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Real estate partnership, when set up as limited partnerships, have some clear advantages. As a limited partner, you don't have to deal with any of the management problems. You just hand over your money and wait for the p

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

rofits. Disadvantages? As a limited partner, you have no control - you just hand over your money and hope the general partner does a good job.

You might like the idea of a real estate partnership. It is an opportunity t

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

Examples of combination products may in

invest in bigger projects without having to learn as much and work as hard as you would have to on your own. As a limited partner, you just invest your money and reap the rewards.

Example of a Real Estate Limited Pa

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

tnership

Suppose you have $10,000 to invest. You don't like the idea of being a landlord and dealing with tenants. You just want a simple investment in real estate that has the potential to make you a really good re

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

urn in time.

At your real estate investor's club meeting, you hear that a dozen or so members are going to pool their money to use on a big project. John Q is the one putting the deal together, and will be the general p

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

Combination pro

artner. That means he will make all the decisions once you have invested your money. After hearing his plan, you get on the list of potential investors, and wait.

Two months later John has found the right deal. There is

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

a piece of land in the middle of a growing town that has somehow been left empty so far. John has talked to the city officials and found that it can be split into six residential lots. Lots in town are selling for around

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

$60,000, so they can likely be sold for a total of $360,000.

The seller has accepted John's offer for $142,000, which is contingent on the approval of John's partners within the week. The seller has also agreed to take

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

a down payment of $40,000, with the balance due to be paid in a lump sum in two years, with 8% interest. The proceeds of any lots sold before that time will be used to pay the balance as well.

You and six others agree t

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

o the deal, and a partnership agreement is drawn up. You will each put in $10,000, except for John, who will substitute his expertise and time for his contribution. The profit will be split equally seven ways. The $60,00

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

is probably sufficient for the down payment, as well as the costs of closing, getting a survey, and carrying costs. If not, you have all agreed to contribute $5,000 more if necessary.

At this point it is all in John's

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

Following aspects would a

ands. He manages to get the property closed, surveyed, split, and ready for sale in two months. The sales commissions will be paid out of the sale's proceeds from the lots, so he has managed to keep the costs within that

dd to the challenges in developing combination products:

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

$20,000 of cash (after the $40,000 down).

The lots sell slowly, but he gets close to the asking price of $64,000 for each. All are sold within the two years, for a total of $362,000. Closing costs, property taxes, sale'

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

s commissions, interest on the balance due to the seller, and all other costs came to a total of $48,000, paid for from the partners cash investment and the proceeds of the sales. Let's look at the numbers:

Purchase Pri

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

e: $ 142,000

All Expenses : $ 48,000

Total Sales : $ 362,000

Total Profit : $ 172,000

Profit for each Partner: $ 24,571

This is a simplified example, but you can see why you might want to get in on a deal like this.

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

You may not have the money or knowledge to have done a deal like this yourself. But you risked just $10,000, and at the end of two years you have $34,571 (your investment plus the profit). Now find a million-dollar deal

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

Professional from academic institutions, pharmaceutical industries, health care indust

o get in on, and in a few years you might have $100,000 in your investment account.

I first heard about this technique in a book (sorry, but I forgot the title) which chronicled how the author started with a $6,000 inve

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

stment and made it into a million dollars in about 12 years. He did it in just three steps. The first two involved partnerships, and the last one he did on his own.

Some of you reading this may have noticed that in the

.

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

xample above, John didn't invest a penny. He used his time and expertise instead, and made the same $24,571 profit as the rest. You can see that if you take John's role that this is a way to invest with no cash. Of cours

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

Companies that provide selfless information through particip

, as the general partner, if the partnership is sued, he could lose his house and other assets, while limited partners could lose only the $10,000 they invested. This is one of the big advantages of a limited partnership

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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