Thoroughbred Ownership

[NJDfan1711]

Hi all,

New here - been registered for a couple years and just lurked every now and then, reading some interesting posts and other topics that brought me here. I've been handicapping races for about 15 years, probably closer to 20, not very seriously, and with limited and average success - it's more or less a hobby - of course I'd like to make a profit, but if/when I lose, it's not the end of the world and I'm not risking anything I can't afford to lose.

For quite some time I've also been interested in owning a horse one day, my father and grandfather owned two horses on Long Island some 30 or 40 years ago, so I guess you could say it's sort of in my blood. I'm happy to say I'm almost read to pull the trigger on this, as I've done a good amount of research into thoroughbred partnerships over the past month. I'm based in southwest Florida and ideally looking for a parternship that will require limited capital and investment up front, as that's essentially my only real roadblock at this point (aside from my knowledge of horse ownership being somewhat limited). I have the funds to be able to contribute to monthly payments required for the horses upkeep and development, and I've essentially narrowed down my choices to two stables right now. The perfect scenario for me is finding a stable the trains and races a horse close to me, as I'd prefer to be somewhat hands on and actually visit the horse while he/she is training, and then of course watch it race once it gets to that point, but that's not necessarily a deal-breaker, since it seems that most horses typically go up north somewhere for the summer to avoid the heat down here.

Basically I'm just wondering if anyone else here currently owns, or has owned, any or all of a percentage of a horse, and what their experiences were like? I'm looking at a very small stake just to get my feet wet and see if this is something I'd like to go further with. I think I have the right attitude in that I'm not in this for the money - of course it will be much sweeter if I actually turn a profit - but if I end up losing money in the long run, for I think (hopefully) it will still be worth it because to me this is more of entertainment and fun than anything else.

Appreciate any feedback.

Thanks.

[johnhenry81]

NJD,

Good to see that there are new people interested in ownership. I have owned or part owned horses on and off since 1995. As you can imagine it is a game of highs and lows. The lowest points are an injured horse, which takes you from a layoff in best cases, to making a decision life saving surgery to having to put a horse down. The other low point albeit not as dire, is a horse you had high expectations for that is slow or uninterested in running.
The highs are obvious, including one that exceeds expectations staying healthy and winning. This euphoria keeps one coming back.
Regarding ownership shares, 10% is the usual low unless you are in a large syndicate that buys million dollar yearlings or two year olds in training. then 5% shares are accepted.
The cost of monthly training which includes farrier, vet, etc. pushes $4k monthly at big circuits right now.
In your situation, I would start out with a piece of a claim.. say a $10k claim at 10%. this would be a grand or so out of pocket for the purchase, and aprrox. $400 monthly for your share of the training. In this scenario, you can start out running immediately. Hope this is helpful.

jh

[NJDfan1711]

NJD,

Good to see that there are new people interested in ownership. I have owned or part owned horses on and off since 1995. As you can imagine it is a game of highs and lows. The lowest points are an injured horse, which takes you from a layoff in best cases, to making a decision life saving surgery to having to put a horse down. The other low point albeit not as dire, is a horse you had high expectations for that is slow or uninterested in running.
The highs are obvious, including one that exceeds expectations staying healthy and winning. This euphoria keeps one coming back.
Regarding ownership shares, 10% is the usual low unless you are in a large syndicate that buys million dollar yearlings or two year olds in training. then 5% shares are accepted.
The cost of monthly training which includes farrier, vet, etc. pushes $4k monthly at big circuits right now.
In your situation, I would start out with a piece of a claim.. say a $10k claim at 10%. this would be a grand or so out of pocket for the purchase, and aprrox. $400 monthly for your share of the training. In this scenario, you can start out running immediately. Hope this is helpful.

jh

Thanks for the tips and sharing your story. I've actually looked at nearly a dozen stables, most of which have partnerships comprised anywhere from 5 to 20 people, and the ownership stakes range from 50% all the way down to 3-5%. I've even seem one or two that do 1%. The situations and circumstances all vary. I'm looking at 3 or 5% at the moment - for one I can't afford much more, and two, it's enough for me to get in the door and learn the ropes. The monthly fees also seem to vary depending on the stable - I haven't seen anything as high as 400 - most are in the range of 100-250.

Indeed the worst thing would be if a horse got injured or had health problems, fortunately however, although the partners such as myself would have a say in certain decisions like that, ultimately I am finding that most stables leave the decisions up to the trainer, and frankly, that makes sense. They're the ones who spend the most time with the horse and know the horse better than anyone else, and they also know the industry and have been in those situations probably countless times.

I'm meeting with someone tomorrow in person despite the fact that I think they will be too costly and they already know ahead of time that I probably won't go with them, and I think by Friday or early next week I will have a decision made and can share more information on who I'm investing in.

[JohnGalt1]

Canterbury Park has partnership for ten members with Viking's coach Mike Zimmer and race caller Paul Allen.

$500 investment for each. No new money will be asked for.

They broke down the costs.

