Are the deals mostly made in LA?

If I know for sure that my prodco won't make money, I probably wouldn't do it.

There aren't any guarantees in life, especially in the film industry. You just gotta be prepared and take the big risks! :) You won't know until you try. You can produce films from anywhere but the rest are right when they say that it's very social. The film industry seems to be one tight and small social group :) It's hard to work your way in but if this is something you really want then go for it!
 
When I asked "What kind of production company?" I really meant will it be an organizational/financing group, or one that has actual physical assets - cameras, lighting, sound, power, comms, props, trucks, stages, warehousing, etc. and the personnel associated to work it all. Two vastly different concepts.
 
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