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March 28, 2005
St Louis Celebrity Dirt
There’s just so much to blog about right now- mortgage rates are on the rise, Kimberly and I have a wedding on the horizon, and St. Louis is being overran by tourists thanks to the NCAA Tournament. Yet there was a story that caught my attention this week in the Post-Dispatch that’s just too amusing to pass up. So forgive me for sinking into the depths of tabloid journalism on this one, but nothing is more amusing than celebrity dirt (especially when it’s local celebrity dirt).
Yes, St. Louis’ very own Ray Vinson, from American Equity Mortgage (you know, the shrill, “nahndee-nahn, nahndee-nahn,” guy from those radio ads) is divorcing his wife Deanna and the Post was all over it (although I’m still hoping the Riverfront Times will jump on the story). Ok, so it’s not exactly the Michael Jackson trial on E!, but it’s a very interesting read (and I would love to see WB-11’s reenactment of Ray holed up at the Ritz-Carlton ordering room service for his dog- “I need nahn cans of Alpo dee-livered to rhoom, nahn-nahndee-nahn.”
Anyway, you can find the link to the Post’s article, “With millions at stake, couple battle for control of company” By Jack Naudi, here:
http://www.stltoday.com/stltoday/business/stories.nsf/story/A35E1D99C92ED0F286256FD0001A2EF1?OpenDocument
Serious stuff to be blogged later in the week...
Sid
Posted by at 11:57 PM
March 25, 2005
Great Local Handymen
It's been a nutty couple days, so this blog is going to be short and sweet.
One of the questions new home owners ask quite a bit is, "where can I find a good handyman to fix a problem or remodel my home." Well, if you are looking for an excellent carpenter in St. Louis for anything from general repairs to complete basement finish, I have two guys to recommend for the job.
One is Steve Fechter at Project Complete. You can find his web site at http://www.projectcomplete.net. Steve can truly do almost anything (windows, decks, framing and drywall)- although his specialty is finishing basements (check out his themed basements on his website). Steve is also great for larger jobs as he has a crew of workers from which to use.
The second is John Redinger at Handyman Red. John just moved to St Louis from Alaska after meeting a local girl, so he's in the process of establishing himself and his business. He's great for smaller handyman projects- hanging doors, painting, remodeling closets, etc.
I have personally used both and have no reservations referring either professionally. In fact, BOTH are working on my home this week! (My wedding is two weeks away so I'm trying to rehab quickly before I have to entertain guests). That's why I can honestly say their work is superior as are their demeanor with clients.
Steve is currently scheduling basement finish work for May. John is booked around three weeks out, but he generally schedules time to squeeze in emergency projects. Give either a call and tell them I sent you. If you need something done, you'll be glad you did.
Contact Information:
Steve:
sfechter@projectcomplete.net
Phone: 636.405.0425
Fax: 636.405.0425
Cell: 636.675.1850
John:
handymanred@gmail.com
Phone: 314-249-0508
Posted by at 11:09 PM
March 22, 2005
New Life in the Central West End
I've been doing quite a bit of business in the Central West End lately. If you haven't recently visited the Debaliviere Neighborhoods (part of the Central West End). There are many positive changes going on that I thought I would mention.
First off, Metropolis West End has a few buildings with major renovations. They are converting apartments into condos with everything you could ask for from granite counters, Maple cabinets, stainless appliances, hardwood floor options, and much more. Check out: http://www.metropoliswestend.com
Further improvements are taking place on Belt Ave nestled between Pershing and Waterman. You will find a quaint independent coffee house called Sweet Dough & Hot Beans. A coffee shop with FREE WIFI, wonderful pastries and delectable fresh coffee. To top it off, the proprietor, Troy Williams, has taken over the spaces adjacent to his location. For those of you who have frequented the area before, you may recall Nick's Wine Bar.
Nick's "is no longer", but never fear. Troy has big visions of a coffee house, restaurant and wine bar in the three locations. He hopes to offer something for everyone...There's more! The wine bar will have a unique emphasis on Champaign and sparkling wines due to Troy's personal affinity for the bubbly. So many wonderful things going on in this nook of St. Louis with excellent proximity to Forest Park. Troy is also opening a jazz club in Lafayette Square in late Summer. More to follow on these fabulous venues as they evolve.
