
Hard money lenders IO offer fast and reliable financing for real estate investors and homeowners in need of quick cash. They provide short-term loans with flexible terms, often with a 3- to 12-month repayment period.
These lenders typically charge higher interest rates than traditional banks, but they offer faster approval times, often within 24 to 48 hours. This makes them a popular choice for investors who need to close deals quickly.
Hard money lenders IO also have more lenient credit score requirements, often accepting borrowers with lower credit scores. This makes them a good option for those who may not qualify for traditional financing.
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What is a Hard Money Lender?
Hard money lenders are private investors or companies that provide alternative financing options for real estate investors. They're not traditional lenders, and they operate differently than banks.
Hard money lenders focus on the property's value, not your credit score or income. They determine the loan amount based on the property's loan-to-value ratio, using the property as collateral. This means they're more interested in the property's potential than your personal financial situation.
Here are some key characteristics of hard money lenders:
- They're not traditional lenders, but rather private investors or companies.
- They focus on the property's value, not your credit score or income.
- They offer faster funding options, with approval times in days rather than weeks or months.
What Is a Loan?

A loan is essentially a type of financing that allows you to borrow money from a lender to purchase or renovate a property. In the context of hard money lending, a loan is typically a short-term agreement.
Hard money loans usually have a repayment period of 6–24 months, with some lenders offering terms of up to 36 months if necessary. This is in contrast to traditional mortgages, which often have 15- or 30-year terms.
The loan amount is determined based on the property's value, using the property as collateral. This means that hard money lenders place more emphasis on the property's value than on your credit score or income.
Hard money loans can be approved in days, providing funds much quicker than traditional mortgage loans. This is one of the benefits of working with a hard money lender.
Hard money loans come with higher interest rates due to the increased risk, compared to traditional mortgages. Borrowers may also need to put down a significant amount, sometimes between 20%–30%, depending on the property's value.
Here are some key characteristics of a hard money loan:
- Typical repayment period: 6–24 months
- Loan amount determined by property value
- Higher interest rates compared to traditional mortgages
- May require larger down payments (20%–30%)
What Are They Used For?

Hard money loans are used for a variety of purposes, including flipping a house, buying an investment rental property, and purchasing commercial real estate.
Flipping a house is a common use for hard money loans, as they provide quick access to funds for purchasing and renovating properties.
Investors can use hard money loans to secure rental properties quickly, especially those needing immediate repairs, allowing them to renovate and start generating rental income faster.
Hard money loans are also useful for commercial real estate deals, offering flexibility and fast approval, which is particularly useful when you need to secure a property quickly to take advantage of a good investment opportunity.
Some borrowers who can't qualify for traditional loans turn to hard money lenders, as these loans are asset-based and accessible for those who cannot secure traditional financing.
Homeowners facing foreclosure may use hard money loans to refinance their debt or buy time to sell their property, providing a temporary solution to avoid losing their home and damaging their credit.
Consider reading: Hard Money Lenders for Real Estate
Types of Hard Money Loans
Hard money loans can be categorized into several types, each with its own set of characteristics.
One type is the Fix and Flip loan, which is typically used for short-term financing of up to 12 months to purchase, renovate, and sell a property.
These loans often have higher interest rates and fees compared to traditional loans, but can be a good option for investors who need quick access to capital.
Another type is the Rehab loan, which is designed for properties that need significant repairs or renovations.
Rehab loans can provide up to 100% of the property's value, minus the after-repair value, and typically have a loan-to-value ratio of 70% or higher.
A third type is the Bridge loan, which is used to bridge the gap between the sale of one property and the purchase of another.
Bridge loans can provide short-term financing of up to 6 months and often have higher interest rates and fees compared to traditional loans.
These loans are typically used by investors who need to quickly purchase a new property before selling their existing one.
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Rehab and Construction

