Seller-Financing, Balloon Loan

[Ray Rhoads]

Just a curious newbie here:

I found an off-market deal, guy is selling a triplex for $260,000, and it brings in $3700/Mo. He’s also going to put on a new Roof before I buy.

I am self-employed so I have been trying to avoid the bank, through seller-financing.

This guy says he offers seller-financing:

1. Down Payment must be at least 25%

2. “Max 5 Year Balloon Loan”

My question is what’s a 5 year balloon loan?

Thanks everyone that helps!

[Staneley Cesaire]

That means in 5 years you will have to pay the whole balance!