You need to practice caution when thinking of investing in film making. Many people who are quite financially successful, often loose their investment, when putting their money into film making. Investing in film making is exciting and glamourous, but not every film becomes a hit, and a flop can mean a huge loss for you. Never invest in anything, unless you can afford to lose the amount you have invested with minimal damage to your finances.
The winners in the film making business have proven that they are successful, and are already completely financed. These film makers have many years of experience in the film making field. While it is possible to invest in film making and make money, it isn't very easy. There are several people out there who are waiting to give you poor advice and take your well earned cash.
A few quick tips to set you on the right track:
1. 30% to 40% in equity should be enough to make most films if others will agree with the idea.
2. Keep the budget low, foreign should cover at least 50%, 70% would be even better.
3. Search for a script carefully and take your time, don't grab the first script that interests you. You need to make sure film makers will agree with the use of the script.
4. You will need to take care of distribution with your own money, distribution is where you can make a good deal of money from your investment.
5. If you invest more $5 million or more, you will be able to buy into more than one film.
6. Never put up more than 50% of the total amount it will take to make the film, the producer should be able to drum up the rest, if they can't- withdraw now.
7. Do not look at hit movies made by major motion picture studios as a guide. You will be working with independent film makers, and there are big differences.
Do your homework and become knowledgeable about the workings of independent film making. Know the film trends that work and what is popular, and what trends will be expected to last for a year or more. Has the film maker worked in the industry at all, if so to what extent is his expertise?
While investing in film making can be quite lucrative, you should believe in the film project and the ability of the film makers before you invest a dime. Meet with them to see how professional they are and what their goal is when it comes to the film project at hand. How excited are they about the project? Do they seem like the go-getter type that will be able to see the film making project through to completion? Are they opposed to you visiting the set once in a while to quietly see how the film is progressing?
These are all things you should check out before you decide to invest in film making. There may be other issues you will be concerned with, make sure you write them down while they are fresh in your mind and bring them with you to the meeting. There is never a guarantee when it comes to investing in anything, but if you believe in the project and are satisfied with the film makers there is a good chance you will see a profit.