For fans of equestrian events, the rising temperatures of spring can spark an adrenaline surge. Some feel the pull of the Kentucky Derby, the Belmont, the Preakness, and Saratoga Springs. Others are drawn to the beauty and athleticism of dressage and hunter/jumper shows, such as those in Wellington, Florida, and Devon, Pennsylvania.

As exciting as these events are for spectators, they may be even more so for horse owners. Investing in a race or show horse is much like riding one – thrilling, satisfying, and challenging. When it comes to horse ownership, there are two key rules to remember:

1. Don’t expect to make money; and
2. Do expect to have fun.

Although there’s no question that owning a racehorse can be profitable if purses and breeding fees come through, it would be unwise to count on it as a source of significant income. By some estimates only 10 percent of owners make money. One owner with more than three decades in the business won more than $1 million in purses in a recent year and still lost money. His veterinary bill alone, for about a dozen horses, reaches $35,000 a month. There are also trainers to pay and charges for transportation to the track. Viewed positively, this can mean only one thing: Owning competition horses has to be fun. Otherwise, why would so many people do it?

There are generally two ways to invest in a horse: partial ownership through a syndicate, or outright ownership. Those interested in breeding usually buy a stake in a stallion syndicate. Certainly, fractional ownership, which can be as informal as a couple of golf buddies getting together, spreads risk, but can come with the added expense of having to pay someone to oversee operations.

How much do horses cost? Prices vary from thousands to millions, depending on bloodlines. Either way, you must exercise the same due diligence you would when making any large investment. Never take anything at face value. If you are thinking of joining a partnership, carefully review the partnership’s operating guidelines. Make sure you know your business partners. How successful have they been? What are their reputations? Have they been forthright with others about horses in the past? Make sure you have an objective, experienced veterinarian thoroughly examine any animal you consider purchasing. And remember: genetics is important when choosing a horse, but there’s no guarantee that breeding two great horses will produce a Derby winner.

No matter where your interest lies, start small. That way you’ll begin to understand the costs associated with ownership as well as the benefits it provides – such as entrée to the private clubs, for example. As we all know, sometimes the actual horse race or show takes a back seat to the parties and the high-octane atmosphere surrounding the event itself.

Don’t expect horse ownership to be easy. But do embrace the excitement. After all, that is probably the biggest payoff. If you thought watching a horse race or show was great, wait until you are watching as an owner.