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Need Initial Investors for Horror/Action...

D

d5 Films

We're currently in pre-production on our first feature film; a horror/action werewolf film. We have worked through connections getting great deals on crew, equipment, etc. and now need funding.

Our producer has been making low-budget horror films for 30 years in Hollywood and has made some of my favorites as a kid. He has a couple of investing partners that are willing to put up the bulk of the budget if we can find someone else to go in first.

Basically, we are planning to shoot this under the SAG low budget rules for the $625,000 scale. These investor-friends of the producer are willing to put up $500,000 if we can find the initial investment of $125,000.

The script is copyrighted, so I have no problem sending copies to potential investors for review.

We are hoping to shoot the film in January over a three week, eighteen day schedule. We have already used our connections to secure great pricing on DP and two camera operators, all with RED cameras (three camera set-up); special effects makeup, and stunt crew.

Basically, once we have the $125K in hand, the rest of the budget will fall into place.

If anyone has any suggestions or know of someone who might be interested in the horror genre, werewolves, etc. please let me know. We've got a great opportunity here.
 
I have a few questions before I pass this along to my partners:

Do you have a payout guarantee for the investor who puts in
the first monies?
Is the $500,000 in an escrow account to be used only for this
project?
Is the LLC registered with the SEC?

While having already secured the crew and stunt people is nice,
what investors are looking for is a "name above the title" and
a distribution plan in place. And you didn't mention either one.

With several werewolf being released in the next six to ten
months (some by major studios) that genre is about to see a
saturation in the market. That's a very low budget for theatrical
and a very high budget for DVD/VOD.

Who is the producer? He may be a favorite of mine, too.
 
Let me try to answer these one by one...

1. The investment contract states that investors will be paid on a first-come basis... So, the primary investors recoupe their monies before the secondary investors...
2. The money is in the hands of the secondary investors at this time... They're sitting on it... Once the initial amount of the budget is obtained and placed into an account solely for the production, the remaining budget will be placed into its own separate account...
3. Our LLC has been put together by an attorney friend of mine, but I do not believe she has filed it yet...

AS far as the "name above the title" goes, we have been waiting until we have the budget in hand... No point in attaching someone you can't pay... Which leads into the next bit-

my producer is Mike Muscal... He started off in SFX work on Re-Animator, From Beyond, Bride of Re-Animator, etc... Over the last several years, he has produced a string of serial-killer themed horror films with titles like Bundy, Ed Gein (aka In the Light of the Moon), and The Hillside Strangler (the last two directed by Chuck Parello)... His last film was Detention which was made earlier this year and is one of the last films made with David Carradine... Through Mike's connections, we have access to Lance Henriksen, Michael Madsen, and/or William Forsythe for the lead role... While I haven't spoken to any of these actors or their agents, I believe Mike has been doing so...

Locally, we have been working with Remy Carter as a production manager who has been lining up anything and everything as far as the production crew and post goes... Our ultimate goal is to shoot in January, edit throughout February and into March and then have the DVD on the shelves by the time The Wolf Man remake hits theaters in April... A whirlwind of a production, actually...

As far as having a distributor lined up at this point, that is something we do not have, but again with Mike's long background and multiple contacts, he's confident that will not be a problem...

If you think your partners might be interested, I can put you directly in contact with Mike... He's much more versed in this than I...

Thanks...
 
I didn't exactly "fall" into this role... I've been busting my ass for the last 10 years to get it... I've been working full time as a chef while still managing to make time to write scripts and even make a small handful of short films... It's been a long, arduous process and it's nowhere near finished...

Tips?

Hmmmm...

First: Make as many connections as you can... Join film groups in your area and actually go to the meetings... I'm not sure where in Winsconsin you are, but there's a 48 hour film project every year in Madison and Milwaukee (as well as Minneapolis and St. Louis if those are closer)... Join a team or better yet start your own and recruit people to join... It's a lot of fun and you get to meet a lot of people in the business... www.48hourfilm.com

Second: If you write your own scripts then write... Write a lot... A ton... hone your craft that way... If you have access to a camera, go shoot something you've written... Even if it's a couple of acting students from the local community college drama department... These movies won't be masterpieces, but they'll help you learn and understand camera placement, movement, lighting, etc...

That's all I can tell you... It's about perseverence and refusing to listen to naysayers...
 
In addition, I tend to come across as surly, so no sarcasm intended... It's just me... lol...

