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There are many reasons a real estate investor might want to have a ready access to private money for real estate investing. This article will explore a few of those reasons.

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

The first reason to use private money for real estate investing is to protect your credit rating. Think about this… if you borrow the money from a private individua

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

Examples of combination products may in

l, rather than a bank or lending institution, the loan will never be reported to the credit bureau. It won’t count against your debt-to-income ratio, and no record of

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

the payment history will be kept. No one will ever know about that loan, unless you tell them.

Next, and one of the very best reasons to use private money for real estate i

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

nvesting, is the elimination of paperwork. I have never had to complete a loan application for private money for real estate investing. The lenders I work with all know me a

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

Combination pro

nd the kind of investing I do. Many of them never even care to see the property. When I apply for a mortgage, on the other hand, the application process itself can take seve

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

ral days, and there are mountains of paper.

Yet another reason to use private money for real estate investing is the ready access to fast cash. Sometimes, when a deal is es

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

ecially good, moving super-fast is a necessity. With bank financing, that kind of speed is often impossible. Even lines of credit don’t always give you the same speed

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

capability that private lenders do. With one phone call to one of my private lenders, I can tie up a deal that other investors only dream about.

A great reason to use priva

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

te money for real estate investing is the leverage that it gives you. Think about this… if you have $50,000 of your own money, is it better to pay all cash for a $50,

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

000 property, or to put $50,000 cash down on a $500,000 property and use private lenders to finance the rest?

If you answered the $500,000 property, you’re right- and

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

Following aspects would a

here’s why. Let’s say the $50,000 property rents for $500 per month, or $6,000 per year. Your Return On Investment (ROI would be 12% the first year ($6,000 divi

dd to the challenges in developing combination products:

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

ded by $50,000). It’s safe to assume the rent on the $500,000 property might be about 10 times that of the $50,000 property, or about $60,000 for the year. If your pay

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

back to your lender totals $4,000 per month, or $48,000 per year, what’s your Return On Investment (ROI) for the $500,000 property? If you answered 24%, give yourself

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

gold star!

Of course, you would need to take into account the cost of borrowing the money, but even after doing that, you can see there really is no comparison. Using priv

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

ate money for real estate investing gives you something called leverage. Leverage is the ability to move something very large with something very small… a lever. The

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

Professional from academic institutions, pharmaceutical industries, health care indust

lever, in this case, is your small amount of cash ($50,000). With it, you can “move” or control a $500,000 property, because the private lender’s money inc

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

reases the power of your “lever”.

Here I’ve given you a few of the many great reasons for using private money for real estate investing. There are more, b

.

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

ut you should have a clear picture of why private money can be so useful in your real estate investing toolkit. If you would like more information, I have written another ar

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

Companies that provide selfless information through particip

ticle on my website titled Private Money For Real Estate Investing.

Now, go make more offers

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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