Actual - Real Estate

Most people believe that when investing in raw land that the property has to be in the path of growth or it has to have some development potential. The truth is that there is

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

niche in land investing that very few people are taking advantage of. Before I get into the niche itself, it is important to understand what I am talking about when I say ra

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

Examples of combination products may in

w land. I am talking about land that has NO development potential and IS NOT in the path of growth. I am specifically talking about property such as farms, ranches, mountain

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

land, timber land, hunting land and just recreational land in general.

I have been involved in over 1,000,000 of raw land transactions and focusing on these type properties

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

usually means there is virtually no competition from other investors. Why is this? Think about it this way. If there is a person who has a 1,000 tract of land that is 1 hour

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

Combination pro

utside of a larger city and they are asking $2,000,000 or $2,000 per acre for the entire property, how many potential buyers do they have? It is a very small buying pool beca

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

use most owners do not want to split the property up because they could be left with pieces and not sell enough to actually "get out" of the property. So, what the seller is

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

looking for is that one person who is willing to spend $2,000,000 to have a place to get away to on the weekend or to have a place to hunt. Now do you see what I mean about a

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

small buying pool?

SO how can you quick flip a property like this and make money when the owner hasn't been able to sell it a year or more? You are not going to look for th

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

at one buyer, you are going to find around 30 or so buyers that can spend about $85,000 each. Now, look what you have done to the potential buying pool. You are no longer loo

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

ing for just millionaires because we have structured the property so that someone with $85,000 can buy a piece.

How do you structure the property to get these buyers? There

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

Following aspects would a

are 3 simple key principles we use to accomplish this. First, we are not going to buy the property because we want to limit our risk and not everyone can afford to purchase a

dd to the challenges in developing combination products:

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

$2,000,000 piece of land. We are going to control the property using an option. So let's assume we can option the property at $1,800,000. We will then do a dual or simultane

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

ous closing when we sell the property so that we won't have to take cash out of our pocket to do this deal. Second, we are going to split the property into smaller tracts (on

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

ly on paper, no surveying) and offer it to the public in different sizes. This allows potential buyers to buy what they want. They can combine several tracts together to buy

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

ven more. Third, we are going to do this using an auction. This accomplishes several things. It will allow us to offer the property in multiple tracts like the 30 mentioned a

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

Professional from academic institutions, pharmaceutical industries, health care indust

bove but also lets the buyers decide on how much land they want and they have to compete against the other bidders in order to buy it. We also get offers on all the parcels i

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

n an hour period at the auction.

When you total up the prices bid at auction (example: as referenced above, 30 tracts at $85,000 each average) that comes up to $2,550,000. Y

.

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

our profit is the difference between your option price of $1,800,000 and the total sales price of $2,550,000 which totals $750,000 in profits. Not bad considering that in man

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

Companies that provide selfless information through particip

y cases you will have less than $1,000 at risk. Large tracts of raw land are one the last untapped real estate investing opportunities left, so why not take advantage of that

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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