Limited Partner (LP), Passive Investor, Equity Partner. These terms are the same for those who participate in Real Estate Limited Partnerships (RELPs) are LPs organized to invest primarily in real estate.
Limited partners are generally hands-off investors while the general manager takes on day-to-day responsibilities. RELPs can offer high returns, with correspondingly high risks.
A limited partner’s responsibility is contributing capital to the deal. These investors are often interested in investing in real estate but lack the experience or operational expertise to oversee a project on their own. They are often considered silent partners who receive the lion’s portion of the returns.
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