Buying a Racehorse? First, Answer These 5 Questions

The thundering hooves, the colorful silks, the cheering fans–the sights and sounds of race day are thrilling, especially as an owner of a racehorse on the track. There are many reasons you may be thinking about buying a thoroughbred racehorse. Maybe you want to get into the racehorse industry for the love of horses and the sport. You may already own a racehorse and are looking to build your thoroughbred racehorse portfolio. No matter what, anyone thinking about buying a thoroughbred racehorse will want to answer these five questions to help make the best decisions possible.

1. How Involved Do You Want to Be? 

At the start of your thoroughbred racehorse search, it’s important to answer this question first. How involved you want to be is a personal preference. Some horse owners buy a horse and only see it a few times each year during races. If this option sounds like the best one for you, then you have a wider selection of locations to buy and board your racehorse.

However, if you want to be more hands-on, consider buying a racehorse close to you. For example, here at Mill Ridge Farm in Lexington, Kentucky, as a racehorse nursery we offer 900 acres of pasture devoted to mares and foals, weanlings, and yearlings. Our relationships with our owners are deeply important to us, and we love sharing our expertise with new owners when it comes to buying and boarding thoroughbreds. 

You may want to buy a young horse and watch it grow up, or you may be more comfortable with a horse that is near racing age. Buying a thoroughbred racehorse that is nearing racing age means you will get to see your horse in action faster than if you buy a weanling or yearling.

Working with an experienced, ethical bloodstock agent will make the entire experience of buying a thoroughbred racehorse smoother. Bloodstock agents are trained in all aspects of the racing industry, and they are experts at delving into pedigrees. They can listen to your goals and make educated recommendations to you.

2. What Are Your Goals?

 It’s important to set realistic goals for yourself and your investment. What are your financial goals? To buy or sell prospective racehorses, or buy a horse to train and race? For example, buying low, holding, and reselling at a premium (a practice called pinhooking) is often a lucrative strategy in investing in thoroughbred racehorses.

Thoroughbred owners can make money buying and selling horses, as well as racing, but the opportunities don't stop there. Other investment opportunities include stallion shares, purchasing desirable broodmares, and selling their progeny.

You can also work with your bloodstock agent to determine when it’s the best time to buy or sell a racehorse. They understand the market and can determine the best value for your racehorse. Then they can help you find potential buyers and handle the behind-the-scenes tasks.

3. How Set Are You on a Particular Horse or Sire?

Just like fashion trends, it is easy to get swept up in the trends of the newest racing champions. You may think you must have the offspring of this year's Kentucky Derby winner, or a champion racehorse you keep hearing about. While that investment might pan out, it’s going to cost a lot on the front end. Justify, for example, the 2018 Triple Crown winner, currently has a stud fee approaching $200,000. 

Be careful when watching racehorse trends and remind yourself of your overall goals. The best thing you can do is work with a bloodstock agent to get the best buy for your money. Bloodstock agents have the experience you want and need when it comes to understanding bloodlines and pedigrees, finding the right horse for your budget, and having deep racing industry knowledge. 

A good bloodstock agent will tell you that the best winners are the ones nobody else saw coming. And talented, experienced, bloodstock agents are good at finding the needle in the haystack based on pedigree, the finest conformation for racing, and experience.

4. After Purchasing Your Thoroughbred Racehorse, What's Next?

You’ve worked with a bloodstock agent, identified your goals, and bought your thoroughbred racehorse. Now what? You need to find the best place to bring up your racehorse to meet its full potential, and that can be a tall order.

There are many legendary boarding facilities out there, some that specialize in mares, foals and weanlings. Others focus on training. They all have their own unique approach, methods, and philosophy when it comes to raising and boarding thoroughbreds. When you start looking for the right place to board, raise, and train your racehorse, ask yourself:

• Which one fits you best?

• Which one has the greatest record of success?

• Do your philosophies align when it comes to raising and boarding?

• How do the horses at the facility look?

Before buying a racehorse, think through the whole process of ownership, including the care, boarding, and upkeep. With the guidance of your bloodstock agent, you can determine the best facilities for your horse as they grow. 

5. What If Your Racehorse Isn’t a Champion? 

This is an important question to ask yourself: how will you feel about your investments if they don’t turn out to be champions? Very few racehorses become champions, so if your reason for getting into racehorse ownership is to win the Kentucky Derby, then you might not be ready to buy a horse. 

According to ESPN, “the odds of owning a horse who races in the Kentucky Derby are pretty slim. All Derby horses are 3-year-olds, meaning each horse has just one chance in its lifetime to race the Kentucky Derby. According to the Churchill Downs communications department, approximately 26,000 thoroughbreds were foaled in the United States in 2010. Just 1.4 percent (369) of those horses were nominated to the Triple Crown, and only 20 will race on Saturday in the 139th Kentucky Derby.”

Remember, Triple Crown races aren’t the only races in town. Graded stakes races come in four levels, ranging from Listed at the bottom to Grade 1 at the top. Give your horse the best start and find races where your horse has good chances of succeeding.

Even if your horse isn’t a champion, your horse could produce offspring that are, making breeding an excellent option. Both broodmares and studs are often used for breeding purposes after their racing careers have ended. Going this route can help you see a larger return on your investment over time as well.

Buying, Training, Owning, and Beyond

The rolling hills of Mill Ridge Farm are always dotted with thoroughbreds at various stages of development. Some are foals with their mothers, some are yearlings running with the herd, and some are two-year-olds preparing to leave for a training facility. These horses get to spend the majority of their time eating, racing each other through pastures, and enjoying the company of other thoroughbreds that are their same age.

Here at Mill Ridge, we work hard to make life on the farm the best it can be for the horses. Happy horses tend to race better, and every detail at Mill Ridge is thoughtfully curated to meet the needs of the horses who reside there.

The bloodstock agents of Nicoma, the buying arm of Mill Ridge, have taken horses and owners to the winner’s circle for decades. They have the industry experience and integrity that make them stand out in the racing industry. Don’t settle for less than the best fit for you and learn more about how the Mill Ridge Farm team puts the horse first to help you meet your goals.

If you’d like to begin a conversation with a bloodstock agent at Nicoma Bloodstock about potentially owning your own piece of thoroughbred racing history, contact us today at (859) 224-1000.