After years of dreaming about owning a racehorse, you decide to plunge headlong into the industry by becoming part of a horseracing partnership. The problem is you do not know a good opportunity from a possibly not so good one. Before you throw caution to the wind, take a moment to educate yourself about racing partnerships and explore all available options to ensure you choose the partnership that best suits your needs.

Here are some things you should think about when investigating horseracing partnerships. You should ask:

* Can you really afford to own a racehorse? Do you know how much it costs to maintain ownership? Are you financially in a position to both purchase the initial interest in a horseracing partnership as well as keep up with monthly or quarterly billing for related expenses, which by the way are typically paid in advance.

* Do have a preference when it comes to the business structure of the partnership? How will the structure of the business affect your taxes and liability? What type of documentation will you have for your taxes?

* How is the record of the team that manages the horseracing partnership? Are the staff accommodating and helpful when you need them? Can you ask questions of the managing partner?

* How will the management team account for income and expenses? Will you get periodic updates? Will you have access to view records? How often are purse winnings paid out?

* Where will the partnership get the horses? Does the price of the shares reflect closely on the purchase price of the horse?

* How much do you know about your future business partners? Can you review references from those who have already joined?

* How are decisions affecting the racing partnership made? Does the managing partner make the decisions? Do all the partners vote? Are there periodic meetings for the partners to discuss issues and get progress reports?

* How often will you be in contact with your horse?

* If you join a specific horse racing partnership, what benefits can they give you?

* Can you transfer your shares and leave the partnership? What will happen when the horse retires?

There are so many things to think about before you join a horseracing partnership. If you are still unsure or feel confused about the prospects, you should talk to an accountant, a financial adviser, an attorney or a combination of advisers to get assistance. It may also be a good idea to talk to owners with experience in partnerships. Many experienced owners will discuss openly their experience in the industry if you have a sincere interest.