Real Estate Limited Partnership - RELP

DEFINITION of 'Real Estate Limited Partnership - RELP'

A limited partnership entity organized to invest in real estate. A Real Estate Limited Partnership is typically organized with an experienced property manager or real estate development firm serving as the general partner. Outside investors are then sought to provide financing for the real estate project, in exchange for a share of ownership as limited partners.

BREAKING DOWN 'Real Estate Limited Partnership - RELP'

Limited partners are much like stockholders in a public company, in that they have only limited influence in the business operations of the limited partnership. However, limited partners also have limited liability. If the RELP faces losses, limited partners are only liable for the amount of their capital contributions.

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