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Tax lien investing is something that every serious investor in real estate should consider. But the last thing you must do is leap into it without considering all that’s involved.

What are t

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

ax liens?

Most states of the USA have a system for collecting unpaid property taxes and enabling reliable payers to be placed back on the tax roll. These states use either a “tax deed” system

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

Examples of combination products may in

or a “tax lien” system, depending on what rights are sold to the purchaser of the property. Under a tax deed system, county governments will sell full ownership and possession rights to the

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

nvestor. In tax lien states, it is only the right to the tax lien or tax claim on the property that is sold.

The tax lien is an encumbrance or enforcement right. It provides the investor wit

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

h the right to receive interest penalty charges if the lien is paid off by the delinquent owner, or the right to foreclose and take title to the property if the lien is not paid.

So tax liens

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

Combination pro

are a highly attractive investment opportunity. These are just some of the many benefits:
· The tax lien is a high priority lien which takes precedence over judgment liens, mortgage lien

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

s, trust deeds etc.
· There is the right to collect interest or foreclose. If the lien is redeemed by the delinquent property owner, you can collect a double-digit return. If not, you can

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

foreclose and obtain full ownership rights.
· It is the responsibility of the county to chase up payment – it is not your problem.
· The tax lien is usually for a small fraction of t

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

he property’s market value, so the investment is highly secured.
· The investor is not subject to land owner liability. This is clearly an advantage, as there are an increasing number of

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

awsuits against property owners.
· Interest rates are usually 16-24 percent, according to state law.
· The investment is low risk and low maintenance.

So the temptation is to leap b

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

lindly into this seemingly very attractive type of investing. But those who don’t take care can get their fingers burned. These are aspects you should attend to:
· Assessing the propert

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

Following aspects would a

y. Since you are purchasing the lien, not the property itself, it is tempting to go ahead without bothering to view the property. However, the security and value of the lien are based on the

dd to the challenges in developing combination products:

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

actual property. So you do need to see what sort of property it is.
· Market value of the property. There are all sorts of factors that may affect the value of the property and hence the

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

value of the lien. These include zoning regulations, location, city restrictions, flood plain paths etc. Researching these factors is essential.
· Although property tax liens have a hi

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

h priority, in some states federal and state tax liens share equal priority. Sometimes people who have failed to research surviving liens and encumbrances have received a nasty shock when the

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

y find their lien is not number one. This shock can easily be avoided with some simple research.
· One risk factor can be created by the delinquent taxpayer becoming bankrupt after the p

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

Professional from academic institutions, pharmaceutical industries, health care indust

rchase of a lien. The tax lien holder is usually given high priority in this situation. However there could be a problem in the case of a Chapter 7 bankruptcy where payment of the tax lien h

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

as to wait until the expenses of administration are paid.
· If a lien is administered by the FDIC (Federal Deposit Insurance Corporation) there could be serious delays in the foreclosure

.

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

rocess. It is essential to check whether this is so before completing the purchase.

The good news is that most of these risks can be avoided by doing reasonable research before investing.

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

Companies that provide selfless information through particip

This makes tax liens one of the safest and most profitable forms of investment. And if you as the investor do fall into any of these traps after reading this, you only have yourself to blame

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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