Frequently Asked Questions For First Time Investors
Q.Can Hurston Entertainment LLC investors attend a movie’s premiere?
Yes. Investors are encouraged to take advantage of the many exclusive industry “insider” events available to them as an Investor. Investors who become an Executive Producer of a particular film investment opportunity will also enjoy premium VIP seating at their film’s premiere and a cocktail reception after the premiere with members of the cast. As well, Executive Producers will be able to attend the set while their particular film is shooting and enjoy other ‘Executive Producer only’ perks.
Q.How long does it take for a film to generate returns?
Depending on the time it takes to fully complete all aspects of production and depending upon the particular film’s level of success, a film investment opportunity may begin generating a return on investment (ROI) within the twelve months after financing, however; it would not be unusual for two years or more to pass before a project sees a significant return on investment. Many factors come into play, including the length and commencement of the production schedule, the availability of specific talent, the length of post-production and the seasonal feature film distribution patterns. Each private placement memorandum details the anticipated start-to-theatrical release.
Q.Do Executive Producer investors get dividends?
For a Hurston Entertainment opportunity, the units offered to those who choose to become Executive Producers of a particular project have a preferential return on investment, which provides a priority return of capital and an additional preferred percentage return amount to those who have chosen to become Executive Producers of a particular project by purchasing its investment units. These amounts are paid in full prior to the Executive Producer, Filmmaker group and Hurston Entertainment LLC net return computation. Each feature film’s private placement memorandum provides thorough details on the anticipated investors return on investment potential and the preference structure for an individual investing as an Executive Producer.
Q. Do Executive Producers receive tax benefits?
For each film investment opportunity, a discussion of certain tax information, including potentially beneficial tax treatment can be found in the private placement memorandum for each particular feature film project. If you have questions regarding potential tax benefits, we encourage you to consult with your tax advisor
Q.What is a typical Executive Producer investor return?
Even for a professional film investment company, it is difficult to generally predict an investor’s return on investment for a particular film investment opportunity. For every successful feature film project, there are several others that never find a significant audience. Film investments are risky and difficult to predict. We have included thoroughly details on the industry comparables for the specific project, including performance level and type of cast, genre, etc. This data is then broken down into the potential return on investment likely to be derived in domestic and foreign markets in all distribution channels—including theatrical, DVD/video, video-on-demand, pay-per-view cable, network television, etc.
Q.Can I invest in more than one project?
Hurston Entertainment LLC strongly urge those who desire to become Executive Producers to not invest in only one film investment opportunity, but instead; utilize portfolio theory to better manage and potentially further reduce investment risk, creating a greater opportunity for upside potential. Investors should plan to make their film investments in several different projects of differing types over time. Practicing portfolio theory allows our Investors the option to further enhance their managed risk potential of becoming a participant in a film investment opportunity by utilizing our professional film company.
Q. Do Investors receive screen credits?
Yes. Investors who become an Executive Producer on a specific feature film investment opportunity are listed individually in the end credits under Executive Producers.
Can Investors read details of the script and review the budgets?
Each Investor will have a private memorandum which includes a detailed synopsis of the script, in addition to a complete, detailed budget breakdown and detailed analysis of the projected return on investment by each anticipated distribution channel.
Q. Does Hurston Entertainment LLC have any ownership in the feature film projects?
Each of our feature film investments are organized as limited liability companies (LLCs) specifically set up to make a particular feature film. Generally, after our Executive Producers have been paid back their entire investment and a premium return, Executive Producer then generally receive 50% or more of the net profits of the project.
Hurston Entertainment also retains ownership of the feature film negative to efficiently exploit all revenue opportunities on behalf of our Executive Producers and Filmmakers during the lifetime of the project. Any ownership held by Hurston Entertainment or any other entity will be detailed in each feature film’s private memorandum.
Q. How will the finished projects be distributed
Under the direction of our President of Production, our seasoned distribution and marketing teams will be responsible for all decisions relating to the domestic and foreign distribution of each feature film project. Each feature film project’s distribution strategy will be detailed in the particular film investment opportunities and upon complete funding for the project.
Q. What is the advantage to Investors and Filmmakers in raising funds this way?
Limited liability companies (LLCs) are commonly established in order to produce feature films, Broadway plays and other alternative investments, including REIT and energy investments. It is also common practice to raise money for alternative investment entertainment projects (film investments) from private investors.
Q. Why do people invest in entertainment proj ects?
The answer depends on the individual. Some people are drawn to the idea of supporting projects by their favorite directors or starring their favorite actors, while others are attracted by the idea of being film business “insiders.” Ultimately, most people that become film investors choose a particular film investment opportunity that they have identified as a feature film project that can potentially generate general audience acceptance in the marketplace—offering potentially significant profits.
Q. How much can I invest?
Feature film investments made in Hurston Entertainment LLC’s private placement offering’s are typically accepted on a first-come, first-served basis and generally have a $20-50,000 unit minimum, depending on the total cost of the feature film project.
Q. How do I become an Executive Producer?
People who desire to become a film investor enjoy “first look” access to the top-tier independent film’s currently being developed by Hurston Entertainments LLC. Persons can become an independent film Executive Producer by investing in one or more independent film investmen t opportunities. Contact your Hurston Entertainment representatives now.