If you would like to tour any of the condo properties in the West End, I would be happy to help you out. Just call:
Kimberly Shallenberger
The STLagent Team
(314) 267-2691 Cell
(800) 573-5276 x82
kimberly@stlagent.com
Posted by at 11:55 PM
March 21, 2005
NEW On-Line MLS Search Feature
Searching for a home? Here’s an easy on-line way to do it.
STLagent.com now offers the ability to search the entire St Louis, MO area regardless of listing agent or real estate company. Our new search features get their data from the same database real estate agents use- the Multiple Listing Service (MLS). Unlike Realtor.com, Homes.com, or other national sites, our database is updated daily and will include virtually every home in the St Louis, MO area- most national websites can take 2-3 weeks to show new listings or only offer part of the local market.
We have two search options (both are free to use).
Basic Search: Search the entire area (the MLS) by school district, zip code, price, etc. Unlike a lot of websites, there is NO registration or log-in required to use our basic search.
Advanced Search: Our advanced search engine, called the "Scouting Report," gives you your own secure personalized website. Once registered, you can log in, set up your search criteria, and get all new home listings that meet your criteria downloaded to your Scouting Report website.
You can save listings you are interested in, keep notes on the homes, request showings, and get e-mail updates should there be a price drop, new photos added to the listing, etc. More important, the Scouting Report gives you advanced ways to search for your perfect home.
This is a free service (you do not need to be a registered client of our office to use this service). To sign up, give us a call or fill out our enrollment form on-line. A representative from the Scouting Report will call you to set up your private website usually within 48 hours.
To use either search option, click on the “search” button at the top of this web page (red button located at the top). If you have any questions on how either search works, please feel free to call us.
Posted by at 11:10 PM
March 20, 2005
Distractions
This one is a little off topic- but maybe you might find it useful. I find I am always looking for ways to increase my efficiency and find another hour in each day. Of course I am, who isn't??? I have found 5 main distractions in my life and decided to offer ways to avoid them.
1) Office: "The negative co-worker". We all have one, that individual that never has anything positive to say and takes the wind out of your sail when you are on a "high" from a great call or meeting. It's easy to be sucked into the web of negatively. Make a policy to only discuss business transactions with those directly involved with the transaction. This way "Mr. Negative" doesn't effect your professional life.
2) Just Say NO!: Everyone wants to be liked by clients and co-workers, particularly "newbes" to the office. It's okay to mentor a rookie, but not at the expense of your business (i.e. your wallet). Look for a plan for the Rookie and decide if you will actively assist them in their plight. If not, feel free to just say no! You will be doing them a disservice if you're not entirely committed.
3) Task Management: Often when someone has too many tasks to attend to, they can become overwhelming and little gets accomplished in the end. Create to-do lists through a task management program like Outlook. This will automate the process and "reminders" will free up the additional time spent trying to remember what you were supposed to be doing in the first place. Automating your professional life will inadvertently free up time both professionally and personally.
4) Demanding People: We all seem to have that one friend, co-work, family member, or client that sucked the proverbial energy out of you, constantly calling and interrupting your day. Create a communication schedule to provide regular contact. This will allow you to be proactive instead of reactive.
5) Unrealistic Promises: Nothing feels worse than letting down your clients, boss, spouse or, even worse, your kids. When you fail to carry through on a promised action, it creates a ripple effect that can spread quickly. The mess that you create through "under delivering" will take more time in the end. Make sure you follow through on everything you promise. Say NO if you can't handle it. An old boss used to tell me "Say what you mean and mean what you say". Good words to live by in all areas of your life.
Posted by at 11:08 PM
March 18, 2005
Rising Gasoline Prices have Mortgage Rates at Seven Month High
I made a comment earlier this week that I was going to have to refinance my home just to get a tank of gas for my car ($2.15 a gallon, ouch!)
Well, if you are thinking about buying a home or refinancing, take note. There was a story out of Realty Times today which shows that long term mortgage rates have hit a seven month high thanks to those rising oil prices.
The 30-year fixed-rate mortgage averaged 5.95% for the week ending March 17, 2005, up from the week before when it averaged 5.85%. Last year at this time it was 5.38%.
The rise in interest rates was blamed on oil prices which hit a record high. The oil rate increases set off worries of inflation, which "kept continued upward pressure on interest rates and helped fuel the rise in mortgage rates for the fifth continuous week."
