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Art Investing for Beginners · Earn Your Leisure

• 0:00
  Speaker 1: How do you get into art investing?
• 0:03
  Speaker 2: So you know, I used to get these big bonuses.
• 0:07
  Speaker 2: The wine and spirits business is a bonus based business,
• 0:11
  Speaker 2: and I would get these big bonuses and I would,
• 0:14
  Speaker 2: you know, buy a watch, by a purse, buy all
• 0:16
  Speaker 2: of toys, the things, the things I like things.
• 0:20
  Speaker 3: And I remember.
• 0:23
  Speaker 2: Here in the record, I think it was a j record,
• 0:26
  Speaker 2: and he talked about art and I was like, I
• 0:29
  Speaker 2: have not bought that yet, you know it like it
• 0:31
  Speaker 2: pricked my conscience. And the first real piece that I
• 0:35
  Speaker 2: invested in was a piece of art from South Africa
• 0:38
  Speaker 2: from an artist named Nelson Macomo.
• 0:40
  Speaker 3: It was incredible artists.
• 0:41
  Speaker 2: And the reason why I say invested in is because
• 0:44
  Speaker 2: it was literally half my bonus and I and it
• 0:47
  Speaker 2: was hard for people to understand.
• 0:49
  Speaker 3: They were like, you're gonna spend what you're gonna what?
• 0:51
  Speaker 3: What are you talking?
• 0:52
  Speaker 2: That's a lot of money, just because we haven't really
• 0:54
  Speaker 2: been taught the value. It was like twenty five thousand dollars.
• 1:00
  Speaker 1: Who educated you to know that that was something that
• 1:03
  Speaker 1: you should buy.
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  Speaker 3: Well with that purchase, I just loved it.
• 1:08
  Speaker 1: You just looked at it and just like I loved it.
• 1:09
  Speaker 2: And I researched the artists, and I mean it fell
• 1:13
  Speaker 2: in line with just kind of me falling in love
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  Speaker 2: with South Africa too, you know, and I loved it.
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  Speaker 3: So I think the first.
• 1:19
  Speaker 2: Thing that I always like to tell people is even
• 1:21
  Speaker 2: though I invest in art, I only invest in what
• 1:24
  Speaker 2: I love. Like, if I don't love it, I'm not
• 1:28
  Speaker 2: really going to spend my money on it. And so
• 1:32
  Speaker 2: I've been really fortunate to get to know a lot
• 1:35
  Speaker 2: of artists directly buy from artists directly, so you circumvent
• 1:39
  Speaker 2: the whole gallery and all that kind off and you're
• 1:41
  Speaker 2: supporting the artists, like the artist is getting one hundred percent.
• 1:44
  Speaker 1: How much is that worth now?
• 1:48
  Speaker 3: I don't know.
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  Speaker 4: That's interesting, right, I see it.
• 1:53
  Speaker 1: I love it.
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  Speaker 3: Definitely worth more than what I bought it.
• 1:54
  Speaker 4: I'm assuming that maybe it was Picasto Babies A Jayson
• 1:59
  Speaker 4: that art. But does that now spark your love for
• 2:03
  Speaker 4: art or did it just transit into to South African art?
• 2:07
  Speaker 1: Right?
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  Speaker 4: Did you start studying art, American artists, artists throughout the
• 2:10
  Speaker 4: world and now this becomes a passion for you based
• 2:13
  Speaker 4: on that one purchase?
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  Speaker 2: Yeah, you know what I realized art for me was
• 2:20
  Speaker 2: I just got lost in it, like I realized. I
• 2:22
  Speaker 2: was like, I love this, Like I had just like
• 2:24
  Speaker 2: this genuine passion for it. I didn't grow up going
• 2:27
  Speaker 2: to museums. I didn't grow up going to art exhibits.
• 2:30
  Speaker 2: I didn't grow up in a house where there was art.
• 2:34
  Speaker 2: And so I think for me, I was like, oh, wait,
• 2:36
  Speaker 2: we belong here too, you know that it was really
• 2:39
  Speaker 2: that that fueled me. I was like, wait, this is
• 2:41
  Speaker 2: this is a space that we belong in as well.
• 2:43
  Speaker 2: And there's such an incredible art community. So I also
• 2:45
  Speaker 2: was enjoying like getting to meet people, you know, and
• 2:48
  Speaker 2: those people are like involved.
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  Speaker 3: In in some cool stuff, you know.
