Pretty crazy, right? If this concept sounds crazy, you are not alone. Reach out and talk to people who can provide more insight on the topic – they’ll be more than happy to help! Masterworks is legit, take my word for it. If you trust their services, you won’t be disappointed. I am interested to see where Masterworks is going.
I will provide an overview of how Masterworks operates, including how much money you will need to buy in, and what the potential risks and rewards look like. Masterworks offers a unique opportunity to invest in blue-chip artwork, which has been difficult to access in the past. I will cover their customer service and the pros and cons of investing with them.
About Masterworks
Think van Gogh, Warhol, and Picasso, because Masterworks uses its capital to purchase them. The art is managed with a long-term approach that helps to ensure its value over time.
The company files a painting with the SEC and then offers fractional shares of the artwork to its customers in order to make them crowdfunded investment opportunities. Customers can benefit from the appreciation of art without having to pay a large sum upfront. They are the first company to offer this kind of service. Their innovative approach to customer service has been well received.
Masterworks tries to resell works of art once everyone has bought them. The gains are passed on to the shareholders.
It makes sense that they have carved a new investment niche in the fine art industry when you consider that some of these artworks go for $20 million to $30 million. It’s clear that this new market of art investing is here to stay and its popularity continues to grow with each passing year.
If they make the right moves, would-be art investors can turn a healthy profit. Investing in art can be rewarding with the right guidance.
The Backstory
Scott Lynn is an internationally-recognized art collector. Making fine art investing accessible to everyone is the mission of Masterworks. The company is located in Soho NYC.
| Masterworks At A Glance | |
| Minimum Investment | $1,000 |
| Investment Term | 5 – 10 Years |
| Fees | 1.5% annually + 20% at sale |
How Masterworks Works
Let’s take a look at how this art investing platform actually works after you have a better idea of the general Masterworks concept. Masterworks is a unique way to invest in art pieces and gives art lovers and investors alike the chance to change their portfolios.
1. Masterworks Sources Blue-Chip Art
The procurement process begins when the team locates high-value art from a database of over 1 million auction records. Once the team has identified a piece of art they are interested in, they can move onto the next step in the procurement process. If the piece is part of a private collection in Venice, the Masterworks team is likely to find it. They commit the capital to purchase it once they do. The capital can be used to make more improvements to the property.
How do the team identify art? They use big data to make a determination about which pieces of art will appreciate over time. They make a profit on their investments if they decide which pieces to invest in. Users can view the returns of thousands of paintings and artworks. Users have the most up-to-date information in this database.
2. SEC Registration
The new art investing opportunity was filed with the SEC, which is required for offering investment deals to the public. A new art investment opportunity can be launched by Masterworks once filed.
Masterworks gives shares to investors after the SEC approves the deal. The works of art that were previously off-limits to the public will be available to investors in the shares. If you’re lucky enough to qualify as a Masterworks investor, now is your chance to own a piece of history. You can own a piece of art from one of the world’s most famous artists.
4. Masterworks Makes the Sale
The company tries to keep the piece of art for three to five years to allow for appreciation. The company hopes that the art will be appreciated more than the initial purchase price. Any interested buyer can make an offer at any time. The seller can accept or decline the offer. Masterworks sells the piece if the deal is right for everyone. The new collector can enjoy the artwork for a long time. Each investor gets a portion of the profits.Without taking on the risk of ownership, investors can benefit from the success of the company.
A trading platform has been launched by Masterworks. The trading platform makes it easy to buy and sell art. The Masterworks bulletin board feature allows you to sell your shares to other investors. It’s great for members that want to sell their art before the market opens. This is an ideal option for those looking for a quicker return.
5. Members-Only Gallery
As an investor, you’ll have access to Masterworks’ exclusive art gallery located in New York City’s SoHo neighborhood. It seems like it would be cool to be able to enjoy masterpieces that are out of reach of the general public.
Pricing and Fees
You’ll need to pony up at least $1,000 to open a Masterworks investor account. Some painting’s shares can go for as little as $20 once you’re in. It is a great opportunity for people to invest in a work of art. The value of the painting will affect the share prices. It’s important to remember that there is always a risk associated with investing in art, so it’s important to do your research before making any decisions.
If a painting goes up in value, Masterworks takes 20% of the profit and charges a management fee. The advisory service from Masterworks helps clients make decisions about which works of art to buy and sell. This is similar to how hedge funds work. Hedge funds try to generate higher returns than the broader market by using sophisticated strategies.
