A limited partnership is a type of legal entity. In the real estate industry, a limited partnership may be formed by a number of investors. Generally, however, one general partner is charged with making investment decisions for the entire group. He or she oversees all of the group's investments and is principally liable for any losses. Investments may include purchasing properties such as apartment complexes, undeveloped land and even large office buildings. The general partner may then administer the rental and upkeep of the properties. He or she may also identify the ideal time to sell the limited partnership's investment properties. Proceeds may then be distributed to the limited partnership's partners, or they may be reinvested in future purchases. A limited partnership may also choose to invest in other real estate partnerships and similar investing instruments.