HOW TO ANALYZE RENTAL PROPERTIES For Maximum Cash Flow! A Free - - PowerPoint PPT Presentation

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HOW TO ANALYZE RENTAL PROPERTIES For Maximum Cash Flow! A Free - - PowerPoint PPT Presentation

Mar 29, 2023 425 likes •1.76k views

Get todays worksheet at www.BiggerPockets.com/329worksheet HOW TO ANALYZE RENTAL PROPERTIES For Maximum Cash Flow! A Free Webinar From BiggerPockets.com WELCOME! (You rock!) LET ME ASK YOU A QUESTION ARE YOU READY TO GET NERDY?

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SLIDE 1

HOW TO ANALYZE RENTAL PROPERTIES

For Maximum Cash Flow!

A Free Webinar From BiggerPockets.com Get today’s worksheet at
 www.BiggerPockets.com/329worksheet
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SLIDE 2

WELCOME!

(You rock!)

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SLIDE 3

LET ME ASK YOU A QUESTION…

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SLIDE 4

ARE YOU READY TO GET NERDY?

(I hope so!)

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SLIDE 5

ARE YOU IN THE RIGHT PLACE?

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SLIDE 6

YOU ARE IN THE RIGHT PLACE IF…

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SLIDE 7

YOU ARE IN THE RIGHT PLACE IF…

➤ You are looking to avoid buying terrible deals
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SLIDE 8

YOU ARE IN THE RIGHT PLACE IF…

➤ You are looking to avoid buying terrible deals ➤ You want to achieve financial freedom

through rental properties in the next decade…

  • r less!
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SLIDE 9

YOU ARE IN THE RIGHT PLACE IF…

➤ You are looking to avoid buying terrible deals ➤ You want to achieve financial freedom

through rental properties in the next decade…

  • r less!
➤ You have limited time in your day, so you

need to streamline the deal analysis process.

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SLIDE 10

WHAT WE’LL BE COVERING TODAY:

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SLIDE 11

WHAT WE’LL BE COVERING TODAY

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SLIDE 12

WHAT WE’LL BE COVERING TODAY

➤ Worksheet download!
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SLIDE 13

WHAT WE’LL BE COVERING TODAY

➤ Worksheet download! ➤ About me and BP
slide-14
SLIDE 14

WHAT WE’LL BE COVERING TODAY

➤ Worksheet download! ➤ About me and BP ➤ Why analysis matters
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SLIDE 15

WHAT WE’LL BE COVERING TODAY

➤ Worksheet download! ➤ About me and BP ➤ Why analysis matters ➤ How to analyze deals by hand
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SLIDE 16

WHAT WE’LL BE COVERING TODAY

➤ Worksheet download! ➤ About me and BP ➤ Why analysis matters ➤ How to analyze deals by hand ➤ How to analyze deals using BiggerPockets Analysis tools
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SLIDE 17

WHAT WE’LL BE COVERING TODAY

➤ Worksheet download! ➤ About me and BP ➤ Why analysis matters ➤ How to analyze deals by hand ➤ How to analyze deals using BiggerPockets Analysis tools ➤ My analysis process
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SLIDE 18

WHAT WE’LL BE COVERING TODAY

➤ Worksheet download! ➤ About me and BP ➤ Why analysis matters ➤ How to analyze deals by hand ➤ How to analyze deals using BiggerPockets Analysis tools ➤ My analysis process ➤ Other Pro tools
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SLIDE 19

WHAT WE’LL BE COVERING TODAY

➤ Worksheet download! ➤ About me and BP ➤ Why analysis matters ➤ How to analyze deals by hand ➤ How to analyze deals using BiggerPockets Analysis tools ➤ My analysis process ➤ Other Pro tools ➤ Question/Answer
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SLIDE 20

FOLLOW ALONG WITH TODAY’S WORKSHEET:

www.BiggerPockets.com/329worksheet

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SLIDE 21

Special Gift:

The

www.BiggerPockets.com/books

WORKSHEET: www.BiggerPockets.com/909worksheet
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SLIDE 22

Special Gifts:

www.BiggerPockets.com/_______ www.BiggerPockets.com/______

(At the end!)

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SLIDE 23

ABOUT ME

(Brandon Turner)

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SLIDE 24

BRANDON

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SLIDE 25

BRANDON

Cohost of BP Podcast

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SLIDE 26

BRANDON

Cohost of BP Podcast Real estate investor

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SLIDE 27

BRANDON

Cohost of BP Podcast Real estate investor Guitar player & drummer

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SLIDE 28

BRANDON

Cohost of BP Podcast Real estate investor Guitar player & drummer Author

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SLIDE 29

BRANDON

Cohost of BP Podcast Real estate investor Guitar player & drummer Author
 Once was in a barbershop quartet!

