What are the safest investments to make during a recession? Just ask those who made Jaws or Raiders of the Lost Ark. What did people do during the depression? They headed to the silver screen. Could film be the best place to invest money? A profitable film investment may very well be worth looking into.For investments, one can’t use words like “secured” or “guaranteed” but one can look at an old “tried and true” way to invest and make money: Film.

What to look for as a film investor:

A good film investment has: · Investment returns or “projections” shown to you up front. · Exact time lines with exact dates of when you get your return. · Tax deductions and high cash return in a short amount of time.

If done right and with the right people, a film investment can be extremely profitable and a lot of fun. It might just be your best investment.

Of course, throwing money into a film project doesn’t mean it will succeed. Anyone with enough capital, cash in hand or credit can make a movie. Take the big film studios for example, they might spend millions on a film but that does not mean the investor will make a profit.

There are a few key elements to success in any business and this also includes the entertainment industry. The riddle for any film investor is: How do I make a low risk investment, 100% tax deductible, coupled with having a “safe and profitable return” in a short amount of time? The answer is: Put your money in a profitable film.

What makes a good film investment or a profitable film?

Examine a couple past films, both The Blair Witch Project and Napoleon Dynamite for example. Both had low budgets and no A-list actors, yet both had extremely high returns for the investors. With an initial investment of $35,000, The Blair Witch Project took home $250 million

As for a present day example and a project worth looking into would be an independent WWII feature film in the development stages: Pathfinders: In the Company of Strangers www.pathfindersfilm.com.

This film has all the key elements for an investor:

· A wise budget with high returns for the investor (minimally double). · An international distribution deal in place with sales projections at 3X their budget. · A merchandising deal. · A newsworthy story/script that has the added bonus of a marketing “niche.” · It is being filmed in a state that has tax credits for filmmakers. · A professional crew · Actors are attached who have “built in marketing” (Young Forrest of Forrest Gump, Young William Wallace of Braveheart, Young Henry Hill of Goodfellas and Donnie Edwards of the NFL). · A “buzz” — Pathfinders: In the Company of Strangers has already received international press coverage prior to it even being made. It was highlighted on Fox News, CNN, ABC, Empire Magazine and other televised interviews promoting the film. I am unfamiliar with any other independent film receiving international press coverage prior to the film being made.

Seven things one should look at prior to investing in a film:

1.) What is the budget of the film? Just ask for it! Look it over, talk it over with the producer(s) and make sure the budget makes sense. Ensure the film can be completed with the money in the budget. 2.) Does the film have a distributor in place and a signed contract? Without these, it is as good as investing in a high-risk investment in the stock market. 3.) If so, what are the “sales projections” from the distributor? Get the actual “cash return” projected by the distributor. 4.) From here it is simple math - are the projections higher than the budget and is your profit also included? The profits must be appealing to you. 5.) Does the film have any merchandising, music, etc.? If so, this could be an added financial bonus to you and could be residual income that you could pass on to your children. 6.) Is it a good script/story and/or does it have a “niche”? Be sure to read the script prior to taking money from your pocket or cashing in your 401K. 7.) Can the filmmakers deliver a good/sellable film? A college degree doesn’t guarantee this nor does a “diva” attitude. The following filmmakers never went to film school: Peter Jackson of Lord of the Rings and Quentin Tarantino of Pulp Fiction. They have good people skills coupled with good managerial skills. Try and meet the filmmakers and some of the crew. Ensure they are good and honest people who can deliver what they promise.

Those are the basic things to consider when making a film investment.

A few other items to look for that will help or safeguard your investment are:

a.) Is there a marketing plan and are funds allotted for marketing the film? If there is no “built in marketing,” be it an A-list actor or a well-known celebrity who will tour and promote the film then there had better be some money allotted to marketing the film. Some film’s marketing budgets are as big as the film budget. Film festivals are also a good way to promote the film. b.) Can a “buzz” be generated while the film is being made or after it is made? Find or have a twist of interesting connections to the film that are newsworthy. c.) Is the film actually a film? Video or Digital is not film. HD (High Definition) is nice and cheaper but sometimes an “unspoken” requirement for certain film festivals and distributors is that it has to be shot on actual film. This is worth looking into prior to investing. Maybe HD is fine for a particular film projects but not for others. d.) Tax Credits/Cash vouchers? For large budget films, ensure the film or parts of the film are being done in a state or country that offers tax credits, etc. for you. e.) If the film has an A-list actor, can you get “pre-sales” from your distributor? This could mean extra money for you or the film. f.) Is the cast charismatic, likable or watchable? Meet the cast. Interestingly, if they are not likable or genuine in person, they probably will not be on screen either.

A few more common questions:

Is an A-list actor a requirement for a successful film? Having an A-list actor or two will help secure your chances at success but it doesn’t guarantee your profitability or make it worth you reallocating your funds from your personal savings account. Simply, it doesn’t guarantee a profitable film. However, it can help the filmmakers get “pre-sales” to help fund the film. If the above seven elements look strong, like the example of Pathfinders: In the Company of Strangers, then that would ensure your money is safe, not an A-list actor.

Can the battle be won or lost before it begins? Yes. Just like in film, a photo shoot or a staged event, 80% is “setup” or “preparation” and 20% is actual production. Having a good director or director of photography is important but the one job which is almost always overlooked is the art director or the production designer. This could mean the complete success of your film. There is much debate regarding why the first 3 Star Wars films were better than the last three and why the first Indiana Jones film (Raiders of the Lost Ark) was better than the last three. There was one person/position who had been overlooked: the art director. For all the successful films, the same person was in the art department. When the films did worse, he wasn’t and there were different people in the department. Coincidence? Maybe, but since setup and preparation are 80% of a successful shoot, please do ensure the art department is strong and creative to ensure your personal success.

Can anyone invest in a film? Yes. Anyone can and obviously a person can invest many different amounts or percentages. Most filmmakers or producers are very friendly people and are very approachable. Just send them an email or make a call. It doesn’t hurt to talk. With what you know from this article, it may just be the best call and the best investment you can make.