Feature — Strategies
One platform. Every strategy you run.
The numbers that matter change with your exit. FoundREI models each strategy with the inputs and outputs your underwriting actually needs — and compares them side by side on the same property, so you can see which exit really wins.
Inside the feature
What it is
FoundREI keeps the underwriting, execution, funding, and books connected across the real estate investment strategies you actually run.
Strategy — Wholesaling
Quote MAO confidently and move every contract faster
The wholesaler's edge is speed plus defensible numbers. FoundREI gives you a comp-backed ARV, an instant MAO, and a branded one-pager you can send to your buyer list before the seller signs with someone else.
- Instant MAO from a comp-backed ARV
- Branded buyer flyers in flipper or landlord mode
- Public share link per deal — no buyer login required
- Track multiple buyer offers on a single contract
- Snapshot saved per deal for post-close variance review
- Compliant assignment-fee disclosure fields
What it is
Wholesaling moves a property from a motivated seller to an end buyer via contract assignment. Profit is the spread, paid at closing. The work is acquisition (finding the seller), underwriting (defending the ARV and rehab), and distribution (getting the deal in front of the right buyer fast). FoundREI compresses underwriting and distribution into the same workflow.
Who it's for
New wholesalers
Skip the spreadsheet phase and underwrite like a pro from day one.
High-volume wholesalers
Standardize how every deal goes to your buyer list.
Hybrid investors
Wholesale the deals you don't want; keep the ones you do.
How it works
- Step 1
Drop the lead
Address, seller asking price, condition notes.
- Step 2
Pull comps and ARV
Recency-weighted comp set with override-friendly UI.
- Step 3
Set MAO and assignment fee
FoundREI applies the 70% rule with your overrides.
- Step 4
Generate buyer flyer
Branded one-pager, flipper or landlord framing.
- Step 5
Share and assign
Public link to your buyer list; pick the best offer.
Wholesale workflow compared
| Step | Old way | FoundREI |
|---|---|---|
| Build ARV | Zillow + gut | Weighted comp engine |
| Quote MAO | Mental math | Auto, with overrides |
| Send to buyers | Screenshot in a text | Branded flyer + share link |
Wholesale MAO calculator
Quote your seller-side MAO with the assignment fee already baked in.
Default expense, tax & vacancy assumptionsClick to expand — every default is editable and feeds back into the numbers above.ShowHide
Default 1% · at default
% of buyer MAO charged when you can't assign directly. Set to 0 for a clean assignment.
Default $1,500 · at default
Flat-fee transactional title work. Larger deals push this $2k–$3k.
Default $500 · at default
Email blast, paid placements, dispo VA time. Skip if you have a hot buyer.
Estimates only. FoundREI models every line item — taxes, insurance, vacancy, capex, financing fees — when you run the full analyzer.
Inputs, assumptions & how to read the results
What each field means, the math we apply, and what counts as a healthy number.
Buyer MAO vs your seller-side MAO?
Buyer MAO is the highest price a flipper end-buyer would pay for this deal. Your seller-side MAO is buyer MAO minus your assignment fee and any transaction costs you eat.
How do I pick the ARV multiplier?
Default 70% is the national convention for flips. Use 75% in hot coastal markets where flippers accept tighter margins, and 65% in slower markets or deep-rehab deals.
What assignment fee is realistic?
Typical SFR assignments run $5k–$25k. Larger spreads or institutional buyers can support $30k+. The right fee leaves the end buyer enough profit to pursue the deal.
Why is my MAO negative?
ARV × multiplier − rehab − fee − costs came out below zero. Either ARV is too low, rehab too high, or the spread is too thin — walk away or renegotiate.
What's in the assumptions panel?
Transaction costs you actually incur — double-close fees if you can't assign, title, marketing. These come out of your assignment fee, not the buyer's side.
Frequently asked questions
What is wholesaling real estate?
Wholesaling is the practice of putting a property under contract with a seller, then assigning that contract to an end buyer for a fee — without ever taking title. The wholesaler's profit is the spread between the seller's contract price and the buyer's purchase price, minus the assignment fee paid at closing.
Is wholesaling legal?
In most U.S. states, yes, when structured as an assignment of contract rather than the unlicensed brokering of someone else's property. A handful of states (notably Illinois, Oklahoma, and South Carolina) have passed restrictions requiring a license or limiting volume — check your state's most recent statute and consult counsel.