Rehab and construction loans are perfect for those who want to flip a property or build a new one. You can get a fix-and-flip loan to renovate a property for resale in a short timeframe.
Hard Money Lenders IO offers fix-and-flip loans that can fund up to 75% of the after-rehab/repair value (ARV). They also offer new construction loans that can cover initial construction expenses based on up to 60% loan-to-value (LTV) of the land.
To qualify for these loans, you'll need a minimum credit score of 600. This is a relatively high credit score, so make sure you've got a good credit history before applying.
The loan limits for rehab and construction loans range from $100,000 to $5,000,000. You can expect interest rates between 9% and 12% and a loan tenure of up to 2 years.
Here's a quick rundown of the key parameters for rehab and construction loans:
• Multi-family home
• Mixed-use property
Keep in mind that real estate experience is vital if you want to apply for construction funding. This is because the lender may service inexperienced property flippers, but construction funding is a more complex process.
A fresh viewpoint: Hard Money Commercial Construction Loans
Home Equity-Based

Home Equity-Based loans are a type of hard money loan that allows you to tap into the equity of your current property or portfolio. You can use the funds for real estate investment or personal expenses.
Equity is the difference between the current market value of your property and the mortgage balance. If you have no mortgage on the property, you hold 100% equity.
Hard Money Lenders IO offers two equity-based products: second mortgages and cash-out refinances. A second mortgage is taken after the first mortgage on your property, resulting in two mortgages with the second one being pricier.
A cash-out refinance, on the other hand, settles your existing loan and gives you an extra sum based on the property equity. This results in a single, streamlined mortgage for a larger amount.
To qualify for an equity-based loan, you may need to provide details about your income, assets, and liabilities, as well as your credit history and current score.
Here are the two equity-based products offered by Hard Money Lenders IO:
- Second Mortgage: A second mortgage taken after the first mortgage on your property.
- Cash-out Refinance: A loan that settles your existing loan and gives you an extra sum based on the property equity.
Foreign National

Foreign National loans are a unique option for non-U.S. citizens who want to invest in real estate. These loans are designed for individuals who don't have traditional financial documentation, such as pay stubs and tax returns.
To qualify for a Foreign National loan, applicants typically need to provide documentation of their deal's monetary prospects. This can be done by providing bank statements, asset schedules, and a statement of outstanding debts.
Foreign National loans allow applicants to bypass traditional credit checks and income verifications. Instead, they're evaluated based on the potential of their investment.
Some of the required documents for Foreign National loans include bank statements, asset schedules, and a statement of outstanding debts. These documents help lenders assess the applicant's financial situation and determine their creditworthiness.
Here's a list of some of the typical documents required for Foreign National loans:
- Bank statements (dating back two or three months)
- Asset schedules, including stocks and life insurance accounts
- Statement of outstanding debts (student loans, credit card debt, etc.)
These loans can be a good option for foreign nationals who want to invest in real estate without the hassle of traditional credit checks and income verifications.
5. Flip Fund

Here's the article section:
Fund That Flip is a great option for short-term bridge loans, offering up to 80% LTC and 70% ARV ratios for your project.
Rates start at 9.99%, which is a relatively competitive rate in the hard money loan market.
A direct lender with discretionary capital, Fund That Flip is able to make decisions quickly and efficiently.
Construction projects are also okay with Fund That Flip, making them a versatile option for real estate investors.
To qualify for a loan from Fund That Flip, you'll need to make a 10% down payment.
Here are the key details of Fund That Flip's loan program at a glance:
- Up to 80% LTC and 70% ARV ratios
- Rates start at 9.99%
- Direct lender with discretionary capital
- Construction projects ok
- 10% down payment required
Benefits and Drawbacks
Hard money lenders can provide quick access to capital, with approval and funding happening in as little as 7 to 14 days, compared to traditional commercial loans which can take over 3 months.
However, this comes with higher interest rates, typically 4 to 10 percentage points higher than traditional commercial mortgages, resulting in higher monthly payments.
Additional reading: Hard Money Commercial Lenders

