Answers - Real Estate

You may already know, but if you don’t, there are more people become millionaires from real estate than anything else. But how do they do it? It’s typically not

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

from fixing and flipping and it usually doesn’t happen very quickly. It’s not too sexy either. It’s your basic principle of buy and hold.

Buy and hold. It’s ju

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

Examples of combination products may in

st as it sounds, you buy a piece of real estate and you hold it for an extended period of time. But how can you make more with buying and holding than you can as

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

“flipper?” Let’s first look at a term that’s thrown around quite a bit when referring to real estate: investor. An investment is typically something passive. Y

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

ou buy it, whatever it is. It could be stocks, bonds, coins, whatever. You then hold onto it and allow it to appreciate. Fixing and flipping is more like a job.

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

Combination pro

Yes you’re self employed, but it’s still a job. You have to be actively involved day to day. Just like a day-trader isn’t so much an investor as he/she is, well

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

, a day-trader.

So, back to buy and hold. Why is this so powerful? Let’s look at the most common investment people make, single family homes. As an investor, y

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

u buy a house, you typically take out a mortgage on the house and you rent it to someone else. This mortgage, or leverage is what really amplifies your return on

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

investment. Let’s say you bought a $100,000 home. The market is appreciating at 5% and you’re earning $600/month in rent. You have some expenses, so when subtra

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

ted let’s say you’re earning an additional 5%. You’re earning a 10% return on your investment.

You do have some work to do such as leasing the property and maint

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

enance. But if you owned stocks, you periodically buy more or sell some or analyze its performance. There is some work, but it’s still an investment.

Let’s take

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

Following aspects would a

that same $100,000 home. You now only put 10% down and finance the rest. The market still only goes up 5%. But now you’re earning $5,000 on your $10,000 invest

dd to the challenges in developing combination products:

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

ent. That’s a 50% return. That doesn’t count that someone else is paying down the mortgage, plus the tax advantages of depreciation. That’s a great investment.

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

So now what? First, you now have a great investment without owning a job. Second, sit back and let that property appreciate for a few years. Let’s say five yea

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

s. That property is now worth $128,000. Refinance the property and pull out $13,000. Take that money and buy another like kind property (now worth about $130,00

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

0). You now get a leveraged return on two properties. Wait another five years and do it again and you’d have four and again in five and you’d have eight. So in

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

Professional from academic institutions, pharmaceutical industries, health care indust

5 years you’d own eight properties.

Don’t do anything else but manage those properties. Over the next ten years let the tenants pay down (and possibly pay off if

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

you don’t keep any positive cash flow) the mortgages. When it comes time to retire or do something else, you now have well over $1,000,000 in net equity. Even m

.

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

re if the market is providing a higher rate of return.

No, there’s nothing too much sexy about it. It’s a slow and steady approach. But if you talk with most pe

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

Companies that provide selfless information through particip

ople who accumulated their wealth in real estate, that’s how they did it. It could be homes, or offices or apartments, but the principle is the same; buy and hold

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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If you are dreaming of owning your own business, look into the vending machine business. You can easily grow your vending machine business to the point where you can quit your job and get all your income from the vending machines.

When writing business documents, it is never about you, the writer. It is always about the reader. You must write from the reader's point of view.

In the state of Oklahoma there are a few options for couples who are looking for a divorce.

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