Equity Crowdfunding A Movie – An Opportunity for a Passive Income Stream?

Gentle Readers,

Any blogger with more than one post in a niche gets random emails soliciting posts or access to your platform. Most of them are clearly spam. They are the equivalent of offering to write a post about Viagra for a lesbian’s financial independence blog. They all claim to have read you and love your blog, but they’ve never interacted with you on any platform. (Hint, I’m on twitter and facebook and right here at www.zjthorne.com). No liking a tweet. No blog post comment. No indication that they’ve read you at all.

This time was different. The approach was interesting because they actually did some homework on me. They showed that they had read one of my pieces, or at least the title. They put in the minimal required effort to pique my interest. They are the first. There are perks with being first.

When you approach someone like you respect their time, they are more inclined to listen.

Based on our interactions, I believe this person’s idea was worth investigating. They did not ask for a post, and this is not a sponsored post. This is what happens when people respect others’ time and expertise (let’s joke and pretend I’m an expert here, thanks).  I am not receiving any money for this post and I have not decided if I would invest in this project.

Enough with the caveats.

What is Equity Crowdfunding?

Title III of JOBS Act made online equity crowdfunding legal. In a nutshell, you do not have to be an accredited investor in order to participate in some opportunities to invest now. Accredited investors have a lot of money and the government assumes that they know what they are doing when it comes to investing. Thus they are allowed to invest in securities that are not registered with financial authorities. The government thinks that slick folks won’t be able to pull one over on accredited investors and that they don’t need to be protected from themselves.

Those of us who do not make enough money are now allowed to buy equity in an early stage company. You are reading a FIRE blog and I assume you know what equity is. The goal is that this asset produces returns. You can invest in some startups now. That’s the gist of equity crowdfunding.

What is the opportunity?

That Christmas Movie LLC is seeking investments to get a Christmas Comedy out the door for the 2017 Holiday Season, “I’ll Be Next Door For Christmas.”  It is going to be a full length feature film and claims that it will be the first Christmas movie to raise funds this way. (The JOBS Act did not make this legal until 2016, fyi)

Essentially, they are making a low-budget Christmas Movie with some very talented folks, who’ve made comedies I’ve enjoyed before. They will leverage the money earned through equity crowdfunding to access other capital at a cheaper rate.  They’ve reached their minimum goal already and intend to make a movie on whatever budget they end up with. If I understand it correctly, they will not use more than $2 million total to produce this film.

If you have anywhere from $100 to $100,000, you can purchase a share of this security. You are buying Revenue Participation Rights. It is impossible to know what the interest rate would truly be, because that will depend upon returns, if any.  They’ve set up the company in a way to allow the investors to receive 100% of the adjusted gross proceeds up to the repayment amount, that is the $100 to $100,000 you put up. After all investors are repaid, 50% of adjusted gross proceeds would go to investors on a pro-rata basis. There is no term. You buy it and hope to receive residuals forever.

There is even a lesbian link

Jennifer Tilly joined the cast. She is not a lesbian, but she starred in a lesbian classic, Bound. Queer women throughout the US are grateful to her.

What do you think? Should I invest? I have the writer/director’s email and am not sure what questions I should be asking. What would you ask? 

Net Worth Week 45 – A Change is Gonna Come

Gentle Readers,
There was another week of net worth growth, but big changes are brewing. These changes will impact my money, my time, and my general happiness.
My wonderful girlfriend had a short period of unemployment before accepting a job very far away. It’s an exciting opportunity and will be a great chance to grow professionally, but it is also bittersweet. A change of scenery may be good for the spirit, but it also means that our hug quotient will go way down. She flies away next week.
Thankfully, my employment is flexible. I have not yet broached it with my agency, but I will request that they allow me to work remotely outside of the weekend to sometimes work from her new place while she is at her job. This will make visiting her monthly far more feasible. I have the approved computer for remote work. My bosses don’t supervise us, nor care that one person sleeps while “working.” This would allow me to continue pursuing their overtime goals and allow me to purchase cheaper airfare. They should say yes, but may balk. We’ll see.
With all of this, I also need to continue to work on my balance transfer from last summer, and pay it off before July.  Her move is why I have not yet made my appointment with an oral surgeon. I want to spend as much time with her and helping her as possible. Sometimes love includes dental pain.
I have a lot to learn to make this change work. I did not previously know that South West Airlines had such flexible tickets. I will be looking up travel hacking, and all sorts of other things to make sure that our love and support stay strong.
 .

This week’s net worth numbers

2/10/2017 2/17/2017
 Joy 1104 1104
 Travel 324 324
 Down Payment 19 19
 Retirement 21 21
 Health 45 45
 Moving 284 284
 EF 810 810
Business 751 751
Bed  0.19 0.19
 Life 819  1608
 IRA 11536  11974
 Brokerage 679  688
 CC (largest) -4182 -4203
 CC (longest) 0  0
 Rewards Card -1120 -1682
SL 1 -103854 -103970
 SL 2 -45738 -45791
 Earnest -6109 -6122
 Net Worth -144610 -144139
 Percentage Change .40% .33%

What made a long-distance relationship work for you?