We wish we could just plainly say yes. But we would be lying to you. Even though the sport of kings is now available for us peasants, there are still some not so positive comebacks to investing in a racehorse. Some even say that the horseracing business is in decline and that investing in a racehorse is a gamble move that will most probably make you lose money.
Consider that you buy a horse at $10,000 right now, or maybe a piece of a horse. There are few chances that within a certain time you will be getting a good return on your investment. Now, not everything is grim. You must be cunning enough to know how to invest in a racehorse.
Questions to Ask Yourself
- How do I become the owner of a horse? Unless you have some serious money, you will probably do best by joining a group of investors to one horse. The prizes are then split into equal parts among the shareholders of the horse. Partnerships are actually a good idea. In general, most of the racehorse owners get a profit of about $75,000 per year.
- Where do I race my horse? There are different levels of competition and not all horses have the ability to compete for racing’s Triple Crown. You should start with regional races, where competition is not so fierce.
- How do I buy a horse? You can buy one at auctions, in private sales, or at a claiming race.
- Do I have what it takes to care for a horse? Here’s when the potential of getting profit seems to shake a little bit. There are a lot of expenses that come with owning a horse.
How to Succeed
The first thing you need to realize is that horseracing is not only a sport, but it is also a business. This business really knows how to be risky. You need to be very well informed of the advantages and downfalls.
The best way to avoid your investment to become a dollar pit is to ask advice from experts. Get close to those who know about horseracing business and get tips from them.
More on Owning a Horse
You need to have an idea of how much will raising a horse cost you. This will give you a clearer idea of what you are getting yourself into. Do consider that, on average, a racehorse owner will make an investment of at least $65,000 per year. Here’s how all that goes:
- Shoeing. If you thought your wife spent too much money on shoes, maybe when you see that you will need to invest between $100 and $400 per month on shoes. This will also depend on the type of shoe that your equine needs.
- Transportation. Moving a horse from track to track is very expensive. Renting services are not in high demand. Those who have to transport a horse close to home do not spend as much as those that have to be moved nationally.
- Veterinarian. These are the facts. Horses get sick, get injured, or overworked. Veterinarians for horses are not cheap at all. Besides this, medication for a horse is also very expensive.
- Jockey. Jockeys will usually charge from $35 to $100 per race. If the horse is lucky enough to win, a percent of the prize goes to the jockey.
- Training Day Rate. Training a horse requires a professional, which will usually charge from $45 to $200.
Now, here is where you question if you have what it takes to take a risky business. Will you become a millionaire. Not very likely but you can make some serious cash if you work hard. About the millionaire thing, yes it can happen, but stories of success are not very common. Which one will you be?