Hey Jeff,

Great stuff here. I think some of the readers need to understand the level at which you’re talking. It would appear that these are bigger films, and when I say bigger, I mean possibly tens of millions…please correct me if this is wrong.

It would seem that your information here would seem to apply to a certain “type” of film or at least a certain minimum budget. It doesn’t necessarily apply to every formula or every budget.

The thing people forget is that the higher the budget number, the less number of those films exist. I mean, how many Avatars will there be every decade and how many unsung, unappreciated and unheard of movies will be produced for under $1M? (I would say those would be the rest of them)

What I’m getting at is that in my experience, a letter of intent can be procured, written, backed-up and verified by the talent, specifically. It all depends on who you’re talking to. A direct connection with a star at a particular level may not necessarily mean you can call them on the phone, but some, dare I say a lot of them, you can. And to reiterate some of the info above, the agents are designed to procure work for their clients, not oust them from work, so I would like to state that you don’t always have to go through and agent, nor go by what they say. They work for the talent, not the other way around, so if the talent likes the script and the potential package for the project is attractive, they will want to do the script. In most cases, its up to them to choose, not the agent.

So for those of us that work in the realm of what used to be known as the “three-to-five’s” a letter of intent to jump-start the funding process can be like gold. In fact, a few years ago, I received a letter from an Academy Award Winner and her phone number was right on the page. Of course we kept that under lock and key and the number was erased depending on who was to receive the package. The point is that in this day and this market, actors at all levels have been affected. If the cream of the crop actors a few years ago had their next decade planned-out, they most likely do not anymore.

So I say…get a letter if you can. Use it properly and use it to approach appropriate and qualified investors and keep plugging-away. What works one person might not work for another and vice-versa.

-Russell Hess
Producer/Distributor

Jeff,

I think the 3 month expiration date on LOI’s is a good thing all around. Whether that is with financiers, investors or just for the producer’s sake. After 3 months, if you’re not shooting the film, contact the agents, talents, etc and make sure everyone is still on board. It’s just the responsible thing to do. Imagine a producer attached a certain actress, but the film production was delayed by a year. The actress ends up pregnant, the producer isn’t in contact, and then after all investors get involved then they move ahead… but they find out she’s in the middle of her third trimester. Now I know that sounds comical, but the point is things change. LOI is ok, but your 3 month expiration date sounds like the best way to see them. They are a letter of “intent” not a contract.

To Jeff, and to all of the insightful bloggers shared wisdom, knowledge and experience that I’ve been reading regarding the topic of film financing. This is like being a fly on the wall, in a master class. Wow! I, like other emerging screenwriters, also in the process of developing/structuring an indie production company, am grateful just to be able to “listen in” on really great and informative “how-to’s.” Again, thank you Jeff, and all you “experienced-ones” for demystifying the film-financing process.

What I have experienced is that if you do have LOIs, then at least your project gets pushed up the priority pile.

Whether it’s for other talent agents, distributors or potential financiers.

If all you have is a script and a finance plan … they dont really want to waste their time, until you have “attachments”.

I have a project with 4 interested actors with IMDB ranks 160, 250, 330, 500, respectively and another 6 with ranks up to 1500.

All available for a May-July 2011 shoot.
We have two more cast to get – and they may be the hardest because they are required for short periods, agents hate to commit their actors too far out for short periods.

She who is currently ranked 330 (but has been as high as 50) got the ball rolling with her LOI 20mths ago. I speak with her agent regularly, and have done since she first came on board. I never say – film will shoot on this date. But I do keep tabs on her commitments, and will prioritise my schedule around her accordingly.

It’s great material, something that is both commercial but topical.
A director with a track record in the genre.

We have access to high tax offsets 40%.
Post prod investment deals 5%.
And expect we will nail around 20-25% in presales.

However in the current market, I’m finding the equity really hard going.

Everyone who starts off sounding interesting, ends up being a flake deal. If I hear another person talk about a SBLC I think I’ll shove it back down their throats. Such a waste of time and energy.

I’m about to hit the time honored “funds” with the project.
However, concerned that their turnaround for processing a project wont meet the current window of opportunity.

Curious to hear what people’s experiences have been with those “funds” … the good the bad and the ugly. Slow / fast etc

I know Jeff has previously worked with MMG …

Anybody else’s experiences ??