Straight Talk About Choosing a Horseracing Partnership
After dreaming for years about having a racehorse of your own, you jump straight into a horseracing partnership in order to fulfill that dream. Problems can occur when this happens because you don’t know how to tell a good investment opportunity from a bad one. Before diving into horseracing investments, take some time to investigate the options that are available to you to make sure you invest in the right one for your financial needs.
Things you should consider about a horseracing partnership and questions you should ask include:
* Is this an investment you can really afford? Do you know what the maintenance costs will be? Do you have the financial position to allow you to buy your initial share in the horseracing partnership and then to pay the monthly expense fees? These are often required to be paid in advance.
* Which business structure type will you need and which will give you the best protection? How will the partnership’s business structure have an effect on your liability and tax issues? What documents will you be receiving when it’s tax time?
* Does the management team of the horseracing partnership have a clean record? How helpful are the staff members? Are they accommodating? Can you have a direct audience with the managing partner?
* How will the management team account for income and expenses? Will you get periodic updates? Will you have access to view records? How often are purse winnings paid out?
* Where will the partnership get the horses? Does the price of the shares reflect closely on the purchase price of the horse?
* Do you know who you are going into business with? Are references from other partners available for your review?
* How are decisions affecting the racing partnership made? Does the managing partner make the decisions? Do all the partners vote? Are there periodic meetings for the partners to discuss issues and get progress reports?
* How much contact will you have with your horse?
* What benefits are available to you by joining a particular horseracing partnership?
* Can you get out of the partnership? What are the procedures for transferring your shares? What happens when it is time to retire the horse?
There are many factors to consider prior to joining a horseracing partnership. If you feel overwhelmed or unsure, it is best to consult the services of an advisor, attorney, accountant, or a combination thereof for assistance. You may also consider seeking advice from experienced owners, most of whom will talk openly to you regarding the industry if they feel you are serious about becoming an owner.