Have you considered a thoroughbred racehorse investment, but you had no idea where to begin or whether it would be affordable? If you have ever been curious about this, you're in good company. Many potential investors think about buying an interest in a well-known thoroughbred racehorse. In reality, the best-known thoroughbreds don't have investing shares available, but there are others that have horseracing partnership opportunities available.
The investment opportunities offered by thoroughbred horseracing partnerships are shares in the partnership that can be as small as 1% of the partnership up to as much as 45% of the partnership. However large your ownership is in the horse will determine your share percentage. This also is a representation of your costs and earnings.
By joining a horseracing partnership, you reduce your amount of inherent risk from 100% to an amount equal to your percentage of ownership in the thoroughbred. For example, if you wanted to buy a small interest to get your feet wet and get a feel for the industry, you could purchase a share as small as 1%. If on the other hand, you have been around the industry for a while and feel comfortable with your financial position, you could purchase a heftier share of up to 45%.
There are many racing stables across the U.S. with horseracing partnerships and syndicates available with open investment opportunities for co-ownership. Each one is a bit different in what they have to offer and how they manage their syndicates. Prior to making an investment, you should familiarize yourself with several different partnerships and syndicates to see which ones best match the goals you have in mind for your investment.
When thinking about partnerships or syndicates, consider:
* Does the partnership offer the size share you are interested in? Some groups do not offer shares smaller than 5%.
* Do they offer partnership shares based on a percentage of the purchase price of the horse or, do they mark-up the price and then calculate share costs?
* Are there any fees for managing the partnership?
* What are the monthly expenses you will be responsible for beyond the regular care, training, and up keep of your horse? For example, advertising costs. Although advertising can be a good thing, the costs can be substantial.
* Will the managing partner be available to you, and will that partner be willing to meet with you before and after the contract is signed?
The sport of thoroughbred horseracing offers many investment opportunities but you must remember the stakes are high. You could just as easily lose as you could win. However, by joining a horse racing partnership or syndicate you can defray some of the costs and risks associated with being an owner.