In my opinion, if you are trying to buy and sell horses to make a profit (or at least break even) you need to:
1) Only deal with registered horses. I'm not say that grade horses can't pull their weight, but when it comes to resale value, registered is worth more.
2) Problem horses will always have that problem. Yes, you can train it out of them. But if you sell to a rider that doesn't understand that, the problem will come back. And word of mouth is very, very important.
When I graduated from high school about 8 years ago, I trained horses for 2 summers for something extra to do, while I helped my parents on the farm/ranch. I might have done about 8 horses for people, or so.
But during that time, I also purchased 3 horses to train, and then sell.
One was a 2-yr-old I bought at an auction. Bred exceptionally well, put together perfect (although a little small), had only had the saddle laid on her back "supposedly". Bought her for $300. Ended up the sellers lied to me, she'd already been to the trainers, and the trainer kept getting bucked off. I ended up cutting my losses on her, and resold her (thankfully) for $300 to a lady who was 100% aware of her background, but wanted to take a shot at it anyway. So that one didn't pan out.
Another was a 2-yr-old I bought sight unseen. Bred decent, put together okay, but literally nothing more than barely halter broke. Bought her for $700. And the first week, I thought I had made a terrible mistake, because I could barely halter her in the corral she fought me so much with it. Then all of a sudden after that hell week, we "clicked." And she was one of my most favorite horses I ever worked with. Nothing spooked her. She had the sweetest and friendliest personality. And the absolute SMOOTHEST trot and lope you could ask for. I placed well in western pleasure with her at local shows, and I know very little about training for western pleasure. She was just a natural. For some reason, it took a long time to sell her, but I believe she was a late 3-yr-old when I finally sold her for $1,800. So a decent turn around, but I also had her for well over a year.
And the last horse I purchased was a beautiful big boned quarter horse, 5 years old. It was a court-ordered divorce case so I didn't get a great background on her, but she supposedly was never trained to ride. We paid $800 for her, as we also bought a horse for my mother who was a 3/4 sister (broke to ride and older). To this day, I wish I would have been able to keep her. She was one of those horses. She must have had training in the past, because within only 30 days of riding, I had her doing flying lead changes, neck reining, cattle sorting, loping the barrels, and just about anything you would do on an older seasoned horse ... no one could believe she was only 5. Pleasant minded, smart, and fun to ride. I eventually sold her a couple months later for a barrel/roping prospect and I got $2,800 for her. And she was worth every single penny, if not more.
So out of the 3 horses I bought to train and re-sell for a profit, one was a lemon. One was "okay" (mostly because it took so long to find a buyer). And one was an exceptional turnaround.
Goes to show how up-and-down doing that is. There is certainly no guarantee you'll break even. But the bottom line is that you have to start with a good quality horse to expect to get a decent price.
Plus, this was 8 years ago or so I did this. The market has gotten far worse since then. It's really hard to get a good price for a horse, unless they've got some sort of world caliber appeal. I would really not be apt to get into that business now, of trying to buy and sell for profit. It would be awful hard to break even.
∞•*˚ Βгįťţαňγ ˚*•∞
It is not enough to know how to ride; one must know how to fall.