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Glossary

Get answers to everything you need to know about real estate investment

Property Syndication

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Real estate syndication is a partnership between a group of investors pooling their resources into a single investment i.e. almost like Fraqvest

Investment Portfolio

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An investment portfolio is a basket of assets that typically include stocks, bonds, cash, real estate and more. Investors generally aim for a return by diversifying these securities in a way that reflects their risk tolerance and financial goals.

Dividend Distribution

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Dividend distribution is the process of a company paying a portion of its profits to shareholders who own stock in the company. Dividends are usually paid out in cash, but can also be paid in additional shares of the company.

Equity Stake

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This is the percentage of ownership in a company that an individual or organization has. Equity stakes are acquired when investors provide capital to a company in exchange for shares.

Due Diligence

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Due diligence is a process or effort to collect and analyze information before making a decision or conducting a transaction so a party is not held legally liable for any loss or damage.

Capital Appreciation

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Capital appreciation can occur gradually and passively, without the investor taking any action. It's one of the main ways investors make money, along with income from investments.

Capital Depreciation

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Capital Depreciation the decrease in value of a capital asset over time which can be caused by a number of factors, including: wear and tear, passage of time, obsolescence, technological change, and inadequacy.

Rental Yield

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Yield is the measure of the rate of return on an investment, usually expressed as a percentage of the amount invested. Yield is the amount of income or profit generated by an investment over a specific period of time, often annually.

Diversification

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This is the process of spreading resources across different types of investments or activities to reduce risk and increase returns. It can be applied in finance, business, and other areas

Earnest Money

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Earnest Money Is a deposit paid to a seller to show a buyer's commitment to purchasing a property.

Effective Gross Income (EGI)

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Effective Gross Income (EGI) Is the expected income from a real property's operations, taking into account allowances for vacancy and collection losses

Escrow

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Escrow is a legal agreement where a third party, called an escrow agent, holds assets or funds on behalf of two parties in a transaction

Capital Expenditures (CapEx)

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These are funds used by a company to acquire, upgrade, or maintain long-term assets

Capital Gains Tax

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These are levied on earnings made from the sale of assets, like stocks or real estate