Advice Pool - Real Estate

In the second part of The 8 Biggest Rehabbing mistakes we look at three more areas that can swallow up your profits in no time.

BIG MISTAKE #6: YOU PAY TOO MUCH WHEN YOU BUY

You m

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

ake your profit when you buy. Pure and simple! I will always tell my coaching clients at my workshops that this is the most valuable advice that they will ever receive from me. The

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

Examples of combination products may in

added value from the renovation is the icing on the cake.

Always research your market well and ensure that the potential selling price is achievable when all costs and profit margi

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

s are taken into consideration. Never, ever let yourself be ruled by your emotions when buying. You must always allow for buying, selling and closing costs. Where possible, your

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

purchase price must be sufficiently below market value to at least allow for these costs. Even better, the price should be low enough to allow for closing costs plus rehabbing costs

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

Combination pro

The following formula will allow you to assess the real purchase cost of a particular home that you may have in mind.

Starting with the final selling price, work backwards and de

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

duct selling costs, profit margin, renovation costs and buying costs. This final figure is how much you should be prepared to pay.

BIG MISTAKE #7: FAILURE TO UNDERSTAND YOUR TARGET

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

ARKET

How often have you walked into a home and been totally horrified by the d?cor? Yet this is another common mistake made by renovators. They let their emotions get in the way a

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

nd decide what is good for them is good for everyone else.

There are two principles that I apply when renovating. The first is the K.I.S.S. theory: Keep It Simple Stupid!

The second

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

is to focus on the 'WOW' factor. It is no coincidence that a home sells quicker and for a higher price when it possesses strong buyer appeal. You're here to make money, not win a ho

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

me decorating award. Give the market what it wants, not what you think it wants!

BIG MISTAKE #8: SPENDING TOO MUCH ON THE REHAB

The great temptation of renovating is to do too much

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

Following aspects would a

. Whilst the 'WOW' factor is critical, you MUST keep your emotions out of the equation and strictly adhere to your budget.

Nothing goes exactly to plan when renovating, so don't p

dd to the challenges in developing combination products:

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

nic if you exceed your budget by small amounts. Allow for a buffer to cover any surprises (usually 10 to 15 per cent). I certainly fell into the 'do too much' trap during my early

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

projects.

Always have your costs estimated accurately prior to purchasing a property. Later on I will talk about contract of sale conditions. One such condition is to purchase subj

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

ct to having a builder inspect the property. This will enable you to discover any unforeseen surprises. I encourage you to renegotiate the price should the inspection uncover any ma

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

jor defects - or better still, walk away.

My budget parameters are 10 per cent of the purchase price for houses. This can be stretched to 15 per cent if it means that a great profi

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

Professional from academic institutions, pharmaceutical industries, health care indust

can be made. These are personal preferences that have worked for me. They are in no way set in concrete and readers should exercise their own judgment. There is no right or wrong w

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

ay in this business.

The percentages that I allow are in keeping with my primary objective of obtaining the biggest bang for your buck in the shortest possible time and with the min

.

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

mum amount of money possible.

Conclusion: Understand that things can and do go wrong in this business. Now that you are aware of the pitfalls, you will be better prepared from the

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

Companies that provide selfless information through particip

outset. All it takes is a little planning and there is no reason why you can't join the thousands of Americans who are quietly making huge fortunes from their Fixer-Upper business

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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Shrink wrap systems are commonly used by various industries to protect their products from moisture, dirt, and damage during storage or transport. Shrink wrap is also a quick and simple way to keep items neatly organized.

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Advice Pool - The 8 Biggest Rehabbing Mistakes - Part 2

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