Glossary

A loan that requires fixed and periodic payments, payments that are applied to both the principal and interest until the loan is repaid.

An increase in value of as asset over time.

A collection of investment types with similar characteristics that behave similarly in a marketplace. Some asset classes include stocks, bonds, money market accounts, and alternative assets. Real estate is one of the most popular “alternative assets.”

A measure of the money going into and out of a business.

An investment that offers reliable, recurring cash flow without an investor being actively involved in the day-to-day management of the asset.

Making necessary improvements and repairs to a property that have been previously ignored or postponed.

The amount of money an owner of an asset would be paid if the asset were sold and any remaining debts or loans on the asset were paid off.

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Funds used by a company to acquire, upgrade, or enhance physical assets (property, buildings, or equipment).

Limited partners do not have a role in the day-to-day operations of the business; they receive a share of the profits but their liabilities to potential debts is limited only to the initial investment.

A common property hold for Evergreen is 10 years. We do not “flip” properties for a quick turnaround profit but hold properties for a longer-term investment.

Net worth equals one’s assets minus their liabilities. Assets include things like checking and savings accounts; retirement savings; real estate and automobiles. Liabilities include consumer debt; personal and student loans; mortgages and other loans.

Legal investments made to lessen the tax obligations.

A company (a legal entity) created to fulfill specific (sometimes temporary) objectives.

Scenarios or simulations that are run to project financial implications if adverse economic conditions were to arise.

An asset that has monetary value and takes a physical form (a building or house, for example).