On the web:
http://realtytimes.com/rtcpages/20050318_rates.htm
Posted by at 11:50 PM
March 17, 2005
March Madness, New Furniture, and an April Wedding
Well, March Madness has officially begun. In our home, despite the fact that both of our alma maters are in the NCAA tournament, March Madness has nothing to do with basketball. To Kimberly and I, March Madness refers to our mad dash effort to get our new home ready for a house full of guests that will be coming to St Louis for our wedding in April.
So as Kimberly and I have been rehabbing, remodeling, repainting, and redecorating, I thought I would share a few of our experiences.
Furniture
Why does it always have to start at the furniture store...
I was introduced to a new concept in furniture last week. There’s a company called Home Source Solution down in the Chesterfield Valley. Basically, Home Source Solution primarily caters to designers but works with individuals on an appointment basis. There really isn’t a store; it’s just a small warehouse space where you can specially order furniture from name brand manufacturers. Because there isn’t an expensive store front or inventory, the prices are discounted. Not a great place to go if you are hoping to get ideas on decorating, but if you know exactly what you want it’s worth a visit.
If interested, call Molly Moore to schedule an appointment at (314) 629-6849 or mollymoore83c@yahoo.com.
On the web: http://www.homesourcesolution.com/
Of course the furniture shopping didn’t stop there. If you haven’t shopped for furniture lately, St Louis’ hottest chain of discount furniture stores is a place called Weekends Only. As their name implies, they are only open on Friday night, Saturday and Sunday. But their strange store hours are more than a gimmick, apparently that’s when 90% of furniture gets bought. Their furniture isn’t the highest quality, but it’s priced accordingly. We found a great chair there for under $300. If you’re working on a budget or like to update your furniture on a regular basis, it’s a good place to go to find a bargain or a deal. This was the third time we’ve picked up furniture there.
On the web at: http://www.weekendsonly.com/
Phillip’s Furniture. No use going, they’re gone. We went to their closeout sale (they’re changing to become an Ashley Furniture Store). What’s interesting is this longtime St Louis store is owned by the guy who created Weekend’s Only. The only reason I mention them is to remind you that when furniture shopping you should always set a target and stay on task (or you end up like us). With a need for two chairs, we bought a grandfather clock...
On the web: (oh, wait...)
Lastly, if you go to Rothman’s on Manchester road in Ballwin, ask for John. He’s less irritating than most, and he gave us a great blanket for buying an ottoman (again, nothing we went to buy, but we’re impulsive what can I say).
Posted by at 11:41 PM
March 13, 2005
New Features and Services from the STLagent Team
This blog is coming later today.
Posted by at 01:55 AM
March 12, 2005
Our Post Dispatch Interview and Why We Blog
A star is born!
OK, maybe that's being a bit over the top...
Earlier this week I was interviewed by the St. Louis Post-Dispatch for the local angle on a blogging article they were writing titled, "Are your workers blogging about the company?" You can find it on page E2 of the March 13 Business Sunday (Workplace) Section of the Post-Dispatch or on-line at www.stltoday.com in the business section.
Although the bulk of the article is about individuals who have gotten in trouble (at work) for their personal blogs, the STLagent blog- albeit not actually named- was their example of a successful blog that is making a difference for a local business (but come on guys, would it have killed you to plug my website!!!). ;-)
My first take on reading the article was that I'm struck by the irony of a Post-Dispatch story about people who have lost their jobs because of blogging which doesn't actually mention the rookie reporter the Post-Dispatch, um... "dispatched" for his "my boss sucks" blog. However I'm still excited about being the one business blog in St Louis that they picked to highlight. Of course, there are very few businesses in St. Louis that have caught on to the benefits of blogging, but that's another subject entirely...
Anyway, it’s better than being “outed” for something embarrassing by the RFT!!! (For those of you who aren’t from St Louis, the RFT is our “second paper” that likes to out anonymous bloggers to their bosses to see what kind of turmoil they can create for a news story- which is how the rookie reporter at the Post found himself on the unemployment line).
So the question is, why do we blog? (A question I’ve even had to answer to Kimberly a few times…) The short answer is to help you sell your home. The long answer is this: Real Estate, like a lot of other industries before it, is undergoing a major change thanks to technology. 70% of people searching for a home today will start their search on-line. That’s a significant increase even from a few years ago. However most real estate agents are (how can I say this nicely…) less than proficient when it comes to implementing technology.
