Q: How is Falcon compensated?
A: We maintain 51% ownership of every horse and 51 % of the net profits.
Q: Why do you maintain an equity interest in all horses?
A: Falcon maintains 51% ownership and is the managing partner in order to ensure the proper training, feeding, and care decisions are made for each horse in a timely manner.
Q: How are expenses for training, etc. handled?
A: Actual expenses are billed in arrears monthly after the first 4 months.
Q: How are earnings distributed?
A: Sales earnings are distributed within 45 days of being sold. Winnings/Purses are paid within 7 days of receipt of funds from a racetrack. Within a week, owners of a winning horse receive a package containing a disbursement check, a video of the race, winners’ circle photographs and press clippings if any.
Q: How often are LLCs formed?
A: We do not form LLC’s. We form direct partnerships with you..
Q: Can I form an LLC for my interest in the horse.
A: Yes. You may create an LLC to manage your interests the syndication(s) you join.
Q: What is the cost of a Falcon racehorse?
A: Our target is to spend the least amount for the highest quality. We strive for quality and value.
Q: In what dollar increments are investments made in a syndication?
A: From a low of $5,000, with a median of $20,000 and as high as $200,000.
Q: What strategy do you recommend for buying horses?
A: We always suggest diversification as a means of reducing risk. It is better to participate at a smaller level on three horses than to take a larger part of one. The larger your investment the more diversification that is available to you.
Q: Do you sell packages or groups of horses?
Q: What types of horses do you buy?
A: We focus on Weanlings, yearlings, and thoroughly proven runners.
Q: Do you buy 2-year-olds at the in-training public auctions?
A: We may.
Q: Are you buying more yearlings nowadays?
A: No. Our strategy focus’ on Weanlings, Yearlings, and proven racers.
Q: When you offer a horse for sale, what time constraints are involved?
A: Once we have purchased and thoroughly evaluated a horse and it is deemed suitable we anticipate it to sell quickly. All horses are placed on our owners site first and then opened to the public. Feel free to contact us at SYNDICATIONS@FALCONFSOCALA.COM to be added to our mailing and advance notification lists.
Q: How do potential investors find out if a horse is being offered?
A: Falcon will maintain a list of prospective partners, with notes on what type of thoroughbred horses they are interested in. Falcon will release details of the acquisitions on the owner’s website first. Twenty-four hours later the information will be available on www.falconfsocala.com/horse-sales and promotional materials will be sent out to prospective partners and opened to the public.
Q: What about tax reporting?
A: Talk to your CPA
Q: Are the horses insured?
A: Falcon will routinely insure horses bought at public auction. Partners may obtain their own insurance. The Managing Partner (Falcon L&L Stables) will maintain a liability policy.
Q: Where do your horses train?
A: All of Falcon’s horses use the Ocala, Florida location as their home base.
Q: Where do your horses race?
A: Falcon will race horses in the United States. Our horses are warm weather friendly. Our focus from April through November will be the Eastern and Midwestern tracks from New York to Florida. From October to April we will focus on Florida, Louisiana, and Maryland.
Q: How are the partnerships concluded?
A: Partnerships are concluded at the sale of the horse and is based on the individual plan. A plan could be to sale as a Yearling, 2-year old, or claiming on the track.
Q: Can an investor remove himself/herself from a partnership before it is concluded?
A: We do however offer two options to leave the partnership early 1) a member interested in selling a partnership interest can find his or her own buyer or 2) forfeit their interest in the horse to Falcon L&L Stables. Prospective participants should be prepared to be involved for the life of the investment. Prospective participants should be prepared to be involved for the life of the investment.
Q: How much does it cost to train a horse with Falcon?
A: Average annual expenses per horse are: Weanlings—$3,700, Yearlings—$11,000, Horses on the track – $25,000. If a horse runs in stakes races, additional costs are incurred for nominations and entry fees.
Total annual costs for a horse training for the track is about $30,000 Proportional costs incurred by our horses are “passed through” directly to our owners–nothing extra is added on (e.g. if you have 49% interest in a horse you will be responsible for 49% of the costs/expenses of the horse). The figure cited includes all training, normal veterinary work, blacksmith, vanning, accounting and tax prep.
Q: Has Falcon raced in partnership with any prominent members of the Thoroughbred industry?
A: No, but our trainers have.
Q: How do you keep partners informed?
A: A private memorandum accessible only to Falcon’s investors using a pin system to enter a restricted area of Falcon L&L Stables Owner’s Site. Letters to partners are sent when appropriate.