• 2:53
  Speaker 2: So I think it was that definitely, you know, African art, art,
• 2:57
  Speaker 2: black artists in general, you know, was something that I
• 3:02
  Speaker 2: was like, Okay, I love this. These stories are incredible,
• 3:05
  Speaker 2: and then it became like yeah, like you know, I
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  Speaker 2: remember buying a piece you asked about the value. I
• 3:11
  Speaker 2: bought a piece for like twelve thousand dollars, and I
• 3:14
  Speaker 2: remember seeing an auction for the artists and her piece
• 3:17
  Speaker 2: sol for ninety thousand dollars, and like I have one
• 3:21
  Speaker 2: of her bigger pieces, earlier works that I bought for
• 3:23
  Speaker 2: twelve thousand dollars that's clearly.
• 3:25
  Speaker 3: Gone up in value.
• 3:26
  Speaker 2: So I then also started just to understand like, oh, okay,
• 3:30
  Speaker 2: this is how that works. And then I think when
• 3:32
  Speaker 2: you study really wealthy people, really wealthy people have a
• 3:35
  Speaker 2: few things in common. They have real estate, a lot
• 3:38
  Speaker 2: of them have a lot of investment in wine, and
• 3:40
  Speaker 2: they invest in art. And I was like, okay, this
• 3:44
  Speaker 2: all kind of makes sense for me. You know, this
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  Speaker 2: is the space that I play in any way.
• 3:48
  Speaker 1: So how many pieces do you have? Roughly?
• 3:51
  Speaker 3: Oh now I probably have.
• 3:55
  Speaker 2: Over forty or fifty pieces of art and everything, not
• 3:59
  Speaker 2: just you know, I have sculptures, I have vases, I
• 4:03
  Speaker 2: have I mean you.
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  Speaker 1: So where do you keep it all?
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  Speaker 3: It's everywhere.
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  Speaker 2: I mean, it's in my bathrooms, it's on the floors.
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  Speaker 5: But it ever get to a point because it's like,
• 4:13
  Speaker 5: all right, you could invest in a variety of things,
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  Speaker 5: that art is some way where has to be kept.
• 4:17
  Speaker 1: Right, So after a while, it's like.
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  Speaker 5: You can't really fully appreciate it, I don't think because
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  Speaker 5: you can't put it on your wall. You can't put
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  Speaker 5: fifty pieces of art on one wall, right, So it's
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  Speaker 5: like you can put it in your office, you can
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  Speaker 5: put it in different places.
• 4:32
  Speaker 1: But when you really.
• 4:33
  Speaker 5: Start to get a lot of art, I'm always curious
• 4:36
  Speaker 5: to know, like what are people doing with all of
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  Speaker 5: the art that they are they just hoarding it in
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  Speaker 5: the basement.
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  Speaker 2: Takes Yeah, I mean, listen, people, do you have you know,
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  Speaker 2: art storages that are specific for art, just like they
• 4:50
  Speaker 2: have wine storages. For me, I'm working to sell a
• 4:55
  Speaker 2: lot of wines so I could buy a nice, big
• 4:56
  Speaker 2: house so I can have all my art up in it,
• 4:59
  Speaker 2: you know.
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  Speaker 5: I mean it is because the art, the art storage
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  Speaker 5: that kind of I don't understand that. I used to
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  Speaker 5: go I used to go to art school when I
• 5:06
  Speaker 5: was young, But I don't understand art storage because the
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  Speaker 5: point of artists to be appreciated, and if you're just
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  Speaker 5: storing it, I feel like it's actually disrespectful to the
• 5:15
  Speaker 5: art form, right because now you've taken the beauty out
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  Speaker 5: of it and now it's just become like a file cabinet.
• 5:22
  Speaker 1: You thing, it's a double entendre.
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  Speaker 4: You use the word appreciate it while it's story it
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  Speaker 4: is appreciatediating.
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  Speaker 1: But I get what you're saying.
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  Speaker 5: Your art from an artist's standpoint, I understand the business.
• 5:32
  Speaker 5: But art should always come first. The business should come second.
• 5:36
  Speaker 4: Well, some people create galleries, right, they create their own galleries, which.
• 5:40
  Speaker 2: I mean, I know people who have bought the house
• 5:43
  Speaker 2: is next to their house, and the house next to
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  Speaker 2: the house.
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  Speaker 1: It's for art.
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  Speaker 3: The gallery just amazing. Right.
• 5:48
  Speaker 2: So I'm with you like part And when you ask
• 5:51
  Speaker 2: me like the buying, you know my rationale around buying
• 5:54
  Speaker 2: only buy what I love because, like you, I want
• 5:56
  Speaker 2: it up, I want to see it, I want.
• 5:58
  Speaker 3: To appreciate it. I also want to share people.
• 6:00
  Speaker 2: So like when friends come over, they'll be like, your
• 6:02
  Speaker 2: house is like a museum, and I mean you feel
• 6:04
  Speaker 2: so good, you know what I mean. Like, I'm like, yeah,
• 6:07
  Speaker 2: So everybody does it for a different reason. But what
• 6:11
  Speaker 2: I could tell you is again, one thing I learned
• 6:15
  Speaker 2: is that people that understand wealth, they into art.
