Fractional Alpaca Share Team (FAST) Program
Mountain Sky Ranch
Fractional Alpaca Share Team (FAST) the PacaShare Program
You would love to own one or more alpacas, but –
- you know the only way to make money with alpacas is to own good ones, but you don’t think you can afford the price.
- you really would like to spread your ownership risk to more than one alpaca, but that would be even more expensive!
- you are not sure you want to commit to a 365 day care and rearing effort.
- you live in the city and you couldn’t have an alpaca even if you could afford one.
- or any other excuse that you might think of!!
Well all of those excuses are legitimate, but now Mountain Sky Ranch has a solution for you to allow you to be able to particpate in the exciting alpaca industry without dealing with the excuses. That program is the Mountain Sky Ranch Fractional Alpaca Share Team (FAST) Program, that we affectionately call PacaShare.
What is it – Sharing the Risk
For a new owner, perhaps the safest and most inexpensive way to get involved in alpaca ownership is to become part of a breeding fractional share partnership. Basically that means that ownership of a single breeding female (or group of alpacas) is split among more than one party. This reduces the cost for each party, but can still give the full experience and enjoyment of owning, breeding and showing the incredible Andean alpaca.
Mountain Sky Ranch is initiating our unique Fractional Alpaca Share Team (FAST) Program (PacaShare) in the Andean like hillsides and pastures of our Northern Colorado sustainable ranch. For as little as $1000 you can purchase ownership in an outstanding alpaca female and her future offspring that will yield you fun and profits for years to come. Our genetic oriented breeding program is carefully designed to produce continuously improving alpacas that will appreciate in value as their phenotypic (fleece quality and confirmation) quality increases.
A fractional alpaca share program is a formal business agreement between a general partner and some number of limited partners that creates a group ownership of an alpaca or group of alpacas A written agreement (LLC Operating Agreement) details what the fractional share group activities will be and what will be the responsibilities, investments and returns for each partner.
Those returns come from of an alpaca appreciating in value through showing, breeding fees from a herdsire standing at stud, or, in the case of fractional breeding females from selling progeny (called Cria). Also, annual revenues will come from unbelievably fine and structured fleece (fiber) that is harvested from each alpaca.
Fractional share ownership programs (often called syndicates) have been commonly used with other forms of livestock and performance animals (for example dogs, horses, and cattle). Some very successful racehorses have been owned by partnerships. The first Quarter Horse of renown to be syndicated was world champion Dash For Cash. He was followed by champions Moon Lark and Easily Smashed and graded stakes winners Streakin Six and Easy Six.
However, fractional share ownership of alpacas in not nearly as common or established. Yet, the economic history of alpaca breeding stock sales lends itself very well to this partnership form of ownership.
Although nothing is guaranteed, the economics of the Mountain Sky PacaShare Program are very simple. Historically, well bred female alpacas have increased in value from the worth of their mothers. Since alpacas produce one offspring annually, and the odds say that one out of every two babies will be a female, the value of each fractional share should double in value (value of the mother and the female baby) every two years. The goal of the PacaShare program will be to show the female babies of the breeding females and then to sell these female offspring as soon as their value maximizes. Over a possible ten to fifteen year breeding cycle for a PacaShare female, she will most likely produce five to seven female offspring that will all sell for as much or more than their mother’s value. You can do the math in your head, and see the multiplicative nature of this value proposition!!
Like most new businesses, a fractional share program might take a while to show profit. Alpacas have been defined as livestock for tax considerations. Loss sheltering and depreciation methods can reduce tax liability in early years, and losses and expenses can be used to shelter the ordinary income of the partners. Recent changes in tax laws have been favorable for livestock but difficult categories of the depreciation and different time schedules for livestock make direction from tax professionals advisable.
What to Do Next
Now that you have perused the information available in this summary document about the Mountain Sky PacaShare program and are interested in getting started, you might ask “What is the next step?”
Start by contacting Wayne at Mountain Sky by emailing us or calling our office.
225 SW 42nd. Street
Loveland, CO 80537
Your choices for other information are as follows:
- Request the login information to access the Private PacaShare information section of our website.
- Ask to schedule a private appointment with us to discuss the program.
- Ask about coming to visit the ranch.
- Request a sample LLC agreement in order to familiarize yourself with the legal specifics of participating in the PacaShare Program.
- Ask for information on a specific PacaShare fractional partnership for one or more alpacas (including financial pro-forma information).
- Ask to be placed on a special list to receive an e-mail every time a new PacaShare partnership is offered by Mountain Sky Ranch.