We keep an internal data base on equestrian communities and have travelled far and wide and toured some of the most pretigious ones in the country.  Here is the shocking news......besides our own Inagural O'Connor Signature at The Oaks, we have not found ONE equestrian community who got it right!

We have found some that were planned well, and even designed well.....but EVERY single one of them have missed the most important piece of the puzzle.  How to create a sustainable financial model!!

The brutal truth that no one seemed to consider is that the equestrian facility will loose money.  It will always loose money.  Many developers have made the choice to own the facility seperately. They were successful in attracting buyers and selling real estate, but now that they have sold all their real estate they are struggling with the monthly deficit they are paying out from their own pocket.  Either they will continue to pay, or they will push the facility onto the folks who ride there, or they will bankrupt the entity and close it down eventually and there goes your equestrian lifestyle!

Horses attract buyers.  This is a fact.  Many of those buyers are what we call passive enthusiasts - they do not actively ride, but enjoy seeing the horses, enjoy the open space, and generally enjoy the idea of the lifestyle.  In order to create a sustainable financial model, EVERYONE needs to help pay for the equestrian component.  Generally is it considered "open space" or "common area" in our CCRs.  You still collect revenues for services provided, but everyone helps pay for the horses to be there.  Otherwise....it won't work!  We are going to visit a community that has over 1,000 residences.  Less than 80 decided to join the equestrian club and they are not assessed monthly dues.  They are loosing a lot of money every month and they will have no choice but to decrease services and cut corners.  Everything will eventually go downhill from there...If each one of the 1,000 residents chipped in $20.00/month everything would be fine and dandy.  We would argue that everyone benefits from the horses being there - so everyone should help pay.....otherwise it won't work.

If you are a developer - heed our words.  If you are a potential buyer - get the facts!!

If you know of any community that has an equestrian facility that is being subsidized by a Home Owner's Assessment and/or a true Membership Club Model with a Membership Initiation and annual or monthly dues - please let me know.

Jennifer K. Donovan, Principal, Equestrian Services, LLC

Posted by jenniferd at 2:40 PM | Link | 0 comments