A .java file is the code file. A .class file is the compiled file.

It's not exactly "conversion" - it's compilation. Suppose your file was called "herb.java", you would write (in the command prompt):

 javac herb.java

It will create a herb.class file in the current folder.

It is "executable" only if it contains a static void main(String[]) method inside it. If it does, you can execute it by running (again, command prompt:)

 java herb

How do I load a Java Class that is not compiled?

You need to compile it first. This can be done programmatically with the javax.tools API. This only requires the JDK being installed at the local machine on top of JRE.

Here's a basic kickoff example (leaving obvious exception handling aside):

// Prepare source somehow.
String source = "package test; public class Test { static { System.out.println(\"hello\"); } public Test() { System.out.println(\"world\"); } }";

// Save source in .java file.
File root = Files.createTempDirectory("java").toFile();
File sourceFile = new File(root, "test/Test.java");
sourceFile.getParentFile().mkdirs();
Files.write(sourceFile.toPath(), source.getBytes(StandardCharsets.UTF_8));

// Compile source file.
JavaCompiler compiler = ToolProvider.getSystemJavaCompiler();
compiler.run(null, null, null, sourceFile.getPath());

// Load and instantiate compiled class.
URLClassLoader classLoader = URLClassLoader.newInstance(new URL[] { root.toURI().toURL() });
Class<?> cls = Class.forName("test.Test", true, classLoader); // Should print "hello".
Object instance = cls.getDeclaredConstructor().newInstance(); // Should print "world".
System.out.println(instance); // Should print "test.Test@hashcode".

Which yields like

hello
world
test.Test@cafebabe

Further use would be more easy if those classes implements a certain interface which is already in the classpath.

SomeInterface instance = (SomeInterface) cls.getDeclaredConstructor().newInstance();

Otherwise you need to involve the Reflection API to access and invoke the (unknown) methods/fields.

That said and unrelated to the actual problem:

properties.load(new FileInputStream(new File("ClassName.properties")));

Letting java.io.File rely on current working directory is recipe for portability trouble. Don't do that. Put that file in classpath and use ClassLoader#getResourceAsStream() with a classpath-relative path.

properties.load(Thread.currentThread().getContextClassLoader().getResourceAsStream("ClassName.properties"));