I thought I would mention that I ended up working with my producer by sheer chance alone... I figured "what the hell?" and put an ad on craigslist (of all places)... Mike had just moved to Houston and was checking film stuff out on the internet and came across my ad online...

So, luck played a small role in it for sure...
 
I remember Michael. He was the UPM on Re-Animator - a show I
worked on. I should be able to find him. If not I’ll PM you for
his number.

Does he and your laywer know you are using internet forums to
solicit investors? It’s “technically” illegal. I’m not suggesting
anyone from the SEC is going to break down your door and arrest
you, but this can be considered a public offering.

My advice is to let both of them know you have done this. If they
are cool with it, then I’m just being overly cautious.
 
The answer I got from my lawyer friend was "that's pretty minor"... Mike told me "every other ad on craigslist in LA is looking for money for their movies... don't worry about it"...
 
d5-

Thanks for the advice. I have been doing everything in your first post that you mentioned. No big surprise there. I was more interested in your second post. Craigslist.org and a prayer huh? Well, I guess I know where to start. Thanks again. Good luck, I look forward to seeing the finished product.
 
d5 Films said:
Let me try to answer these one by one...

1. The investment contract states that investors will be paid on a first-come basis... So, the primary investors recoupe their monies before the secondary investors...
Click to expand...

Is that before or after deferments?

2. The money is in the hands of the secondary investors at this time... They're sitting on it... Once the initial amount of the budget is obtained and placed into an account solely for the production, the remaining budget will be placed into its own separate account...
Click to expand...

The reason why money is put into escrow is so that no interest is accrued and there are exact rules put into place for access to the money and when it will be granted. Most prudent investors will demand this.

3. Our LLC has been put together by an attorney friend of mine, but I do not believe she has filed it yet...
Click to expand...

If it hasn't even been filed yet, then you are doing business as yourself. Clearly if you are selling equity memberships in an LLC that hasn't been filed, you are going to be in very deep and completely liable for any wrongdoings in the course of making the picture including the mis-handling of the dividends due to interest that the money would be generating while sitting in someone's bank account.

AS far as the "name above the title" goes, we have been waiting until we have the budget in hand... No point in attaching someone you can't pay... Which leads into the next bit-
Click to expand...

If you attach a star, you can get the funding. You can get pre-sales. Its an egg before the chicken syndrome. If you really know what you're doing and have the connections you can even enter pay-or-play arrangements based on other commitments made.

As far as having a distributor lined up at this point, that is something we do not have, but again with Mike's long background and multiple contacts, he's confident that will not be a problem...
Click to expand...

When making a genre film, the first thing you should be thinking about is guaranteed distribution. If you're not making an art film to play the festival circuit the first thing you need is a commitment for distribution. To get better distribution, attach talent. It will make everything easier.

This is all my 2c, ignore it if you like.
 
d5 Films said:
The answer I got from my lawyer friend was "that's pretty minor"... Mike told me "every other ad on craigslist in LA is looking for money for their movies... don't worry about it"...
Click to expand...

Before I bring this to my partners I'd like to know how many other
public offerings you have made regarding this project. While Mike
is correct that there are a lot of notices on craigslist soliciting investors,
that opens a lot of legal issues - issues my partners just won't get
involved in.

Did you post on craigslist?
Did you offer investments on other messagebaords?
 
craigslist posts

directorik said:
Before I bring this to my partners I'd like to know how many other
public offerings you have made regarding this project. While Mike
is correct that there are a lot of notices on craigslist soliciting investors,
that opens a lot of legal issues - issues my partners just won't get
involved in.

Did you post on craigslist?
Did you offer investments on other messagebaords?
Click to expand...

Hi Rik,

Just so I am clear as a novice, is it illegal to post solicitation for film investors on craigslist ? Is this statutory state by state or all together unlawful ?

I've followed your posts, so I am confident you advise is reasonable.

thanks in advance.
 
Ian Losz said:
Hi Rik,

Just so I am clear as a novice, is it illegal to post solicitation for film investors on craigslist ? Is this statutory state by state or all together unlawful ?

I've followed your posts, so I am confident you advise is reasonable.

thanks in advance.
Click to expand...



Anyone got a definitive answer?
 
"Anyone got a definitive answer?"

Yeah. He should ask his longtime producer friend and his lawyers.

Soliciting money is regulated by the SEC and state laws. You could go to jail if they think you are defrauding people, or the government.
 
Ah only on Indietalk Forums can you watch something like this happen right before your eyes :) good luck with it to you all, hopefully one day i can work with some of you on something like this
 
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