HOW TO INVEST
What makes a good investment? Something that can give you a good return, right? A product everyone wants! There are an estimated 325 million people in the U.S. right now. If you could get each person to give you $1, you would have $325 million dollars. Some found the pet rock to be a big success. We have something much better – MOVIES! Everyone goes to the movies, and they do it over and over again.
How do you make money in the movie business? Simple the movie is shown to the public for a cost. If business is slow and only 1% of the U.S. population sees this movie and you receive only $1 each person, that’s a total of $3,250,000 dollars. Say things turn out awful and you only get 25¢ cents per person, that’s still $812,500 dollars.
So what does this mean to you? This film costs is only $125,000 to make. $25,000 comes from state of Minnesota through the “Snow Bate” program. That leaves $100,000 for investors. A total of 10 shares are available at $10,000 each. A small amount in the investor world.
Investors are put into first position! What this means is each investor gets their $10,000 back first before there’s any profit. Let’s look at our worst scenario, remember it can be much better, but let’s play it safe.
$812,500 – Total profit
- $100,000 – Investors first position money returned
$712,500 – Profit left
%50 – Half goes to the investors
$306,250 – Profit return for investors
$306,250 divide by 10 shares equals a return of $30,625 each share beyond your return of the original $10,000 per share. That’s a 306% return on your money! Much better potential than any other investments. This is only an example, money can be much higher if the film is very successful. (e.g: Blair Witch Project, El Mariachi, etc.) Or lower, depending only on how much the film makes. And that’s just the domestic market, there is also money to be made on foreign sales, which investors will get in on.
Investors are not limited to how many shares they want to buy. You can buy one or all ten, the choice is up to you. This is a rare opportunity to share in the large profits made in the movie business.
THE INVESTMENT PROCESS
The investor’s security is of utmost importance to the film company! We want everyone to enjoy a healthy profit, and produce a superior film product. The director, his crew, talent, and legal team are all experienced in the movie making business, and possess all the skill to produce a successful film.
The next step would be to setup an appointment for the director and one of the other crew/talent to come meet and answer any questions you might have. To become an investor we will need you to sign a letter of intent. Once enough letters are collected, then investors will be contacted. Funds will be deposited into the company’s trust fund account where IFP MN will handle the accounting and the disbursement of funds for the film. Papers to protect the investor’s security prepared by the legal council will be signed at that time. Then production can start.