How do wholesalers find buyers?
Most wholesalers maintain a buyer list of cash flippers and landlords. FoundREI's deal-marketing module generates branded flyers and public share links you can send to that list with one click.
What margin should a wholesaler target?
Typical assignment fees range from $5,000 to $25,000 per single-family deal, with experienced wholesalers regularly clearing $30,000+ on larger spreads. The right fee is whatever leaves the end buyer enough profit to pursue the deal.
What is the standard wholesale formula?
MAO = ARV × 0.70 − Rehab − Wholesale Fee. The 70% rule reserves 30% of ARV for the end buyer's profit, holding costs, and closing costs.
Strategy — Fix & Flip
From the offer to the closing table without losing margin
Flippers don't lose money on the buy; they lose it on the rehab and the schedule. FoundREI keeps purchase, rehab, draws, and the resale flyer locked to the same set of numbers so variance shows up early — not at closing.
- Hard-money and private-money modeling built in
- 70%-rule MAO with adjustable multiplier
- Trade-level rehab budgets with bid comparison
- Draw schedule synced to the lender packet
- Holding-cost calculator with monthly burn
- Resale flyer in flipper mode for buyer agents
What it is
A fix and flip turns capital and time into a renovated home that closes at retail. The math is unforgiving — over-rehab a kitchen by $8k and the deal eats the profit; miss your timeline by 60 days and holding cost does the same. FoundREI keeps every assumption auditable and every actual reconciled against the original underwriting.
Who it's for
Active flippers
Running two to ten projects, tired of duct-taped spreadsheets.
First-time flippers
Need guardrails before signing the first hard-money note.
Crews scaling up
Standardize underwriting and PM across project managers.
How it works
- Step 1
Underwrite to MAO
ARV from comps, rehab from category preset, MAO from the 70% rule.
- Step 2
Lock financing
Hard money + private money + your cash, modeled together.
- Step 3
Fund the deal
Export the branded lender packet from the same numbers.
- Step 4
Execute the rehab
Gantt schedule, draws, photo log, ledger.
- Step 5
List and sell
Resale flyer with ARV justification for buyer agents.
Flip workflows compared
| Stage | DIY | FoundREI |
|---|---|---|
| MAO calculation | Excel | One-click |
| Lender packet | Word doc | Branded PDF |
| Draw tracking | Email chain | Schedule + photos |
| Variance analysis | After the fact | Real-time |
Quick ROI calculator
Estimate flip profit, ROI, and 70%-rule MAO from a handful of inputs.
Default expense, tax & vacancy assumptionsClick to expand — every default is editable and feeds back into the numbers above.ShowHide
Default 10% · at default
Multiplied onto rehab budget. Every +5% adds roughly Rehab × 0.05 to total cost and shaves ROI by 2–4 points.
Default 2% · at default
Points on (purchase + rehab). Hard money typically charges 2–3 points up front. Each point ≈ 1% of loan added to cash in.
Default 1.5% · at default
Title, transfer tax, escrow on the buy side. Usually 1–2% of purchase price.
Estimates only. FoundREI models every line item — taxes, insurance, vacancy, capex, financing fees — when you run the full analyzer.
Inputs, assumptions & how to read the results
What each field means, the math we apply, and what counts as a healthy number.
What goes in ARV vs Purchase price?
ARV is the projected resale value after rehab — set it from comparable sold, recently renovated homes within a half-mile. Purchase price is the all-in price you'd pay the seller at closing, not your offer.
How should I estimate rehab?
For a quick pass, use $25–$40/sqft cosmetic, $50–$75/sqft mid, $100+/sqft heavy. For an offer, get at least one trade-level bid. Under-budgeting rehab is the #1 way flips lose money.
What counts as monthly carry?
Hard-money interest + property taxes + insurance + utilities + HOA. A typical SFR carry is $1,200–$2,500/month depending on loan size and market.
Why 8% selling costs?
Agent commission (5–6%) + closing costs + transfer tax + title typically totals 7–9% of sale price. Adjust for your market and whether you list with a discount broker.
What ROI is 'healthy'?
Most active flippers target 20%+ ROI on cash and at least $25k net profit per deal. Below 15% leaves no margin for surprises; below 10% you're working for free.
