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Monique Buchanan, your real estate specialist, talks all things real estate. On this show she covers the processes of buying and selling a home. Welcome Home with Monique informs you on best practices to navigate the housing market so that you can start building your wealth through home equity.
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This is a kunv Studios original program. The
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content of this program does not reflect the views or opinions of 91.5 jazz and more the University of Nevada, Las Vegas, or the Board of Regents of the Nevada System of Higher Education. I know
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you see me on the radio, but you still don't pay me no attention. Good
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morning. This is Monique Buchanan, the host of the welcome home with Monique show, and on this show, I talk all things real estate. Listen. I want to thank you for tuning in. Well, hello Las Vegas. It's Monique Buchanan, the host of the welcome home with Monique show, and I have an amazing show for you today. I hope you're off to a great morning this beautiful Saturday morning, I am enjoying this weather. I don't know about you, but listen, I've got a great show for you today. I've got my girl, Becky. You guys know that she's part of my team. She is on with us today to chit chat and let us know how all those buyers she's been out there showing how it's going in the buyer's market. And then I've got, of course, Miss Tracy. Now she's new. It's her first time coming on the show, but she is my title girl. All right. She's gonna come on and just explain to us exactly why it's so important, and what Title and Escrow is and does for you as a buyer. So this is really great, you know, great information. You know what I mean? Because a lot of people come from different states where they don't even use escrow companies or title companies. They use lawyers, like, for instance, in Atlanta, in Georgia, they use lawyers in New York, they use lawyers. Well, we don't use lawyers out here to assist with the transaction as far as buying a property goes. So welcome Tracy.
Unknown Speaker 1:48
Thank you so much for having me. And yes, let's talk about what title insurance is to give you a better understanding and kind of the deal is, your home may be new to you, but every property has a history right, and in some cases, that history may include title issues that they're not identified and addressed, can be a challenge to your property ownership rights, right. You don't want a problem that occurred long before you bought your property to deprive you of ownership or your right to use or sell it, and you don't want to pay the potentially high cost of defending your property rights in court,
Unknown Speaker 2:24
you know. And that's, that's right, right? Becky, we've even dealt with things like that, you know, where, you know, stuff can come up on a property, you know, we think everything's, think it's clear, but it's really not, you know, there's always something that, you know, it could have been a 5060, years ago, you know, I'm from Texas. I was born in Seattle, but raised in Texas. And, you know, down there, my cousins, they still buy properties without doing a title search. And I just think that's so crazy, right? Tracy, it's absolutely crazy. It's crazy. But down in the south, you know, a lot of times they'll just, you know, hey, a handshake guy, yeah, here's a handshake and a deed, you know. And then there could be things that's, you know, cloud on title. So can you explain the title search and what that means? What do you guys do?
Unknown Speaker 3:07
Yeah, actually, so we go back in record since the beginning of time with that piece of property. So here in Nevada, it would be from when BLM sells it to a developer. That developer develops it, sells it to someone who then sells it to someone, and that's called a chain of title, right? So we do a title search and it it can help uncover the title defects tied to tied to the title of your property that makes sense, and then, subject to the terms of the policy, your title insurer may provide you with protection from title issues discovered after you close the trend. Now
Unknown Speaker 3:39
there you go. So stuff can happen after even, you know, so even if it pops up later down the road, you know, you're protected. Because you know, Mo is all about protecting her clients, honey, absolutely none of my clients are gonna have this issue. No. So
Unknown Speaker 3:55
some examples of what can happen could be errors in public records, unknown liens, illegal deeds, missing heirs, forgeries, that's a big one. And unknown easements or encroachments from adjoining properties. This can be big issues,
Unknown Speaker 4:11
you know what? And then sometimes people had work done on their properties, like you said, unknown liens, you know people. You're the person that you bought the house from. He might owe a plumber, you know, $8,000 and then it pops up after you got the house, you know. And then what if you didn't go through Title and Escrow to make sure you're protected you pay it. You have any examples? Yeah,
Unknown Speaker 4:33
let's say John and Sally bought a house together, and they're both named on title, and the relationship doesn't work out. Sally moves out. Yeah,
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poor Sally,
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John. Poor John, right. Well, let's see. John decides, let's say he wants to sell the house. But Sally doesn't respond to any of his phone calls. So John forges a deed, deeding Sally's interest in the property to himself. Then. And sells the property to some guy named Edward. Edward. When Sally finds out what John did, she files a lawsuit against him, and Edward as well, because he's the new owner, or Edward is dragged into the lawsuit. He's dragged into it. Well, if he didn't have title insurance, he's going to have to bear the expensive litigation and the loss of title himself. So
Unknown Speaker 5:21
if Edward just bought it directly from John and did not do a title search, now he's on the hook
Unknown Speaker 5:27
for any liens, judgments, lawyer fees, all that unknown ownership. Yeah, that's ownership by some ownership rights by somebody else,
Unknown Speaker 5:38
that would be a complete, complete nightmare. Yeah.
