myracehorse.com

Questions and postings about buying and selling Thoroughbreds.

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Toccet02
Leading Sire
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Joined: Thu Jul 13, 2006 11:00 am
Location: New York City

myracehorse.com

Postby Toccet02 » Sun Jul 26, 2020 10:10 am

Hi guys; long time no chat!

Hope you all are well...
I am asking for a friend (no; literally; I wouldn't go with them) who is interested in the above, as a gift for her granddaughter.
She knows I've owned so she asked for my advice.
I would be wary of myracehorse.com, especially as they seem to mainstream and geared towards those who know nothing about the sport.
But I thought I'd toss out a query to anyone here who might know any good or bad about them as a company, client, or skeptic.

Many thanks!
All shouting does is make you lose your voice.
----Arrested Development

Tappiano
Grade II Winner
Posts: 1349
Joined: Sat Jan 20, 2007 5:28 pm

Re: myracehorse.com

Postby Tappiano » Sun Jul 26, 2020 11:30 am

They are transparent and list all the fees up front.
They charge a commission on the "appraised" value of the horse so while they might have paid 50K, they will charge a commission on the 150K or so that the horse is valued at. They are trying to mitigate their loss at the buyers expense so yeah it's targeted towards those who just want the experience.
They actually treat it like you are investing in a mutual fund and get approval from the SEC for the listing.

They own 12.5% of Authentic, here's how they value him.

Current horse value: $15,153,750
MRH stake: 12.5%/$1,894,218.75


Total Offering: $2,575,000
Share price: $206/share
Total Shares: 12500

PER SHARE PRICE BREAKDOWN
Horse value: $152
Acquisition Costs: $2 - Includes Vet Check, Transportation. and Sales Tax
Prepaid Expenses: $22 - Includes 6 Months Prepaid Training, Admin, 2 Years Mortality Insurance, First Year Stallion Insurance, and Projected Starter Fees for Upcoming Races
Management Fee: $30
So they want 375,000 as a management fee, 275,000 for expenses (the horse goes to stud next year)
Sounds like a good deal for them if they can sell all the shares.

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Joltman
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Re: myracehorse.com

Postby Joltman » Sun Jul 26, 2020 1:57 pm

There are a LOT of partnerships out there like that now. Churchill Downs has one. Many simply say 'don't be in it to make money'. And as noted above you won't unless you get a Derby or BC Classic winner. Fees way too high. But then it's the fine print that always gets you. I do have a contact to one or two that I've given some consideration too - all depends what the buyer is looking for. But it's always, buyer beware.

jm
Run the race - the one that's really worth winning.