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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RELATED FAQS
  1. What's the difference between limited liability partnership and general partnership?

    Learn the differences between general partnerships and limited liability partnerships; each type has unique traits, benefits ... Read Answer >>
  2. Which of the following statements regarding Real Estate Limited Partnerships (RELPs) ...

    The correct answer is a): Limited partnerships are formed to engage in a business venture for a predetermined period of time, ... Read Answer >>
  3. Why can real estate be a good addition to a traditional stock and bond portfolio?

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  4. What does asset management mean in regards to real estate?

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