1,200 is as much as ive put and paid for my pc and theres no way my pc looks as epic as that freaken film.
i call shenanigans. Paranomal activity didnt even look that good and that cost 20k.
I wouldnt be surprised if a fan base community worked together and made it and it was all volunteered and 1200 cost would have been cost for costume stuff. But 1200 doesnt look realistic for a budget. But with someone with a decent software and knows how to use. and another guy has a HD camera you can make so pretty good shit.
If you ever seen what those famous youtubers use to make there vids and stuff its really not that much.
since it's a fan-made thing, i on't think that anyone got paid. and one or two of them probably had the equipment already, an whichever person put the aftereffects in most likely was doing it all in their free time. so it's absolutely concievable that it was made w/ such a low budget