film financing 101 - from investors, to financial brokers

[Clint Nitkiewiz Hernandez]

So, can anyone with expertise in film financing explain a couple of things about it,

how to get financing
what is financing, a loan or investment? Will they get a cut of the film if made?

How does it work? From point a to point b.

Some guy wants to invest in my film, but I dont really need money, it would be nice to hire a few extra help with the money, Im sure it would be worth it,

But do I have to give the investor a cut after or just payback what he gives?

I heard investors just want to invest in films to make money, and will modify your script and production, post, etc, just to attract massive audiences, so if I am aiming for a niche, they might not care about that and would prefer the general public. Is that true, or are there niche investors?

 

[PainTheGame]

Investors invest in your production to make money. What they make is what you deal with them. If they say I'll give you this amount for your production if I make 10% of what you make from profit. It's all based on the deal you make. Investors give you the money so you can properly make your film but since they're placing their money into your hands they do have a little bit of control on your production because they don't want to lose their money.

I honestly think if you don't need the money then just stay away from it. I would only deal with investors if you're struggling. If you do deal with them make sure it's someone you know or have a relationship of some sort so that they don't get in the way.

 

[Kess]

He is exactly right...if you don't need the money then why bother with the extra oversight and mingling of an investor. Having said that you still want to keep them around in case you do need investment at some point in this film or in your career. Play nice in case you need them. You are in a great position. Most filmmakers can only wish they had the money and also had investors wanting in. If you were going to use investors then you would want to make up your contract in whatever way you feel comfortable...and that you all can agree on. You might pay them back a certain amount or a certain percentage. That amount may be after you have made back a certain amount as well. Everything is open to negotiation.

 

[David W. Richardson]

If you can get investors, then get them. Risk their money, not yours. Why? Because one day you hope to be making mega-million dollar blockbusters. When they day comes, you're going to need investors. So start now establishing a track record of making money for your investors, so you can get the big bucks when you need them.

Get a book on film financing.

Good luck!