Have you ever wanted to invest in a thoroughbred racehorse but didn' know where to begin, or if you would be able to afford such a commitment? If you have, rest assured you are not alone. Many people would love to own an interest in their favorite thoroughbred racehorse. Although your favorite probably won't be available (or affordable!), there are many others with open horseracing partnership shares.
Thoroughbred horseracing partnerships offer investment opportunities through the purchase of partnership shares from as low as 1% to as much as 45%. The percentage of your share is equal to your ownership interest in the horse and represents your share of expenditures and earnings as well.
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%.
Across the United States, there are a number of racing stables that engage in syndicates and horseracing partnerships that offer co-ownership. Each of these partnerships or syndicates is a little different in how they choose to manage their group. Before you invest in a partnership, you must be familiar with the rules of several horseracing partnerships and syndicates in order to find the one that matches your investment goals.
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%.
* Is the share price calculated as a percentage of the horse?s purchase price, or does the price include a markup of the purchase price?
* Are there any fees for managing the partnership?
* Will you be responsible for monthly costs that are for more than the upkeep of the horse? For example, there may be advertising costs due. While advertising can be helpful, it can also be expensive.
* Will you be able to meet with the managing partner before you sign the contract as well as after you sign?
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.
Thoroughbred horseracing partnerships offer investment opportunities through the purchase of partnership shares from as low as 1% to as much as 45%. The percentage of your share is equal to your ownership interest in the horse and represents your share of expenditures and earnings as well.
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%.
Across the United States, there are a number of racing stables that engage in syndicates and horseracing partnerships that offer co-ownership. Each of these partnerships or syndicates is a little different in how they choose to manage their group. Before you invest in a partnership, you must be familiar with the rules of several horseracing partnerships and syndicates in order to find the one that matches your investment goals.
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%.
* Is the share price calculated as a percentage of the horse?s purchase price, or does the price include a markup of the purchase price?
* Are there any fees for managing the partnership?
* Will you be responsible for monthly costs that are for more than the upkeep of the horse? For example, there may be advertising costs due. While advertising can be helpful, it can also be expensive.
* Will you be able to meet with the managing partner before you sign the contract as well as after you sign?
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.
About the Author:
C. Anne Baker's life has included thoroughbred horseracing and breeding for many years. She also contributes to horseracing charities. For a short period, visitors to her website PartnersInThoroughbreds.com can receive her notable report Becoming included A horseracing Partnership
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