Definition: The commitment of money or other resources with an expectation of future income, growth, or another economic benefit.
Example
An investor buys a rental property expecting rental cash flow and possible appreciation.
Keep the distinction clear
An expected return is not a guaranteed return. Evaluate the income, expenses, financing, liquidity, and risk associated with the investment.
Related terms
Investment Value · Cash Flow · Liquidity
Keep studying
Income Approach: NOI, Cap Rate, Property Value, and Cash-on-Cash Return
References: FREC Course II syllabus: investment concepts
Pronunciation (US): in-VEST-munt (capitals show stress)
Pronunciation reference: Merriam-Webster
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