Investing Glossary

6 terms
  • Passive Income

    Passive income (also known as residual or recurring income) is commonly used to refer to income that continues to be earned even after the work is done.
  • Preferred Equity

    Typically in a Preferred Equity investment, all cash flow or profits are paid back to the preferred investors (after all debt has been repaid) until they receive the agreed upon “preferred return.”
  • Preferred Return

    A Preferred Return is paid to investors before a sponsor receives any share of the cash flow.
  • Private Equity Fund

    A private equity (PE) fund is a collective investment model where money from separate investors is pooled together into a single fund and then used to make investments, most often in various illiquid equity and debt assets.
  • Pro-Forma

    A financial model often used in real estate to predict future cash flows and total investment returns.
  • Project Payment Dependent Notes

    A Project Payment Dependent Note is a special, limited obligation of Fundrise Investments, LLC sold to investors, the proceeds of which are used to fund corresponding project investments.