I got myself confused on the whole "investor points" and need someone to untangle me!!
Ok, so lets say, my total budget is $200,000
I have two investors who want to invest into my movie.
Bill invests $10,000 (5% of the budget)
Bob invests $190,000 (95% of the budget)
1. How many investment points to Bill and Bob have?
(a) 5 points to Bill and 95 points to Bob.
(b) 2.5 points to Bill and 47.5 points to Bob.
2. If a distributor sends me a check for $200,000 (after distribution fees been taken out), do investors get an entire $200,000 to pay back their investment and leaving cast and crew pennyless?
3. If a distributor sends a check for 400,000 (after distribution fees been taken out), I will give $200,000 back to the investors, leaving $200,000 profit that I can now split 50-50 between producers and investors ($100,000 each).
Assuming the answer for question 1 is (a) , Bill and Bob will get $5000 (because he has 5 investment points) and bill will get 95,000 (because he has 95 investment points). Does this sound right???
Thanks for your knowledge everyone!
Ok, so lets say, my total budget is $200,000
I have two investors who want to invest into my movie.
Bill invests $10,000 (5% of the budget)
Bob invests $190,000 (95% of the budget)
1. How many investment points to Bill and Bob have?
(a) 5 points to Bill and 95 points to Bob.
(b) 2.5 points to Bill and 47.5 points to Bob.
2. If a distributor sends me a check for $200,000 (after distribution fees been taken out), do investors get an entire $200,000 to pay back their investment and leaving cast and crew pennyless?
3. If a distributor sends a check for 400,000 (after distribution fees been taken out), I will give $200,000 back to the investors, leaving $200,000 profit that I can now split 50-50 between producers and investors ($100,000 each).
Assuming the answer for question 1 is (a) , Bill and Bob will get $5000 (because he has 5 investment points) and bill will get 95,000 (because he has 95 investment points). Does this sound right???
Thanks for your knowledge everyone!