Unknown Speaker 5:41
So with title insurance, his attorney fees would have been covered by the policy along along with the loss as a result of the fraudulent deeds. So he would have been completely covered without title insurance. He's not, he's
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not covered, so that means he has to hire his own attorneys, and Lord knows how much that would be, and drag on for so what is the process of ensuring that you know the transaction or the title search well that
Unknown Speaker 6:03
actually begins with a title The Discover and address potential title issues with a title search. However, some of the title issues simply can't be discovered with 100% certainty. So the job of title insurance is to provide coverage for losses due to the risk of uncertainty inherent in any chain of title an owner's policy of title insurance is your best protection against potential defects that can impact or interfere with your rights as a property owner, right a loan. Policy of title insurance also exists to protect your mortgage lender's interest. So when your buyers are buying a property, they're going to have the seller provide an owner's policy to them as the buyer, and they will provide a if they're getting a mortgage, a lender's policy to the lender. Well, let
Unknown Speaker 6:52
me ask you this, this sounds is it expensive? I mean, I mean that is insurance. So what does the cost look like? It's a one
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time premium, and your title company will issue an owner's policy protecting against covered losses, which is valid as long as you or your heirs own the property. So these potential title issues or defects could include like we talked about, could include a forgery, even one that occurred 50 years ago, like you mentioned, or a deed executed under duress and unknown spouse's interest, like we just gave the example of and or an error by a clerk in the county recorder's office. Yeah, that happens. A misapplied tax payment. There's, there's, that's just to name a few.
Unknown Speaker 7:34
Well, you know, I've actually had an issue with this. Well, I was trying to help a neighbor of mine. She called me up, frantic. Okay, so this was before I got my license. This was 10 years ago. She bought the house when I lived by her down the road. So they bought the house from their landlord. They were renting, and the landlord said, Hey, do you guys want to buy the house? And she said, yeah, absolutely. So she the landlord got her with her lender. They you they did not use a realtor to represent them, so they had no representation, none doing it on their own. No, no. And this is what happened. The lender never suggested that they go through title. They did not go through. Can you believe this? In Las Vegas, they did not go through title. Turns out, fast forward, I've been in real estate for years now. You know, they want to buy a house with me, and they find out, they come, they went on vacation. And while they're on vacation, right before we were about to go out and start shopping, they got a foreclosure letter at their door, and they came home from from vacation. So she calls me Monique. Oh, my goodness, we don't understand why we're getting this foreclosure. What is going on? So I had my title folks, you know, you guys look into it. Turns out the the previous owner, their landlord, had $80,000 that she had taken out, and it was never known because they never did a title search. She did not she was not represented by a realtor. If she had been represented by a realtor, the realtor would have made sure there was a title search done, and she would now. So now my poor neighbors, they're gonna owe an extra $80,000 on their mortgage that they're gonna pay somebody else's debt off, isn't that a shame? Yeah. So, so just definitely know that, you know, this is something that you just can't go without. It's almost like, when I talk to my clients, I'm like, listen, you're not by law. You don't have to do an inspection on your home. But who is buying a home without doing an inspection, you know, and just making sure that there's no major issues with the property Correct? Yeah? So insurance,
Unknown Speaker 9:41
you hope you never have to use it, but you really know
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want to have it. Gosh. So now what
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happened? Well, in this case, actually, if your client had gone through title and escrow, the existing liens that this that the seller had and their mortgage would have been identified and paid off at the closing, so that would have protected your buyer's investment. Right? Know
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what happens is it shows up you guys on what we do, what we call a prelim, okay, a lot of times it'll show up, even on the prelim, that there's something going on with this property. So you get that prelim typically within a day or two after opening, after I negotiate your your property, I get you into what we call escrow, where you're dealing with Miss Tracy here, and they're like the hound dogs. They're about to start sniffing stuff out, honey, and making sure that we're, you know, everything's on the up and up. And the first thing they do, right? Becky, is a prelim and cool. And then they dig even deeper after that. But even the prelim, a lot of times, will show anything that the seller owes that needs to be taken care of before my clients get keys. Is that right? Tracy, absolutely.
