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Originally Posted by Storm Cadet
All the horse partnership companies operate that way. That's their goal as we discussed earlier. Sell out all partnerships. If you build 10 homes in a development, does the builder only sell 9?
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Actually, all horse partnerships
do not operate this way. The partnership I am involved in
does have a position in the horse. As Terry says, their partnerships are not for everyone. I'm not defending that statement, but at least they are open about it and are comfortable with the idea that they are purchasing an animal for a significant amount less than what they are syndicating it for. It is the buyer's responsibility to understand what the deal is and that they are paying $44,000 for 10% of a horse that WPT purchased at auction for $205,000.
Personally I think it is tough enough break even in the game that paying twice as much for an animal than it was valued at auction just a short time prior is tough to swallow. On top of that they charge a maintainance fee and take money off the top of the earnings after a certain level. For each of the good stories (Flashy Bull, High Finance and Dream Rush) there are 5 not so good one's.
But like I previously stated, if you are looking for the stuff that they are offering for the mark-up (whatever that might be when they call themselves the "Ritz Carlton of the Industry"), apparently they are your guys.