Quote:
Originally Posted by freddymo
I wonder how high RNA's will be.. Lots of high opinions and extremely high starting points. You buy a yearling for 600k and put 150k in training vetting and etc. into them do you sell that type for less then 1.2?
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As others have said, the expenses are more like $20,000-$25,000. With regard to how much money the sellers will want for the horse, that just depends on the seller. Some sellers do not race and they will sell no matter what. They are willing to take losses on horses. There are other sellers that refuse to take a loss and if they don't make at least x amount of dollars profit, they won't sell. There was one east coast guy (he was an owner, not a consignor) a few years back who would only sell if he made an astronomical profit. He would buy a horse for $150,000 and then he would put a $700,000 reserve on the horse. It was absurd. None of his horses would ever sell.
Even though training and vet bills are typically only around $20,000, there are other expenses. The sales company gets 5% and the consignor gets 5%. So if you buy a yearling for $100,000, your breakeven number is probably around $135,000. It may be even higher if you paid the consignor a commission when you bought the horse.