Who is an owner? What's your story?

[ELA]

Originally Posted by Storm Cadet

Remember a rule, these people start their own for profit horse stables to make money-YOUR MONEY. Win or lose...they make MONEY-YOUR MONEY! Their business models are set up so THEY are protected and the only losses are the investors.

As Chuck said, yes, very well stated and very true. It is crucial to remember -- and most people either forget or don't ever realize -- that these partnerships have a business model. They are not in the business of racing horses, making money from purses as their primary revenue source, and making money for the investors/limited partners/etc. These partnerships are in the business of syndicating horses and selling partnership interests. Think about it.

While this may or may not be obvious to some, and it might be simple -- it really is important to think this concept through.

Eric

[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?