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SLIDE 30 My family… :)
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SLIDE 31

BIGGERPOCKETS

The Real Estate Investing Social Network, Marketplace, and Information Hub.

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SLIDE 32

BIGGERPOCKETS

The Real Estate Investing Social Network, Marketplace, and Information Hub.

Blogs Forums Podcast Books Conference Meetups Videos Forms/Files Networking
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SLIDE 33

WHY ANALYSIS MATTERS

(Seriously…)

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SLIDE 34

THE MARTIN DISASTER

Ugh…

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WHAT DO YOU WANT REAL ESTATE TO DO FOR YOU?

What is your goal? What is your “why?”

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SLIDE 36

“

Some people want it to happen, some wish it would happen, others make it happen.

  • Michael Jordan
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SLIDE 37

IF YOU WANT YOUR GOALS AND DREAMS TO COME TRUE… YOU HAVE TO LEARN TO ANALYZE DEALS CORRECTLY.

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SLIDE 38

HOW TO ANALYZE DEALS BY HAND…

(because you need to know how…)

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SLIDE 39

ANALYZING CASH FLOW

(Cha ching!)

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SLIDE 40

ANALYZING CASH FLOW

INCOME

  • EXPENSES

=CASH FLOW

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SLIDE 41

ANALYZING CASH FLOW

INCOME EXPENSES

Rental Income Laundry Income Storage Income Late fees

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SLIDE 42

ANALYZING CASH FLOW

INCOME EXPENSES

Rental Income Laundry Income Storage Income Late fees




  • Garbage

  • Gas

  • Electricity

  • HOA fees

  • Snow removal

  • Lawn care

  • Property management
  • Taxes

  • Insurance

  • Vacancy

  • Repairs

  • CapEx

  • Water

  • Sewer

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HOW DO YOU FIND OUT THESE EXPENSES?

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LET’S LOOK AT A REAL- LIFE EXAMPLE

(just for fun!)

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(REMEMBER … MATH IS RELATIVE)

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SLIDE 46
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SLIDE 47

DEAL OR NO-DEAL?

(don’t worry… I won’t hold you to it!)

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ANALYZING CASH FLOW

INCOME EXPENSES

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ANALYZING CASH FLOW

INCOME EXPENSES $895

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ANALYZING CASH FLOW

  • Taxes

  • Insurance

  • Vacancy

  • Repairs

  • Capital expenditures

  • Water

  • Sewer

  • Garbage

  • Gas

  • Electricity

  • HOA fees

  • Snow removal

  • Lawn care

  • Property management
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SLIDE 51

ANALYZING CASH FLOW

Taxes
 Insurance
 Vacancy
 Repairs
 CapEx
 Water
 Sewer
 Garbage
 Gas
 Electricity
 HOA fees
 Snow removal
 Lawn care
 Property management $124.94 $45.00 $44.75 (5%) $44.75 (5%) $161.10 (18%) $0 $0 $0 $0 $0 $0 $0 $0 $89.50 (10%) $510.04 Operating Expenses:
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ANALYZING CASH FLOW

INCOME EXPENSES $895 $510.04

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WHAT EXPENSE DID WE NOT INCLUDE?

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THE MORTGAGE

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THE MORTGAGE

$74,900 x .8 = $59,920.00

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THE MORTGAGE

$74,900 x .8 = $59,920.00

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THE MORTGAGE

$74,900 x .8 = $59,920.00

$321.66

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SLIDE 58

ANALYZING CASH FLOW

INCOME EXPENSES $895 $510.04

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SLIDE 59

ANALYZING CASH FLOW

INCOME EXPENSES $895 $510.04 + $321.66

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ANALYZING CASH FLOW

INCOME EXPENSES $895 $510.04 + $321.66 $831.70

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ANALYZING CASH FLOW

INCOME

  • EXPENSES

=CASH FLOW $895.00

  • $831.70

$63.30

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IS $63.30 A GOOD AMOUNT OF CASH FLOW?

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ANALYZING 
 RETURN ON INVESTMENT

(AKA “ROI”)

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CASH ON CASH RETURN ON INVESTMENT = COROI

(The return on investment just from the cash flow)

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COCROI = ANNUAL CASH FLOW

TOTAL INVESTED CAPITAL

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SLIDE 66

COCROI = ANNUAL CASH FLOW

TOTAL INVESTED CAPITAL

$63.30 X 12 ????? COCROI =

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HOW MUCH MONEY DID WE PUT INTO THIS DEAL?

