The best part of a very successful investment is the new opportunities that can be available with the extra cash flow. Since this blog serves the purpose to entertain as well as document the process of investing in unconventional assets, it is time to have a little fun. A small stake in a horse racing partnership is my next venture. I do not advocate this as an money making investment but as a means to generate a little excitement that can possibly provide some extra dollars with a little luck. The priceless thrill of having your picture in the winner’s circle with your horse is the real payoff and a share of the winning amount is the bonus.
There are numerous horse racing partnerships that are always searching for new investors. Each one has its own process on the handling of expenses and proceeds so research is necessary. Some require that you purchase a specific percentage of named horse and then pay that percent of the monthly expenses (boarding, training, food, etc). Winnings are also distributed based on the same percentage. Please read the stable’s operating agreement to be aware of your commitment.
I decided to start with a small stake in a horse partnership operated by Dare to Dream Stable, LLC, Dare to Dream is managed by two bothers, Allen and Michael Faber. They provide management on numerous horses and have campaigned many successful runners over several states. Each horse partnership is structured as their own LLC with a specific objective for that venture. Investors share in the expenses and proceeds according to their purchase percentage. They will maintain a 3 month reserve for expenses which can average $4,000 a month. A horse named Work of Art cost me $1,582 for a 2% ownership and included expenses through August. Work of Art is a 2 year old chestnut gelding training in Saratoga, New York that may be ready for his first race in the near future. I plan on documenting this journey and diversifying into a couple of other partnerships whose costs will vary based on the caliber and percent owned of each horse. Thanks for reading. Jeff