to Invest (Part 3) - The Far West and Pacific Northwest
2007-05-16 20:24:00
Welcome to another edition of the Coast-to-Coast Real Estate Investor. In the last edition I discussed the desert southwest states. In this edition I’m going to continue looking at the West, this time with the Far West and Pacific Northwest states.Let me begin by discussing an important influence – I want to point out a significant demographic shift that effects the Western US. California investors, retirees, and those fleeing the state for various reasons (ie. crime, congestion, etc.) tend to go north to Oregon and Washington, and to adjacent states east. Thus the California population shift has dramatic effects on the neighboring states. We’ve seen some of that with Arizona and Nevada.With that in mind, let’s go back to Nevada and consider some areas other than Las Vegas.NevadaLast edition, I mentioned Las Vegas. Today, I’ll begin by discussing Reno, which I believe will share the destiny of Las Vegas. As Vegas continues to be popular, with associated escalating prices, I b


Where to Invest (Part 2)
2007-04-06 20:11:00
Welcome to another edition of the Coast to Coast Real Estate Investor. In this edition we’re on to Texas and the far west!In the last edition, I mentioned Texas briefly. I want to start this episode by going back and looking in some more depth at the state. Texas, in my mind, represents the best investment value in the continental United States. Prices are among the lowest in the country, and you get good value for the money. And, that fact is coupled with an amazing quality of lifeNow, understand that Texas has come into the sights of all those speculators who wrecked the Las Vegas and Phoenix markets, sending them sky-high. As those markets got too expensive, those same investors turned their attention to Texas because of the perceived value.Personally, I don’t think the same thing can happen in Texas because there’s simply too much land – to much room to build. However, Texas is attracting a lot of attention, and prices are rising steadily, fortunately at sustainable rates.


Where to Invest (Part 1)
2007-04-02 14:00:00
You know, people ask me all the time – where should I invest? What are the hot markets? Are there places that have any good deals left?Well, that’s where I am going to take you today; this posting is the first in a two-part overview I’m going to write on what markets have good potential. In this part I, I’ll be taking a look at the first 4 of several states that have fantastic investment potential. Part II and forward will continue the examination to the states I don’t cover today.But, first, I want you to understand some of the forces that are driving the areas I'm highlighting. If you’ve read the prior two postings, you saw the references I made to places like Phoenix and Las Vegas. Understand that those fast and furious run-ups were more driven by speculation than anything else. Fix and flip style investors (actually, more appropriately the “buy and flip” speculators), primarily from California were going into those markets en-masse buying property with the expectat


Why Look Beyond Your Backyard?
2007-03-16 12:57:00
I thought I would begine my first real edition presenting reasons for why a real estate investor would want to look beyond their backyard for properties.If conventional wisdom - if the gurus and supposed experts - suggest you should stay within about a 30 minute radius of your home, why do we see people investing in distant areas? Is it really a bad idea, or is there something else you should know?First, let me assure you that it isn’t a bad idea…in reality, it’s the opposite…it’s a very good idea. Understand that the late-night infomercial guys (I have nothing against them, by the way), and most of the real estate authors in print are presenting their material for novices and newbies. For the beginner, with little to know experience, concentrating on the backyard is vitally sensible! Folks who are not yet familiar with cash flow, financing, and managing properties do themselves great justice by staying local until they get their feet a bit wet. If, say, you’ve never rented


Welcome to The Coast to Coast Investor
2007-03-11 19:54:00
OK…today is inauguration day for the Coast -to-Coast Investor .So, what’s this blog all about anyway? My intention here is to create a one-of-a-kind blog dedicated to real estate investors who are interested in investing outside of their backyards.After getting the blog successfully launched, I’ll be pairing it with a Podcast, which I’ll introduce in a future edition. A website is in the works, and a book on out-of-state investing is forthcoming.Since this is as much my blogging initiation as it is the launch of The Coast to Coast Investor, I thought I’d provide a bit of insight on where I’m going with this thing. What’s the purpose, anyway? Let me start by noting that I am an out-of-state investor myself. In fact, I never had much interest in investing in my backyard. There are just too many exciting, compelling places to invest – recreational areas, the beaches, golf course communities in nice sunny places…you get the idea!The challenge is, nothing has been written ou
Read more: Welcome