What is the 70% MAO line?
MAO = ARV × 0.70 − (Rehab × (1 + contingency)). It's the offer ceiling that reserves 30% of ARV for holding, financing, selling costs, and target profit.
Frequently asked questions
What is a fix and flip?
Buying a distressed property, renovating it to retail condition, and reselling it for a profit — typically within 6 to 9 months. Profit is ARV minus purchase price, rehab cost, holding cost, financing cost, and selling costs.
What is the 70% rule in flipping?
MAO = ARV × 0.70 − Rehab. The 30% buffer covers holding cost, financing cost, selling costs (agent commissions, closing, transfer tax), and target profit. Tight markets push the multiplier toward 0.75; conservative investors stay at 0.65.
What financing do flippers use?
Most rely on hard-money loans (90% of purchase + 100% of rehab is common), often paired with private money for the down payment. FoundREI models hard money, private money, conventional, and all-cash side-by-side.
What's a realistic profit per flip?
Median single-family flip profit in the U.S. is roughly $60k–$70k gross, $30k–$45k net of holding and financing. FoundREI surfaces both numbers so the gross figure doesn't seduce you.
How long should a flip take?
Cosmetic flips run 60–90 days from close to listing; mid-level 120 days; full gut renovations 180+ days. Holding cost compounds every extra week, so FoundREI tracks projected vs actual schedule on every project.
Strategy — BRRRR
Buy, rehab, rent, refinance — without leaving cash trapped in the deal
The BRRRR thesis only works when the refinance appraisal lands. FoundREI underwrites the refinance the way the lender will, stress-tests it, and tells you up front how much of your original cash you'll really pull back out.
- Refinance proceeds = ARV × LTV, with DSCR check
- True cash-left-in after refi closes
- Post-refi cash flow and cash-on-cash
- Appraisal stress-test (±5% / ±10%)
- Hard-money to DSCR transition modeled cleanly
- Same comps drive ARV and rent assumptions
What it is
BRRRR converts short-term capital into a permanently financed, cash-flowing rental. The whole strategy hinges on a refinance that returns your original cash. FoundREI runs the refinance math against both LTV and DSCR constraints — the two ways the strategy fails — so you only chase deals that will actually clear both tests.
Who it's for
Long-term wealth builders
Compounding rentals without compounding capital.
Active investors with limited cash
Recycle the same dollars across multiple properties.
Out-of-state BRRRR investors
Stress-test markets you don't drive every weekend.
How it works
- Step 1
Buy with short-term capital
Hard money, private money, or cash — modeled with carry cost.
- Step 2
Rehab to refi-ready condition
Trade-level scope that hits the ARV the appraiser will support.
- Step 3
Rent at market
Rent comps drive DSCR for the refinance underwriter.
- Step 4
Refinance into long-term debt
ARV × LTV, capped by DSCR; cash-out proceeds calculated automatically.
- Step 5
Repeat
Snapshot the deal; recycle the cash; do the next one.
BRRRR vs Buy & Hold
| Dimension | BRRRR | Buy & Hold |
|---|---|---|
| Acquisition condition | Distressed | Turnkey or light |
| Capital recycling | Refinance pulls cash out | Cash stays in |
| Execution risk | Rehab + appraisal | Tenant + market |
| Velocity | Higher | Lower |
BRRRR refinance calculator
Estimate refi proceeds, cash left in the deal, post-refi cash flow, and DSCR.
From assumptions ↓
Default expense, tax & vacancy assumptionsClick to expand — every default is editable and feeds back into the numbers above.ShowHide
Default 6% · at default
% of rent reserved for vacant months. +1% reduces NOI by 12 × rent × 0.01.
Default 8% · at default
Pro-managed rentals run 8–10% of collected rent. Self-manage and set to 0 — but bank the time cost.
Default 5% · at default
Ongoing repairs. Older homes and B/C-class markets push toward 8–10%.
Default 5% · at default
Roof, HVAC, water heater. Skipping this is how landlords blow up year 7.
Default $3,000 · at default
Annual property tax bill. Check the county assessor — post-sale reassessment often raises this.
Default $1,500 · at default
Landlord policy. Florida, Louisiana, coastal CA can run 2–4× this default.
