Interview with the directors, some explanations
This was already posted in another thread, but the link was broken. Here's a working link. Lots of spoilers, read only after watching the movie.
http://www.allthingshorror.com/2013/02/an-interview-with-resolution-di rectors.html
Interesting bits:
People need to be in an altered state to actually see the monster. Michael might find evidence of the monster, but it's the other characters that are actually seeing it. If you look at the drawings Chris has tacked up behind him, that's what he's seeing when he's f-d up. There's a couple points where Michael thinks he sees it. There's one scene where he's looking into a mirror and that's the closest he gets to being in another state. Michael is also getting more and more sleep deprived. He is starting to get tuned in.
The other characters in the movie are aware of the monster in their own way. The celestial messiah of the UFO cult is the same big horrifying monster that Mike and Chris are seeing at the end.
What you're watching is found footage. There's hints in the third act where Mike and Chris find a can of film footage, and as they walk away Michael steps on the film. And as he does that you see all these scratches as if he stepped on the film you're watching. And then the editor, whoever found this material later, picked it up, scanned it into his computer and the parts that Michael stepped on was all messed up. It's a found footage movie that's all about finding footage as well.