Top Adding - Real Estate

When you invest your money in things like RRSP's or stocks and bonds your leverage is zero because you have used your own money and none of ot

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

her people's money. When you buy a home with a mortgage you have used leverage, which is common in most all real estate investments. You own t

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

Examples of combination products may in

he down payment of coarse but the lending institution owns the rest.

You bought a house for $100,000 with a $5,000 down payment. The OPM you

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

used, or leverage is 95% and your down payment was 5%. Here lies one of the most important principles for someone just beginning real estate i

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

vesting or even if you're well into it:

The More Leverage You Use, The Greater Your Profit Potential.

Now the house you bought for $100,000

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

Combination pro

has increased in value up to $105,000 in just under a year, not bad. It only appreciated 5% but the good news is the return on YOUR investment

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

is 100% because you invested $5,000, it went up $5,000 so you doubled your money earning a full 100% on your investment. Let's say that over

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

the next 10 years your property goes up to $25,000 in value, this will give you a 500% return on your money. Leverage is computed by dividing

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

he increase in value by the cash down payment (25 divided by 5 is 5).

If you had $100,000 you could buy one property outright with your cash

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 you could make a lot of money with leverage and buy 20 properties by putting $5,000 down on each one. So, now instead of having a $100,000

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

property you've got $2,000,000 worth of property. Now let's say the properties all appreciated by 5% during the first year your profits would

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

be $100,000. If you had bought just the one property instead you would have only made $5,000 in profits.

As you can see, the less of your own

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

money you use, the greater your profit potential and if you were able to buy a property with none of your own money, then the return on your i

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

nvestment is infinite. You can't divide by a zero down payment. To figure out the return on investment from appreciation, taxes, or principle

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

reduction, always divide by your cash down payment.

We have seen here how leverage can increase you chance for profits, but if you are finan

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

cially unprepared it can greatly increase your potential risk. Higher earning strategies always have a higher risk potential that go along wit

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

Professional from academic institutions, pharmaceutical industries, health care indust

them. The super save route of investing the entire $100,000 into one property is totally safe but will give you a much lower ROI. Those 20 pr

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

operties you bought all have a mortgage on them which you are responsible for so if a few aren't rented or the rents don't get paid the money

.

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

comes out of your pocket. Does this additional risk warrant the use of leveraging? Yes it does but you have to plan ahead and be prepared to h

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

andle any possible negative cash flow problems should they arise.

"How to handle negative cash flow" will be discussed in an upcoming article

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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