Actual - Real Estate

What is a Short Sale?

A short sale happens when a lender is willing to sell a property for less than the total amount owed by the borrower. The property is worth less than owed therefore, has no equity and the homeowner is seriousl

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

y behind in payments. In many circumstances more than one lender is involved. Even if the property is worth at or slightly above the amount owed, the owner could still be upside down when other factors are considered such as agent c

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

Examples of combination products may in

ommissions, delinquent taxes, homeowner dues and other standard closing costs. A short sale could offer a workable solution for all parties involved, helping the distressed homeowner avoid foreclosure.

Who are the players?

Let’s s

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

ay you have a motivated seller who absolutely must sell otherwise face foreclosure. They have missed many payments and yet do not want the property to go into foreclosure. The seller consents to the buyer or agent negotiating with t

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 lender to accept a short sale. What needs to take place in order for this to happen? The process can be somewhat complicated however, many say worth the hassle since discounts are often in the tens of thousands of dollars. Intrigu

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

Combination pro

ed? Read on.

Why are lenders giving away instant equity?

Foreclosures are skyrocketing and most experts agree that this trend will only increase in 2007 and beyond. In fact, The Center for Responsible Lending conducted a study in

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

which predicts that 1 in 5 sub-prime loans issued in the past two years will enter some stage of foreclosure. Since sub-prime loans account for approximately 25% of all mortgages issued, the expected impact is thought to be staggeri

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

ng.

Lenders do not want to be stuck with houses they cannot move. Since lenders are not in the property management business, they figure it is better to accept a discounted amount than to take the property back in foreclosure and r

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

sk having to hold it for an indefinite period of time. If they do foreclose, aside from costly legal fees, they also face high carrying costs including tax payments, insurance, homeowner’s dues and other maintenance issues. In addit

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

ion, vacant properties sitting for long periods of time are at risk and more costly to insure.

Additionally, lenders need the cash reserves and bad loans on the books also affect their borrowing power. Adjustable rate loans are res

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

etting and homeowners are not able to meet new monthly payments. Initial low rate terms are coming due and already strapped homeowners are not able to keep up with payments.

Therefore, short sales can be a win/win/win situation for

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

Following aspects would a

all parties involved. These conditions allow for many bargains to be snapped up by investors who are paying attention and are at the ready to purchase the undervalued properties. The seller is able to avoid foreclosure, which can b

dd to the challenges in developing combination products:

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

a very detrimental mark on their credit and the lender is able to move the property off their books and avoid costly legal fees. There are however, tax implications that the seller needs to be aware of before agreeing to a short sa

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

le. All borrowers should consult with tax and legal professionals to understand the tax and/or legal ramifications involved in their situation before agreeing to a short sale.

Show me the money? Let’s look at an example.

Let’s say

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

a property was purchased for $500,000 with anticipated repairs of $45,000 and after value repairs estimated at $615,000. Now, after 1 year’s time and a declining market, the property is worth only $495,000 after the repairs were ma

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

de, and an offer comes to the table of $435,000 from Mr. Investor. There are two lenders involved and both agree to take a loss just to sell the property and get it off the books. Between the two lenders, over $65,000 is discounted

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

Professional from academic institutions, pharmaceutical industries, health care indust

ff of original purchase price. This does not account for a significant amount of other closing costs also paid for by the lender. Many opportunities like this exist in short sale investing however, just like any investing tactic, do

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

es not work for all situations. Yet, who can resist coming in with $60,000 of instant equity which is why short sale experts believe this is a tactic worth pursuing.

Generally, the buyer/investor gets a property well below market.

.

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

Not to mention the benefit to the agent(s) in commissions if one is involved. Short sales are a great tool for those investors looking for undervalued properties (isn’t every investor) because the lender(s) are willing to take a sig

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

Companies that provide selfless information through particip

nificant discount so long as the sale adheres to their guidelines. Most investors recognize that their profit is made in the purchase and, when they walk in with instant equity, they have many more options available to turn a profit

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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The Expression of Interest (EOI) is the beginning of the submission processes for many agencies and potential clients of yours. The purpose of the EOI is to assist the donor/agency/business to compile a shortlist that will be invited to submit a tender for an opportunity. For you, the purpose of the EOI is simple – get on the shortlist! This article presents some useful strategies to increase your success at getting shortlisted, or invited to present a costed proposal.

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