Unknown Speaker 10:40
And in fact, if you're selling a property, your title company is going to request things like divorce decrees, copies of your trust entity documents, and have you signed, probably a statement of identity as well. Yeah. And the reason for this is, let's, let's say, I'll give you another example. John and Sally owned a home together, and then they got divorced. And per the divorce agreement, Sally records a deed giving her interest in the property to John. The house is now in only John's name, and John decides to sell the property. And the title company asked to see the divorce agreement. What John didn't tell the title company was that the divorce agreement also stated that upon the sale of the property that Sally was to receive $50,000 Oh, you try and pull a fast one. You can't, you can't sneak it by title,
Unknown Speaker 11:33
right? John thought he was slick, but, but Eduardo is still looking Eduardo, looking for John, okay, but you guys, this is real stuff. This is real life. You know? Hey, people do strange things for some change, you know what I mean, right? Yes, I heard that. So, yeah. So in that case, you have a peace of mind as a buyer, knowing that none of these nightmares are gonna follow you, because that was a nightmare for my friends. Yeah, you know what I mean, God bless them, that they're able to, they're in a position financially, that they're okay to take care of that. But my goodness, what a nightmare to be thrown an extra $100,000 almost onto your payment. Or for this lady, she was being Yes, and said, Hey, go ahead and keep the house. You know, just be fair to me if you if you decide to sell it. And unfortunately, there's just people out there that don't want to be fair, but that's why we have Miss Tracy,
Unknown Speaker 12:32
well, let's talk about escrow. Yeah, What's that process
Unknown Speaker 12:34
like?
Unknown Speaker 12:35
So this is where the buyer and seller deposit written instructions, documents and funds with a neutral third party, which is escrow, right until certain conditions are fulfilled. So in a real estate transaction, the buyer shouldn't pay the seller directly for the property we are we already discussed why the buyer gives the funds to an escrow company who acts as an intermediary, verifying that title to the property is clear and that all the written instructions in the contract have been met, then the escrow company transfers the ownership of the property to the buyer by recording the grant bargain sale deed and pays the seller. This process protects all parties involved. Okay,
Unknown Speaker 13:15
so now what that means in a Momo terms? So what like, like Miss Tracy said, what happens is, when she says instructions, she means Monique's gonna send a contract, and within that contract, it's gonna guide us on, on what we're looking for. We're gonna make sure that all the i's are dotted and all the T's are crossed. Escrow has no interest in the buyer or the seller. They are simply the middleman, they make sure everything has been done correctly, right? Becky, absolutely.
Unknown Speaker 13:43
I was just gonna say that they're completely neutral. Completely neutral.