Estimates only. FoundREI models every line item — taxes, insurance, vacancy, capex, financing fees — when you run the full analyzer.
Inputs, assumptions & how to read the results
What each field means, the math we apply, and what counts as a healthy number.
How is 'refi proceeds' calculated?
ARV × Refi LTV. DSCR lenders typically cap at 70–80% LTV on stabilized rentals. The appraisal — not your underwriting ARV — ultimately determines the actual proceeds.
What is 'cash left in' and why does it matter?
Total cash invested (purchase + rehab + closing) minus refi proceeds. The BRRRR thesis is to drive this number near zero so you can recycle your capital into the next deal.
Why does the calculator say 'Infinite' for cash-on-cash?
When cash left in is zero or negative, the denominator vanishes — you own a cash-flowing rental with no remaining basis. It's the BRRRR goal, not a math error.
What is a healthy DSCR?
DSCR = NOI ÷ annual debt service. Lenders typically require ≥1.20–1.25 on refi; <1.0 means the rent doesn't cover the mortgage and the loan won't close.
Where does monthly opex come from?
The assumptions panel below — vacancy, management, maintenance, and capex percentages of rent, plus property tax and insurance. Every field is editable and updates DSCR and cash-on-cash live.
Refi rate I should use?
DSCR refi rates currently run 1.5–2.5 points above 30-year conventional. Conservative underwriting stress-tests +1% over today's quoted rate.
Frequently asked questions
What does BRRRR stand for?
Buy, Rehab, Rent, Refinance, Repeat. You acquire a distressed property with short-term capital, renovate, place a tenant, then refinance into long-term debt at the new appraised value — ideally pulling most or all of your original cash back out to repeat the process.
How is BRRRR different from a flip?
A flip exits via sale; BRRRR exits via refinance and holds the property as a rental. The underwriting cares about ARV (for the refinance) and rent (for the long-term hold). FoundREI models both in a single view.
What is a 'true infinite return'?
When the cash-out refinance returns 100% or more of your original cash invested, you own a cash-flowing rental with zero remaining basis — your cash-on-cash math has a denominator of zero. Achievable when you buy well, rehab to scope, and the appraisal supports your ARV.
What LTV do BRRRR lenders offer?
DSCR refinances commonly fund at 70–80% of appraised value for stabilized rentals with a 1.0+ DSCR. FoundREI models DSCR alongside LTV so you don't over-leverage.
What if the refinance comes up short?
It happens. FoundREI stress-tests refinance proceeds against ±10% appraisal swings during underwriting, so a short refinance is a known scenario — not a surprise.
Strategy — Buy & Hold
Underwrite rentals the way long-term operators actually think
Cash flow is only half the picture. FoundREI underwrites long-term rentals with cap rate, cash-on-cash, DSCR, GRM, and a HUD payment-standard rent check — so you buy properties that survive the second vacancy and the next rate cycle.
- Cap rate, COC, DSCR, GRM, IRR — all in one view
- HUD payment-standard rent reference by zip
- Rent comp engine, not just Zestimate
- DSCR loan modeling with stress tests
- Operating expense ratios with defaults you can override
- 5- and 10-year hold projections with appreciation curves
What it is
Buy and hold is the slow-and-steady wealth strategy: a tenant pays your mortgage, appreciation builds equity, depreciation shelters income, and time does the rest. The underwriting demands realism about expenses, vacancy, and rate exposure — FoundREI bakes those into the analyzer instead of trusting an optimistic pro forma.
Who it's for
Long-term landlords
Building a portfolio you'll still own in 20 years.
Out-of-state investors
Quantitative discipline for markets you don't drive.
Voucher-friendly operators
Underwrite to HUD payment standards, not market-rent guesses.
Syndicators
Standardize underwriting across a deal team.
How it works
- Step 1
Pull rent comps
Or HUD payment standards by zip and bedroom count.
- Step 2
Estimate operating expenses
Taxes, insurance, capex reserves, vacancy, property management.
- Step 3
Pick financing
Conventional, DSCR, or seller-financed terms.
- Step 4
Review returns
Cap rate, COC, DSCR, GRM, IRR side-by-side.
- Step 5
Stress test
Vacancy, rate, and rent sliders to find the break-even.
