Real estate limited partnership (RELP),
Definition of Real estate limited partnership (RELP):
Limited partnership that focuses on investing in a variety of real estate vehicles. Profits are usually acquired through the selling and leasing of properties. Limited partners do not possess any management control and are the least exposed to risks that may arise from the partnership. During peak times in the real estate sector, this type of investment can be very lucrative for all parties involved.
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.
How to use Real estate limited partnership (RELP) in a sentence?
- Limited partners are generally hands-off investors while the general manager takes on day-to-day responsibilities.
- RELPs are limited partnerships organized to invest primarily in real estate.
- RELPs can offer comparatively high returns and correspondingly high risks.
Meaning of Real estate limited partnership (RELP) & Real estate limited partnership (RELP) Definition