Locating Properties (part 4) - Investor Oriented Websites and Communities
2007-09-27 16:29:00
Today, I want to talk about investor-oriented resources and how they can help you locate good investments. There is no doubt that the Internet has had a tremendous positive effect on the career of real estate investors and helping them find deals. What we used to do by driving around and making phone calls can quickly be done online today. There are investor-oriented websites, online investor communities, and countless private investor websites in existence.Investor -Oriented Websites I’m a real fan of a couple of free investor-oriented websites. Unlike so many others, they don’t charge subscription fees, and you get tons of listings from private parties (as opposed to companies that don't really have properties to sell. Two of my favorites are:www.Rehablist.comwww.Foreclosures-4-investors.comKeep in mind that you can often find deals from consumers selling homes as well as investors wholesaling deals. Often, even real estate agents will have lucrative deals on these sites.I'
Read more: Communities , Properties

Locating Properties (part 3) - National Real Estate Sites
2007-09-20 10:30:00
Let's jump right in and take a look at how national real estate sites can be a good source of property leads.There’s no doubt that real estate brokerages control the vast majority of listings of property for sale. Agent listings on national sites can have certain kinds of issues - among them outdated listings that don't get removed, they are still an important place to look. There are some pretty well-know places to search:www.Realtor.com. I don’t tend to use realtor.com to search for listings because I get frustrated with the amount of outdated information I find. It seems to me that about 7 or 8 out of every 10 listings on realtor.com are no longer for sale, but were never taken offline. I do use realtor.com to help find agents, to browse properties in areas in which I am interested to get a sense of value, and learn the communities and so forth. It has some pretty good search tools, so for that it’s useful. And, my comments withstanding, realtor.com is still among the
Read more: Estate , National , Properties , Sites

Locating Properties (Part 2) - Classified Sites
2007-09-13 16:49:00
Hi Everyone. Welcome to another edition of the Coast to Coast Real Estate Investor. In this edition I'll be continuing my multi-part series on how and where to locate suitable investment properties out of state.In this edition, I'll be exploring classified advertising sites and resources. Right on the heels of the For Sale By Owner (FSBO) sites are the big national classified advertising sites. My top pick is the well-known www.Craigslist.com. I’ve heard a lot of people complain that they can’t find deals on Craigslist or that only amateurs use it. That can’t be further from the truth. Any time you have a collection of sellers, you are going to have a certain percentage that are “don’t wanter” types that are really flexible. You just need to know what to look for.The trick to Craigslist is learning how to search. Craigslist allows you to do keyword searches, so you need to look for terms that would pull up potential candidates. For example, searching for “owner
Read more: Classified , Properties , Sites

Finding and Working With Good Agents for Out of State Purchases (Part 1)
2007-10-11 17:30:00
In this edition I am going to chat about how to locate and work with real estate agents. I am going to talk candidly about agents from an investor’s vantage…and I recognize that I run the risk of being a bit offensive to agents and brokers because of that. I’m certain to cross the line for many real estate agents, but I am dealing in matters of investor practicality. Investors and agents come from two different worlds, and they don’t necessarily agree with each other.While I am a big fan of For Sale By Owner deals, there’s no doubt that the vast majority of real estate transactions take place through agents, so the agent angle is one you really must master.Collectively, agents have made me about $250,000 over my last 4 deals – so, we’re not talking about small change. But, you are not going to access those kinds of deals if you simply try to grab properties & agents at random. If you just walk in the door and ask to speak to an agent you aren't going to succeed a
Read more: State

Locating Real Estate Investments (part 5) - Private Real Estate Investor Sites
2007-10-07 17:23:00
Private Investor Sites In every community and every city there are real estate investors who are selling properties. Often these are wholesale deals which the investor picked up at a substantial discount, who is marking it up to make a profit, but still leaving a good amount of equity on the table for another investor who wants to fix up the property. In many cases today, these investors are getting pretty savvy and have websites and mailing lists publicizing their deals. They can be a great resource for you.Here’s an example of one investor’s site in San Antonio:http://www.buynowsa.comI am not making any recommendation to them – I am merely listing them as an example of what’s available.Here are a couple of other examples:In Phoenixhttp://www.invest-n-homes.com/In Dallashttp://www.dfwinvestors.net/Again, I am not making an referrals or recommendations - I am merely using these of examples of what you can find out there.You can find these types of real estate investor sites by
Read more: Estate , Investments , Private

