Click here to view our Partnership Contract >>
How is the money handled?
How much should I invest?
I'm interested, what's the next step?
How are insurance and taxes handled?
Are partnership horses all ready to run?
After I invest, what should I expect?

Do you charge a management fee?

No.   We have never charged a fee for managing the partnerships associated with GRS, Inc.

How is GRS, Inc. compensated?

We are compensated in several ways:  (1) mark up on horses prior to a syndication; (2) 5 percent of sales commission when a horse is sold; (3) reasonable day rate of $60/day for training fees.

How much does it cost to train a horse with GRS?

It cost approximately $36,000 annually to have a horse in training with our stable.   ($300 per 10% share per month)

Does GRS, Inc. deduct any of the purse earnings from its own account?

Yes, but only the trainers percentage for 1^st, 2^nd, and 3^rd.  Of course as owners we deduct our portion of the purse proceeds, but no other deductions are made to the account.

How are expenses for training, etc. handled?

GRS, Inc. bills monthly for all training fees and payment is due within 15 days of receipt of the bill.

What is the cost of a GRS, Inc. racehorse partnership?

The cost of training per year is approximately $36,000 an average of $3,000 per month.  It could be more or less depending on expenses not included in the day rate of $60/day.

How are earnings distributed?

Purse earnings are credited at the end of each month against training fees incurred for the month.   If purse earnings exceed training fees than you will be issued a credit against future training fees.    Detailed records are sent each month for your account to track the activity.   If you track expenses and income for each horse we can export the data into an excel spreadsheet to assist you with your bookkeeping.

What about tax reporting?

We issue 1099’s to all partners by the end of January of each year.

Are the horses insured?

This decision is based on the value of the horse purchased.  We currently have two (2) horses insured, and it is not uncommon for us to make a decision to insure a horse at a later date.  Your cost would be based on your ownership share in the horse.  Of course any partner is free to insure their portion any horse regardless of what is decided by GRS, Inc.

How often are LLC’s formed?

We do not form LLC’s for the horses that we syndicate.  However, we have developed a simple contract that explains the corporation’s responsibilities and the partner’s responsibilities. Click here to view our Partnership Contract >>

How are the partnerships concluded?

Partnerships are concluded when the horse is sold or retired.

Can an investor extricate himself/herself from a partnership before it is concluded?

An investor interested in selling a partnership interest must find his or her own buyer.   Prospective participants should be prepared to be involved for the life of the investment.

How many partnership shares are available in a horse?

We divide a partnership into 10 shares.  These are sold on a first come first served basis.

What is the amount of the average investment in a partnership?

10%, and upward of ownership shares in a racehorse.  The average investment for a 10% share is the cost of the racehorse.   This could range anywhere from $3,000 to $25,000.

How many horses are syndicated in a year?

Normally four (4) to six (6) annually.  

Is it wise to put a lump sum in one horse, or spread it around?

Diversification is encouraged to reduce the risk.   However, this decision would be based on your disposable income and the ability to budget for the cost of training one horse verses several horses.   We have several owners who have 10% ownership shares in at least four (4) horses.

Do you sell packages or groups of horses?

No, each horse is valued and sold individually, but several could be posted to our partnership page at the same time.   

Do you maintain an equity interest in any of your horses?

Yes, at least 20% of every horse.

What types of horses do you buy?

We generally concentrate on three kinds of racehorses: (1) young horses that are being sold privately; (2) yearlings;  (3) thoroughly proven runners purchased through the “claims box”.

Do you buy 2-year-olds at the in training public auction?

No.  We would rather start a horse from scratch by buying a yearling or syndicating a yearling from one of our broodmares.

Are you buying more yearlings nowadays?

Yes.

Is it safer to buy a filly vs. a colt?

Fillies are generally a safer investment because they can have residual value as a broodmare.  A colt is riskier because if it is unable to realize its potential on the track, it has much less value than a comparable filly. 

How do potential investors find out if a horse is being offered?

We maintain a list of prospective partners, and of course, we have our current partners.   We post the details of the investment on the website “partnership” page.   Notices are sent via email, twitter account, and facebook.   If you are interested in future offerings it is important to provide us with an email address which is checked often.

When you offer a horse for sale, what time constraints are involved?

Once a horse passes the “due diligence” examination we post the offering on our website and twitter account.   Plus we send out a universal email to all current and past partners.    Since we maintain at least 20% of each horse the shares normally sell very quickly. 

How many new investors generally participate in each partnership?

Usually, there are only a couple, because our regular clients react quickly to new offerings.  

How do you keep your partners informed?

Trainer sends updates via email, twitter, and facebook to the partners of the racehorse.    We will continue to enhance our abilities to effectively communicate with our partners.

What kind of perks can I expect?

Free admission and seating on race day with your owners license and pass.   Stable area access.  Access to the saddling paddock and on some happy occasions the winner’s circle.

Where do your horses race?

The horses race primarily in Kentucky, West Virginia, Pennsylvania, Indiana, and Ohio.   However, we will ship to the track that fits the horse.  

Where do the majority of your partners reside?

Most of our clients reside in Kentucky, Indiana, and Ohio, but range from Washington State to New Jersey.

Do investors have any input as to the campaigning of a racehorse?

No, the decisions of racing are left up to the trainer. 

Do partners have a say-so in determining anything?

Yes, partners vote on important issues regarding the expenditure of extraordinary sums of capital and if the venture should be terminated.

Have your clients made money with their racing investments?

Yes, but, on occasion. Most individuals participate in horse racing because of the excitement of the sport, and the privileges afforded horse owners at most race tracks.  The win photos are pretty cool, too.

Have any investors ever gone on to have success with their own runners?

Yes, two of our former clients are now trainers and pursuing his/her own career in the sport.