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Understanding how specific investment strategies can affect your entire commercial real estate process. A popular topic of commercial real estate is what is known as quick turning. The media has caught on to this phenomenon and generalized it. Many of the things you may have heard abou

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

t quick turning are not as simple as they make them look. The general public has confused the arena of quick turning to include simple speculation. While the differences may not be apparent at first, if we delve deeper, there are several key variations.

The first way to look at specul

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

Examples of combination products may in

ating is that it is performed by the absolute amateurs in real estate. This is not what an experienced commercial property investor would ever do. Now, I’m not going to say that a speculator can not make any money, because they sometimes do. However, if they do, their success is more r

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

elated to luck than anything. Their success depends on which market that they invest in and the timing in which they invest. Making money to the speculator is much more a game of chance than the expert investor.

The media as a whole has made the quick turning professional look like so

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

meone who is simply shooting in the dark. They make them appear to be rolling the dice and hoping for the best. In reality, this is simply not the case. Quick turning is almost a scientific process. There are specific criteria that must be met in order to succeed. If the criteria are n

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

Combination pro

t in place, the deal doesn’t happen. With the speculator, they very well could make a bad deal. They may not follow the same set of strict criteria that the quick turner does. It is important not to group these two very different investors together. The big difference is that speculati

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

on works in some markets at certain times of the year. Quick turning will work in any market and at any time. There are systems in place that ensure their success.

Quick turning strongly relies on fundamentals. This is why it is successful in every market. You can’t simply buy a great

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

property in an appreciating market and hope that it will go up in value. In order to succeed in quick turning, you must find undervalued properties. This is the absolutely critical first step in any quick turn deal. You figure in the profit from the beginning. This is before you even

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

purchase the property. The ARV (after repaired value) is assessed before you buy the property. The repair costs are also estimated beforehand. This will help to control the costs throughout the process. With these estimates in hand, a wise financial decision can be made. There is reall

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

y no guesswork involved. After these estimates are made, if the profit isn’t high enough, you move on to the next property. Don’t even get involved. The speculator, on the other hand, may decide to try it anyway.

The experienced investor will take the undervalued property and improve

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

t considerably. They will do their research and determine which repairs are the most profitable. Don’t sink your money into repairs and upgrades that will not improve the overall value of the house. Try to add a few “sizzle” features along the way. This will help the appearance of the

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

Following aspects would a

property. The property will be presented in an attractive manner, once it is ready for the market. These factors make it more difficult to find a good deal in an active market. You can’t just settle for any property. This is why you will have to be patient in certain markets. The prope

dd to the challenges in developing combination products:

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

rty you need will eventually surface. Just don’t rush into a deal under any circumstances. Make sure that the property is priced below market value. As many investors know, the money is made when the property is purchased, not when it is sold. Keep this truth in mind while looking for

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

viable investment properties.

After a quick turn has been performed, there are several exit strategies available to the investor. Each one can be effective in different circumstances and markets. Some investors will simply flip the title to another investor quickly and make a modest p

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

rofit. This is usually the fastest way to get in and get out. However, this is usually the least profitable in the long run.

Another option is to wait and sell the property at full retail value. If you are patient and don’t mind hanging on to the property for awhile, this is a good op

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

ion. You managed to take a run-down property and get it back up to par. Therefore, a buyer should be willing to pay full price for it. It is no longer an undervalued property. This will usually provide more profit that the first option, although you do have to hold onto it longer. You

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

Professional from academic institutions, pharmaceutical industries, health care indust

also will have to go through the trouble of putting it on the market. Sometimes, this can take more time than you want to get results. If you choose this approach, be patient and you will be rewarded.

The last common strategy is to simply hold the property and rent it out. Sometimes,

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

investors get forced into this strategy by necessity. If a quick turn deal goes south, you can always rent the property out in the meantime. This can create a great cash flow for you. While you may not have been planning on being a landlord, it can pay off nicely. Another benefit of th

.

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

is approach is that the longer you hold the property, the more appreciation will be working for you. You can get the rent money and when you do sell, the property may be worth even more. If you need to, refinancing is also a good option in this case. You can rehab the property and then

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

Companies that provide selfless information through particip

get the money out through refinance.

Quick turning is a great way to profit in commercial real estate. Just don’t confuse it with general speculation. Quick turning will work in every market. Stick to the guidelines that you set upfront and do your research. You really can’t go wrong

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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First of all, it is time to review what types of loans are being offered and which type you may already have. Every bank, savings and loan and credit union has a somewhat bewildering package of small business loans.

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