Cash flow tip: solar energy as an investment

Turning to solar energy as an investment may be a personal cash flow tip worth pursuing.

Pursol Solar out of San Diego is one of the many private companies supplying residential and commercial solar applications.

Investors looking for returns outside the traditional stock market and mutual fund offerings may find investment opportunities in solar energy. The solar industry is growing about 40% per year while government incentives and mandates are strengthening the market for companies focused on supplying alternative energy.

In California, Governor Schwarzenegger recently signed an executive order that requires state utilities to get a third of their power from renewable sources by 2020.

Homeowners and commercial building owners may find that the cost of energy they’re currently paying is already higher than what they would be paying with solar.

There’s also a tax incentive for people looking to place their money in solar energy growth. This may appeal to accredited investors who want to explore profitable companies in the alternative energy industry.

To keep up with its rapid growth, the four year old company is starting construction on both a new manufacturing plant and a power plant in Q1 2010.

Pursol is registered to go public in within 24 months, he said, and the company has had over $ 13 million in residential sales so far this year.

There’s also contracts pending with two casinos totaling $ 18 million as well as with a national hotel chain. The hotels and casinos will be able to write off the cost of converting to solar over a 5-year period and then their energy costs are free.

Undervalued Investment Opportunity? Independent Films

Investing in independent films may be underrated as a serious investment opportunity.

The risk is often highlighted. A Hollywood blockbuster gets made for $ 50 million yet returns $ 30 million. A loss.

But movies can have positive cash flow potential since they have multiple income streams: releases in theaters, dvds, foreign, direct to consumer, internet sales, advertising revenue . . . and the reason for investing in an independent movie is the budget is low giving the film a higher return on investment potential.

Let's look at a film in production right now: Joshua The Heart of a Warrior.

The movie is in the Mixed Martial Arts genre yet there's a genuine story of forgiveness and acceptance after the main character,Joshua, suffers a tragedy in the cage and becomes disabled.

The film is produced by Knuckle City Films and directed by Addison Henderson who has a track record for recent successful documentaries.

Independent films produced on micro-budgets of $ 500,000 or less can bring tremendous profits to the investors. The Blair Witch Project cost $ 35,000 and grossed $240 million and Tadpole cost $150 thousand then sold to Miramax Films for $5 million.

A movie is a product and creating a positive return on investment depends on key variables: the story, the production team, opportunities to screen at film festivals and the chance for distribution.

How much money does it take to invest in an independent movie?

For Joshua: Heart of a Warrior, investment and advertising opportunities exist for both individuals and companies.

An executive producer can own up to half the film for $ 50,000.

For only $ 5,000, an investor can receive up to 5% of the revenue from the film.

Or, businesses can advertise in the film for complete packages ranging from $ 6,000 to $ 1,500. Individual sponsorships are also available.

A full investment and advertising package is available from producer Marcos de la Torre.

Stop by the Knuckle City Films site and watch the trailer . . . if nothing else, pass along the word about the movie.

Here's a chance to own a piece of a quality film with a great story.