Dealers’ Needs
There are a number of significant trends impacting the automotive retail industry. Some of these include: consolidation; larger, more profitable dealer groups; increasing expectations and demands of manufacturers with respect to the quality, style and size of their dealers’ facilities; publicly-traded dealer groups; and the growing succession issues that are arising, as a result of an aging dealer-owner population.

DealerFund’s business strategy was designed to meet the changing needs of the automotive retail industry and the growing capital requirements of automotive dealers.

In most cases, the Return On Investment on dealership real estate is considerably less than the return generated by a well-run dealership.

Sale-Leaseback With Dealer Maintaining Operating Control
A simple sale and leaseback transaction allows dealers to maintain control of their facility and dealership over a long period of time, while monetizing the capital that was tied up in real estate.

This in turn can allow for a variety of alternative uses for the equity previously tied up in real estate, including improvements to and expansion of the dealership, investment in another dealership, succession or estate planning, investment diversification, or liquidity.

Tax-Deferral And Ownership, If Desired
The unique structure of DealerFund, as a Limited Partnership (“LP”), means that the vendor of dealership property can, completely at their own discretion, retain ownership interest in DealerFund property by receiving any desired amount of Partnership units, at the time of sale, in lieu of proceeds.

The vendor would receive the same monthly payouts as other Partners, enjoy a stable return and cash flow, with less risk and no management required, while deferring some or all of any gain created on the sale of their property.