Every person who wants to invest their money in a car dealership must work with a company like PerformanceBrokerageServices.com. A brokerage service helps to manage the sale so that both parties are satisfied. Also, both parties are not involved directly with the funds of the sales so that there is no semblance of impropriety. The brokerage service does everything listed below, and the investors merely follow the broker's lead.
Every investor must submit financial information that shows they have the cash on-hand to purchase the dealership. The investor may use loans to secure the dealership, and the broker can decide what percentage of the price can be financed.
Also, the investors must show their tax records to prove that they have no tax liability. There are times when brokers will accept a certain amount of tax liability, but investors must be prepared to show that they have worked with the IRS to pay off this debt.
The contract for the sale is written up by a broker who goes over all the terms of the sale with each party. The parties can negotiate the contract until they are satisfied with its terms. This contract is legally binding, and it is necessary to use a broker to make sure the contract is written properly.
The broker takes all cash that is involved in the sale and distributes it to each party. When the parties are not handling the money directly, the sale can be completed without any accusations of malfeasance. The broker makes sure that both parties are acting properly, and the broker can bring in a mediator or attorney if there is a problem with the sale.
The best way to make a purchase of a car dealership is with the help of a broker. The brokerage house is able to handle every part of the sale so that both parties are not entangled in the sale. The cash for the sale is handled by a neutral third party, and the contract for the sale is written by someone who has no financial interest in the sale.