Hard money loans also come with shorter terms, usually 1 to 3 years, which can be a drawback for borrowers who need more time to generate income.
You can negotiate payment adjustments with hard money lenders, but be aware that this may come with additional fees, such as 1% to 3% origination fees.
Here are the key pros and cons of hard money loans:
Pros and Cons
Hard money loans can be a viable option for business owners in need of quick capital, but it's essential to weigh the pros and cons before making a decision.
One of the main advantages of hard money loans is the quick approval and financing time, which can be as short as 7 to 14 days. This is a significant benefit for business owners who need to access capital quickly, such as those undergoing a commercial property renovation.
Hard money lenders also allow borrowers to leverage other people's funds, which can be beneficial for those who want to fund multiple commercial loans at once. However, this also means that borrowers may be limited to how much they can borrow.
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In terms of interest rates, hard money loans typically have higher rates, ranging from 10% to 18%. This can result in higher monthly payments and a higher total cost of borrowing.
A key consideration is the short term of hard money loans, which can range from 1 year to 3 years. This can be beneficial for businesses that need to renovate or transition quickly, but it also means that borrowers must be prepared to pay the loan back quickly.
Some hard money lenders may also allow borrowers to change their payment schedule or accrue interest, which can be beneficial for experienced house flippers.
However, hard money loans can also be risky, especially for borrowers with limited cash flow and funding sources for repayment. Borrowers should be aware of the potential risks, including the possibility of losing their property if they default on the loan.
Here is a summary of the pros and cons of hard money loans:
Overall, hard money loans can be a valuable option for business owners in need of quick capital, but it's essential to carefully weigh the pros and cons and consider the potential risks before making a decision.
Fees

Fees can add up quickly with hard money loans, with costs ranging from $3,000 to $5,000.
The most common fees you'll encounter include origination fees, broker fees, application fees, underwriting fees, doc prep fees, processing fees, and funding fees.
These fees can be a significant burden, especially if you're already under financial stress. It's essential to factor them into your budget before committing to a hard money loan.
The origination fee, for example, can be a substantial upfront cost. The broker fee is another expense you'll need to consider, as it's typically a percentage of the loan amount.
To give you a better idea of what to expect, here's a breakdown of the common fees associated with hard money loans:
- Origination fee
- Broker fee
- Application fee
- Underwriting fee
- Doc prep fee
- Processing fee
- Funding fee
How to Get Approved
Getting approved for a hard money loan from a reputable lender like HMLS or a hard money lender is relatively easy. You'll need a credit score of at least 600, which is a good starting point.

The lender will also want to see evidence of your experience as a real estate investor, so a solid track record is essential. This means having a history of successful deals and a good reputation in the industry.
To speed up the process, it's a good idea to have all the necessary information ready and available. This includes property details, funding requirements, and any other relevant documents.
Here are some key factors to consider when getting approved for a hard money loan:
It's also worth noting that some lenders, like HMLS, offer a more streamlined process with a faster turnaround time. They can approve loans within a day and have a team that can help you manage the transaction.
Remember, getting approved for a hard money loan requires a combination of good credit, experience, and a solid understanding of the process. By being prepared and knowing what to expect, you can increase your chances of success.
Popular Hard Money Lenders

If you're looking for a reliable hard money lender, you've got options. Bridge Lending Group offers fast approvals and funding for loans up to $5M with interest rates starting at 5.75%.
GoKapital is another player in the market, with a 4.4-star Google rating and an A+ Better Business Bureau accreditation. They offer hard money loans that can close in two to four weeks.
Here are some popular hard money lenders to consider:
Lenders IO
Hard Money Lenders IO is a private lending company based in Miami that specializes in loans for real estate investors and entrepreneurs.
Their loan programs include fix-and-flip loans, rental property loans, new construction loans, commercial loans, and bridge loans, with terms ranging from three months to six years.
Interest rates are typically around 10%–15%, and they can provide quick funding and flexible conditions.
Hard Money Lenders IO maintains a 4.9-star rating on Google, with clients praising the employees' professionalism and exceptional customer service.
They've even been known to deliver loans in under two weeks, with one client commenting, "Great communication and great deliverance of a loan in less than 2 weeks!
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GoKapital

