Hey there, just have a few questions. My brother and I want to invest in a barrel horse for resale. He is 100% not a horse guy, while I do have horse experience. Forgive me if I sound like a total idiot here.

We have no idea what investing looks like, but our goal is to find a 2yo or 3yo, send to a trainer to get started and bring along, race, and then sell later. We are expecting the horse would be out of state, possibly TX/OK, since there isn't much going on here in St. Louis. 

Just a few questions to start:

1. For a great 2yo/3yo prospect, what price range would you expect to stay in? We know pricing will range based on several factors, but want to hear opinions.

2. Where would you start? We'd like to find a trainer first, and then a horse. Is this realistic? Do trainers normally help people look for investments? 

3. Do people typically purchase for resale out of state? 

Any other info you can think of would be great. 

Horse = Worst investment ever in the history of mankind and even before mankind back when all that existed was ameba's and it was still the worst investment ever. 

if you are dead set on losing money send the $$ to me and I wlll come to where ever you are and punch you in the face. 

the outcome wll be the same and it should be cheaper 

Wow, you're a genius.

Again, if anyone has some real information pertaining to the post, I'd be happy to hear it. 

I just started down this road - I have bought two prospects. The 3 year old was sent last year and this spring, she didn't make the cut. So I now have her at home and she needs more training (read-more money). My second if just off being broke as a two year old so I don't know how this one will turn out. 
I spent an average of about 10k on the prospects. I could not sell the 3 year old for any more than her initial cost. So the 6 months of professional training would be a wash if I were to sell her now. 
I enjoy doing it, and will continue because it's exciting for me. But if you're in it to make a profit, I think the odds are slim to none. 

Oh....I bought the first horse and THEN found a trainer. The second horse, this trainer was a HUGE help for finding it. 
Both of mine were purchased out of state - sight unseen and shipped to me. Moving forward, it will be horses we've bred ourselves. We bought two broodmares that we loved, and are breeding to stallions that we think will make a stellar prospect. 

That was good advice. Could have been said different for sure, but still sound advice. 

Theres alot to think about when wanting to invest in a horse, but really I think the only way that you could make money is doing all the training yourself. You would have to find a filly/colt out of a nice stallion thats got a name behind himself to get started and thats not going to be cheap, vets cost and pray that nothing happens to your investment along the way, we all know these babys are always looking for a way to hurt/kill themselves I have had a few friends buy babys off the track and start from the ground up to try to make a few bucks off them, but its really just a hobby and like I said fingers cross if nothing gos wrong.. Good Luck

If you dont know any trainers and want to invest in a horse to be trained for barrels to make money on its going to be a crap-shoot..

There are several top notch futurist players in Louisiana and Texas. Most likely they would jump at a chance to help you pick out a prospect because each has his or her bloodline or favproturning style or whatever. Some like only big horses while some like small horses. They know who matures early and who late and who not at all. It sounds super exciting. I can imagine the feel of one of mine winning a slot race! ?? Keep me informed of your journey. I can live through this adventure virtually. On Facebook, I'm Sandra Maddry.

That's what we are hoping for - to find a nice futurist trainer who would basically buy on our behalf. Thanks for the info Sandra!

I wish you nothing but the best!  However make sure that you go into it with your eyes WIDE open.  The initial cost of the horse will probably be the cheapest part of the journey.  You will be paying the trainer monthly fee's of at least $750 (I think) plus all vet and shoing expenses.  Then when they start to haul the horse you will be paying fuel and fee's.  If you are wanting to go into the futurity world those fee's aren't cheap and I believe some you start paying on before you ever know for sure about the horse being ready.  It is an expensive game.  

Are you sure that your brother will be in it for the long haul since he knows nothing about the horse world.  I'd hate for him to think that he was going to turn his money quickly only to find out that it is a few years down the road if ever then leave you hanging with all the expenses.

Like I said before I wish you the best but do your homework

Thank you for your info! We expect to be in on a horse for at least a year. We know it won't be a quick flip. We are prepared for the expenses of training and care, god willing the horse doesn't try to kill itself lol. 