Signing Up and Getting Started
Both U.S.-based and international investors can use Masterworks. It allows investors to invest in masterpieces from renowned artists. To request an invitation, click on the blue button at the top right-hand corner of your browser. Register before the June 30th deadline.
Next, enter your email address, phone number, and account password. You will have access to your account once all the information is submitted. You will tell them how you heard about Masterworks.
You will be asked how much money you want to invest over the next year. Make sure you invest an amount that you are comfortable with because you can adjust this amount at any time. This is how they identify high-profile investor opportunities.
The company claims you can earn $250,000 over seven years if you enter $100,000 in the box. Many investors have seen positive returns from investing with this company, so it may be worth considering as a viable investment option. This seems high to me in the world of high-end art. I think it’s wise to take a cautious approach. You will want to read the fine print and do your homework to make sure those kinds of returns are possible. No investment comes with a guarantee of success.
I entered $100,000 and it looks like I caught their attention. I can’t wait to see what they do next. They are giving me an interview slot. I’m looking forward to showing them my skills and experience. The account must be approved in order for the interview to happen. I’m going to give the interviewer the necessary information when I meet them.
It is cool because it is an opportunity for both you and the company to learn more about each other, see if it is a good fit, and hopefully build a mutually beneficial relationship. The interview process can help set the tone for the future.
All you have left to do is chat with their team and answer any questions they have. Good luck! You can have a lifelong art sales rep whenever you need it. If you have questions or concerns about your artwork, your art sales rep will be able to help you.
Security
The Masterworks platform feels secure. The platform is easy to navigate and find the information you need. As you use the site, the company uses leading-edge technology to protect you. This makes sure that your data is confidential and secure.
They talk about how Masterworks Administrative Services is committed to protecting your data in their privacy policy. Masterworks Administrative Services is dedicated to protecting your privacy and strives to provide the highest level of security for your data.
Masterworks has that covered when it comes to securing their art collection. The artwork has been protected with a state-of-the-art security system. Delaware Freeport is the most secure place in New York City to store high-value art and is where all of the artworks that aren’t on display in their private gallery are located. The Delaware Freeport has the most advanced security systems to keep the valuable artworks safe.
Customer Support
You can contact Masterworks by calling 203-518-5172 or sending an email to [email protected] You can find them on social media. They open at 9 a.m. They are available to answer questions during office hours. to 6 p.m. Eastern Time.
If you are approved as an investor, you will be matched with an advisor who will be able to help you with any questions you may have. Your advisor will guide you through your investment journey.
Pros and Cons
Pros
- Unique investing opportunity for art lovers
- Attractive historical rates of return so far
- They are the pioneer in the art investing space
Cons
- If you want to sell your shares to other investors through a bulletin board, there would need to be a buyer. You should consider the risk of not being able to sell your shares before investing if you are not able to find a willing buyer at the moment. More paintings are added to this platform.
- Performance is dependent on the company’s ability to sell paintings and the market
- Some might consider crowdfunded art investing to be risky due to it being so new
Alternatives to Masterworks
There are no other alternatives to Masterworks. It is worth keeping an eye on the market as it could change in the near future. If Masterworks ends up hitting a home run with their innovative business idea, I think that will change. It’s too early to say what the future holds, but the potential of Masterworks is obvious.
Amazon Art and Artspace seem to be in the same wheelhouse, but they are a little different as well. Amazon Art offers customers the ability to purchase art from a wide variety of artists, both established and emerging, while Artspace focuses on providing access to exclusive works from blue-chip galleries and collections.
Is Masterworks Right for You?
I think Masterworks is an interesting platform. It provides a great opportunity to invest in art which, until recently, was not accessible to most people. I have more capital to risk in this type of investment. I am more confident in my decision to invest in this opportunity.
I don’t recommend you put your first $1,000 into crowdfunded art. When you become more comfortable with the process, you can invest larger amounts. Instead, check out my post How to Start Investing.
Let’s say you’re a high net-worth individual. You may be able to access private banking services that are tailored to your needs. Or, you already have a well-diversified investment portfolio that consists of traditional equities, bonds, and real estate. It seems like a good idea to test the waters with Masterworks if you meet either of these profiles. If you’re an investor looking for a diversified approach to investing in art, or a collector looking to monetize your existing collection, then testing the waters with Masterworks seems like a pretty good idea.
Make sure to do your research and only invest in things that you understand and are comfortable with, whichever course you decide to take. There is no such thing as a guaranteed investment. It is important to make sure that you understand the risks associated with your investments.
Making informed investment decisions and enjoying the process that leads to financial independence is what this is about. We can make the most of our money and reach our financial goals together.
