Actual - Real Estate

Are you looking for a great down payment source for your next real estate purchase? Are you otherwise qualified for a mortgage loan, but unable

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

to pull together a down payment? Consider tapping the accumulated cash value in your whole life policy. By doing so, you are merely shifting y

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

Examples of combination products may in

our investment between two investment vehicles.

In today’s relatively easy mortgage market, getting an 85% -95% mortgage advance rate is not t

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

at difficult if you have excellent credit. If your credit standing is less than stellar or if you can not muster a down payment, you may need s

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

ubstantial cash at the closing. An excellent place to look for cash is your whole life policies (or perhaps those of a parent).

The advantages

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

Combination pro

of tapping your accumulated cash value are:

• The loan probably will not affect your credit rating since insurance companies rarely report loa

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

ns to the credit agencies.
• Policy loan repayment can be very flexible as long as you pay the interest on the loan.
• Unless you bor

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

ow the majority of the accumulated cash value, you can even service interest payments for a short while by borrowing more cash against the poli

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

cy.
• Interest on cash value loans is reasonable, usually between 6%-8% per year.
• If you can service the interest for several years

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

you might be able to repay the loan by refinancing your real estate (assuming the real estate appreciates).
• In general, because of the

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

financial leverage involved in real estate, the cash borrowed from your insurance policy used to acquire real estate will grow much faster than

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

Following aspects would a

keeping it in your insurance policy.

There are certainly some drawbacks to borrowing against your policies. Here are a few:

• Whole life pol

dd to the challenges in developing combination products:

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

cies from stable insurance companies are usually lower risk investments than real estate. Real estate is an illiquid investment that does not a

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

lways appreciate. In fact, real estate can sometimes drop in value, wiping out your equity position.
• The interest on a policy loan is no

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

tax deductible, while the interest on a second mortgage/home equity loan usually is (if you have either of these choices).
• If you allow

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

the life insurance policy to lapse or default in making loan payments, it can result in a significant tax liability. Any termination in your p

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

Professional from academic institutions, pharmaceutical industries, health care indust

licy will trigger such an event. If you have borrowed against the policy, you may not have sufficient cash to pay the taxes.
• Loans again

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

st a policy reduce the policy’s death benefit. There would be less money available for the policy’s beneficiary.

Notwithstanding the disadvant

.

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

ges of borrowing against cash value to help finance real estate, I think this source represents an excellent opportunity for young would-be hom

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

Companies that provide selfless information through particip

eowners and real estate investors. If you are first time home buyer, this source could be just the one to help you complete your first purchase

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

HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.actual.org.ua/article/134521/actual-Real-Estate-Investing-Should-You-Raid-Your-Insurance-Cash-Value-For-A-Down-Payment.html">Real Estate Investing: Should You Raid Your Insurance Cash Value For A Down Payment?</a>

BB link (for phorums):
[url=http://www.actual.org.ua/article/134521/actual-Real-Estate-Investing-Should-You-Raid-Your-Insurance-Cash-Value-For-A-Down-Payment.html]Real Estate Investing: Should You Raid Your Insurance Cash Value For A Down Payment?[/url]

If you are sending bulk emails to your ezine subscribers, you must know these simple tips to protect yourself from people accusing you of sending spam emails.

How does one begin to trade profitably as a currency trader? This article may show you how.

Tags

Links

Actual - Real Estate Investing: Should You Raid Your Insurance Cash Value For A Down Payment?

Related Articles: