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.
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.”
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.
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.