How I Became An Art Mogul

Art Mogul.png

Business Asset Class

I truly believe that the business asset class is important in super charging the race to financial independence.  While many dream of starting their own Google or Amazon, I find myself much more interested in the small, less scalable business.  The kind that spins off some revenue, builds experience and know how, and is fun.

Although I have owned multiple small businesses (mostly medical practices and real estate), my foray into the business asset class that I am most proud of was relatively short-lived.

Becoming an art mogul

For a few years, I was an art mogul!

How, you ask, did a practicing physician stumble into an online  fine art dealing business?  The answer, of course, was pure chance.

Living in St Louis during residency, my wife and I bought a townhome.  Although we were not lacking in furniture, there were large expansive walls begging for attention.  While at the local mall, I became enamored with mesmerizing lithographs and serigraphs at an art gallery.  I fell in love with imaginative, figurative artists who painted swaths of color and texture.

There was only one itty bitty problem.  The price.  I just wasn't willing to pay thousands of dollars to cover my walls.  So I went to the internet, scoured eBay (this was before it was so popular), and made scores of phone calls. After a few hours of work, my search turned fruitful.

I was able to find the same or similar high quality art work by the same artists at much lower prices.  So I did what any respectable FI person would do.  I dove deep and every Ebay seller, publisher, and art gallery I could find.  After asking many questions, I made a few friends.  All of the sudden a  world of secrets opened up.

The art hustle

So here is how the hustle went.  Artists signed up with publishers to help them publish, promote, and create high quality, signed and numbered prints of their art work.  Those publishers created and marketed that work to art galleries.  If the retail price was $2000 for a particular piece, the publisher would sell it to the art gallery for $1000.  For any given run on a print, let's say 150 signed and numbered copies, the publisher would quickly sell the first 100 and make enough profit to cover the full printing.  The last 50 copies were gravy, but often hard to move at retail prices.  Multiply those 50 extra prints by multiple different images per artist, and multiple artists.  There was a lot of extra art work hanging around the publisher that had little value (for them).

So at any given time, the publisher would have thousands of extra prints that they had no interest in spending the time and money to unload.

Enter the large-scale discount buyers.  These were the guys I became friends with.  They would go to the publisher and purchase a million dollars worth of product for $100/print and then sell directly to the public at a discount,  or better yet, to me.

Breaking it down:

Retail price (cost to public): $2000

Price to discount buyer: $100

Cost to me: $250

Cost to gallery: $1000

What I sold for: $500-$1000

So I bought in bulk, and sold in the secondary market to galleries and individuals through a website or eBay.

After two years, I moved a few hundred thousand dollars worth of artwork, made a little profit, and kept a bunch for myself.

Unfortunately, running my own medical practice became  prohibitive, and the time had come to leave my life as an art mogul behind.

New Social Image.png

The Earn & Invest Podcast

This podcast is an exploration of personal finance, financial independence, and taking the conversation to the next level.  The show features panel discussions with top influencers in the personal finance space.  Guests weigh in on questions that don't have clear answers.

Listen to other episodes.

Call To Action!

Here are three simple ways to support the podcast that would mean the world to us.  And guess what?  They don't cost a cent.

  1. Please subscribe to the podcast on iTunes, Spotify, or Stitcher.

  2. Leave a review on iTunes or Stitcher.  Tell us what you think!

  3. Join The Earn & Invest Podcast Facebook Group

Previous
Previous

Breaking The Budget

Next
Next

A New More Inclusive Umbrella