Am I getting taken advantage of or is this a pretty good deal?
A friend of mine who makes his living by buying and selling horses just went to a sale and bought 15 new horses. He just moved and doesn’t have the best place to be working them all. So 3 of them are coming to my place for me to ride and sell. Our deal is that we split whatever the horse brings on top of what the horse cost. So for example there is a paint mare coming who is 5 and has had 30 days put on her. He bought her for $500. He wants to sell her for $1200 so id walk away with $350. We set time limits for each horse. Obviously with more riding this mares price will go up but im hoping to have her sold within 2-4 weeks. He pays for the feed at our place and the horses need their feet done and to be dewormed all on his bill.
Is this a pretty good deal?
The other 2 horses are really nice. Im interested in both of them so once I ride them I know ill end up with one of them staying at our place and we talked about me just working off (by riding other horses) whatever the cost of the horse is.
The way I'd do the math would be like this:
cost of horse $500
Farrier, feed, worming, &
That equals $600 minimum.
Advertise horse for $1,200 but take $1,000. That leaves you with $200.
Is it worth it to you to work a horse for a month or so for $200?
If so, it's a decent deal. If not, it isn't.
And get it in writing. Plus, he should keep all his receipts and show you, and vice versa. And bills of sale on the horses. It's too easy to say "I spent this much" and "the horse only brought this much" and then you are screwed. And don't say, "but I trust him..." because this goes two ways. If you have to spend more than you budgeted, he could question YOUR word as well. In God we trust, all others must show the paperwork.... the best way to keep a friend!
Alright, lets work out what ill make off the other 2 that are at home.
Bought the one mare for $5500. Lets say $5600 with farrier and worming. She will sell for no less that $7500 so im making $950.
The gelding was bought for $1900 so $2000 with farrier and worming. He will sell for $4500 so im making $1250.
I really think we could get more for the second horses. So after a months worth of work ill walk away with $2400
Remember you are going into winter. More folks looking to sell than buy.
The biggest worry would be how much they will actually sell for. They might sell for the amount, but a horse is only worth how much a buyer will pay, and if no one is looking for a horse likes yours then they won't sell.
If you are not spending money of food or agistment, and only your time, then maybe do it. The cheaper horse won't really be a profit in hours, but the others may be. But have a solid agreement with your friend and also discuss who is responsible for injuries.
How did he pick them up so cheaply if they can sell for much more?
Too risky for my blood. Like MLS said, horse buying season is over. No one is going to be wanting to spend a lot of money on a horse if they want to buy at all. With the cost of care as well as your time and labor, it just wouldn't be something I would be counting on making a profit from..
I agree with MLS & SD. As someone who has "flipped" a few horses over the years I find it hard to believe that you will be able to sell one for double what was paid by putting only 30 days on it.
You might be counting your chickens before they hatch, Id negotialte a flat fee for board and pasture and training of at least $300 a month. Let selling them be his problem. If he doesnt like that say thanks but no thanks.
I wonder how this turned out?
|All times are GMT -4. The time now is 05:05 PM.|
Powered by vBulletin® Version 3.8.8
Copyright ©2000 - 2016, vBulletin Solutions, Inc.
vBulletin Security provided by vBSecurity v2.2.2 (Pro) - vBulletin Mods & Addons Copyright © 2016 DragonByte Technologies Ltd.
User Alert System provided by Advanced User Tagging (Pro) - vBulletin Mods & Addons Copyright © 2016 DragonByte Technologies Ltd.