Unknown Speaker 13:47
They do take all monies that come in and they hold it in their escrow account. So make sure so seller does not get that escrow money. So typically, the earnest money deposit is typically about 1% you guys. So if you're looking at a home of 700,000 typically, your earnest money deposit your skin in the game, per se, is $7,000 now you're not going to give that directly to the seller. You're going to give that to Tracy and her team. They're the they're the middleman. They're going to hold it until you hold up your end of the bargain as a buyer. Miss Becky, yes, ma'am, and until I hold up the end of the bargain as a seller, and Ms Tracy's gonna make sure that everything was transparent, that everybody signed any little change, both buyer and seller signed and acknowledged these changes, so everybody's on the same page, and nobody's holding any money until that house has been put into Becky's name As a buyer, and then I get my money as a seller at the end, so there is no fuss, right, right? Absolutely, right. Okay, so I love that about the escrow process. It's very transparent, and we, we me and Becky and my team, we love transparency, absolutely
Unknown Speaker 14:56
well, like you said, escrow services in. Data are provided by a title company. They do Title and Escrow where in other states they're they're done by an attorney, right? So it's important to have an agent like yourself who watches out for their buyers and make sure that the title company that they're using has ability exactly
Unknown Speaker 15:17
and handles their business, which you guys do, and that's why we work well with you. Now, let me ask you something kind of, you know, off a little bit, what is the difference between when you say, like, obviously, we know what it is, but we want you to explain what the difference is, escrow and title. What do each one do? Well,
Unknown Speaker 15:33
think of title is that the title officers actually search the history of the property. They prepare the preliminary title report. It's also called a commitment like you discussed, listing all of the things that need to be taken care of before you can close escrow, all of things that need to be paid off or addressed or
Unknown Speaker 15:52
whatever the case, including trash bills and all of that, liens, judgments, anything. HOA sometimes has a little something that they're asking for, we
Unknown Speaker 16:01
cannot give clear title, quote, unquote, clear title until those those items have been cleaned up
Unknown Speaker 16:07
and you're ensuring that you gave clear title correct. And that is a very minimal cost, you know, very minimal correct.
Unknown Speaker 16:14
So now as a buyer, once you've completed the purchase agreement and the seller has accepted your offer, Monique's going to open the escrow. Like she said, the earnest money deposit is going to be held in escrow. So once again, the seller will not have those funds directly. They will be held by a disinterested third party,
Unknown Speaker 16:33
right? And since we're on that, let's talk about that. Let me just chime in real quick and tell let everybody out there know typical escrow process. In other words, how long does it take me after we have secured a property and you've told me, Monique, that's the house I want, I negotiate or Becky negotiates, from that time to when we're putting keys in your hand is typically 30 days, you guys. So the hound dogs are sniffing and making sure everything's good. 30 days they're digging to make sure they don't miss anything. That's my title, folks. But go ahead and
Unknown Speaker 17:01
and that is that is true. There's a lot of things that we do in the background that you guys, you guys aren't going to see, and I'll tell you a little bit about that. But the your escrow officer is going to follow instructions on your contract as a neutral third party to the contract, escrow can respond only to those written instructions agreed upon by both the buyer and seller, like Monique had mentioned. So the escrow officer also coordinates deadlines and gathers all the necessary paperwork in order to close escrow. If you're obtaining a loan in order to purchase a property, the escrow officer will coordinate loan documents, lender's instructions, funding the loan with your lender, ordering the payoffs and the demands and the HOA information, there's all kinds of things that go on in the background, keeping
Unknown Speaker 17:43
everybody in check. Yes, yes, yes. Now,
Unknown Speaker 17:46
can you talk a little bit about different ways to hold title? Now, this is something that people really need to know, because it's very important on how you decide to take title, as if you're buying with somebody else, right,
Unknown Speaker 17:59
right? Well, as a buyer, you're going to be asked by us how you want to hold title, and there are several options, such as community property, joint tenancy with the Right of Survivorship. Community property with the right of survivorship, tenancy in common in a trust, in an LLC, etc. So the escrow officers can't advise you how to hold title. We just We can't act as counsel and and Monique can't act as your counsel either, not at all, but she can give you a little cheat sheet flyer that gives you the basic definitions of of how to hold title and what they mean, right? What they mean. And you may also wish to consult an attorney and an accountant or some other professional before deciding on how to hold title. Yeah.
