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5 Ways To Buy Commercial Property [With NO Money] - YouTube
Channel: Tyler Cauble
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don't have any money but you still want
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to invest in commercial real estate well
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today I'm going to show you five ways
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that you can buy commercial property
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with no money and be sure to stick
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around to the end when I'll share the
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fifth strategy with you which in my
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opinion is the most creative strategy
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out there yes
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you still actually have some options
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that's how I got my start in the world
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of commercial real estate investing I
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bought my first office building without
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any money out of pocket and it was the
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best thing I could have ever done for
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myself so if you're looking to learn how
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to buy commercial property with no money
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here's your guide if you want to be as
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successful as possible in commercial
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real estate you need to get creative
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with your deals do you think out of the
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box when you look at deals or do you
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simply go buy the books the best real
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estate deals you'll ever find will often
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come from when you're thinking
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creatively figure out how to solve
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problems that others can't or won't you
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don't have to spend your money to buy
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real estate if you're just starting your
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investing journey money is probably
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tight so don't spend your money on
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commercial properties use someone else's
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raising capital from investors isn't
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quite as hard as it's often made out to
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be it's not some ancient mystery many
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investors just don't have the time to go
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find deal after deal which is why
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they're willing to place capital with
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operators like you who do find the deals
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good deals Plus trustworthy operators
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equals investment opportunity so here
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are my five favorite strategies for
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buying real estate with no money out of
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pocket number 1 get your real estate
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license
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that's right study the materials take
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the test get your real estate license
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and start finding deals the strategy is
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my favorite and it's actually how I
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bought my first office building you can
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also make some money helping others buy
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and sell real estate too while you're
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looking for these opportunities so when
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you're out looking for deals
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let your network know that you're
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interested in bringing investors into
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the deals that you're finding you'll
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quickly build up a list of interested
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parties that will want to see your
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offerings when you go to buy a property
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negotiate your commissions now here's
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the best part since you have your real
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estate license you can actually
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negotiate to get paid a commission while
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you acquire the asset after all the
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seller would pay that to any other real
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estate agent if they brought a buyer
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right that 3% Commission can turn into a
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15% equity stake if you're a winner
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requires you to put 20%
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down and you're not actually coming out
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of pocket to pay for the investment you
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really just have your time and energy
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invested into the deal so the sellers
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basically giving you money to invest
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that's how having a real estate license
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can help you get a head start on
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investing number two is to lease with a
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purchase option or rent to oh is the
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property currently vacant if so you
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could approach the landlord with a lease
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to purchase option you'll lease the
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property from the landlord and operate
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your business or sublease to other
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tenants in order to make those rent
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payments this lease can last for as long
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as you and the owner decide and you can
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actually apply a portion of those rent
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payments to your purchase price which
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will also vary depending on your
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negotiations your monthly payments can
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go towards the purchase price of the
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building which relieves you from having
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to fork over a large down payment when
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you go to acquire the property after a
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set amount of time the purchase option
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will expire or come due at which point
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you'll need to close on the property
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number three is subject to if the seller
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has existing financing in place and is
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in a distressed situation or just
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looking to walk away from the property
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you could purchase it subject to the
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current mortgage essentially you're
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assuming the financing that is already
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in place on the property and letting the
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owner walk away if you're considering
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this method you'll certainly want to
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review the loan documents to be sure
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that you agree with the original terms
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and rates not all properties can be
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acquired this way because some mortgage
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documents can have a due on sale clause
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which triggers the repayment of the debt
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upon a transfer of ownership using this
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strategy you're relieving the property
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owner of their liabilities and taking on
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that debt yourself number four is seller
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financing ask the seller if they are
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willing to carry the debt on the
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property when you buy it instead of
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having to go through rigorous lender
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approvals you may be able to make your
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monthly payments to the property owner
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instead sometimes the property owner
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will even accept little to no down
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payment so you won't have to fork over
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any cash whatsoever after a few years
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the sellers financing will probably
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balloon and you'll have to refinance to
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pay them off or they may just carry the
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debt for the wife of the property again
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it just comes down to how you negotiate
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the deal so why would a seller finance
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their own project well there are
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actually a few good reasons maybe they
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want to avoid tax obligations from a
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sale or they enjoy having the monthly
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income they could also believe in you
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and
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just want to help you out and this
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strategy could help them get rid of the
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property faster as it opens up their
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buyer pool since they're now collecting
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interest rate on a property that they
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have the mortgage on their returns could
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be more attractive over the long run and
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there are so many other reasons too so
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that's all we have for seller financing
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the fifth strategy is to have the seller
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pay your down payment now this is
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getting really creative
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ask the seller if they'd be willing to
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pay your down payment for you in order
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to structure a deal like this you'll
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likely end up having to pay well above
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their asking price but that shouldn't be
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too big of a deal to you since you won't
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have to come out of pocket on the
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acquisition getting the property to
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appraise for your new purchase price
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however could be a little tricky so you
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may have to figure that part out but
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here's an example of how I would see
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this type of deal being structured let's
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say the seller is asking $500,000 for
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their property the bank requires you to
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put down 15% - owner occupy the space
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the seller agrees to sell the property
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for $600,000 and gives you the down
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payment of $90,000 at closing the seller
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makes an extra ten thousand dollars for
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getting creative and you get the
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property with no money down sounds like
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a win-win for both parties keep in mind
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too that your loan will be larger in
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this scenario so you will have to make
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larger monthly payments but again you
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bought the property without paying for
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it at the end of the day the most
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successful real estate investors and
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developers are also the most creative so
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don't be afraid to break the mold find
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creative ways to make deals happen
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regardless of your lack of funds
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knowledge or experience so there you
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have it four five ways to buy commercial
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property with no money I'm curious which
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of these strategies are you planning to
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use let me know in the comments below if
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you enjoyed this video go ahead and give
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it a thumbs up if you have any questions
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about investing in commercial real
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estate feel free to leave me a comment
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below and I'll do my best to get back
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with you and if you're interested in
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more commercial real estate investing
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strategies leasing and management tips
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market updates and more go ahead and hit
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that subscribe button
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