What Are the Costs?

What are the costs?

Costs are structured to maintain the business end and the website information and cost. We do not charge a training or expense mark-up like some do. We directly allocate training and maintenance costs and invoice that amount only. Monthly costs vary slightly by region and will flex with vet costs when required. For budgetary estimates, we look at $280 per-month per-unit (10% ownership) as an average cost. (e.g. if you own 10% of 5 horses, the cost would be $ 280 X 5= $1400/mo. on average). These training and expense costs do vary slightly from area to area.

We charge a 7.5% (5% on claims) acquisition fee to cover research, travel expenses negotiations, coordination of vet exams and our time. On a recent sale we spent approximately 70 hours research/ elimination of available horses as well as 15-20 hours throughout the sale. We had 34 targeted and when reviewed in person and vet reports we narrowed this to 16 candidates to bid on. On current available shares, the price is based on the current value. The price posted on our site is the price you pay.

We also charge a 5% disbursement fee for sales with a 15% 'gains' bonus. This handles advertising, in person meetings, showings, negotiations and transfer. This is structured so that we only make money if our partners make money--see examples below. There is no disbursement fee on horses sold by claim at or below the original capital investment.

We retain 3.5% of purse money (Win/Place/Show only) broken down as follows:

  • Purse 16 K or less -Win ONLY
  • Purse Over 16K but less than 28K- Win, Place ONLY
  • Purses over 28 K- Win, Place, Show

Again, this is structured so that we make money only when our partners are realizing success on the race track.

Horses that are entered into claiming races and claimed--we reserve 15% of the positive margin. Disbursement fee is ZERO at or below the acquisition base cost. Again, we only make money when our partners make money.

Current value can change quickly both in a positive and a negative direction. This is due to many factors such as the performance in a certain class for horses racing to indicators and signs while in training and development. The value can also change due to injury depending on the extent and seriousness of the injury.

A Sale Example:

A horse is bought for $15,000 and sold for $45,000.
We retain 5% of $15,000 ($15,000 X .05= $750) and a gain bonus calculated as follows:
$45,000 (sale) - $15,000 (acq.) = $30,000 (gains)
$30,000 X 15% = $4,500.

$45,000 less ($750 + $4500)= $39750 distributed to owners.

A Claim Example:

A horse is bought for $16,000. This horse is entered in a NW $40,000 claim race, and is claimed.
We retain 0% of the $16,000 and 15% of the capital gain ($ 16,000 X .15) = $ 3,600.

$40,000 less ($3600) = $36,400 is allocated by ownership % to the partners.

Again, we are structured to make money when you make money.