What is a Real Estate Limited Partnership (RELP)?
A real estate limited partnership (RELP) is a group of investors who pool their money to invest in property purchasing, development, or leasing. Under its limited partnership status, a RELP has a general partner who assumes full liability and limited partners who are liable only up to the amount they contribute.
The general partner is usually a corporation, an experienced property manager, or a real estate development firm.
- The limited partners are outside investors who provide financing in exchange for an investment return.
- Limited partners are generally hands-off investors while the general manager takes on day-to-day responsibilities.