When I first wrote about investing in a small percent of a racehorse, I explained that this was a fun investment that could reap some dividends in the future. Yesterday was definitely fun. Watching Work of Art being loaded into the starting gate, exiting in the 2nd to last position out of 11 horses, and then racing to the finish with a shot of winning was thrilling. He finished a very respectable 3rd place, earning $6,000 of the purse and showed that he has enormous potential. This should be a FUN ride.
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In August, I posted that I purchased a small stake in a thoroughbred race horse named Work of Art (WOA). The plan was to race at Saratoga, NY in September, but the horse was not ready at that time. Well, tomorrow is the day for his debut at Belmont in NY and a chance to see if WOA has what it takes. His workout times were very good and he showed ability. WOA will be running in the 6th race on the turf for a $60,000 purse with jockey Eric Cancel at the reigns. The winning horse typically keeps 60% of the purse and the remaining amount is distributed down to 6th place. From the winnings, there are numerous expenses, including the jockey’s and trainer’s share. A win at this level to start would be very positive and would position the horse to run for higher purses in the future. My cash outlay so far is $1,582 for my 2% share, plus $360 to cover estimated expenses through December. I will provide an update of the results tomorrow. Unfortunately, I am not able to travel to Belmont for this race so I will be watching WOA on the television.
Some quick other investment notes:
A. Fundrise just deposited a 3rd quarterly dividend of $60 into my account based on the $3,000 in their real estate investment trust.
B. The iPO investment of $4,000 seems to be status quo based on the updates given by the company as they continue to build shareholder value.
C. Gold prices have rebounded to $1,306 an ounce so that investment is nearing break-even.
D. After the significant gains from the St Pete condo, I am spending time researching geographic areas for my next purchase. I was very fortunate to have sold prior to Hurricane Irma hitting that area. Weather-related problems are part of the equation when investing in tropical destinations, but I believe the potential gains are worth the risks if the numbers make sense.
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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