GoKapital is a national hard money lender that offers a variety of real estate financing options, including hard money fix-and-flip loans, commercial real estate mortgages, and cash-out refinancing for investment properties.
Their hard money loans can close in two to four weeks and rates start from just 7%. They also offer financing for foreign nationals.
GoKapital has a strong reputation, with a 4.4-star rating on Google and an A+ rating from the Better Business Bureau since 2016.
Their loan criteria include up to 75% LTV and 100% of renovation costs. They also have a wide range of eligible properties, including single-family homes, multi-family properties, mixed-use developments, retail and restaurants, office buildings, and warehouses.
Here are some key details about GoKapital's loan offerings:
Overall, GoKapital seems like a solid option for real estate investors looking for hard money loans.
Lima One Capital
Lima One Capital is a hard money lender that focuses exclusively on commercial and residential real estate. They offer fast approvals and funding.
Their interest rates start at 8.99%. You can expect a fast turnaround with Lima One Capital, which is great for investors who need to act quickly.
They offer a range of loan products, but we don't have more specific information on their loan amounts or credit score requirements.
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Alternatives and Options

If you're looking for alternatives to working with hard money lenders, there are several options to consider. You can take out a second mortgage, which can provide the necessary funds at a lower interest rate compared to a hard money loan.
A cash-out refinance is another option, allowing you to refinance your existing property and pull out cash to finance a new investment. This often comes with lower interest rates than hard money loans.
You can also borrow from family or friends, which can offer flexible repayment terms and potentially lower or no interest rates. If you have significant equity in your home, a home equity loan or HELOC can provide the necessary funds.
Government-backed loan programs, such as those offered by the FHA, VA, or USDA, can assist in purchasing homes with lower down payments and reduced interest rates. Peer-to-peer loans are also an option, provided by individual investors through lending platforms.
Here are some alternatives to consider:
- Take out a second mortgage or cash-out refinance for lower interest rates
- Borrow from family or friends for flexible repayment terms
- Use a government-backed loan program for lower down payments and reduced interest rates
- Consider peer-to-peer loans for individual investor financing
Lease and Rental

Hard Money Lenders IO offers commercial hard money loans for acquiring business-zoned properties like hotels, gyms, and restaurants.
These loans are designed with an assessment of the risk involved and the asset capitalization rate in mind.
The necessary paperwork requirements depend on the program you want, and you may be asked to submit documents such as a loan application and financial statements.
Hard Money Lenders IO also offers rental loans for family homes on similar profitability principles as the commercial loans.
The group's commercial and rental loans are usually offered for a period of six months to three years, but you can get an extension if you don’t sell the property or get a refinance.
To qualify for these loans, you should have a good spread between the property’s annual income and encumbrances, depending on the type of lease you use.
For more insights, see: Hard Money Lenders Business Loans
Alternatives to Lender Cooperation
If you're unable to work with a lender, there are still alternatives to explore. One option is to request a seller financing option, which can result in lower closing costs and less stringent eligibility requirements.
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You can also consider taking out a second mortgage, which can provide the necessary funds at a lower interest rate compared to a hard money loan. This is especially true if you have significant equity in your home.
A personal loan from family or friends can offer flexible repayment terms and potentially lower or no interest rates, making it a more affordable option. Just be sure to have a clear agreement in place to avoid any misunderstandings.
Government-backed loan programs, such as those offered by the FHA or VA, can also assist in purchasing homes with lower down payments and reduced interest rates. These programs can be a great option if you're struggling to secure financing through traditional means.
4. Traditional
Traditional loans can be a viable option, but the process can be slow. Banks typically require more documentation than other alternatives.
Banks are always an option, but they often have strict requirements. This can lead to delays in the loan process.
The traditional loan process can be time-consuming.
Financing Options and Rates

Hard money lenders offer a range of financing options and rates, making it essential to understand the differences before making a decision.
Hard money loans typically have interest rates ranging from 10% to 18%, which is higher than traditional commercial financing. This increased cost is a trade-off for the less taxing approval process and faster access to commercial capital.
Business owners who take hard money loans may also be able to negotiate flexible repayment arrangements with their lender. However, it's crucial to compare rates and terms among different lenders to find the best deal.
Here's a breakdown of typical hard money loan costs:
- Interest rates: 8% to 15%
- Origination fees: 1% to 5% of the total loan amount
- Closing costs: Additional fees at closing, including legal fees, appraisal fees, and administrative costs
- Points: Lenders might charge points (a percentage of the loan amount) upfront
Some hard money lenders, like Fund That Flip, offer more competitive rates, such as starting at 9.99% for short-term bridge loans. It's essential to research and compare different lenders to find the best option for your specific needs.
Payment Structure & Terms
Hard money loans typically come with a short term, usually between 12 months and 3 years. The payment structure is interest-only, meaning you only pay the interest costs every month.

