Top Adding - Real Estate

Last month I talked about how the ease of credit will make owning an investment property, especially an apartment property a little more challenging. I should have probably done a better job of framing this article because, quite fr

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

ankly many of our members started to panic.

I started to get phone calls, voicemails and emails with about 90% of them wondering if the bottom has fallen out of the real estate market and if they should be running away from commerc

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

al investment real estate (especially apartments) at the current time…

My answer is NO WAY!!

For some reason a few people took my article to mean that Armageddon is heading for apartments and investment real estate world. Well, th

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

t is not what I meant so lets get to the bottom of what I did mean.

First, there are always good deals to be found. No matter what the state of the market always keep in mind that there is always a good deal. If you know what you a

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

e doing you can make money in any market. Hot, cold, slow, fast, etc. It really does NOT matter. Now, are these deals going to come and knock on your door this evening and say,

“Hey, buy me, I am a great deal!!” You and I know that

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

this does not happen (even though many people think that this will happen—you know the kind, no work plus a lot of work plus a few affirmations = success). Really good deals should not be easy to find. That is right, they should not

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

be easy to locate. It gets back to the old saying of “If it was that easy….”

I Compare It To Needle In A Haystack

I do compare finding a great deal with finding a needle in a haystack. It is that difficult becaus

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

of two things: 1) There just are not that many great deals on the market at all at any given time. It gets back to the old 80%—20% rule but in my opinion when it comes to investment real estate I think it is more of a 95%—5% rule.

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

Some of My Best Clients Still Need Reminding

Even some of my best clients need reminding of this. When some of them contact me they are disappointed that I do not have a great deal for them right there on the spot.

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

Or, even if they have to wait a few weeks many start getting antsy. Let me give you a great real estate law to live by. Let's call this Garman’s Law: Here it is…..

All Great Real Estate Deals Happen Slow…. Not Fast.
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

The best real estate deals that I have ever been involved in were slow movers. Slow finding the property, slow due diligence, slow negotiation, etc. It was slow not fast. It is the fast deals that you need to be concerned about. T
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a
hese are the ones that can disappoint you.

So who’s left??

Here is the writing on the wall. If this is the case and our good and even substandard tenants are getting financing to buy their own place, who is left o
dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod
er to rent your property??

People serving time! (Just kidding). But close, people that are sooo bad that they could not get a loan. And, most of the time these are people that you do not want occupying your rental home, apartment o
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
commercial property either.

So, what do you do? Do you run away from this, get out of the commercial investment business altogether?

Of course not. But, you better make sure

So What Does All Of This Have To Do With Ease
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
f Credit And The Effect Of IT on Us...The Commercial Real Estate Owners and Investors….

Here is what it means :

1) Great deals will not be as easy to find.

2) Great deals will take longer to find.

3) You will need to be
t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
a very, very good manager to lock in profits. No more winging it.

4) You will have to do more due diligence.

5) Bottom line? You will have to ask more questions.

The Main Reason People Work With ME

Of course, th
ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust
e main reason people work with me is that I do all of this for them. Simple as that. However, even though this is the case and I do save people A LOT of time and hassle and they do get good properties from me….They need to be asking
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
more questions. The majority of people that I work with DO NOT ask enough questions.

So keep all of this in mind as you go through the investment part of your life. Especially in the commercial real estate world. Nothing worth it i
.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
easy. Nothing worth it comes to you overnight. You are building wealth not an erector set.

Always Remember 95%—5%

By the way, this applies to more things than just real estate but we will keep it here on our inve
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip
tment real estate planet for now. The best thing you can do is be hooked up to me, constantly aware of what is going on in the marketplace. Always informed. And when that great deal comes up you will know it and not even question it

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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Top Adding - How to Succeed in Commercial Real Estate - No Matter What the Market is Doing

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