FAQ
Here is our best attempt to answer the most frequently asked questions regarding fractional racehorse ownership, including the most asked question..."How much does a racehorse cost?"
01
What is the average cost of a racehorse?
A 5% percent share in one of our thoroughbreds will usually be in the $500 - $2000 range.
What are the ongoing costs of owning a racehorse?
You will be responsible for your pro rata share of ongoing expenses not including training related fees.
It is our belief that training fees are a major reason why most owners decide on leaving this great game (business). That is why all of our syndicates are FREE of training related expenses. You may ask, how do you this when others do not? It's simple, we provide trainers a percentage of each horse we syndicate. Therefore like most successful business relationships, the trainer and owner of the racehorse are on the same compensation structure. It is our belief and experience that this makes the ultimate goal of winning races the collective goal.
We provide detailed monthly financial statements, which show each and every charge for veterinary work, shoeing, van transportation and all the other costs directly related to the care of the horse.
In addition to detailing the partnership expenses, the monthly financial reports will also have details on each start made by a horse: what the purse was, how much the trainer’s and jockey’s share was, and what other deductions the race track might have made from the purse. These reports will generally be distributed by email and posted on our website; partners without internet access can request a hard-copy.
In addition, you will get an IRS K-1/form 1065 (USA) or a T5 slip (Canada) for each partnership in which you have a share at the end of each year. These are usually ready no later than the end of February, so that you have plenty of time to include them in your personal tax return planning.
Here is a breakdown of anticipated monthly expenses for each 5% share owned; rates vary by jurisdiction.
Accounting: $10
Management: $15
Medical: (Vet, Vitamins, etc.) $32
Training: FREE (Savings of $135)
Blacksmith $8
Total Estimated Monthly Expenses $65
What kind of horses are being offered?
Most horses offered are horses of racing age that have started previously, however we also purchase previously unraced bloodstock. Our intent is to purchase horses that will run at the allowance or stakes level, however many of our purchases end up running at the claiming level. The key to our offerings is our investors do not incur the largest expense of owning a racehorse, which is training fees.
03
Do I need to be licensed?
Yes, each owner whether they own 5% or 40% need to be licensed by the racing commission in each jurisdiction we are racing in.
04
How do I earn money owning a racehorse?
Partners earn money from the horses purse earnings or if the horse is sold privately for a profit.
05
How often and when do I get paid?
Purses are received at our offices on the 1st of the following month and will be distributed to each team member on the 15th of that month. Typical fees are deducted by the track and commissions for the jockey, trainer and managing partner are also deducted.
06
How does Elevated Bloodstock management make money?
We charge a 5% management fee on all gross earnings of each horse we syndicate. We also receive 5% should the syndicated horse be sold privately or at auction. On top of this we charge a nominal monthly fee of $15 per share for overhead and expenses. Unlike other syndicates and partnerships who often have "hidden" fees and like to promote the fact they don't charge a managment fee, we believe in representing ourselves in the most transparent way possible.
07
Where will the horses race?
We operate syndicates in SoCal, NorCal, Arizona, Iowa, Texas, Louisiana, Alberta and Ontario. This strategy allows us a lot of options related to the talent level of the horse we are purchasing. Our goal is to provide our investors with the best possible route that allows them to see a return on their investment (ROI).
08
What are the benefits of owning racehorses as an Elevated Bloodstock partner?
As a licensed owner you will have the opportunity to watch morning workouts, tour the stable area and speak with the trainer and jockeys. You will also have free admission, paddock privileges and with a little luck...visit the winners circle.
09
10
How are partnerships concluded?
Partnerships are concluded in a variety of ways. At some point in their careers, many horses end up in claiming races. If a horse is claimed, the partnership is concluded. Though it is not the aim of Elevated Bloodstock to sell horses off the track, it is a possibility. Horses may also be sold privately or at auction at the conclusion of their racing career. At such time, all outstanding debts will be paid and the cash assets will be divided according to each member’s ownership interest.
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