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ButtInTheDirt 12-04-2011 11:29 AM

Is it possible to make money buying young horses, training and then selling them?
 
I would not do this myself, but I was wondering if anyone actually turned much of a prophit doing that? There are always a lot of decent foals for sale around here for $300-500 dollars. (It is hilarious because these breeders produce their 5 foals a year and make absolutely no money off of it and keep breeding.) I see a lot of Quarter horse foals that are well built and people are just looking to get rid of them. Then theres a few arabs and arab crosses selling for even less.

Is it a realistic thing to do? If you really trained the horse getting it greenbroke and maybe taking it to a show or two what value would that really add on it? I would like to know other people's personal experience with this type of buisness.

natisha 12-04-2011 11:38 AM

Quote:

Originally Posted by ButtInTheDirt (Post 1253742)
I would not do this myself, but I was wondering if anyone actually turned much of a prophit doing that? There are always a lot of decent foals for sale around here for $300-500 dollars. (It is hilarious because these breeders produce their 5 foals a year and make absolutely no money off of it and keep breeding.) I see a lot of Quarter horse foals that are well built and people are just looking to get rid of them. Then theres a few arabs and arab crosses selling for even less.

Is it a realistic thing to do? If you really trained the horse getting it greenbroke and maybe taking it to a show or two what value would that really add on it? I would like to know other people's personal experience with this type of buisness.

In this economy that is a risky business. Really high end quality horses are having a hard time selling though the really nice ones still have a market but not like it used to be.
Then you have to figure the costs of raising it to full training age etc.
Well trained young horses are out there for sale cheap already.

FreeDestiny 12-04-2011 11:43 AM

A lot of people have what you explained as a career! Trainers do make a profit but, it does depend on how THEIR work was done. If the horse was taught the jyst of things but does really understand a barrel pattern, or doesn't stand for saddling etc. the resale value would be less than a horse trained to have almost no flaws.

Of course, you're not going to get back payouts of 20k, but buying a 3yr old for 300-500, and selling it a year later for 5000, does bring some profit.

Bringing the horse you train to shows will increase the popularity and get yours and the horses name out there, therefore increasing your business.

And also, some people send their horses to trusted trainers, or have said trainers come out to their barn to train their horse, and so the trainer isn't paying for the upkeep of the horse, they're solely making money by correcting the horses flaws and weaknesses for the inexperienced or the owner who has tried but can't overcome a certain problem (rearing, bucking, biting etc.)

Seems like I rambled a bit! Sorry! :)
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maura 12-04-2011 11:55 AM

Yes, it's possible, but extremely difficult in today's horse economy.

Here's a few more parts of the business equation that you need to consider: you need to add the maximum amount of value to the horse in the shortest amount of time to make this work. So buying foals or yearlings doesn't make sense, because you have the expense of keeping them for years before you can do anything to add value. Buying unbroken 3 or 4 year olds is a much better proposition because you can really change their value propostion in a year.

However, a common mistake people make is overestimating how much value greenbreaking adds. If you take a horse from just halter broke to w/t/c both directions of the arena, trail ride, etc., you have only added a certain amount of value. Unless your colt has extraordinary potential in a discipline (in which case you'd have more money in the unbroken 3 year old) you've taken a $500 - $1500 horse and turned it into a $2500 - 3500.00 horse and you'll have close to that much money in expenses in him to get him there.

The real additions to a horse's value comes in *finishing* it in a discipline, and that's simply beyond the reach of most amateur horsepeople. It also requires a certain amount of performance or show miles, and they cost time and money to put on a horse.

I managed to do it successfully quite a few times when the horse market was better and when I was running a busy barn where I could always throw a greenie on an empty spot in the trailer to take somewhere with clients and get cheap mileage on it. I couldn't do it now, because I don't have the facility or set up, and frankly, the market's so risky.

Joe4d 12-04-2011 12:35 PM

If you have land with decent grass already and the facilities to keep your expenses down. Id look for older horses with issues, or rescues that you can get nearly free. If you get a good eye there are alot of decent rescue horses out there that only need food, DO some finishing work with them a few basic shows, events, trail rides or what not. Get them acting sane and more suited for a beginner to low level intermediate rider and flip them. If you have a good eye, you could take a free horse, put $100 of supplies and food in him, a month or two of training and come out with a $1000 horse. COurse you could also end up with a nutcase and have a $0 horse.
Either way I think you are better off getting 4-8 yo's

COWCHICK77 12-04-2011 01:15 PM

Just want to add, and this may not be true in other areas, is that the price of horses of about $3500-$9000 is the hardest to sell. Most people want a cheaper horse play with and the other majority are people who show or compete and their price range is considerably higher. The horses in the middle either aren't up to "showhorse" standards or the people who just want a horse in the backyard don't want to pay that much.

I am just generalizing here, but I notice these are the ones that either for sale for quite some time or the owner ends up dropping the price considerably.

Cherie 12-04-2011 01:38 PM

There are too many 'ifs' to give an answer.

NO! You cannot buy weanlings, yearlings or 2 year olds because you can buy 3 year olds and older (more ready to go to work and more marketable) for less than you can raise them.

NO! if you do not have the skill and knowledge to 'finish' a horse. Prospects, 'well started' and 'green broke' horses are a dime a dozen.

There is a HUGE market for any horse that is ready to go and do a job. I do not care if it is a team roping horse for a #1 or #2 roper, a Ranch Sorting horse, an Equitation horse, or a SOLID trail horse. It can even be a SOLID backyard horse that is safe and can be taken on a trail ride or go to a 4-H program or ????? If it is SOLID, SAFE, has no holes in its training and is pretty much 'Dummy proof', there is a market for it.

If it is 'almost' finished, or ---
OK BUT you have to longe or round pen it before you ride it ---
If it is OK BUT it does not load very well ---
Or he is OK BUT it does not get along well with other horses ---
Or he OK BUT hates dogs and isn't very good around little kids ---
A horse has to stand for shoeing, clipping, mounting, blanketing, bathing, saddleing, etc.

Are you getting my point? If there are any 'BUTS' forget making any money on a horse.

What we have found is that knowledgeable horse people are not buying horses -- The so-called Dummies are. (Not really 'dummies' but they are people that are a LONG way from being professionals and do not want to deal with problems.) These are Doctors, lawyers, bankers, business men -- people with 'day jobs', people that make good money and are people that want to keep their wife and kids safe.

What we call a 'Dummy-proof' horse is one that you can hand the lead-rope to someone and tell them to go have a good ride. It is a horse that does not come with a 'list'. If a horse has a list of instructions or 'don'ts' that come with it, you cannot give it away in today's market.

TexasBlaze 12-04-2011 01:51 PM

You have to train them to do something worthwhile. I take racehorses of the track and retrain them to jump. Free registered well conformed plus No waiting for them to mature and be breakable. Plus theyve already been backed and worked with. Then you retrain them to jump or do dressage. There is still a bit of profit in these types of horses so i do make a bit of money from it.

maura 12-04-2011 02:00 PM

Cherie,

I wanted to like your post several more times but it wouldn't let me.

bubba13 12-04-2011 03:08 PM

You cannot get rich doing it, but you can turn a little profit. It's been a few years since I was involved in any kind of flipping, but I used to do a tiny bit on the side, going in with a horse trader on horses he had. Bought a cute pony for $1200 and sold him a couple months later for $2500. This was before the market crash, too, but I don't think things would be all that different now. Some people are still searching for good-looking, well-broke horses....but let me tell you, when I was shopping for one 2.5 years ago, they were in very short supply.


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