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Financial Information
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Can
you sustain a minimum recurring expense of $300 per month?
Yes. You should consider a GRS Thoroughbred Group
Partnership. It is the most exciting investment you will
ever imagine.
No. It would be wise for you to be patient until you can
sustain the ongoing expenses for thoroughbred training, vet
bills, medicine, etc...
Do
you charge a management fee? No.
We have never charged a fee for managing the partnerships
because we are owners too.
How do I become an owner?
If you are interested in thoroughbred
racing partnerships
and racehorse
ownership, but
want more information on horse racing syndicates call
us at 1-888-888-8888 or
complete the online contact form.
Huston Kennedy, the managing partner, will call you to
discuss your interest and answer all of your questions about
thoroughbred partnerships. How
much does it cost to train a horse?
It cost approximately $36,000 annually to have a horse in
training with our stable. ($300 per 10% share per month)
Are their any deductions of the purse earnings from the
owners account?
Yes, but only the trainers percentage for 1st, 2nd,
and 3rd. No other deductions are made to the
account.
How are expenses for training, vet bills, etc. handled?
Professional CPA's and bookkeepers handle the financials for
each of our thoroughbred racing partnerships. This includes
invoice payments and detailed documentation of all expenses
paid to trainers, transportation companies, veterinarians,
blacksmiths, and other service providers. Each owner will
receive a statement that highlights a financial ‘snapshot’
of your thoroughbred partnership(s) throughout the year, and
it outlines each expense.
How do owners pay their monthly expenses?
All clients are billed on the 1st day of every month, then
your bill must be paid in 30 days by cash, check, debit
card, or credit card.
How are earnings distributed?
Purse earnings are credited at the end of each month against
training fees incurred for the month. If purse earnings
exceed training fees than you will be issued a credit
against future training fees. Detailed records are sent each
month for your account to track the activity. If you track
expenses and income for each horse we can export the data
into an excel spreadsheet to assist you with your
bookkeeping. What
about tax reporting?
1099’s are issued to all partners by the end of January for
each tax year.
Are the horses insured?
This decision is based on the value of the horse purchased.
It is not uncommon to make a decision to insure a horse at a
later date. Your cost would be based on your ownership
share in the horse. Of course any partner is free to insure
their portion any horse regardless of what is decided by
others.
Investment Options
How
many partnership shares are available in a horse?
Usually, we divide a partnership into 10 shares. These are
sold on a first come, first served basis.
What is the amount of the average investment in a
partnership?
10%, and upward of ownership shares in a racehorse. The
average investment for a 10% share is the cost of the
racehorse. This could range anywhere from $10,000 to
$50,000.
How many horses are syndicated in a year?
Normally four (4) to six (6) annually.
Is it wise to put a lump sum in one horse, or spread it
around?
Diversification is encouraged to reduce the risk. However,
this decision would be based on your disposable income and
the ability to budget for the cost of training one horse
verses several horses. We have several owners who have 10%
ownership shares in at least four (4) horses.
Can an investor extricate himself/herself from a partnership
before it is concluded?
An investor interested in selling a partnership interest
must find his or her own buyer. Prospective participants
should be prepared to be involved for the life of the
investment.
Do you maintain an equity interest in any of your horses?
Yes, at
least
20% of every horse. Why would we form a partnership in a
horse if we did not think it was worthy to race?
Questions About the Horses
What types of horses do you buy?
We generally concentrate on two kinds of racehorses: (1)
young horses that are being sold privately; (2) yearlings.
Do you buy 2-year-olds at the in training public auction?
Hell No. Do you like cleaning up other peoples messes? We
would rather start a horse from scratch by buying a yearling
or syndicating a yearling from one of our broodmares.
How often will I see my horse?
You are welcome to visit your (and any other) horse whenever
you'd like, wherever they are training. Owners have a long
history of visiting their horses and taking great pictures
of their time together! Depending on the season and the
stage of training, your horse might be stabled in Saratoga
Springs, Belmont, Aqueduct, Kentucky, West Virginia,
Pennsylvania, Florida, or California. Whenever possible,
trainers and exercise riders will talk with owners and
answer questions during their visit.
Is it safer to buy a filly vs. a colt?
Fillies are generally a safer investment because they can
have residual value as a broodmare. A colt is riskier
because if it is unable to realize its potential on the
track, it has much less value than a comparable filly.
What is the typical length of a racing partnership?
The lifetime of your thoroughbred. You are in the business
to watch your horse win races. You help us decide when the
thoroughbred should be retired.
What happens when the thoroughbred is ready to be retired?
When the time has come, each owner will have the opportunity
find a place for the horse. If the syndicate family
believes that the horse will be nurtured and cared for
accordingly, it becomes yours.
How many new investors generally participate in each
partnership?
Usually, there are only a couple, because our current
clients react quickly to new offerings.
Expectations After Investing
How do you keep your partners informed?
Trainers send updates via email, Twitter, and Facebook to
the partners of the racehorse. We will continue to enhance
our abilities to effectively communicate with our partners.
What kind of perks can I expect?
Free admission and seating on race day with your owners
license and pass. Stable area access. Access to the saddling
paddock and on some happy occasions the winner’s circle.
Where do your horses race?
The horses race primarily in Kentucky, New York, West
Virginia, Pennsylvania, Indiana, and Ohio. However, we will
ship to the track that fits the horse.
Where do the majority of your partners reside?
Most of our clients reside in Florida, Kentucky, Indiana,
New York, Pennsylvania, Alabama, California, Wyoming, Texas,
Louisiana, Mississippi, and Ohio, but range from Washington
State to New Jersey.
Do partners have a say-so in determining anything?
Yes, partners vote on important issues regarding the
expenditure of extraordinary sums of capital and if the
venture should be terminated.
Have your clients made money with their racing investments?
Oh yeah, it has the most lucrative purses of all the
racing. Most individuals participate in horse racing
because of the excitement of the sport, and the privileges
afforded horse owners at most race tracks. The win photos
are pretty cool, too.
Have any investors ever gone on to have success with their
own runners?
Yes, ten of our former clients are now trainers and pursuing
his/her own career in the sport.
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