Has any of you invested with Masterworks?

[tenant13]

It's the the platform for "buying and selling shares representing an investment in iconic artworks."

https://www.masterworks.io/about/how-it-works

I'm very much into diversifying my portfolio so I have funds, stocks, bonds, crypto, real estate (both commercial and residential in US and abroad) and a piece of teak forest in Panama a. This is all done through cash savings, regular brokerage accounts, brokerage held IRAs and self-directed IRAs.

Well now I stumbled upon this idea of investing in art. Has anyone tried it? I'm not really asking for general opinions from people who are unfamiliar with this platform - I've read their pitch and like the idea, I'm looking for a review or two from actual users.

 

[Sunset]

Too esoteric for me, I'll just let my art hang on the wall.

The management fees are pretty steep heading towards a hedge fund type of fee: 1.5% /yr plus 20% profit.

 

[rrppve]

I invested a small amount. You can negotiate their $25k minimum. Highly illiquid and no income or dividends. You have to invest in one painting at the initial offering price before you can purchase on the secondary market, where some shares are sold at a discount (and some at a premium) from their initial offering price.
I’ve been disappointed that the painting that I bought a share of still hasn’t been listed on the secondary market even though 3 months have passed.
The other platform I’ve used is Yieldstreet, which I like better. I invested in an art loan fund, which has provided a nice return, but has had a lot of prepays. They offer a variety of alternative investments.

 

[tenant13]

I invested a small amount. You can negotiate their $25k minimum. Highly illiquid and no income or dividends. You have to invest in one painting at the initial offering price before you can purchase on the secondary market, where some shares are sold at a discount (and some at a premium) from their initial offering price.
I’ve been disappointed that the painting that I bought a share of still hasn’t been listed on the secondary market even though 3 months have passed.
The other platform I’ve used is Yieldstreet, which I like better. I invested in an art loan fund, which has provided a nice return, but has had a lot of prepays. They offer a variety of alternative investments.

Thank you. That's what I was looking for.

 

[MichaelL]

I invest in my girlfriend who paints. I rent her a studio, pay for the supplies and encourage her to paint. She is slow to sell her paintings, but at least I get some dividends.

 

[Out-to-Lunch]

I invest in my girlfriend who paints. I rent her a studio, pay for the supplies and encourage her to paint. She is slow to sell her paintings, but at least I get some dividends.

Oh, my. That was saucy but very good!

 

[Sunset]

I invest in my girlfriend who paints. I rent her a studio, pay for the supplies and encourage her to paint. She is slow to sell her paintings, but at least I get some dividends.

You paint quite a lovely picture yourself

 

[Koolau]

I've made every financial mistake in the book. The worst: Investing in something I didn't fully understand. Got burned every time. YMMV

 

[DrRoy]

Would never even consider it. Fees too high, investment so illiquid, returns a total tossup.