Horse claimed $15,000

Training (6 mo.) 14,500 Diodoro

Vet $5500

Other (farrier, pony, etc.) $1500

Tax return $1000

License $1000

Total $38,000-40,000

At Canterbury's meets end they disburse any funds.

I am also considering owning a horse now that I'm retired.
So if I did the above on my own, it would be interesting to see what the horse could make in 4-6 starts during the meet.

[NJDfan1711]

Canterbury Park has partnership for ten members with Viking's coach Mike Zimmer and race caller Paul Allen.

$500 investment for each. No new money will be asked for.

They broke down the costs.

Horse claimed $15,000

Training (6 mo.) 14,500 Diodoro

Vet $5500

Other (farrier, pony, etc.) $1500

Tax return $1000

License $1000

Total $38,000-40,000

At Canterbury's meets end they disburse any funds.

I am also considering owning a horse now that I'm retired.
So if I did the above on my own, it would be interesting to see what the horse could make in 4-6 starts during the meet.
That's awesome, good luck if you go through with it. Based on your monthly expenses breakdown, what do they estimate the cost would be to you on top of that initial $500 investment?

[airford1]

My take from owning race horses in the late 80's is that if you have access to the stable area and winners circle it doesn't matter if you own 5% or 100% until the bills are due and then it's nice to only have 5% when you are not winning. We were lucky and went to the winners circle a lot but we had cheap horses for the most part. Loved it and miss it.










5

[JohnGalt1]

The limit was 10 and it sold out last year in days.

There is no more money asked for. If the total group investment craps out during the year, that's it.

On the Canterburylive.com website there is a page with breakdowns of previous years.

[NY BRED]

This is a very expensive and exciting game to enter as an owner,ownership
provides you with excitement seeing your horse run, and if you win
or place, it is comparable to seeing your kid hit a home run in your
favorite major league stadium.

The flip to this statement is this is a very expensive game; trainer, medical,
vets, and transportation bills can easily hit or surpass 36,000 per year
for a healthy thoroughbred .
The typical partnership arrangement should detail this information to you;
Before signing an agreement, you should obtain information on the
horse(s) you will be investing with the partnership, where the horses will run
and advice on the trainer.


You definitely should discuss this agenda with your accountant as these
expenses listed above are fully tax deductible; that said, this benefit
might not be advantageous to you based upon your income.

Finally, you do need to check the success of this syndication manager
with prior success and failures..
regards,


Gary

[dkbigsky]

Very interesting. What Horse did they buy last year 2018. I was looking for information on how they turned out at the end of the year.

[BIG49010]

Take a look at "It's all about the Girls" they do a good job with limited fees, etc and have bought some very exciting horses world wide. Anna who started it, is a very honest, straight forward lady

[River11]

Hi all,



Basically I'm just wondering if anyone else here currently owns, or has owned, any or all of a percentage of a horse, and what their experiences were like? I'm looking at a very small stake just to get my feet wet and see if this is something I'd like to go further with. I think I have the right attitude in that I'm not in this for the money - of course it will be much sweeter if I actually turn a profit - but if I end up losing money in the long run, for I think (hopefully) it will still be worth it because to me this is more of entertainment and fun than anything else.

Appreciate any feedback.

Thanks.

I have been a member of Brilliant Racing partnership for a year and have no regrets.
Managing partners are straight up, great people to be assosciated with.
Brilliant Racing 2 is now open. Two 2 year olds in training (Ocala/Maryland sales) and a claimer will be selected.
Horses race on the Kentucky circuit and Fairgrounds.
http://brillianthorseracing.com/

[Fager Fan]

Thanks for the tips and sharing your story. I've actually looked at nearly a dozen stables, most of which have partnerships comprised anywhere from 5 to 20 people, and the ownership stakes range from 50% all the way down to 3-5%. I've even seem one or two that do 1%. The situations and circumstances all vary. I'm looking at 3 or 5% at the moment - for one I can't afford much more, and two, it's enough for me to get in the door and learn the ropes. The monthly fees also seem to vary depending on the stable - I haven't seen anything as high as 400 - most are in the range of 100-250.

Indeed the worst thing would be if a horse got injured or had health problems, fortunately however, although the partners such as myself would have a say in certain decisions like that, ultimately I am finding that most stables leave the decisions up to the trainer, and frankly, that makes sense. They're the ones who spend the most time with the horse and know the horse better than anyone else, and they also know the industry and have been in those situations probably countless times.

I'm meeting with someone tomorrow in person despite the fact that I think they will be too costly and they already know ahead of time that I probably won't go with them, and I think by Friday or early next week I will have a decision made and can share more information on who I'm investing in.

I'd very much advise NOT getting involved with a syndicate. Remember that syndicates only exist to make money for the syndicate owner, no other reason. You will never be privy to all the important things that you'd learn from actually being the owner.

I'd recommend that you get a group of friends, preferably with one with some experience that will help guide you all, who knows enough to know how to not get scammed, knows who the good trainers are, etc., then find a low-level claimer to get started. Once you learn in those ranks, then you can keep upping your stock if you wish.