About Me

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Vancouver, British Columbia, Canada
Founder of SoKap, crowdsourcing and crowdfunding go to guy, indie filmmaker, father, mustard maker, meat lover, pseudo vegetarian, devout humanist and overall good moralist.

Nov 13, 2008

good film investment during the crunch

Here's something that if your interested in getting into film investing will keep you sane and provide you with a managed risk approach to getting into the game.

There are new funds out there that offer investors the opportunity of interim financing soft monies that are guaranteed by local, and federal governments.

Basically if Joe has a film that has a tax rebate program attached to his film, the bank would normally fund these up front; however, with the credit crunch causing havoc, private lenders are now doing this with good success and ROI.

Example:
Joe is making his 2M dollar indie and the region he is shooting in provides a 25% tax credit of lets say an even 500K.

Joe can make the film over a period of 40 weeks before the post audit is performed and the delivery time of the refund is about 10 weeks. Lets just round it out to a year for this example.

Joe goes to the fund and the fund gives him 85% LTV on the 500K, and once he issues his statements the government issues him 100% of the rebate. That's a 15% ROI on investment people and that is guaranteed by government!

Joe gets his film made...you help him out...and make 15%!

give me a holler if you want to find out where and who administers these funds in Canada and the US.

cheers
dave

1 comment:

cctang said...

Dave,

Drop me an email? I'd be interested in learning more about these and other investment opportunities.