The term of a hard money loan can vary, but it's often 2 years. At the end of this term, you'll need to make a balloon payment to pay off the remaining balance.
The balloon payment can be substantial, as seen in the example of a $800,000 loan with a 12% APR. The balloon payment for this loan would be $793,825.75.
To give you a better idea of the payments involved, here's a breakdown of the estimated monthly payments for a hard money loan:
Keep in mind that these payments are based on a 2-year term and a 30-year amortization schedule for the balloon payment.
Funding Fast and Reliable
Hard money loans are a common financing option for house flippers who can't access commercial loans from banks. They're ideal for short-term financing, which is perfect for house flippers who need to renovate a property quickly.
Hard Money Loan Solutions (HMLS) is a private lender that offers fast and reliable funding to real estate investors. They close loans and forward funds within 3-10 days for ordinary deals.

To qualify for a hard money loan with HMLS, your credit score and DTI ratio aren't as important as your collateral and repayment strategy. They honor authentic asset-based financing, making it easier to get approved.
Here are some key features of HMLS's hard money lending program:
- Fast closing: 3-10 days for ordinary deals, up to 14 days for complicated situations
- Minimal paperwork load: no unnecessary documents like tax returns or bank statements
- Flexible funding: tailored loan packages for each borrower's situation
HouseMax Funding is another direct lender that approves loans internally and funds using their own private capital. They lend up to 75% of the after-repair value (APV) and have a goal of closing loans in 10 days or less.
If you're looking for a hard money lender, here are some places to find them:
- Online directories like the one mentioned in Example 4
- Private lenders like HMLS and HouseMax Funding
- Specialized lenders like HouseMax Funding, which offers fix & flip loans, construction and rental loans
Rates and Terms
Commercial mortgage rates can vary widely, ranging from 6.39% to 18%. Hard money loans, for example, typically have rates between 10% and 18%.
Freddie Mac Optigo, on the other hand, offers rates between 6.39% and 8.01%. Fannie Mae rates range from 6.49% to 7.81%.
Hard money loans usually come with a shorter term, often between 12 months and 3 years, and an interest-only payment structure. This means you only pay interest costs every month for the entire term.

To give you an idea of what this might look like, let's consider an example: a hard money loan of $800,000 with a 12% APR and a 2-year term. In this case, your monthly interest-only payment would be $8,000.00.
Here are some typical costs associated with hard money loans:
- Interest rates: 8% to 15%
- Origination fees: 1% to 5% of the total loan amount
- Closing costs: additional fees at closing, including legal fees, appraisal fees, and other administrative costs
- Points: lenders might charge points (a percentage of the loan amount) upfront
Keep in mind that these costs can add up quickly, and it's essential to carefully review the terms and conditions of any loan before signing.
Where to Find and How to Apply
You can find hard money lenders through real estate agents and investor groups, who can refer you to the right contact person. They can also provide valuable insights into the process.
To search online, try looking for lenders that specialize in fix and flip financing, which is perfect for house flipping. Developing a good relationship with your lender is key to securing enough funds and negotiating better terms.
You can also check out online directories that list hard money lenders looking for quality borrowers. One such directory is mentioned in the article, which can be a great resource to find a suitable lender.
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Apply for HMLS Financing Online and Get Approved

You can apply for HMLS financing online and get approved within a day. The online application process is designed to be quick and efficient, with most loan requests going through three stages: pre-approval, appraisal, and closing.
The pre-approval stage involves completing a quick online form specifying the property details and basic funding requirements, after which the lender reviews the property beforehand and calls you to discuss the loan.
The appraisal stage is where the lender completes a property appraisal to design a customized, legally compliant loan package.
You'll have supreme autonomy over transactions with HMLS, and for purchase deals, making down payments is not compulsory – you can access LTV funds and manage the transaction on your own.
Here are some of the lenders you can work with through HMLS:
- EquityMax
- M&M Private Lending Group
- Monroe Funding Corp
- The Associates Home Loans of Florida, Inc.
- Taylor Made Lending
- BridgeWell Capital
- RBI Private Lending
- A to Z Capital
- Capital Funding Financial, LLC
The team can also help you set up a draw schedule for construction-based projects, and HMLS is open to modifying loan terms on a need basis.
Where to Find