Return metrics for landlords
| Metric | What it measures | Why it matters |
|---|---|---|
| Cap rate | Unleveraged yield | Compare markets apples-to-apples |
| Cash-on-cash | Levered cash return | What your cash actually earns |
| DSCR | Coverage vs debt | Refinance and lender approval |
| GRM | Price ÷ gross rent | Quick screen at scale |
Rental returns calculator
Cap rate, cash-on-cash, DSCR, and GRM from a quick set of inputs.
From assumptions ↓
Default expense, tax & vacancy assumptionsClick to expand — every default is editable and feeds back into the numbers above.ShowHide
Default 6% · at default
% of rent reserved for vacant months. Each +1% reduces NOI by 12 × rent × 0.01.
Default 8% · at default
Standard 8–10%. Self-manage = set to 0 (but value your time).
Default 5% · at default
Reactive repairs. Older homes trend 7–10%.
Default 5% · at default
Long-term replacements. Skip at your peril.
Default $2,800 · at default
Check the county — post-sale reassessment frequently lifts this 10–30%.
Default $1,400 · at default
Landlord/DP-3 policy. Coastal and wildfire markets run multiples of default.
Estimates only. FoundREI models every line item — taxes, insurance, vacancy, capex, financing fees — when you run the full analyzer.
Inputs, assumptions & how to read the results
What each field means, the math we apply, and what counts as a healthy number.
What's a healthy cap rate?
Varies wildly by market: 4–5% in primary metros, 6–8% in secondary cities, 8%+ in tertiary or working-class markets.
What's a healthy cash-on-cash?
Most landlords target 8%+ COC on a stabilized rental. Below 5% barely beats a high-yield savings account; below 0% you're feeding the property.
Where does monthly opex come from?
The assumptions panel — vacancy, management, maintenance, and capex as % of rent, plus annual tax and insurance. Every default is industry-standard for a stabilized SFR; override per market.
Why does DSCR matter if I'm paying cash?
Even all-cash buyers should compute DSCR using a hypothetical loan — it tells you whether the property could refinance cleanly later, and whether rent is realistic.
What is GRM and when is it useful?
Gross Rent Multiplier = price ÷ annual gross rent. A fast screen for triaging dozens of listings; lower is better. Use cap rate and COC for the actual decision.
Should I include appreciation?
Not in cap rate or COC — those measure income return only. The full FoundREI analyzer projects total return (IRR) with appreciation, paydown, and tax benefits.
Frequently asked questions
What is buy and hold real estate investing?
Acquiring a property to operate as a long-term rental, generating monthly cash flow and capturing long-term appreciation, principal paydown, and tax benefits. Holding periods range from 5 years to indefinitely.
What is a cap rate?
Capitalization Rate = Net Operating Income ÷ Purchase Price. It's the unleveraged annual return a property produces and the standard way to compare income properties across markets.
What is cash-on-cash return?
Annual pre-tax cash flow ÷ total cash invested. Unlike cap rate, COC accounts for leverage and captures what your actual capital is earning.
What is DSCR?
Debt Service Coverage Ratio = NOI ÷ annual debt service. Lenders typically require 1.0–1.25 for DSCR loans; >1.0 means the property pays its own mortgage.
Does FoundREI support voucher (Section 8) rentals?
Yes. Where market data is available, FoundREI references HUD Payment Standards by zip and bedroom count, so you can underwrite voucher-friendly rentals at the rent the program will actually pay instead of a market-rent guess.
Strategy — Ground-Up Development
Underwrite new construction without burying soft costs
Most ground-up underwriting fails on soft costs and carry. FoundREI breaks land basis, hard costs, soft costs, and interest reserve into separate inputs so the all-in number is honest before you put dirt under contract.
- Separate inputs for land, hard cost, soft cost
- Construction draw schedule with interest reserve
- LTC and LTV financing modeling
- New-construction exit comps
- Build-to-sell and build-to-rent exits side-by-side
- Permit-timeline tracker on the project board
What it is
Ground-up development is the highest-margin and highest-risk single-family strategy. The deals that work treat permitting, design, and carry as first-class line items — not afterthoughts. FoundREI structures the underwriting that way and carries the same structure through the construction phase via the project module.
Who it's for
Infill developers
Single-family new builds in established neighborhoods.
Small-multifamily builders
Duplex to fourplex construction in walkable markets.