When you list your home for sale, the thing that will ultimately sell it is getting people through your front door to see it. If no one knows it’s for sale, it will never sell. One of the tasks of a real estate agent is to drive awareness of your home- i.e. marketing. The problem with most real estate agents is they either don’t do any marketing at all, or they market their homes in the same way they were marketing homes 20 years ago. Unfortunately, technology has changed the game. An ad in the local newspaper won’t garner the same attention it used to.
Now it’s not as simple as saying one media has replaced another media (i.e. the internet has replaced the newspaper). Newspapers and magazines are still very much alive. Technology, however, has driven down the cost and difficulty of publishing; so today there are more newspapers and magazines for people to read (even though fewer people are reading).
There are now FIVE free magazines covering real estate sales available in area grocery stores where their used to be just one. Free neighborhood newspapers now come in the mail from a variety of small publishers to compete against the Post and their sister papers the Suburban Journals where none existed a few years ago. And with the ease of desktop publishing combined with lower printing costs, real estate agents can now produce newsletters and other direct mail which they could never have afforded to do a few years ago.
Then you have TV. Technology has changed this too. A few years ago, only the largest brokers in town could afford to buy 30 minutes worth of “junk” time on Sunday morning to feature a few of their homes. Today, Charter Cable has a Real Estate TV channel that broadcasts 24 hours a day.
Then you get to the internet (where again, 70% of people are now starting their home search). There are millions of websites today. Heck, 80% of the agents in town have one. There are so many sites, in fact, that it’s difficult not to be drowned out by all of them. As a result, most agent's websites get little to no web traffic.
Listing your home on a website that no one ever visits is kind of like advertising your St Louis area home in the Des Moines (Iowa) Register & Tribune- no one who's going to buy it will ever know it’s for sale. Search engines, which help people find websites, place a high priority on websites that are updated frequently and have lots of original content. And the easiest way to update and get original content- by blogging of course!
So by blogging, we’re putting the STLagent website on the map to draw visitors to see our client’s homes. And if you don’t think it’s a plan that works, then ask yourself how the Post-Dispatch found a 90 day old website and why they called and interviewed us over agents that have been in business for 20 years.
More important, our marketing efforts don’t stop there. Our commitment to our clients is to use technology to it’s fullest to help sell their home (and blogging is just one tiny piece of the puzzle). We’ve integrated newspaper, magazine, direct mail and TV advertising with internet and a state-of-the-art communication systems to help gain your home the most exposure we can get it-- and then be able to track and qualify the exposure you get.
Moving forward, we have other exciting technology we are working toward being the first real estate team in St Louis to have. Of course you’ll just have to keep reading our blog to find out what that is!
Posted by at 11:56 PM
March 11, 2005
Limiting Your Exposure to Failure in Investment Properties
Today I have had some random thoughts to the blog I wrote yesterday. I began a discussion on investment properties prompted by an ABC News story on Real Estate Flipping. You can find a link to the story with yesterday’s blog.
This afternoon, I had a discussion with one of my "new rehabber" clients. He only experience is in rehabbing his current home. He is in the process of putting together a business plan to rehab three homes by the end of 2005 (which is actually a pretty aggressive and organized plan for someone who is brand new).
As we discussed his interest and experience, one thing was clear- my client (let's call him Joe) didn’t have any real hands-on experience. Joe's plan is to continue working his day job and trust the work to an experienced crew. He intends to stop by before work, during lunch and after work. As we talked about his plan, it was evident that Joe's plan had tremendous vulnerability.
First off, a crew is only as good as its leader. As the saying goes, "When the cat's away, the mice will play"... In this case, the mice are paid by the hour, so time is truly money. Truthfully, Joe needs to be involved and hands-on with his property. The "candy store" that is his investment is too tempting to go unwatched. Material and tools will develop legs and mysteriously walk away. (Don’t even ask me how many cordless drills I’ve bought in my lifetime…)
As we continued to talk, it became evident that Joe's knowledge was very limited- almost too limited to ascertain if a job was done "right". For example: Joe is considering a project that will require updating the electric and plumbing, yet he has no experience with either, so his ability to "know code" on electric and plumbing is nonexistent. In my opinion, Joe would greatly benefit from having a partner at this time to learn the basics that can only be taught hands-on. A partner, in this scenario, would be best suited to have carpentry experience and an idea of a cost base for the project (which would off-set Joe’s shortcomings).