I'm in Ok and 750.00 is cheap for a futurtity trainer!  I have a friend that sends horses to trainers.  Even trainers that doesnt have their name out there is not that cheap in our area. 

The futurity world is way to rich for my blood! but love to watch them babies! and the trainers!

This changes things. No way you can flip in a year and make money. Might as well go to the casino as the odds would be the same. You need to commit to at least two years.

Most futurity trainers want the horse as an early three-year-old at the latest and if you are going to run them they cannot run them until December at the earliest of their three-year-old year until December of their four year old year. I wish you luck! 

If you want to futurity a young horse you better have a really big pocket book. Alot of young horses can't handle the pressure of being a futurity horse, theres alot of rejects. And if you'ur wanting to flip a futurity horse within a year You would be better off fliping houses,cars,boats. Horses are not a quick flip in the barrel world, as we all know.. 

Probably the riskiest investment you could make.  Kind of like a kid going to Hollywood in hopes of making it big. 

Not trying to be Debbie Downer here.  I've just been in this a long, long time. I still raise a few babies, and hope they'll sell and do well, but I do this because it's what I love. 

You are looking at more like 3 years to turn a horse for profit.  I know the price per month that I stated was on the low side, you will probably be spending closer to $1500 per month on all the training and expenses.  Figure your initial purchase prices  plus $54,000 ($1500 x 36 months) you would have to win the big futurities and sell really high to make money.

I don't see how any honest/ethical  trainer  could lead you down "the investment " road. You'll pay too much for a top prospect, you'll pay a minimum of $1000 per month (minimum), your horse will have to place in the top 5 of several futurities to earn some money back and be marketable for a premium price that might make money. If he stays sound and you keep him an extra year or two but he's still average you'll lose even more money.
If you'd like to get an idea of budget , start with watching the Copper Springs sale today and the Myers sale in a couple weeks. When you have $30 - 50k In a nice prospect you're going to invest probably that much again in training and hauling. Now look at the futurity earnings stats in Barrel Horse News and see how many horses earn that kind of money in their Futurity year. Futurities are your biggest opportunity for ROI so that's why I used them for earnings stats reference. 

This is real talk from someone that's been in the business for a long time. I know it's not positive but I know you didn't come here for a bunch of fluff ;-)

Not here for fluff - I appreciate all the honesty! Thank you guys!

so you're saying I was right? 

Liana D. is on of the top notch trainers and upstanding person.  You'd do well to listen to her.

For once, I have to agree with him ..... horses are not a good investment unless you are into it big time and can absorb the losses. Too many things can go wrong ..... doesn't take to training.... gets sick....gets injured ..... competition is tough and you had better have the skills and drive as the rider to put the work in to win ... 

I partnered on horses back in the day with my best friend. We had the business together and worked with a CPA to assure we did everything right..... but instead of barrel horses, we invested in Hunter prospects because we could get a quick and better return.  My friend did the riding/showing and together we trained them. We made money BUT we were not burdened with big trainng bills since we did the training.  It can be exhilarating and fabulous or you can be in the pit of depression. Anything dealing with horses is risky.  My friend and I had a great time while we were partnering on horses -- and made fabulous memories of the shows and accomplishments and the ups and downs. The first World Championship was INCREDIBLE and worth every dime.  We won many more. Just go in with your eyes open and a good CPA.  

I pay about $1000 a month and my trainer and I are good friends. She has to make a living training. I pay mileage when she goes to exhibition and any fees for the exhibitions. I pay entry fees and she gets a part of what the horse wins. Entry fees for some of the larger futurities is $750 to $1000. I pay for her travel parking space and stall. If she has other people's horses then some cost are split. When we went to the AQHA World Show, entry fees, travel, stalls, parking place ended up costing close to $1000. There isn't a big payout at that world show and none at any other.   If your horse does win a lot of money in futurities they are not going to sell for the amount of money you have invested in training. One other thing. These top trainers usually only take a certain number of horses at one time and you usually have to get on a waiting list. My trainer knows what I have when they are born so she has a spot for mine. They good trainers ride a lot of horses and will usually let you know in a couple of months if the horse has potential or not. I had one horse my trainer told me to get rid of because she couldn't remember stuff from day to day. Between getting her broke and her short stay at the barrel trainer I had $4200 in training in her. No way I could get that. 

