Real Estate Limited Partnership - RELP

Well, it's more or less just like any other limited partnership. If something goes horribly wrong, the partnership goes bust, bankrupt, kaploowee...but personally, you...don't. That is, the bill collectors can't kick you out of your own home, sell it, and then use those proceeds to pay off your debts.

So what's different? Uhhhh yeah: the building. Or land. Or apartment complex. The intent of this limited partnership is real estate, and there's a key element that makes it look and feel financially different: most of the profits are not taxed at the LLC level, but rather are passed through to the partners, who then pay (usually) ordinary income tax rates on those profits.

So, yes, the rates are higher in Ordinary v. Long-Term investment gains, but at least they're taxed "only" once and not twice, as they would be in most corporations that pay dividends. So that's something.