A partnership is an arrangement in which parties agree to invest or do business together.
A passive investor is someone who invests money but does not actively manage the business or property. Loan Pie investors are passive investors.
Peer-to-Peer Lending (P2P)
Peer-to-peer lending is the practice of lending money through online services that match lenders with borrowers.
A personal guarantee is an individual's guarantee to be responsible for the financial obligations of the borrower.
Personal Liability is a person's financial obligation, which may be satisfied by the claiming of their assets.
A portfolio is a collection of investments.
Preferred equity is a type of ownership in an investment that has a higher claim on assets than common stock has.
Preliminary Title Report
A preliminary title report is a report issued prior to the transaction expressing a willingness to insure the title.
Prepayment is paying all or a portion of a loan's principal balance before it's due. Some loans include a penalty for prepayment.
A prepayment penalty is a fee paid by a borrower who has paid off the loan before its maturity date. This is done to compensate a lender for the lack of interest payments.
Principal is the amount of money owed, not including interest or other fees.
Priority is the right to proceed before others. In a foreclosure, lenders are repaid according to priority.
Private Placement (Private Offering)
Private Placement occurs when investments are offered for sale to a group of chosen investors, rather than as a public offering.
Pro Forma Statement
A pro forma statement is a financial statement based on projections and expectations.
Projected return is the return on investment that is expected by the investment's issuer.
Promissory Note (Note)
A promissory note is a legal document that confirms a debt and the conditions under which it is to be repaid.
In an investment structure often used in private real estate investments, the promote is the amount of income that exceeds any payments required to be made to outside investors and to which the sponsor is entitled.
A public offering is the sale of equity shares to the public.