You can find hard money lenders through real estate agents and real estate investor groups, who can refer you to the right contact person. They can also provide valuable insights into the process.
To search online, look for lenders that specifically provide fix and flip financing to borrowers. This can be a great way to find a lender that understands your needs.
Real estate investor groups can be a great resource for finding hard money lenders. They often have a network of lenders who are looking for quality borrowers.
You can also search online for hard money lenders, which can be a convenient option if you're short on time. Be sure to discuss your situation and needs with the lender to establish a good relationship.
Developing a good relationship with your financer can help you secure enough funds and negotiate better terms. This can be especially important if you're planning to work with the lender again in the future.
Explore further: How to Find a Hard Money Lender
Company Information and Reputation

Hard Money Lenders IO has a customer service rating of 4.6 stars on Google, based on five reviews. They seem to have decent customer handling.
Their customer service rating suggests they are responsive and helpful, but it's essential to read reviews from other borrowers to get a well-rounded view. It's also worth noting that they primarily deal with commercial real estate, so homeowners looking for assistance with self-occupied properties may not be their best option.
Hard Money Lenders IO operates from North Miami Beach and competes in the Florida ecosystem, where there are many other 5-star rated lenders offering financing in a shorter timeframe.
Bridging Lending Group
Bridging Lending Group is a national hard money lender that offers a wide range of loan products.
They have fast approvals and funding, making them a great option for those who need a quick solution.
Their interest rates start at 5.75%+, which is relatively competitive in the industry.
They offer loan amounts ranging from $150,000 to $5M, making them a suitable option for various projects.
To qualify for a loan, you'll need a minimum credit score of 600.
Reputation

Reputation is key when dealing with hard money lenders.
You should do your research and read reviews from other borrowers to get a sense of the lender's reputation. Hard Money Lenders IO has a customer service rating of 4.6 stars on Google, based on five reviews.
The group seems to have decent customer handling, but may not be the best fit for homeowners looking for assistance with self-occupied properties. Some customers may find the advance rate of 10% to be too low.
Hard Money Lenders IO operates from North Miami Beach and is competing in the Florida ecosystem, where there are many 5-star rated lenders offering faster financing options with fewer entry restrictions.
Final Thoughts
Hard money loans can be a great option for real estate investors, but make sure you do your research first to find the right lender for you. This will help you avoid getting stuck with a high-interest loan that's not suitable for your needs.

Hard money financing is an option for business owners who have difficulty qualifying for traditional commercial loans. It comes in short terms of 1 year to 3 years, which is ideal for companies who need to renovate their premises or transition to a new property.
Borrowers with low credit scores can obtain hard money financing, but they'll have to sign their property as collateral for the loan. This means they'll need to have enough equity in their property to secure the loan.
Hard money loans are considered the “last resort” by most conservative borrowers, and they come with a higher interest rate of 10 percent to 18 percent compared to traditional commercial loans. This is a trade-off for the faster approval process and shorter loan term.
Borrowers are expected to make interest-only payments during the short term, and then a balloon payment is due. If you can't pay back in time, you should refinance the loan into a traditional commercial mortgage to extend the term.
Frequently Asked Questions
What credit score is needed for a hard money loan?
To qualify for a hard money loan, you typically need a credit score of 550 or higher, although some lenders may consider scores as low as 500. Check with lenders for their specific credit requirements.
How do I know if my hard money lender is legit?
Be wary of hard money lenders offering rates below 5% and those not requiring collateral, as these can be red flags for scams. Look for lenders that require collateral and have a transparent lending process
Sources
- https://hardmoneyloansolutions.com/hard-money-lenders-io/
- https://www.homelight.com/blog/buyer-hard-money-lenders-miami/
- https://www.biglawinvestor.com/marketplace/hard-money-lenders/florida/
- https://www.mortgagecalculator.org/calcs/hard-money-loans.php
- https://www.reisift.io/blog-posts/how-to-find-hard-money-lenders
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