How to Flip and Grow Rich in 2014

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The single most important factor in house flipping success is not what you probably think it would be.

It’s not finding the right property…nor is it negotiating the sales price…nor is it controlling your renovation costs, nor is it avoiding the really bad deals…

Although all of those are important, none are the most important.

Far and away, the most important factor to house flipping success is the right mindset. Or as I like to refer to it, “the house flipping mindset”.

The House Flipping Mindset “Secret”

We talked about “house flipping secrets” last week…but this is not about any of that. 

This is THE Secret – the movie from a few years back that was a huge sensation around the world which popularized “the law of attraction” and other concepts about the power of the mind. Thanks to this movie, millions of people became aware of this power, introducing them for the first time many of these concepts which have been around for some time.

Although the movie hits on many important aspects of success – and does work quite well in assisting any would be house flipper to achieve unprecedented success – it was not the first book of its kind to discuss the importance of mindset when achieving success.

“The Secret” borrowed most of its content from many philosophers and self-help books, including Wallace Wattles “The Science of Getting Rich” and my personal favorite, “Think and Grow Rich” by Napoleon Hill.

This one book hugely influenced my career and its one I refer back to often – especially at the beginning of a New Year to reinforce the house flipping mindset and to remind me exactly how to flip and grow rich.

The basic idea is that you attract into your life exactly what you think about. The Secret explained this by stating there is an irrefutable law called “The Law of Attraction” which controls everything in our lives. This law is as powerful and definite as the law of gravity and other physical laws.

Everything you have in your life, you attracted – like a magnet attracts iron. This includes all the good, and of course, all the not so good.

To get what you truly want, says The Secret, you need to simply attract it to you. And that all starts with your mindset.

Flip and Grow Rich…With Definiteness of Purpose

“Whatever the mind can conceive and believe…the mind can achieve”

-Napoleon Hill

It is amazing to think that anyone of us put on this earth can achieve incredible success and do amazing things just as long as we simply believe that we can.

Hill’s quote has influenced thousands of people – from Rhonda Byrne of The Secret to Donald Trump of The Apprentice and millions of people around the world. Whether you’re interested in real estate investing, house flipping or any other endeavor – this is one of the most powerful concepts to wrap your head around.

The interesting thing about Hill’s quote is that it says nothing about how smart you need to be. It says nothing about how much money you need to have. It says nothing about who you need to know or what contacts you have.

All it takes to achieve what you want is the mindset to simply conceive of what you want…then go out and get it.

The Three Step Flip and Grow Rich Formula

“You have the power to take your own mind and direct it any way you want”

-Andrew Carnegie

Whatever your mind dwells on is what you get. Whatever you attract with your thoughts, you receive.

The great thing is that you can use this fairly simple concept to your advantage every single day by THINKING your way to success.

Hill and Byrne aren’t alone on this one. See what these fairly well-known historical figures have said on this matter:

“We become what we think about”

– Earl Nightingale

“A mans life is what he thinks of it”

– Marcus Aurelius

“A man is what he thinks about…all day long”

– Ralph Waldo Emerson

“If you think in negative terms, you get negative results. If you think in positive terms, you get positive results”

– Dr. Norman Vincent Peale

Believe and succeed. Seems pretty simple.

But how do you do it?

Hill makes it simple by giving us a formula. Just figure out what you want, write it down on a piece of paper and DECIDE today to get it. Here it is:

The Flip and Grow Rich Formula: 

1. Take out a notebook, on page one, write out your ONE major desire in life.

Your only limitations are the ones you set in your mind.

2. State what you intend to GIVE in order to get what you want in life.

Decide right then what you intend on giving.

3. Memorize both of your statements above.

And repeat them at least a dozen a day only and at the end of the day say this:

“I ask not for more riches, but more wisdom to use wisely the riches I received at birth in the power to direct and control my life to whatever I desire”

So…What Do YOU Really Want?

Write down what you want right now. Think about all you want to achieve in 2014.

Then state what you intend to give.

Then memorize it and show gratitude for the wisdom you know have received.

That is the first step on how to flip and grow rich…

 

If you’ve made it this far, please leave a comment below! What do you think? What are you doing to achieve your goals in 2014? Please leave a comment and share your ideas — or ask me anything you’d like about flipping houses!

