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There are other safeguards....
What the board should always do with all cash offers is place a 2-5 year wait period on any refinances. This way, A buyer that would have shaky financials and would otherwise be denied, would be less apt to buy all cash with daddy’s money and then refinance and pay back in a year.
did the way i worded that make sense?
~AR
Yes, but u8nfortunately, if the rest of the sales package was ok, you just have to hope they mature well in the 2-5 years!
Still, the board must approve the refinance and any shareholder changes, so there is still some control.
On another note, if there is a refinance with the parents name on it, it may be beneficial in on sense because it is easier sometimes to collect arrears when a bank is involved (they usually pay the arrears to protect their interest)
Best
~AR
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Thank you for your reply. If the sale went through for all cash with a 2-5 year moratorium on mortgage, it would be too late by then, wouldn't it? Sure, the parents couldn't be repaid immediately, but the building would be stuck with the deadbeat child, wouldn't it?
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