I voted for my TOP amount, but most of my resales have been much lower than that (think $400-500 range).
In this economy, you can get "prospects" that haven't done anything for a song. However, I also don't fool myself into thinking that a $400 initial investment horse will turn into a $20,000 horse with a little training and conditioning. Does it happen? Sure, we hear the Cinderella stories. Is it common? Notsomuch.
If I wanted to sell in a higher price bracket, I'd spend more to get a higher quality horse in the first place.
What exactly do you mean by "resale project"? Are you talking about buying grade horses and/or OTTB? Or are you talking about how much would you invest in a sales horse in general?
From time to time I'll buy QHs or grade horses to market for the schooling circuit... I typically don't spend more than $2k and a lot of times its a lot less. But with that said, I think higher quality horses are much better investments- this isn't to say that you can't find AA circuit horses in someones backyard but in general its better to invest a little more and get more quality. I always get more sales inquiries about my horses who are priced over $20k than those that are priced under $5k- even in this economy, go figure!
ETA: for warmbloods I usually spend low 5 figures for a nice young prospect.
Last edited by hntrjmprpro45; Feb. 20, 2011 at 10:12 PM.
What people will spend depends on how much they can spare or risk at the time, and how much they estimate the horse will be worth when they've put their particular skills (whatever they might be, training, polishing, show exposure, wide range marketing) into it. For someone, that might mean finding a 100k horse that they feel they can make into a 500k horse. For someone else, finding a $500 horse that they can make into a $5000 horse. It's about profit realized in relation to expense.
I'm not sure a poll framed in the current way is going to provide any usable information. My answer is that I'd like to spend as little as possible on a horse that's going to make me a lot of money , but I couldn't tell you what that number is until I see the correct horse: one that I know I personally could benefit, that would be marketable and profitable at a high percentage increase over its purchase fee.
This is such an open ended question. I mean I will pay more for a nice registered WB prospect than a "grade" horse, or an OTTB generally speaking. As I pretty much sell horses in the $25K and under range, I think the most I have paid for a resale prospect was in the $5K range. GEnerally that would be a horse that may take a year (or even more) to get resold. But I have paid well under $1K for some nice prospects, one that we bought for $800 and sold two years later, after lots of training for $18K
Spending runs the gamit depending on what I find and what I think it will be worth later. I have purchased in the under $500 range occasionally for horses I felt would become either good lesson horses,first horses or county horses selling for around 10K (after training and show miles usually) I have also bought resale projects for around 10K intending them to go onto be "A" horses and thus resell later for alot more.
Sometimes the $500 horse does the "A" circuit after all and sometimes the $10K+ horse ends up in lessons.. Alot can happen between the first check and the last one.
I am aware that there are tons of inexpensive projects available in the current economy. I am just not buying too many (green) ones..it will take something a little special to get me to whip out the check book anytime soon.
A year or more on a resale project for sale ? ? ? ? ? OUCH ! I would pull it off the market and lease ( for a fee) it long before then..
I thought a year was pretty standard. I usually buy mine in the fall, put a winter on them of training & then show the next year. Without the year of showing; it's just not worth it IMO as you can't get the $$$ for them.
I've been lucky a few times to buy in the spring & sell in the fall but those ones already had some under saddle training.
\"Don\'t go throwing effort after foolishness\" >>>Spur, Man From Snowy River
We have bought resale horses for as little as a $1 and up to 5K. Most will have at least 60 days put on them. That way I can truly assess them and what kind of buyer they are suited for. We kept a pony for a couple of years. My daughter showed him and brought him along and then we sold him. It depends on the quality of the prospect. If it is really nice I would rather bring it along in our program and then market it. If the right buyer comes along in the mean time then I cross that bridge when I get to it. I don't think a year is too long. If you are able to do the training yourself and own your own farm, it can be done a lot more cost effective. We have found the lease market for packer type large ponies is huge right now. We don't have nearly enough for the need. So we are always looking for those that may need a tune up and then prefer to lease them as apposed to selling them
Hope that helps.
A year or more is perfectly normal. Unless you just happen to buy the steal of the year and can immediately re-market the horse for more, but that is the true needle in a haystack as most people have an inflated view of their own horse.
I import ponies that are either unbroke or just broke and then resell after or during green year (hopefully). That's about a 2-3 yr turnover.
Resale project price depends on a- what am I actually getting for the money and b- what is it's potential and C- who will be my future market and lastly d- what did I have available to spend on that resale project at the time. never spend more on a project than I can afford to throw down the toilet just in case it all goes south for some unforseen reason
" It's about the horse, and that's it."
WE have horses that we resell quickly ( a few months) and then ones that take longer. I do not mind spending two years to make $17K+!! Usually these are "young stock" that we buy as yearling - three year olds that are not started and are NICE prospects. I sell them MUCH less expensively than other trainers and they are quality "A" prospects. They are "for sale" at any time, but a lot of times we don't advertise them much until they are "worth" a good asking price. I don't "flip" a lot of horses. A few "made" horses that I buy here and there, but most of mine tend to be longer term projects that I can stand behind. I don't have to board, as I own my own farm, so my costs are much less than a person who buys and has to pay board. We do most of our own training, sometimes will send one out to get first 30 days on it, if I am too busy to do it myself (clients come first!) but rarely have a lot of costs in them. We do them at a few local or "C" shows, we don't show at the "A"s.
I think how much you put into a resale depends on what you want to re-sell it as and how quickly you want to re-sell it. For me, the ranges are too low but I buy already broke ponies that just need finishing to sell as A circuit hunters so unless I find someone who has no idea how nice their pony could be, I'm going to be paying more than 2k because that person knows their pony will be A circuit quality with work and miles. I don't own my own place so I don't like to buy too young because then I end up investing a lot of money into them over time with board. I usually look for w/t/c, started o/f, and started on changes. My max is 10k, but I prefer to stay at 7500 or less.
The most I've ever paid for one of mine is 1k. However I live very close to the track and I race horses myself so I have an "in."
I deal completely with OTTBs. Since the market here is very low I usually resell within 4-6 weeks and double my money. My costs are low (hubby is a farrier and we have tons of turn out) so the most mine tend to sell for is 2500-3k. I have had some that I spend a little more time with but really the best ones come here, have some let down time, a few rides and sell cheap...but still put a little cushion in my bank account. I only do one horse at a time and the profits go right into my "horse care" account for my personal horse.
I usually buy for up to $1,000 for resale, but most of my horses I market to the low to mid level rider and pony clubber and they sell for usually $4000-$7,000. I also try to sell within 5 months of having the resale horse. Though my latest one I spent about $2,000 on with shipping as I also liked her for a project for myself.