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Write You - Is 100% Annual Return On Investments Possible With Low Risk Land Investments?
In last week’s article, we discussed how substantial profits could be made by investing where baby boomers may want to relocate or buy a second home. This seemed to confuse readers since they were thinking that
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
our web site is about preconstruction and preconstruction to them means buying condos…… In this article, I hope to broaden your horizons considerably.
Unlike many people, I have a very broad definition of pre
Unlike many people, I have a very broad definition of pre
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
onstruction investing which can be summarized as follows:
Preconstruction investing is the pursuit of real estate projects that offer the opportunity to ride rapidly increasing prices over time without the need
Preconstruction investing is the pursuit of real estate projects that offer the opportunity to ride rapidly increasing prices over time without the need
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
to put tenants in place to defray costs. Since no tenants are involved, this opens the possibility to making investments in locales that are far removed from where you live.
If you adopt this point of view, th
If you adopt this point of view, th
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
n a whole world of “alternative” preconstruction investments opens up to you. Today, we are going to look at one specific type of investment: investing in developing land projects where baby boomers might wan
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
t to retire or own a second home.
Before we get into the specifics, let’s talk about what all investors want:
• Low risk
• Good investment returns; and
• Minimal use of their capital;
Quite frankly, these 3
Before we get into the specifics, let’s talk about what all investors want:
• Low risk
• Good investment returns; and
• Minimal use of their capital;
Quite frankly, these 3
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
reasons are what got me into preconstruction real estate investing in the first place. Now let’s see how these might be achieved on a purchase of investment land that we believe to be VERY desirable to baby bo
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
mers.
Suppose we are considering the purchase of a piece of property for speculation of future returns. If, like me, you believe in the impact of the baby boomers, then you will do 3 things to control your ris
Suppose we are considering the purchase of a piece of property for speculation of future returns. If, like me, you believe in the impact of the baby boomers, then you will do 3 things to control your ris
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
:
1. Carefully select a land project where you are solidly convinced that baby boomers will want to possess it at any costs;
2. Make sure that you believe that baby boomers will be AWARE of this project in the
1. Carefully select a land project where you are solidly convinced that baby boomers will want to possess it at any costs;
2. Make sure that you believe that baby boomers will be AWARE of this project in the
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
future do to somebody’s marketing; and
3. Manage your finances and investment portfolio so that if you are wrong and you do take a loss, it is not catastrophic to you.
For the time being, let’s assume that yo
3. Manage your finances and investment portfolio so that if you are wrong and you do take a loss, it is not catastrophic to you.
For the time being, let’s assume that yo
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
have met these conditions on a project and now you are ready to analyze your returns and your use of capital.
Now we have to resort to hard analysis. Let’s look at the following ASSUMPTIONS:
1. The land proj
Now we have to resort to hard analysis. Let’s look at the following ASSUMPTIONS:
1. The land proj
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
ct is assumed to increase at least 25%/Yr in price;
2. We plan on holding the land for 2 yrs and then resell.
3. $200,000 purchase price with $5,000 in closing costs.
4. Annual taxes/association f
2. We plan on holding the land for 2 yrs and then resell.
3. $200,000 purchase price with $5,000 in closing costs.
4. Annual taxes/association f
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
es of 1%.
If you take a look at the three cases in a spreadsheet format, here is how things might turn out under this scenario.
Case 1: 10% down payment, interest only, all payments made by BUYER.
Case 2: 1
If you take a look at the three cases in a spreadsheet format, here is how things might turn out under this scenario.
Case 1: 10% down payment, interest only, all payments made by BUYER.
Case 2: 1
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
0% down payment, interest only, all payments made by SELLER.
Case 3: 5% down payment, interest only, all payments made by SELLER.
Cases 2 and 3 require a bit of explanation. There are some early stage land p
Case 3: 5% down payment, interest only, all payments made by SELLER.
Cases 2 and 3 require a bit of explanation. There are some early stage land p
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
ojects available where the developer will take a percentage of your purchase price and escrow an amount that will make your payments for a period of time---- typically 2 years. This means that during your 2 yea
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
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
hold, you would only pay taxes and association fees. To enter this in the spreadsheet, we just show a 0% rate during the holding period.
If you scroll down, you can review the performance of each case. It ma
If you scroll down, you can review the performance of each case. It ma
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
surprise you that even under Case 1, where you paid in a total of $48,600 out of pocket, you still see a return on investment of 127%! That equates to 51% annual return on investment. Compare that to what yo
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
ur friendly banker is giving you in your CD.
For many investors, beginning or not, they would prefer not to have to put in that much money so let’s look at Case 2 where the developer has escrowed 2 years worth
For many investors, beginning or not, they would prefer not to have to put in that much money so let’s look at Case 2 where the developer has escrowed 2 years worth
.
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
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
f payments. In this case, we invest a total of $29,000 with a total, out the door profit before taxes of $81,625 thus providing a total return of 281%. If you then extend that to Case 3, where only 5% down i
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
required, then the return goes off the charts to well over 500%!
So hopefully this article has given you a very different way to think about old fashioned land purchases in your real estate investing portfolio
So hopefully this article has given you a very different way to think about old fashioned land purchases in your real estate investing portfolio
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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