You want to buy a racehorse. It is really a simple process, but like many "simple" things a lot of thought and planning are done beforehand to make it look simple. We think a good place to start is with a business plan. The plan does not have to be complex or contain a complete sentence, but it should lay out your goals, objectives and projected costs. A plan will be constantly updated as conditions change, so it will never be complete, but it will help you manage your equine investment.
Keep in mind that equine investments are, if treated properly, legitimate business activities and will be treated as such by the IRS. Consequently, manage your equine investments as you would manage any other investment or business activity, including exercising good, sound business judgment.