Broodmare Partnership
 

Thinking of starting a small Broodmare partnership to purchase a Broodmare in Foal at Keenland. Not talking about a top end mare, something cheap that falls through the cracks in the 10k range. There are a ton of horses who slip through the cracks at this sale at the lower range.

As I have been researching this years sales I have found multiple broodmares in foal where I think profit can be made from selling the resulting foal either as a weanling or yearling.

There are several broodmares in past auctions that have had weanlings and yearlings sell for 100k plus that were sold for 5k, 10k, 15k etc in Keenelands Breeding Stock auction.

If you are interested post below and I will send more details. This is not a get rich quick scheme. Realize it will be several months before a foal is born which at the soonest could be sold next year in November.

The mare purchased can be bred back of course and either resold or resulting foals kept and sold or even raced. It will be up to the partnership to decide not me.

My thoughts are a maximum of 40 shares in the horse (or less depending on interest) at 2.5% each (or higher) for $250 each

This will be done by the book I already have a corporation set up to work it through.

Monthly fees would be $75 a month which would cover broodmare boarding, and a 10k stud fee, vet, farrier etc. When the weanling is separated from the mare the fee would go up $25 a month per share

Boarding will be in Kentucky where the foal will be born qualifying for the KTDF and to keep the mare around the best stallions.

Partners will have complete control by vote over every aspect from sales, breeding etc. No markups actual costs. I will make my money from my purchased percentages

I might have interest. We'd have to avoid some of the crazy breeding sh*t I've seen lately. Explain...

A bloodstock agent I know posted a catalog page yesterday of a horse being sold by Vinery. Sired by Dialed In, who has pretty good stats in 1st two crops. But the female side...Dam was $5k claimer entire career. 2nd Dam ended career beaten 20 & 30 lengths in a N2L$4k at MNR. Michigan bred no less. Who the hell would ever breed this kind of mare?

I think you need to rethink those numbers. As I see it, that gives you $1,300 a month, and that's not enough. To save up enough fo pay a $10k stud fee, you're going to have to save $600 a month or so, leaving $700 to pay all the other expenses. You can sqeak by giving her cheap care, but you have no room for foaling fee, vet (outside of vaccines), extraordinary vet, repository films, vanning, sales nominations, etc.

If I was doing this, I'd collect $1,000 each up front for a vet fund that will be distributed back at the end of the partnership if any money is still in the fund. If the mare or foal collicks or has another emergency, you can go through $10k in a week, and you don't need to worry about how to pay. I'd collect more per month, maybe paid quarterly, with the first quarter up front (unless you know everyone and know they're good pay) to keep my bookwork down, and I'd also figure in at least a small amount for my own work paying all the bills, giving the quarterly accounting, keeping all the partners up to date, and providing year-end accounting for everyone's taxes.

Good luck if you do this. It should be fun and a learning experience, and if you're lucky, maybe even make a profit. The dream is why everyone that does it does it.

Have a link to the page?

Claiming mares can be decent producers. A deeper look at her family is needed to assess her value. They may not be expecting to get much for her, but instead to stop the monthly bills coming in on her.

That's not what I am looking for

Here is an example of what I am looking for that sold last year for 3k

Carson City mare

http://apps.keeneland.com/sales/Nov16/pdfs/3698.pdf

48k
20k
62k
77k

that is her 4 trackable yearling auction sales. Obviously she is a little older (15) with only a few years breeding left but someone bought her for 3k whose yearlings averaged 52k

There are a few I have seen from this year similar to this that have yearlings that have sold for 100k that are towards the end of the sale and I think will be in the 10k and under price range. One sold a couple years ago for less than 10k and the foal sold for 75k

Only other thing I would look at is a younger mare with a solid pedigree and good track potential. There were several mares who sold in foal last year with career earnings of 100k plus, high speed figures and nice pedigrees. I would look at those as well depending on the covering sire.

Obviously it is a little bit of a risk but so is gambling.

40 shares x $75 is 3k a month 1500 for boarding and vet bills etc with 1500 a month reserves is what I am thinking?

That would be 18k that could be used for stud fee etc

Not sure where you got $1300?

I type all that just to have mucked up my multiplication? Sorry about that. Those numbers sound a lot better.

i have to pay between $22-$25 per day to board mares in New York. a little less in Pennsylvania, and i pay $15 per day and low vet bills in Ocala and get the best care in Florida. there are also different prices for suckling, weanling and yearlings.

also i do know of a few groups that actually made millions doing exactly what you are attempting to do here. i have my eyes on a mare that is still racing at the bottom that i can claim and breed. she is no 8 and i had the horse originally and she was one of my all time favorites that i ever had. she is a big tryer that has semi-decent pedigree.

Kentucky depending on the farm around Lexington (which will save on transportation costs) is anywhere from 1200 to 1500 a month at a farm that has sales prep etc. 900 for smaller farms.

My preference is to board at a farm who has a little bigger sales following and stallion that we may breed back to. Discounts on stud fees are to be had in this scenario.

no worries

Lambo,
Since you and I use the same farm in Ocala that is run by one of the best in the business today and as you know Tony will tell you this isn't an easy game when the horses you are working with have no revenue stream until and I say that with passion, you sell and either break even or train them and try to sell at the sales. The second path is the one where if you end up with a bad one the costs are heavy. But there is a bright side for the few that end up making a great score upon sale. Good luck with the venture after 8 years of breeding we are back to claiming.

That's correct. Breeding is long term returns nothing quick

i had a favorite horse so i am going to try to get her. when we had her she was going real good and she had an injury and broke her maiden for a high tag. she has won about 17 races, lately at the bottom but she won plenty of open starters. she is now truly at the end of her racing career. she's not the type that most would breed, but she had a lot of heart and to me she deserves a chance to produce something good.

if i get her she will board at Big Tims. i won't have big vet bills either. whether i keep the foal or sell it is irrelevant right now.

I'd be interested in a share

A lot of nicely bred mares up on Starquine.com right now for decent money that are in your range if you wanted to bypass the sales. A nice young Blame mare (open) was just put up and theres some Lemon Drop Kids, Flower Alley, Rock Hard Ten, Tale of the Cat, and Indian Charlie mares up...some in foal.

Good luck with your venture!