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HOW MUCH CAPITAL DID WE INVEST?

➤ Down Payment: $14,980.00 ➤ Closing costs: $3,500.00 ➤ Repairs: $8,500.00 ➤ Misc Other: $2500.00
 
 $29,480.00
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COCROI = ANNUAL CASH FLOW

TOTAL INVESTED CAPITAL

$63.30 X 12 ????? COCROI =

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SLIDE 70

COCROI = ANNUAL CASH FLOW

TOTAL INVESTED CAPITAL

$63.30 X 12 $29,480.00 COCROI =

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COCROI = ANNUAL CASH FLOW

TOTAL INVESTED CAPITAL

$759.60 $29,480.00 COCROI =

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COCROI = ANNUAL CASH FLOW

TOTAL INVESTED CAPITAL

$759.60 $29,480.00 2.57%

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IS 2.57% CASH ON CASH RETURN A GOOD AMOUNT OF CASH FLOW?

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TOTAL RETURN ON INVESTMENT

(now we’re getting somewhere…)

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HOW GOOD WILL THIS DEAL LOOK IF I HOLD IT FOR 5 YEARS?

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WHAT IF THE MARKET APPRECIATES 5% … OR 0%?

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SLIDE 77

HOW MUCH PROFIT WILL I MAKE IF I HOLD IT FOR 10 YEARS AND THEN SELL?

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LET’S LOOK AT AN EASIER AND FASTER WAY TO ANALYZE DEALS

www.BiggerPockets.com/ analysis

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MY DEAL ANALYSIS PROCESS…

It’s just mathematics…

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SLIDE 80
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MY DEAL ANALYSIS PROCESS

WHY AREN’T YOU BUYING MORE DEALS THIS MONTH?

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MY DEAL ANALYSIS PROCESS

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MY DEAL ANALYSIS PROCESS

➤ Analyze three deals every day (100 per month)

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MY DEAL ANALYSIS PROCESS

➤ Analyze three deals every day (100 per month) ➤ Make offers on 10% of them (10 offers)

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SLIDE 85

MY DEAL ANALYSIS PROCESS

➤ Analyze three deals every day (100 per month) ➤ Make offers on 10% of them (10 offers) ➤ Can you get a 10% acceptance rate? (1 deal)

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SLIDE 86
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“

When you define your process, and commit to it for an extended period of time, the results take care of themselves.

  • Hal Elrod

Author of The Miracle Morning
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This is not just theory.

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This is not just theory. This is how thousands

  • f real estate

investors, including myself, have found financial freedom.

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Two Ways to work this process:

Slow efficient

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SLIDE 91

So… here are three big questions:

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Will you start analyzing deals correctly?

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SLIDE 93

Will you commit to a process for analyzing deals regularly

  • maybe even every day?
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SLIDE 94

Will you do what it takes to achieve your financial goals?

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SLIDE 95

I don’t know why you came here today.

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SLIDE 96

I don’t know why you came here today.

Tired of working your full-time job Need to start preparing for your future retirement Tired of being a “wantrapreneur.”

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SLIDE 97

Our goal at BiggerPockets is to make you reach your financial goals through real estate.

So we’ve created some incredible tools to help you get there faster and with less pain.

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We realize real estate investing

  • ften feels like this:
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SLIDE 99

We want to help you feel like this:

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SLIDE 100

BiggerPockets

PRO

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SLIDE 101

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SLIDE 102

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SLIDE 103

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SLIDE 104

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Save on tenant screening, getting a website, and more through www.BiggerPockets.com/perks

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SLIDE 105

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Need a deal? Have a deal? Post 
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SLIDE 106

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SLIDE 107

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SLIDE 108

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Ask sensitive questions that you don’t want Google (or tenants,buyers,etc) seeing at 
 www.BiggerPockets.com/ ProForum

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SLIDE 109

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Set up to 20 Keyword Alerts for all the topics you care about at www.BiggerPockets.com/alerts

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SLIDE 110

Watch All The Previous BiggerPockets Webinars

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SLIDE 111
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SLIDE 112

BiggerPockets PRO

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SLIDE 113
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“Put simply - BiggerPockets made me a millionaire. In addition to the calculators and the other benefits- being a Pro member has helped me build a solid reputation on BP that has led to clients, deals, and financing."

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Rental Property Investor Full-Time Police Officer
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SLIDE 115

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SLIDE 116

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SLIDE 117

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SLIDE 118

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SLIDE 119

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SLIDE 120

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SLIDE 122

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SLIDE 123

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SLIDE 124

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SLIDE 125

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SLIDE 127

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SLIDE 128

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SLIDE 131

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SLIDE 132

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SLIDE 133

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