Now let me stop and note two things here:
1) A partner in the rehab business isn’t like a partner in a marriage- you aren’t stuck with them for the rest of your life. Basically you partner on a specific project or set of projects. After the project ends, you have the option to go do your own thing or re-partner with them again. It’s not uncommon for an experienced rehabber to have multiple projects going with multiple partners at any one time.
2) The first question I’m usually asked when I suggest partnering is, “Why would an experienced rehabber want to partner (and train) me when I’m going to eventually leave them?” The answer is simple- money. One thing to know about rehabbing investment properties is that lenders don’t like to see an investor working on too many projects. For an experienced rehabber trying to work full-time and employ a full-time crew, conservative lenders can be a serious handicap. What you, the “newbie” bring to the table is another checkbook and line of credit to allow the experienced investor to grow their business and keep workers working.
As a Newbie, when I began rehabbing, I would go into a project, take measurements, photos and fill in a check list prepared by my then expert partner- my brother. He would review my notes, ask questions as needed and prepare a budget and cost base for the property. As time when by and several homes later, I was able to walk into a kitchen or bathroom and determine a cost for the project within a few hundred dollars. This knowledge can only be obtained through experience.
I want to see Joe succeed. That’s why I suggest he focus on finding a worthy partner to balance out his area of weakness.
My overall point is to be successful with investment properties, it is advantageous to recognize your weaknesses and address them from the start rather than attempt to learn as you go at the expense of your financial future and personal wealth. Nothing is risk free, but you can limit your exposure to failure and financial ruin by seeking a balance for your weaknesses.
Posted by at 11:42 PM
March 10, 2005
ABC News and their Lousy "Flipping" Article
There was an ABC News story that came across my desk today on Real Estate Flipping (the link is at the bottom of this Blog). It was one of those, "this is where everyone is getting rich" stories that tends to send a whole bunch of "get-rich-quick-types" rushing out to buy investment property without so much as a clue as to how much work- or risk- is involved. ABC might as well have said, "dot com stocks are back; and our bet is on Pets.com again."
Having worked with a variety of investment properties over the past several years, let me first say YES it is possible to make a nice living working with investment properties. However, I've also met a lot of individuals who have failed miserably at it. In fact I've seen so many failures; I don't even know where to start in discussing them...
One of the biggest mistakes I've seen people make is they spend time "researching" i.e. watching videos or reading the internet, but they never seem to seek advice from ACTUAL investors working in the St Louis market. Buried near the bottom of the ABC article, it mentioned you should have a "home inspector, contractor, realtor, tax accountant and attorney to advise you." Although I would add lender to that list as well, the point to be made is having a core group of experts from every aspect of the investment stage to help you should something go wrong can mean the difference between making a profit and losing your proverbial shirt.
From my experience, most would-be investors are afraid of looking “stupid” in front of other investors, or are afraid they will be perceived as competition. Trust me; successful investors do not see a first time neophyte as a threat. Most of you will fail so there is no need for the expert to feel angst by the presence of a novice. But believe me, it’s a whole lot less embarrassing to ask a stupid question of an experienced expert than to lose your home because you didn’t ask in the first place. And remember because laws and regulations vary from state to state, and city to city, the “great advice” you get from someone on the internet in California can land you in hot water here in Missouri. For that matter, the differences between University City and O’Fallon are night and day.
The best advice, as well as the FIRST piece of advice I offer every “new” real estate investor and would-be rehabber is to seek excellent tax and legal council. When seeking advice of an accountant, research for a company or individual with experience in real estate. When it comes to home improvements and rehabbing, things like repairing a door verses replacing a door depreciate very differently having varying tax consequences. A knowledgeable tax advisor can be your greatest asset when Uncle Sam comes a callin’.
This is also true of your legal ally a.k.a. your attorney. Protect your current assets and minimize your exposure and vulnerability to liability should the unexpected occur….like someone becoming injured on your property, loss due to theft and possible items not covered under your insurance policy (that’s another Blog for another day). Your attorney will guide you on an appropriate course of action be it in creating an LLC (Limited Liability Corporation) or other appropriate precautions to protect your best interests.