Photo: Tax Credits

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About Author

Michael LaCava is a full time real estate investor, house flipping coach and the President of Hold Em Realty located in Wareham, MA. He runs the website House Flipping School to teach new real estate investors how to flip houses and is the author of "How to Flip a House in 5 Simple Steps".

38 Comments

  1. Great article !!i love think and grow rich.

    I think many people get the wrong idea about the law of attraction thinking it is some ridiculous outdated idea. I did a lot of research on it and the basic ideas date back to ancient Egypt. It is actually quite incredible. If you think aboutnitnina scientific way, you aren’t just asking the universe to return what you think about. You are giving a blueprint to your subconscious. They have many studies hat show our subconscious is much more powerful than previously thought. Those studies show how we think consciously greatly affects the things our subconscious mind does in the background. If we really want something and think about it all the time. Our sun cocoons does have the power to help is get it.

    • Thanks Mark. I am not perfect by no means and as my business grows I have to remind myself during stressful situations to get back the positive mindset. I am great at helping others but sometimes my worse critic so have to take my own medicine. I think you know what I mean. I see other’s may not agree but that’s ok. It is a debatable subject by many .
      Of course it doesn’t guarantee success but a positive mind and thoughts has to be better than negative for sure. Happy New Year and all the best in achieving your goals for 2014.
      I have set the bar pretty high so it will be a big year and pushing hard for us.

  2. Jason Merchey on

    I laud you for using quotations in your piece. It is nicely constructed. Quotes *can* make one feel empowered while they are on the couch.
    However, I think it is bound to miss the mark. With certain mid-range folks it will possibly, maybe make some difference; at the higher levels of investor success/psychology it won’t be all that useful, and at the low end of investors they will get excited about their potential and think how cruel the world has been for denying them their rightful success – only to hit that same wall come Monday when they encounter real-world challenges. The quotes and plan just won’t take them far.
    This is the inherent weakness with things that Oprah and Wayne Dyer sell – it feels good but it doesn’t cut the mustard. I’m not just being foolishly negative; I love quotes, and have even published in the arena of self-help, wisdom, human potential, etc. It reminds me of the difference between psychotherapeutic interventions that are theoretical (Freud, or repressed memory syndrome kind of approaches) vs. interventions that have been scientifically shown to be valid. I like feel-good quotes as much or more than the next person; but the way to succeed in real estate is much more complicated and is out of reach of pap like “The Secret.” Most of the reason that Hill, Carnegie, Kiyosaki, and that lot write what they write is to make money. It’s one step above astrology. I think writings like this fall way short of books like Keller’s Millionaire Real Estate Investor – which is on the border for me, but probably holds water. If you want to help us, tell us how to tell if drywall has moisture, or whether to use leverage or not, or how to knock on someone’s door to ask them to sell to you. My two cents.

    • Jason, I respectively disagree with that road of thinking. I think many people get caught up in the little details of everything and forget about the big picture and what their main goals are.

      For example; if you constantly think of ways to improve the repair process like techniques for Sheetrock replacement. You aren’t thinking about your main goal; flipping as many houses as you can to create income to retire or buy long term assets.

      The quotes are meant to be quotes you look at and read that magically make you successful. The quotes are part of a broad way of thinking that helps people keep their ultimate goals and aspirations in mind. By using these techniques it increases your chances of thinking of new ways to do things and increases your chances of taking action.

      I find it ironic you use Gary Keller as an example. His millionaire investor book is very much geared toward the technical side of investing. But I just finished his millionaire agent book where he interviews the top agents in the country. His theme and message throughout the book and from the top agents is goal setting, planning and having the right attitude is more important than the actual work itself. The top people in most industries always talk about how it is more important to work on yourself than your job. The money will follow of you have the right attitude. I see the same thing on BP with the top investors.

      • dell schlabach on

        I have to agree with you about the importance of mindset in order to accomplish anything significant. Rarely is skill the most important element. Believe and a clear vision in my experience is more important.

        Couple weeks ago, after a christmas party with all our staff and significant others (32people), standing around after dinner, after a powerpoint presentation of this years before and after pictures of houses, interspersed with team members at work and accolades from buyers, realtors and “partners”, after a reflection of where we started four years ago, everyone reveling in the joy of the moment ….my two top crew leaders and I are standing there talking, and of them commented at how amazing it is what we have accomplished, and something like, wow how did we come this far? Three years ago he and I had a beatup toyota and me and him figuring out better drywalling techniques etc.

