From Quarters to TBs

Question
Just learned about your site yesterday and am very impressed by the articulate and insightful way you respond. My is a long story (aren't they all)We have been QH breeders for years and have raised top line babies throughout that time. 2 years ago we decided to begin a little outcrossing from the reining/cowbred horses and bought  a Dash for Cash bred Stallion. His first crop was sold as soon as they were weaned and went immediately when the customers saw the foals. This year we took another step forward (maybe backward)and bought two TB mares to cross to our stud so we could produce some speedy appendixes for the upcoming Florida Quarter horse racing seasons or to barrel racers who represent most of our clients. Wellllll the first TB baby was born two weeks ago and I really like him (to my surprise). I'm now contemplating switching out some of our QH mares and getting more involved with TBs The babies sire is Adcat and the Dam is A Fast Jet there are a few winners on the top and bottom. "Stormy" is already conforming well and is having a ball playing with this years first born Doc O'Lena colt. While we have been able to sell all of our babies every year, we don't get much for them ($2500 ea)and believe me they are dynamite horses.The QH world is tough because you end up dealing with people who are always looking for excellent but inexpensive horses.In your opinion is there any money to be made raising non-superstar type TBs for sale and where would I go to find an agent? Or would it make sense to put "Stormy" into training on some sort of shared expense arrangement? There is a TB training facility near our farm and the trainer has visited our farm,looked at "Stormy" and likes him quite a bit, but won't do anything more until he is about 15 months old. I only know enough aboutTBs to be dangerous
and don't wanted to be taken advantage of.. I've got a million more questions but neither of us have the time now. Would love to get your input. THX Jim  

Answer
Jim,

Welcome to the wonderful world of Thoroughbreds!  But don't quit your day job, LOL.
I wouldn't advise getting into Thoroughbred breeding in order to sell the babies on a small scale, unless you want to do it for fun, and can stand to lose money for a while.  It is not a winning proposition, unless you have very well bred mares, and manage to breed to the right sires, to boot.  People simply won't pay anything for modestly bred weanlings or yearlings.  You mention getting only $2500 for your Quarter horses.  As an example, a full sister to your Adcat baby sold for only $1400.  It cost the breeder more than that to get her to the sale.  
You can sometimes get lucky if you carry the baby into the two year old sale, but there are plenty of risks there, too.  The mare has to carry to term, the baby has to look good, then he has to survive without major injury until the sale, and then he has to work well for the buyers.  If you can get past all that, you might sell for a decent profit.  Heavy emphasis on the "might".
As far as a sharing agreement with a trainer, this can work well for you, but again, the risks are many.  Especially when the trainer takes the baby in training at a very early stage in his training.  Often a trainer gets into an agreement like this because he can't afford to buy the horse outright for himself, and sees it as a cheap way to get a racehorse.   This usually means that he is cash poor, and that isn't good.   Often your horse will get poor care, and little vet attention, due to finances.  He will likely get rushed through training, and pushed too hard at the races, because the trainer needs money, not more expenses.  
The most common arrangement of this type happens when the horse has been gotten ready to race at the owner's expense, and the when he is completely ready to run, a trainer may take him on a percentage share deal at the track.  Again, the most benefit is to the trainer, and not to the owner, but many people are perfectly happy with this type of deal.  It largely depends on how honest the trainer is.  I've heard tons of horror stories about horses disappearing, being sold without permission, or just plain not being cared for.  Be very careful, and get a very strong contract, in writing.  make sure that the stewards at the track have a copy.
I tend to get long-winded about this sort of thing, so I'll call it good.  There are tons more things that I could say, and I'd be more than glad to answer any questions that you have in more detail.  Stop by my farm website, and send me an e-mail to the address there, and I'd be glad to help however I can in the future.

Good Luck,
Stephanie Frost
www.alchemybloodstock.com