Finding and Working With Agents for Out of State Purchases (Part 2)
2007-10-23 10:27:00
As I mentioned in my last posting, in my experiences you will probably contact between 25 and 50 agents in a given area in order to find from 1 to 3 agents who are really top-rate.What you are looking for in an agent are the following:They Must be Comfortable and Capable Dealing With InvestorsThey must understand and be comfortable with investor mentality. That means they must be comfortable making assertively-priced offers and/or asking for creative terms. Do they regularly work with investors? Are they an investor themselves? Ask them questions to that effect. Ask them pointed questions that would elicit investor-oriented knowledge (such as about owner financing). If they want to send you immediately to a mortgage officer to get you qualified, they just identified themselves as a non-candidate.They Should be oriented towards buyers and not sellers.A selling oriented agent will not fully grasp the needs of a complex investor-buyer. Investors seek either concessions on price and/or ter
Read more: State

Valuing Property Remotely (part 1)
2007-11-09 10:30:00
Hello everyone, this is Bill Flood, and welcome to another edition of the Coast to Coast Real Estate Investor. Thanks for joining me on the journey as we learn about real estate investing across the countryToday, I want to talk about a subject that is near and dear to most investor’s hearts. I probably get more questions about this subject of determining property values than nearly any other. It really is a vital, important subject, but at the same time, isn't really rocket science. There are a few well-utilized procedures that will make the process simple.I’ll also note that while investors need to know value and make their purchases accordingly, accurately predicting a property’s value is much more important to a flipper than someone holding over the long term. It's much like a stock investor not needing to be as concerned with the "perfect" entry point as much as a day trader would need to be.Make no bones about it – no investor should be buying at retail value…or


Valuing Property Remotely (Part 2)
2007-12-19 13:31:00
Real Estate Agent ComparablesThe next piece I'll talk about is working with real estate agents to get comparables, or "comps" on units which interest you. Remember in my previous post about working with real estate agents? If you didn't read that one yet, go back and browse it. This is where a good agent in your corner is so valuable.When getting comps, you want to look at the prices at which units sold, not what the listing prices are. Solds - particularly over the previous 4-6 months tell you what buyers are really paying for properties in that area. The problem with listing prices is that they often reflect more idealism than reality. Listing prices can help you see a relatively better deal, when you note that the asking price is lower than all the others' asking prices, but ultimately, how does it compare with what people have truly paid?Also look at how long the properties are sitting. If you are looking at a unit that has been on the market for 210 days, that can tell


Financing Part 2 - Insitutional Financing
2008-03-12 11:19:10
Traditional Mortgage InstrumentsLet’s begin by looking at the traditional mortgage marketplace. No investor would turn their back on conventional financing, particularly when the mortgage marketplace is good. The problem is, right now, it’s not, which is why I’ll be spending so much time on upcoming posts about alternative financing. Still, it only makes sense for investors to know as much as possible about traditional mortgages, particularly when it’s so tough to obtain conventional money. The more you know, the better off you’ll be when seeking out conventional money.Traditional mortgages can be broken down into 2 categories:Government-backed loans underwritten by either the Federal Housing Administration (the FHA) or by the Veteran’s Administration (the VA) and conventio
Read more: Financing

Financing Investments in the Current Climate
2008-03-03 05:44:05
Hello everyone, this is Bill Flood, and welcome to another edition of the Coast to Coast Real Estate Investor. Today, I’m going to begin a multipart series on how to finance properties. Knowledge of creative financing techniques is a dying art, and given the current credit crunch is absolutely necessary to finance your acquisitions. I want to do a brain dump on how to finance deals whether it's with conventional finacing or with the dozens of other techniques that don't involve banks and mortgage companies!Let's go back 5 or 6 years. With the advent of mortgages at 5%, interest only, and the only qualification being you needed to fog up a mirror when you breathed on it, other forms of financing really fell by the wayside.But, times are different now, and the sub-prime game is all but ove
Read more: Climate , Current , Financing , Investments

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