How It Works

• Loan amortizes as if it’s long-term (e.g., 25 years)
• But term is shorter (e.g., 5–10 years)
• Remaining balance is due at maturity

📊 Example

• Loan term: 5 years
• Amortization: 25 years
• Result: Lower monthly payments, big final payment

⚠️ Risks

• Refinancing may be required
• Market conditions can impact ability to pay

✅ Why Investors Use It

• Improves short-term cash flow
• Works well with value-add strategies