You will be farther ahead to buy cheap horses to clean up and train to flip.

You need to learn to swim in this business first. 

Agree 100%

Head on down to the casino and punch a few buttons. The odds are about the same.  It will take a lot less time and effort and you will be in a climate controlled enviornment.

You're an idiot 

Just wanted to point that out for folks 

I am now a bonified casino rat and find it much more fun than trying to find shade at a 100 degree barrel race while I wait and wait and wait and wait.

if you do not have any experence 1d gave you great advice  . even the best get screwed or just   run go get a house to flip buy good stocks  this is not a good idea

Thanks for all the feedback guys! I appreciate it.

You are getting alot of negative,  its basically if you love the sport!  My friend always wanted to do futurities  She raised her own colt and got it broke and horse lived at the Trainers almost a year.  She placed or won almost everything she was entered in.  They broke even.  But she loves it that now she got 2 more that she fixing to send to 2 different trainers. 

That mare won alot! and she was amazing.  That doesnt happen very often! especially to first timers in futurity newbie!  So it can happen but even tho she won so much it took alot to be there! And she did get sick and had to sit out for awhile. 

It was really fun and stressful to watch my best friends lol! But it is so neat to see when they are a baby and what they become! 

There is also alot of heartbreak too.  The full sister to the mare that did so well , they lost her at just a couple months old in a freak accident.

So you just never know what will happen!  Whatever you decide let it be your decision   if It was easy it wouldnt be worth it!  There is worse things you could gamble with your money! lol  I would much rather gamble on a horse than at the casino!  I work at one! so I DO NOT give my money to the machines! lol

Good luvk and if I was a betting person I bet you all try at least once! lolol

I'm with Liana D and 1DSoon... 

There are so many variables, so much that can go wrong... injuries, bone defects, training issues, like... the list goes on and on. I would only spend as much money as you are willing to lose and not bat an eye at. Because you can easily lose it all even when everything is done right.  IF you have that one horse that is a winner, you may sell it and make money. But, it may cripple itself before anyone asks to buy it. And then you're back to nothing. Or you may turn down offer X thinking in another 3 months you can get even more, and then they crippled themselves. 

To buy a top end prospect that would sell well.. you're probably looking to drop $25,000 on a 2YO-3YO easily.  If not more. And then, you'll invest a year of training at around $1000 a month. Another $12,000. Then you will have to pay him into all the futurities, because local doesnt go very far. Then, they have to actually win... You'll need insurance, which is probably $600-1200+, vet bills... lord its a money pit. 

Oh and you better do a full PPE before you buy the prospect because if you don't and he's got an OCD, have fun selling it for top dollar due to the risk. That would probbaly cost you $1000-1500 for a thorough exam. 

On price, for a solid 2- or 3-year-old prospect, I’d say plan on spending at least $10-15k, though it varies depending on bloodline and potential.
Honestly, a lot of people go into horse investing more as a hobby than a guaranteed moneymaker, kind of like day trading. The reality is, even for pros, it’s not easy to make steady profits here. If you’re in it more for the business side, platforms like blackeaglefg.com are worth a look—they focus on structured investments, so they’re built around managing risk and getting a solid return.

Horses are not an investment. They are for enjoyment, IMO. They are like buying a lottery ticket, in terms of an investment, only much more expensive,  time consuming,  & much harder on the joints. Would I suggest buying a horse? Sure, if you have the extra money AND the time to spend on them. The saying "If you want to make a million on horses, you need to start with 2 million", is even more relevant today than it was when the saying started.

My investment portfolio NEVER listed my horses. I took the tax benefits to help cover the losses, but my financial portfolio has definitely done better, multifold, than my "investments" in horses. The portfolio couldn't give me the great experiences I had with my horse, so I am glad I had the ability to enjoy them, plus put money into more realistic,  consistent investment plan that is based on compounding interest. 

Bankruptcy starter kit........buy a horse....