Before Balloon payment becomes due

[Rich Weese]

There was a previous thread about this same subject. What do I do when my balloon becomes due 10 years down the road ? There were a lot of responses and the consensus of them all listed the following choices:
1. Sell property
2. Obtain a new private loan
3. Obtain a new conv loan
4. Convince the seller/lender to extend the due date.
The goal of the borrower was to create wealth by buying and holding onto the properties for long term passive income.
It seems like the question and replies were somewhat missing the point. Why wait till balloon is due? Why not select the following method.

10 years is a LONG time. No one in the previous thread had mentioned the top method to consider, imo. PAY IT OFF!!!! That is what you're trying to do in the long run, isn't it?
Rents normally go up, in my experience. If you're purchasing the properties correctly, you have some cash flow. Use the excess to pay off additional principal each month. As the rents increase, pay the increase in rent toward the principal also.
Soon, you'll see the ratio of principal/interest start to change. Eventually, the majority of your payment will be principal and your loan will start dropping quickly.
In 1989, I was teaching this principal to my kids. I had actual sheets showing the properties in the program and how I was going to pay them all off free and clear. It showed each year which properties were going to be paid down or off. The cash flow from that newly paid off property would then be applied to the next property to reduce its' principal and so forth.
I still have those worksheets with the actual addresses, loan amounts, rents etc. If I knew how to scan and place on BP I would. That is what the goal of all should be- passive income to support your lifestyle.
The previous 4 options do NOTHING to create wealth, or passive income and therefore don't help you reach your true goal. It just keeps you in the same place you started, and that seems not very effective, imo. Good luck. Rich
p.s. If someone can teach me how to post the 23 year old summary sheets, I will.