Unknown Speaker 18:41
So the majority of my clients and myself, we did the joint tenancy, you know. So that way, if we pass away, if we pass away, like if, for instance, if I pass away, my husband doesn't have to go through any kind of core probate, it immediately will go on to the next person. So for us, that's what we did, and it just seems to work very well. But people have different situations. You know what? I mean, you might buy with a best friend, you know, me and Becky buy a house together. Well, you know, maybe she wants her kids to get a portion of the house, you know. So there's different ways to to take title, like she mentioned, and they I do have those flyers that we do, me and Becky, we give out those flyers so that you can make an educated decision and tell, you know, Tracy and her, her company, exactly how you'd like to hold title,
Unknown Speaker 19:28
yes, and actually, if you want, kind of a recap of some of the things that we've all talked about, many can send you a buyer's guide as well. It's also available in multiple languages. Absolutely,
Unknown Speaker 19:38
we love our buyers guides. I don't like for any of my clients to fly in the dark. So Tracy, I don't know if you know this about me, but I got into this business many years ago, and you know, well, actually, I should say many years ago. I was a single mother, and I want to buy a home. And Becky even knows the realtor that I use, bless his heart. I. And if you're from the south, you know what that means, bless his heart. But anyways, but I truly believe that God let me go through that experience with that, that realtor, to shorten it up, I ended up not being able to get a home. So, long story short, after going through that, that's what guided me into real estate. Okay, so anyways, what I'm getting at is this I was, I was flying in the dark, and I never forgot that. I never forgot how I felt, not knowing exactly what was next, what was going on, because I put in like 30 offers, also getting anywhere, you know. But anyways, needless to say, I love that you guys do assist in providing those buyer and seller guides, because it's both. You know, sellers need to know what's going on. Not everybody's sold a home before. You just listed a property and you listed it and it was a probate property. Do you want to talk a little bit Becky about that listing and and what that? Just go ahead and let them know what that process looked like as a probate with property. Well, with
Unknown Speaker 20:57
the probate process, it was a little bit of a lengthier process than a traditional sale. It did have its little hiccups.
Unknown Speaker 21:05
Just like you discussed Tracy, we had to make sure that we were sending over divorce decrees and things that were involved, because the seller had our the person who had owned the home had passed away, so having to dot our i's and cross our T's. So absolutely, yeah, it was a process, yeah, yeah, but, you know, but it's doable, you guys. So when you're out there looking at properties, do not shy away from probates. Okay? There's a lot of agents that are unfamiliar with the process, and it's unfortunate to say, sometimes they'll guide their clients away from probates. If you have time, maybe you're living and you have your lease still going. You know, you have time to wait the extra month it may take to get the probate it's worth it if it's going to save you 20, 30,000 you know what I mean. So don't let anybody guide you away from going after a probate sale. Okay, so just so you know, I'm me, and Becky are both very versed in the probate sales. We deal with a lot of attorneys that are probate Tracy, of course, deals with probates as well with title, so that's nothing new to her as well. But let me just share this with you, when you're, when you're dealing with a probate, you know it's gonna, it's gonna be a little bit lengthier, like I said, but there's a great opportunity there. Okay, if you have an agent that knows the process, okay, not to mention that that process may have already been started, right? Tracy, correct, yeah. So you might not even have to wait that extra month. They might be the lawyer might already have, you know, all their their eggs in the basket, ready to rock and roll, right? Beck, absolutely. Yeah. So it's all about educating yourself and having an agent that has boots on the ground knows what they're doing. And that goes for listing a probate as well. You know, that's a whole nother process when you're listing that property. So, you know. So anyways, at the end of the day, do not shy away from probates. Okay, do not shy away. And if you're just tuning in, I guess I should tell you who I am and my phone number and maybe some information on how to contact me, right? So Monique Buchanan, here, I am your not only local Las Vegas realtor, but I can assist in all 50 states. All right? My team spans 24 countries, yeah, 24 countries worldwide. I can assist you guys. So Monique Buchanan, welcome home with monique.com is my website, 702-984-3700, if you're looking to list your property, me and my team are happy to help. Or if you're looking to purchase a property, we are here to guide you through those waters. You know, of purchasing a property, that's what we love to do. And we just had Tracy come on today. She is one of our title girls. She was going