• 6:19
  Speaker 3: They interwine and they into really well.
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  Speaker 5: One thing I learned about art is that if you
• 6:22
  Speaker 5: put it in your office, is a tax right.
• 6:24
  Speaker 3: On, It is a tax right off.
• 6:25
  Speaker 4: Yeah, So I was saying, one of the places that
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  Speaker 4: we definitely know that your art is going to show
• 6:30
  Speaker 4: up is the Smithsonian. Yes, we'll talk about that. I
• 6:33
  Speaker 4: mean that that's something that people will be able to
• 6:35
  Speaker 4: frequent and you go down in history forever.
• 6:38
  Speaker 2: Right, Yeah, that's exciting. So myself and ten collectors got together.
• 6:45
  Speaker 2: We've now acquired three pieces together, and it's our way
• 6:50
  Speaker 2: of you know, collective economics. And we purchase a piece,
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  Speaker 2: a Beisa Butler piece that we then donated to the
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  Speaker 2: Smithsonian Museum in DC. And so my name will forever
• 7:04
  Speaker 2: be on the museum walls at the Smithsonian as a
• 7:07
  Speaker 2: donor of the piece, and not even that little thing, right,
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  Speaker 2: Like we talk about like having the art in your
• 7:14
  Speaker 2: home and wanting to see it. I remember thinking like wow,
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  Speaker 2: donating to a museum. But that's really also a big
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  Speaker 2: part of you know, the art world, art collecting and
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  Speaker 2: also increasing the value of your collection. So my collection
• 7:29
  Speaker 2: inadvertently increases in value because I own a piece in
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  Speaker 2: a museum. And people who are in the art world
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  Speaker 2: they know all these little nuances.
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  Speaker 4: Do you see Because we talk about it in real estate,
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  Speaker 4: right a lot of times, if people can't afford the property,
• 7:46
  Speaker 4: let's have a collective. Maybe it's five people, and we
• 7:49
  Speaker 4: make the down pay mit. All right, we go into
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  Speaker 4: do you see that in is that something that happens
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  Speaker 4: in the art or often especially amongst our community.
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  Speaker 2: You know, I don't want to misspeak. You know, the
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  Speaker 2: collect that I'm a part of. That was the first
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  Speaker 2: instance that I had ever heard of it. I'm sure
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  Speaker 2: people are doing it, I just don't know.
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  Speaker 3: You know.
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  Speaker 2: The two pieces we bought, they were both one hundred
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  Speaker 2: and fifty thousand dollars each. They go together. It's Adam
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  Speaker 2: and Eve by Harmonia Rosales. So the total price of
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  Speaker 2: the work was three hundred thousand dollars. And when we
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  Speaker 2: all thought about it, we were like, I can't do that,
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  Speaker 2: but I could do this, and so ten of us
• 8:27
  Speaker 2: got together and purchased it. Those two pieces have been
• 8:31
  Speaker 2: on display at different museums. It's actually at the Spellman
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  Speaker 2: Museum right now, and so we're allowing the work to
• 8:39
  Speaker 2: just tour so people get to experience it. And once
• 8:42
  Speaker 2: we did that one, we were like, all right, let's
• 8:44
  Speaker 2: keep doing this.
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  Speaker 3: This is amazing.
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  Speaker 2: So I don't want to say that it does happen,
• 8:49
  Speaker 2: but I don't want to say that it doesn't happen.
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  Speaker 3: I just wasn't aware of it.
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  Speaker 2: I know that when we had the opportunity to do
• 8:55
  Speaker 2: it together, I said, come on, y'all, let's do this
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  Speaker 2: because it was thirty thousand dollars. But at the end
• 9:00
  Speaker 2: of the day, I'm part owner of three hundred thousand
• 9:03
  Speaker 2: dollars worth of art and that's just that one buy.
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  Speaker 5: So, what are like some best practices for people that
• 9:09
  Speaker 5: want to get in art, Like, is it like always
• 9:11
  Speaker 5: go through an art dealer, have insurance, like you know,
• 9:15
  Speaker 5: like when you buy a watch, right, like you can,
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  Speaker 5: it's best practices to go through authorized dealer as opposed
• 9:20
  Speaker 5: to just a jeweler. Right, it's best practices to have
• 9:22
  Speaker 5: insurance on the watch.
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  Speaker 3: Right.
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  Speaker 1: What are some of the best practices for art buying?