        I had to reflect back to sitting in Fla in the back yard of a friends house about four years prior, being depressed for a year after having lost everything. I had decided to listen to the entire goal setting course by brian tracy tyring to figure out if I though it possible, its worth the effort to try and create something, trying to find a bit of inspiration.

        I still clearly remember his admonition, if you do only one of the techniques in this entire program, that will make a bigger difference than anything else. Decide exactly what you want, your one big goal, write it down, then determine to work on that goal everyday. Get a journal write it and rewrite the goal every morning and every evening for a year, you will be amazed at what you will accomplish the end of the year.

        My decision and goal was to build a team of five crews each rehabbing nine houses a year, netting a minimum of 15k per house. Rather adacious for a depressed guy who had lost everything, deeply in debt, including his pickup had been repo-ed.

        Couple other things he said, determine the price you need to pay to get it, break you big goal down into subgoals. Write you top ten goals everyday. I did this for the next year, every morning and evening, and pretty consistently for the next couple years, I have a slightly altered version now, but every year since then I have spend a week or two in fla at the end of the year, thinking, walking the beach, having interesting conversations, redrawing the vision and the steps, getting reinspired, for the following year.

        We have build four of the five crews, have great teams in place, our houses sell fast, realtors, subcontractors, private lenders, love working with us. We have not yet achieved the goal, but the vision still drives us. We are changing some strategy to increase production at the end of the year, by beefing up the A-Team, I am quite certain we will be able to achieve the goal of 45houses min. 15k profit each, this year with four crews, and I see this as the beginning of the journey, I am now planning three years out.

        My personal believe is that a clear vision and the purpose are by far the most powerful drivers. Without the vision, and constant reading of inspirationial materials. This would not have been possible for me. It is true that strategy and Technique are crucial as well. But strategy without deeply held vision and believe, you dont get very far, especially when things get difficult or go bad for a period.

        • Thanks dell for sharing your story. This is great to hear and sharing your visions and goals to others helps inspire all. Vision, strategy and goal setting of course all those things are important and you agree as I do but it can be so much more powerful with the right mindset as you mention. I wish you much, much success in 2014 and would love to hear more about your business as we have similar goals. Feel free to inbox me.

        • This is a very inspiring post, thanks Dell. A question for you would be how long ago did you start in your venture and on what kind of budget? I’m new to RE but highly motivated and determined to make it work. Not only for the income potential long term, but also is a passion for me and have some lofty goals going forward.

          I understand there’s no get rich quick plan. Similar situation as you. Still have my car and job, but finances extremely tight and none of my own funding to work with – had to go through what was left after divorce of my 401k to stay afloat this past year, now living paycheck to paycheck in a mediocre sales job – My intention was to use some of the 401k to get started…Went from 130k in 2011, to 97k in 2012 to 61k 2013. My ex getting $1450 per month is spousal support out of that. I’m living on $1800 month net income in a $1400 a month rental. Downsizing quickly, credit ruined from divorce…all that wonderful stuff in a depressed economy.

          Just spoke to a flipper here today, she’s been doing it for past 12 yrs…states the mkt here (Sacto Ca) is extremely tough, takes months to even get a house even with straight cash, says little left here and it’s who you know and who’s standing at the courthouse steps…kind of a bleak outlook from her perspective. Not letting that deter me from my goal, but like I said, just starting and with no funding of my own, very few contacts currently. Any good advice for a greenhorn?

        • dell schlabach on

          I would say the first thing is find someone who KNOWS that it is possible, and hook up with them. You dont want to hook up with someone who doubts the probability of being sucessful.

          Not all strategies work in all areas. Markets change so rehab snd sell in your area may not work, or it may just be the rehabbers method of finding deals thats the problem. I had some very notable local investors tell me it couldn’t be done, you cant sell houses in this market. (2010-2011)  

          Re: Budgets not sure the question, The contractor I worked for put up the money to rehab the projects, I didnt have any money I was surviving paycheck to paycheck, living cheap, no tv, no internet, shopping at Save a Lot, and Salvation Army Store. 

