Who is an owner? What's your story?

[Norfolk]

I have owned horses for about 30 years and I still enjoy it.
Storm Cadet has pointed out a number of good points especially about commercial partnerships. I had a friend that worked for one and he said almost all bills they presented to the partners had a 10% markup. So when you get the transportation bill or the shoeing bill etc it may be marked up.
As for the sales, people should go to jail for what “some” of the partnerships do. I have seen cases where they buy a horse hours before the sale but still send it through the ring and bid it way up over value and then use that price to set up the partnership. Some trainers are known to do the same thing.
So as always “buyer beware”.
I would suggest starting out in a small local partnership. Find an honest trainer at a track near you. Ask people you know in racing a lot of questions about everything. Don’t invest too much until you get your feet wet and know the business a little.
Early on I went through a number of questionable trainers. I was lucky, about 25 years ago I met a trainer who right off I knew cared about horses and people. We became friends and have been partners for over 20 years.
Every owner I know will tell you the mistakes he/she has made. Don’t go into it thinking you are going to make money and work with someone who will keep you out of trouble with the IRS rules.
Horseracing has very many highs and very many lows. I have read in this thread about people winning races and how great it is. You should also be aware of the lows, i.e. when you are standing there with a group of friends and your horse come in last.

That being said there is nothing better than to see your horse cross the finish line first.
It doesn’t matter if it is a $5000 claimer or the Gold Cup.

I would highly recommend getting into the business. I have met many interesting people and have made a lot of friends. It is a great experience.
Just as I said earlier though “Caveat emptor”

Joe

[Storm Cadet]

Guys: Here's an excellent article/transcript from Bloodhorse regarding ownership by Terry Finley of West Point TB. Great read: Great question and answer from the public!

http://www.bloodhorse.com/talkinhorses/TF071207.asp

[parsixfarms]

Originally Posted by Storm Cadet

Guys: Here's an excellent article/transcript from Bloodhorse regarding ownership by Terry Finley of West Point TB. Great read: Great question and answer from the public!

http://www.bloodhorse.com/talkinhorses/TF071207.asp

Terry Finley's first answer in that chat is almost comical when he says that it "is very important ... to keep your distractions down at the sale and be as focused as possible." This coming from a guy who every time I saw him over four days at the Timonium yearling sale last fall was playing cards under the tent adjacent to the sales pavilion with bloodstock agents and pinhookers.

[The Bid]

It really is funny, the entire article is funny. The only part I like about it is the guys from Cleveland calling in, they are great guys.

[parsixfarms]

The most telling statement is where he says that "We do not take a position in the horses ourselves if we can help it." So basically, the West Point principals are participating in the horse business entirely with other people's money, with West Point incurring risk only if their rather large mark-ups fail to cover any unsold shares in the horses.

[Storm Cadet]

Originally Posted by parsixfarms

The most telling statement is where he says that "We do not take a position in the horses ourselves if we can help it." So basically, the West Point principals are participating in the horse business entirely with other people's money, with West Point incurring risk only if their rather large mark-ups fail to cover any unsold shares in the horses.

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?

[parsixfarms]

Storm Cadet,

I fail to see your point. As the manager of a small upstate NY partnership, I find it much easier to recommend that people buy into a horse in which I already have a significant stake. It's one thing to say that their goal is to sell out all shares in all horses. Who doesn't want to do this? It's quite another thing to say that their goal is to sell out shares in horses in which they do not want to risk their own money. And they are clearly saying that they do not want to have any "skin in the game."

[NoLuvForPletch]

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?

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.