Build-to-rent investors
Holding new construction as long-term rentals.
Land flippers leveling up
Adding entitlement and vertical to your existing playbook.
How it works
- Step 1
Underwrite the land basis
Purchase + closing + due diligence + entitlement costs.
- Step 2
Build the hard-cost budget
Trade-level or $/sqft, with contingency.
- Step 3
Layer soft costs and carry
Design, permits, fees, interest reserve, insurance.
- Step 4
Pick the exit
Build-to-sell, build-to-rent, or hybrid; both modeled.
- Step 5
Track to completion
Permits, inspections, draws, and ledger in the project module.
Cost categories that kill deals
| Category | Often missed? | FoundREI default |
|---|---|---|
| Land carry during entitlement | Yes | Modeled in months |
| Impact and tap fees | Yes | Soft-cost line item |
| Interest reserve | Yes | Built from draw schedule |
| Sales commissions on resale | Sometimes | Auto-deducted from gross |
Ground-up ROI calculator
Estimate developer profit, margin on revenue, and return on total cost.
Default expense, tax & vacancy assumptionsClick to expand — every default is editable and feeds back into the numbers above.ShowHide
Default 10% · at default
Multiplied onto hard costs. First-time developers should run 15%; established crews can hold 8%.
Default $8,000 · at default
Local fees vary wildly — some metros charge $25k+ per new SFR. Always quote your jurisdiction up front.
Default $3,500 · at default
Covers the structure during construction. Premium scales with build duration and replacement cost.
Estimates only. FoundREI models every line item — taxes, insurance, vacancy, capex, financing fees — when you run the full analyzer.
Inputs, assumptions & how to read the results
What each field means, the math we apply, and what counts as a healthy number.
What belongs in 'land basis'?
Purchase price + closing + due diligence + survey + any entitlement or rezoning costs. If you bought the lot a year ago, also include carry during entitlement.
Hard costs vs soft costs?
Hard costs are physical construction: foundation, framing, MEP, finishes. Soft costs are architectural design, engineering, permits, impact and tap fees, and construction-period insurance.
How do I estimate interest carry?
Average outstanding loan balance × rate × construction months. A rough shortcut: (Hard + Soft) ÷ 2 × rate × (months ÷ 12).
What is 'margin on revenue'?
Developer profit ÷ exit value. Lenders typically want ≥15% margin on revenue; below 10% means a small cost overrun wipes the project out.
What is 'return on cost'?
Developer profit ÷ total cost. 20%+ is healthy for small infill; 15% is acceptable on lower-risk build-to-rent.
What's in the assumptions panel?
The line items most often missed in a back-of-napkin pro forma — hard-cost contingency, permit/impact fees, and builder's-risk insurance. All three feed total cost.
Frequently asked questions
What is ground-up development?
Building a new structure from raw or scraped land, then either selling for profit (build-to-sell) or holding as a rental (build-to-rent). Costs are split into land basis, hard costs (sticks-and-bricks), and soft costs (permits, design, financing, carry).
How does development underwriting differ from a flip?
Flips renovate existing structures; development creates them. The risk profile is longer (12–24 months vs 6–9), the permitting path matters as much as the construction, and the exit comps are new-construction comps — not the renovated existing-stock comps a flip uses.
What are hard costs vs soft costs?
Hard costs are physical construction — foundation, framing, MEP, finishes. Soft costs are everything else: architectural design, engineering, permits, impact fees, financing fees, construction-period taxes and insurance, and interest carry.
What financing do developers use?
Construction loans funded in draws, often 80% LTC (loan-to-cost) for experienced developers, paired with equity from the sponsor or LPs. FoundREI models LTC, draw schedules, and interest reserve directly in the analyzer.
Is FoundREI built for large multifamily development?
FoundREI is currently optimized for small infill — single-family new construction, duplex-to-fourplex, and small build-to-rent portfolios. Large multifamily ground-up has additional capital-stack and stabilization modeling that we'll address in a future release.
Strategy
Creative Finance
Subject-to, seller-financed notes, lease options, and equity shares priced and papered properly.
Explore creative-finance offersStrategy
Wholetail & Disposition
Light-touch resale and note sales, listed on your branded buyer storefront.
Explore the property storefrontContinue exploring features
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Run every deal through one operating system.
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