          My comeback I worked for a contractor which I used to think was way beneath me, at this point of my life,  But my options were limited, so i worked for cheap,  I learned the skills I needed went way above and beyond to help him out,  After a year he was willing to partner on deals with me, 50-50 profit splits,

          I did all the work, he funded. I did this with another “lender” As well. After that I started with some hard money paying 32% annual interest. I was constantly trying to get cheaper money, 60-40 splits, then 70-30 splits. Over the years as our track record has improved and we have build a reputation we have pretty much unlimited private money available at 6-11%. 

          To answer your question, if its buy fix and sell that you want to do, My advise would be find someone who is doing it, work for them for cheap, learn what you need to learn then go on your own, just don’t expect it to be quick or easy, and be considerate of the perdon thats is training you. Nobody likes to train someone to become their competition, so make it mutually beneficial, even if you go on your own dont burn bridges with the people who helped you become sucessful. The contractor I worked for when I left, I kept finding all his deals for him. Today three years later I still find all his deals in trade for quite a chunk of 6% rehab money, and I my most trusted construction resource.

          I know the forums lam-bast paid mentors a lot, and I have seen plenty of people waste a lot of money, I have personally spend over 10k in courses and boot camps, before I honed in on rehab and flip exclusively. 

          I see it more as hiring a coach, you pay for good coaching, if you find and hook up with a good one pay them well, it can dramatically cut down your learning curve. Check out Mikes LaCavas houseflipping school. Hes got some good stuff that may help you out. I havent bought any materials in a few years, but I devoured everything I could get my hands on for years.

          Ill quit rambeling… good luck

    • You are entitled to your opinion Jason and I hear your points but I don’t recall saying this is the single platform for success. I did say in my opinion it is the most important. Its like having a solid foundation to build upon. You don’t wont to build a house on quick sand which is like building a business on a negative mind set. Action is definitely needed here as well of course. I blog about many things and don’t recall if I ever talked about the moisture level in plaster but I am very familiar with this from my first few flips and the timing of the plaster with no heat……. installed yet going into the cold season and running dehumidifiers so we could speed the process up to get the paint done on time…… I will refer to what Mark Ferguson says about the big picture. I honestly don’t think it is that important to know about moisture and drying process of plaster but more important to hire a professional tradesman that does. I know this because I started out this way and did it all but now I can tell others how to do it better and more efficient because of what I have learned. I barely set foot in our rehabs these days so I am not thinking about plaster drying. My team is. Like Mark said I am focused on how many deals we can do in 2014. The big picture stuff. Thanks for your comments.

    • I think it sounds like you may need to read more quotes be change your attitude. These quotes are there to prove Mikes point which is that how you think has so much to do with your success unless you’re naturally wired to be positive at all times, we all need a little boost every now and then.

  3. I’ve worked through Think and Grow Rich and I absolutely love that book. I still haven’t finished the thing. One of the concepts that really stuck out for me that I had never heard before was the concept of writing down what you’re willing to give up. Through all the grade school goal setting symposiums I don’t recall that being something to consider. I remember being told to set goals, but not too high so you don’t disappoint yourself; only set them just a little higher than you know you can hit. Well, when one is that young one doesn’t necessarily know their limits. I find that setting your goals crazy stupid high is more rewarding because you have something to continue to work towards. And the way Think and Grow Rich is written and The Millionaire Real Estate Investor(the Keller Williams book) it is acceptable not to reach those goals. It is a fact of life that one will not succeed every time and from every failure take that as a lesson. Furthermore, The Millionaire Real Estate Investor discusses how one sets oneself in a box with a limited goal. If my goal is to make $5000 passive income I’ll reach that goal but to move to the next goal of say $50000 income I have to readjust my mindset. If I work towards my goal of $500,000 passive income I can hit the $5k mark, the $50k mark and just keep going because the mindset is the same throughout.

    Great article by the way! I love the new concepts I’ve picked up on goal setting.

    • Hey Steve. Good points on setting limits. I have heard that as well. when I wrote my business goals starting with year 1 through year 5 I missed most of the numbers on years 1,2 and 3 as they were the tough years and business building years and then year 4 started clicking and year 5 I will exceed what I did in the first 3-4. The point is you have to start with something in which to measure how you are doing. There is no basis but what you put in your mind on what you think you can do. Of course you want to be somewhat realistic so you don’t totally set yourself up for failure but I like your thinking about set them high and your analogy to kids. We don’t set limits on our thinking when we are kids so why should we as adults. Probably could right a book on that one. Thanks and all the best in 2014.

