Investment

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