over what that looks like. Maybe you're moving from out of state. You're like, What in the world are they talking about? Right title. We use lawyers. Well, here in Nevada, we use Title and Escrow companies that will, you know, complete that transaction and make sure that you get clear title with no clouds on the title. All right, guys. So you guys have anything you want to chime in? You want to let us know the market is still, you know, going, you guys, for my buyers, we're still getting closing costs. I'm sure Tracy can tell you a lot of closing costs coming across her table from the sellers right now. Yes, there is. And I don't know how long I keep telling them, Tracy the windows closing. It's coming. It's closing up. We've got, you know what, the feds are talking they're gonna make their meeting. I think back, what on the 17th of September somewhere, yeah. And if you're Yeah, and if you're sitting here thinking, Well, I'm gonna wait till after the 17th 100. 17th, honey, you're gonna be in a fight for that house. Because, guess what, you're not alone. There's a hundreds of 1000s people that are gonna jump off that sideline, right? Tracy, that is correct. Remember, 2019
Unknown Speaker 24:32
I do. Did
Unknown Speaker 24:34
you see any sellers contributing back then, when those rates were low, there was not a dime coming out those sellers pockets, right? That is correct. No, ma'am. And then I had clients going 20,000 over list, and we couldn't get an accepted offer. We're getting beat out. You know, crazy beat out. People were offering more. So I keep trying to tell my lovely listeners, whom I love dearly, don't be afraid. Don't be afraid. Do not wait. On the sidelines, you guys, because if you do decide to buy, or if you're thinking of buying right now in the next five years, right now makes the most sense, the most sense, because we have negotiating power when we're representing you right now. And mind you right now, not only, all the builders are giving out incentives where they're buying down your rate to 2.99 we can do that as well. We've got lenders that are offering the same thing. You don't have to buy brand new. We have programs in place where we can get you a resale and have the seller buy down your rate as well. So there's really no need to wait for that rate to drop. When we could go ahead and put you in the rate now and then, you can just refinance. We can get you the rate today. There's no There's no need. We have ways of doing it. 702984. 3700, is the number. So before we go ahead and cut you guys loose, until next week, I'm gonna give you the latest listings, some of my luxury listings in the office that's going on. We've got 110806, that's Chartwell court. Okay, that's in the 89135, area. That one's going for $1.7 million it's a four bedroom, three, bath, 4000 square feet plus. All right, so it's in the Willow Creek neighborhood. There is a private cul de sac. There is. It is a two story. The first floor highlights all the communal features of the property, breakfast nook, formal dining room. Again, that address is 10806, Chartwell court, if you would like to view the property, my number is 7029, 84, 3700, me or Becky or one of the crew will get you on out there and get you into the property. There's another one on 2793 Bellini drive. It's in Henderson, 89052, area. That one's going for one point 2,000,004 bedroom, two bath. That one's at around 2900 square feet. It's in a guard gated Renaissance subdivision right there in the seven hills master plan community. All right. Again, that one is 2793 Bellini drive, if you want to get in and view the property, 702984, 3700 now, I know you guys have been hearing about the NAR settlement. I mentioned it, you know, on one of the previous shows, but I think I'm going to be kind of mentioning it quite a bit, just so, because it's something new, it just went into effect. The rules have changed for real estate you guys, August 17, no Realtor can take you out and just, you know, let you look at a house without signing a contract, we will be fined heavily, okay? So we're no longer allowed to do that. So now, just so you know, realtors are required to have you sign what we call is a buyer brokerage agreement. Okay? So just, just know that. Just know that out the gate, all right, so if you want to take a look at any of these properties, yes, we definitely can show them to you, and we will go over that buyers brokerage agreement. Because, like I said, we pride ourselves on transparency, so we'll go over that agreement with you, and we'll get you right on out there and get you into the property. Let you take a look and then negotiate you a sweetheart deal. All right, guys, thank you, Tracy, for coming on today. I look forward to having you again. Thank you. That was fun. And Becky, like always, girl, let's go ahead and take care of these clients. Absolutely. Let's get on it. All right. So until we hear from you, Have a blessed and amazing Saturday. Thank you for listening. Please remember all terms discussed are simply an estimate. My license number is S 1788 46 my phone number, if you'd like to contact me, is 702-984-3700, you can also find me on YouTube, and please join me tomorrow at my church, Living Word Church on hassle. I'm part of the EXP Realty Group.
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