  4. Nice job connecting N. Hill’s Think and Grow Rich with real estate flipping. It certainly does come down belief and positive action.

  5. Michael,
    Thanks so much for reminding me about Think and Grow Rich. I’m at a turning point in my fix and flip business, stepping it up and I needed to think about reaching for the stars. I gave all my Napoleon Hill, W Clement Stone books away, passing them on. I’ll be getting copies for myself again tomorrow. I, like so many people, lost everything in the meltdown but that’s history. I believe in the power of positive thinking. I’ve seen miracles when I expect the next right house come to me and maybe not on my time table but when it’s supposed to happen so many times it’s hard not to believe. I do get into limiting thinking and it takes reading something like your post to set me straight.
    I am responsible for my own success or failure and set my own limitations. I’m going back to the Think and Grow Rich formula. Your post was truly God sent.
    Thank you again, Karen Hewitt Prescott, AZ

    • Glad it helped you Karen. Just remember your feelings aren’t exclusive to you as many go through this. Learning from it and changing your situation is like you said entirely up to you. All the best and please keep me posted on your success!

  6. I was just having a conversation with a couple of people about how people WILL positive or / and negative vibes to themselves. In particularly when they WILL negative karma to themselves they embrace it and then complain about it being present. There is a yin for every yang. However its definitely a persons frame of mind to achieve to overcome or to destroy oneself. Its the main reason why I have had to remove cynicism from my surroundings. Which came in the form of dream killers and all around downers. Its very likely why very successful people stress that people should surround themselves with smarter, richer and successful people as appose to the utter reverse of that.

    Noone can pick their loved ones and I would never suggest to turn your back on them because I could never do such a terrible thing. Yet those associates mascarading as friends that have nothing but negativity from sun up to sun down must be removed entirely. God gave us free will. Whether you choose to Will the good or Will the bad is on you. However if you would rather have good vibes only then you better be more aware of your surroundings. Faith is GOD and good will are prime ingredients for a wealth of success in whatever field you choose. The knowledge of the how to do this technique and that technique will follow suit. Thanks for the share, Mike. Good blog as usual. Happy New Year.

    • Thanks Mary and well said. Not always easy to that and I have had personal experience with this so I know exactly what you mean.
      Happy New Year to you as well!
      Make it a great 2014!

  7. Michael Woodward on

    Excellent article Michael! I’m a huge fan and student of this philosophy. I’ve been actively implementing it for about a year now and I strongly believe that I’m reaping the rewards of it. My business accelerated exponentially over the past year. Thanks for taking the time to put this together. Best to you.

  8. Happy to see the most powerful law in the universe being talked about here. We should start a flip and grow rich group. I could talk about this for days. Been studying L of A for 2 years, since I first heard about it.

    Think and Grow Rich is a summary of Hill’s first book “Law Of Success in 16 Lessons”, over 1000 pages. It is a free download now, just Google the name. Andrew Carnegie gave Hill a 20 year contract to study rich people that Carnegie introduced him to, like Henry Ford, Thomas Edison etc. Carnegie was the richest man in the world at the time. (“U.S Steel”) He was also the only rich person who wanted to get this information out. Henry Ford did not want it out. Hill asked for $1.00 per year plus expenses.

    My favorite source of info is Esther and Jerry Hicks, (Jerry passed recently) they provided much of the information in the movie, The Secret, they are not mentioned as there was some sort of falling out with the Australian woman. They have many books on this and do 50 seminars a year. They trained some of speakers in the movie. You can buy recordings of those seminars, they are better than the Audio books. Many free segments on Utube.

    This is seriously important information, should I start a group? Will you join? I want 100,000 members! Ha Ha

    I have never felt better since learning about this. There have been a few so called coincidences. To get it to work, you just have to believe you can and feel good about what ever you are doing. That’s the secret! Esther says “You must pay the sacrificial price of Joy!”
    In other words you have to focus hard on staying happy, in such a negative world.

