Advice Pool - Finance

What is tax lien investing anyway and why is it such a good investment? What is the difference between tax lien and tax deed investing and what are some of the misconcepti

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

ons about this type of investment? Read on the find the answers to these questions…

Counties and municipalities depend on money from property taxes to meet their budget.

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

Examples of combination products may in

When property owners don’t pay their taxes, the county or municipality will sell the taxes to an investor. The investor is not buying the property but paying the taxes on

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

he property and putting a lien on the property. Why would an investor want to do this? Two reasons; first they are getting a good interest rate on their money and secondly

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

a tax lien comes before most other liens, so the investor is likely to get paid.

In some states, when a property owner does not pay their taxes, instead of selling a lie

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

Combination pro

on the property, the county or municipality will sell the property at a tax deed sale. In states that sell tax deeds you are actually buying the property. In some states

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

the property is sold for back taxes and penalties, in other states the property is sold for a certain percentage of assessed value and in other states the property is sold

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

at market value. A tax deed can be a good investment, especially in states that sell the property for the back taxes because the investor has a chance to buy real estate a

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

t under market value.

Some states sell redeemable tax deeds, in which the county does sell the deed to the property at the tax sale. But there is a redemption period in w

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

ich the delinquent taxpayer can come back and redeem the property. In order to redeem the property the delinquent taxpayer must pay the investor either a penalty or intere

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

st on their investment. Some redeemable deed states have a penalty and some have an interest rate. In some states the penalty or interest can be quite high, making it very

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

Following aspects would a

attractive to the investor.

Because people have been told that tax liens are a great investment and that they can make such good interest rates, they assume that interes

dd to the challenges in developing combination products:

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

is paid out by the county or municipality on a regular basis. The truth about tax lien investing is that you do not get paid a cent until the delinquent property owner de

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

cides to redeem the lien. If they do not pay during the redemption period (which is different for every state) then you can foreclose on the property in order to get paid

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

n your lien.

Another misunderstanding about tax lien investing is that after the redemption period is over, the lien holder will automatically get the deed to the propert

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. The truth about foreclosing on a tax lien is that in most states you need a lawyer in order to foreclose and get the deed to the property, and in other states (Florida

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

Professional from academic institutions, pharmaceutical industries, health care indust

or example) the property will be sold in a tax deed sale, and will be auctioned to the highest bidder, so your chances of coming away with the property for what you have i

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

nvested in it are not good.

Some people have the misunderstanding that tax lien investing is a good way to buy properties for pennies on the dollar. This does not happen

.

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

ery often. Especially in states where the value of real estate is very high, the tax lien will almost always redeem sometime during the foreclosure process. Tax lien inves

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

Companies that provide selfless information through particip

ting is a way to get a high return on your money. If you are interested in buying property for under market value, you are better of with tax deeds or redeemable tax deeds

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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