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  Speaker 2: Yeah, I mean again, I've been really fortunate. I've been
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  Speaker 2: able to buy a lot of art directly through art
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  Speaker 2: through artists. And the reason why I say fortunate is
• 9:35
  Speaker 2: because one, you get to know who you're buying the
• 9:39
  Speaker 2: work from. I mean, this work is in your home,
• 9:41
  Speaker 2: it's energy, right, A lot of these pieces have stories,
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  Speaker 2: these artists maybe going through different things while they're actually
• 9:47
  Speaker 2: creating the work, and so you know, I'm I'm an
• 9:52
  Speaker 2: advocate for people that want to get to know the
• 9:55
  Speaker 2: artists if you can.
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  Speaker 3: It's worked for me.
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  Speaker 2: Secondarily, you know, I've got gotten to know some galleries
• 10:01
  Speaker 2: that I respect that I think are doing good by artists.
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  Speaker 2: So you know, it doesn't hurt to have some galleries
• 10:07
  Speaker 2: in your repertoire. Only by what you can afford. And
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  Speaker 2: so I would say that that's my biggest advice to people.
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  Speaker 2: You know, I've never financed any art, although you can.
• 10:18
  Speaker 2: You know, there are financing programs for art, but I
• 10:21
  Speaker 2: just like to think for good financial hygiene, buy what
• 10:26
  Speaker 2: you can afford.
• 10:27
  Speaker 3: That's worked for me.
• 10:29
  Speaker 2: You absolutely have to ensure your art and you have
• 10:31
  Speaker 2: to make sure that it's a reputable insurance that specializes
• 10:36
  Speaker 2: in art insurance. You need to think about where the
• 10:39
  Speaker 2: art is going to be in your home. A lot
• 10:40
  Speaker 2: of light is not friends. It's not art's friends like light.
• 10:46
  Speaker 3: Yeah, so it ruins, it can, yeah, it can.
• 10:50
  Speaker 2: So you know, making sure that the art is in
• 10:53
  Speaker 2: a position in your home that it isn't getting damaged,
• 10:56
  Speaker 2: making sure that you're framing with a reputable framer that's
• 10:59
  Speaker 2: going to talk to you, you about UV glass versus
• 11:02
  Speaker 2: museum glassman. This is all this stuff that goes into
• 11:05
  Speaker 2: thinking about preserving your art. And then you know, I've
• 11:10
  Speaker 2: not been someone who's gotten into the business of selling
• 11:14
  Speaker 2: my art. I know people that are in that business
• 11:17
  Speaker 2: of selling. I can't say that I would never do
• 11:19
  Speaker 2: it for me. It's legacy building. So this is what
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  Speaker 2: I'm going to leave behind for my son, my god daughters,
• 11:26
  Speaker 2: my grandchild, you know what I mean. Like, this is
• 11:28
  Speaker 2: really legacy building for me and wealth building for them.
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  Speaker 2: So I think it's just making sure you get educated
• 11:35
  Speaker 2: like you do in anything that you're going to be
• 11:37
  Speaker 2: investing your money. And the last thing I'll say is
• 11:41
  Speaker 2: the ten people that I invested in art, I respect
• 11:45
  Speaker 2: all those people. I expect, respect their portfolios right, what
• 11:50
  Speaker 2: they've done with their money. I would have never just
• 11:52
  Speaker 2: gotten with ten people and bought some art that I
• 11:54
  Speaker 2: didn't know I felt were a good fit in what
• 11:58
  Speaker 2: I was trying to do, because that's a relationship. You're
• 12:01
  Speaker 2: getting into a business relationship with them. But I think
• 12:05
  Speaker 2: the biggest thing is by what you can afford and
• 12:08
  Speaker 2: then do all the due diligence, the insurance and all
• 12:10
  Speaker 2: that kind of thing to make sure you're protecting your
• 12:13
  Speaker 2: asset when it's touring.
• 12:15
  Speaker 4: The museums are paying to have it on display.
• 12:17
  Speaker 1: How does it work?
• 12:18
  Speaker 2: Yeah, So sometimes you will get paid by museums to
• 12:22
  Speaker 2: have the work. Sometimes it's that you're donating it because
• 12:26
  Speaker 2: you want the connection. You want to lean into the
• 12:29
  Speaker 2: equity of the of I think the institution, right. A
• 12:33
  Speaker 2: lot of these institutions have incredible equity. Smithsonian, for example.
• 12:37
  Speaker 2: I mean for me to say that I've been collecting
• 12:39
  Speaker 2: for five six years and I already have my name
• 12:42
  Speaker 2: in the most Smithsonian museum is like a big deal.
• 12:45
  Speaker 3: So you know, it's a it's a mix.
• 12:47
  Speaker 2: But yeah, there are times where institutions will pay you
• 12:50
  Speaker 2: to actually have your art and their exhibits