Along theses same lines, when you go to look for the rest of your core group of “experts” as you begin your endeavor into investment properties, seek out individuals who not only know their business, but have also owned investment properties themselves. For example, I run into residential real estate agents far too often than I care to reveal who are offering all sorts of bad advice to would-be investors because they are trying to find an investment property and don’t know the difference between an investment and a primary residence.
Not to beat my own drum, but my experience in these matters is first hand and once you’ve worked with investment properties, you will realize it’s not like buying a home to live in. Think of it this way, a gynecologist is in fact a doctor, but would you go to him/her if you had a sore throat? It’s no different with real estate agents. Find an agent who has experience in investment properties, first hand, because you seek investment properties in a completely different approach than you do a home to live in (Again, another Blog, another day). The same is true of lenders because borrowing money on an investment property is extremely different than a primary residence- and finding out your lender didn’t know that after the project starts can break you.
If you really want to enter the world of investment properties, be certain of your goals and stay within those narrow parameters. If you think investment properties will be “fun” and a “bonding” experience with your teenager because of too many hours spent in front of the T.V. watching “Trading Spaces”, think again. Investing in real estate should be approached like any other investment. If the numbers look good on paper, proceed. If not, put on your tennis shoes and run like hell! More to follow on this topic….
On the web:
http://abcnews.go.com/GMA/Business/story?id=553568
Posted by at 11:31 PM
March 09, 2005
Interest Rates Down this Week
According to Bankrate.com, long-term mortgage interest rates were down this week.
The 30-year fixed-rate average dipped to 5.31 percent, and the 15-year fixed-rate sank to 4.88 percent.
On the web at:
http://www.bankrate.com
Posted by at 11:26 PM
March 08, 2005
Real Estate Tax Advice (by Guest Blogger David Smith)
Today's blog is from David Smith at Edward W Smith CPA, PC
Selling your home and moving into a smaller one or a condo is seldom an easy decision, but at least part of the decision-making process is a little easier in light of an exclusion that eliminates most people's federal tax liability on gain from the sale or exchange of their homes.
Under these rules, up to $250,000 of the gain from the sale of single person's principal residence is tax-free. For certain married couples filing a joint return, the maximum amount of tax-free gain doubles to $500,000.
Like most tax breaks, however, the exclusion has a detailed set of rules for qualification. Besides the $250,000/$500,000 dollar limitation, the seller must have owned and used the home as his or her principal residence for at least two years out of the five years before the sale or exchange. In most cases, sellers can only take advantage of the provision once during a two-year period.
However, a reduced exclusion is available if the sale occurred because of a change in place of employment, health, or other unforeseen circumstances where the taxpayer fails to meet the two-year ownership and use requirements or has already used the exclusion for a sale of a principal residence in the past two years. A sale or exchange is by reason of unforeseen circumstances if the primary reason for the sale or exchange is the occurrence of an event that the taxpayer does not anticipate before purchasing and occupying the residence. Unforeseen circumstances that are eligible for the reduced exclusion include involuntary conversions, certain disasters or acts of war or terrorist attacks, death, cessation of employment, change of employment resulting in the taxpayer's inability to pay certain costs, divorce or legal separation, multiple births from the same pregnancy, and events identified by IRS as unforeseen circumstances (for example, the September 11 terrorist attacks). The amount of the reduced exclusion equals a fraction of the $250,000/$500,000 dollar limitation. The fraction is based on the portion of the two-year period in which the seller satisfies the ownership and use requirements.
These rules can get quite complicated if you marry someone who has recently used the exclusion provision, if the residence was part of a divorce settlement, if you inherited the residence from your spouse, if you sell a remainder interest in your home, or if you have taken depreciation deductions on the residence. Also, the exclusion does not apply if you acquired the residence within the previous five years in a “like-kind” exchange in which gain was not recognized.
Please let me know if you have any questions about the exclusion or would like additional information. I would be happy to go over the specifics of your situation with you to determine whether a sale of your residence would qualify for this valuable tax break.
Very truly yours,
David Smith
Edward W Smith CPA, PC
9225 Manchester Rd, STE 203
St Louis, MO 63144
314-961-1600
Posted by at 11:44 PM