    • Great stuff here Mike. If you desire to start the group go for it. I believe there are many groups out there like it but feel free to share if you go for it.
      All the best

      • Michael Dorovich on

        Thanks Michael, Mark, Mike, and everyone else who posted above. I hope it is ok to revive this thread. This is a great discussion.

        One question I have about The Secret and Abraham-Hicks… it seems like they teach getting into the right state of mind or vibration… I agree this is important, but they don’t seem to stress the importance of taking action.

        They seem to imply that what you want can effortlessly flow into your experience, which may be true sometimes… yet I have seen opportunities appear that did not work out because I wasn’t prepared to act or follow through, which takes work.

        I wondered if you had any thoughts about action, once the goals are written. Thank you.

        • Mike Hepburn on

          What is so fascinating about this is all the scientists and the worlds religious groups agree this is the way the universe works. You get what you think about. If you think you have to work 15 hours a day to be successful then you do. Thats believing action effort is most important. Andrew Carnegie (1835–1919) then the richest man in the world (US Steel) understood this science. Worked 10 am to 4 pm, took 3 months off in the summer and went to Scotland, no cell phone, fax, internet etc He was worth 180 Billion. He is also the only one of the top 1% that wanted to help common folk, learn to be successful. He hired Napoleon Hill for a 20 year project to study wealthy people. Thats how Think and Grow Rich was born, unfortunately another member of the 1% bought all the books, removed from the market and had publisher do some editing. No worries though, still a good read and Jerry and Esther Hicks is un-censured

  9. Michael, thanks for blogging on this subject. Seems all too often it’s easy to get lost in the details and we need to step back and look at what’s really important. I’m glad you brought up this topic. I need to go back an re-read “Think and Grow Rich”. The start of the new year is a perfect time for it. I agree, you definitely won’t go far if you build a foundation of negativity. I think Mark Ferguson’s research into this is absolutely correct about the power of the subconcious mind. However, I may be wrong, but I’m not sure that the power of attraction is like a scientific law such as the laws of physics, but I think people that have a positive pleasant attitude and enthusiam attract people and bring good things into their lives. People just want to be around people like that. Napoplean Hill covers many different things in his book, and when put together, they will surely increase your chances of success. Happy and prosperous New Year!

  10. It is a wonderful feeling to have a positive attitude and to believe in greatness. If I do one thing this year I am only going to surround myself with people who see the good and want to be happy. I am so tired of the No No’s of the world. Thanks for the upbeat email, this has made my day. Have a great one!
    Karen

  11. The positive attitude and success mindset stuff can be overplayed at times.
    You can’t just think about something and all of a sudden it will happen without you doing anything.

    However having the right mindset and believing you can attain the greatness you desire is a prerequisite to getting there. If you don’t think you can do something all the technical knowledge in the world is useless for you.
    I can think of lots of “investors” that can talk about every high level market factor and economic influence possible for real estate that don’t do any deals. What is that knowledge doing for them?

    The human mind is very powerful and certainly can influence what happens to you in amazing ways. Why do you think every drug trial is a double blind study with one group getting a placebo? Because people always get healthier by taking the sugar pill since they THINK they are getting the new drug.

    If eating some skittles that you thought was a Chemo drug can put your cancer in remission then thinking, no I mean KNOWING, you will be a successful investor will surely kick your a$$ in the right direction to get there.

    • Good points Shaun. I am thinking of a million dollars in gold in the attic on my next rehab. I will let you know in the am if it there. LOL. Can you imagine if that happened.
      I agree with your statement.

  12. I highly appreciate the feedback Dell, and everyone else on this post as well. I have always and continue to believe in the power of positive thinking and putting action to your thoughts. I have achieved success from it in the past and will again. Bigger Pockets is providing a good amount of inspiration, and I’m grateful to have found this online community and the wealth of information posted here. I would like to personally thank Sharon Volstrom as well. The first comment/question I posed on one of her articles was replied to by her within 30 minutes, inspiring me to further delve into all the knowledge and expertise here. Thanks again Sharon , and thanks to Bigger Pockets!

    • Hey Brad. That’s great to hear. Do you mean Sharon Vornholt? I believe that is who you meant and she is awesome and a wealth of knowledge. This is why I love BP as well because I learn everyday and improve my business everyday by listening and learning from other’s as well. Thanks again for your comments!

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