Red Tower Capital, Inc.
San Francisco, California
CABRE #01912381, NMLS# 951838
415-361-5959
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Red Tower Capital is a direct private money lending company based in San Francisco. We focus on providing quality alternative real estate financing to residential and commercial property owners in Northern California. We have different underwriting standards than banks or other more conventional sources if you don’t fit the traditional guidelines. This allows us to be flexible and offer you competitive rates and terms to get you the funds you need fast. We work with you to find a solution to your real estate needs.
Property Geographic Area Details
San Francisco Bay Area and Northern California are primary lending areas
Loan Amounts
$50,000 to $3,000,000
Interest Rates
7% to 12%
Max Loan-To-Value
75.00%
Max Loan-To-Cost
75.00%
Origination Fees
1% to 4%
Loan Terms
3 months to 36 months
Lien Position
- 1st
- 2nd
- 3rd
- 4th
Loan Purpose
- Investment Acquisition
- Investment Refinance
- Improve Subject Property
- Use Equity to Invest in Another Property
- Invest in a Business
- Business Working Capital
- Value Add Project
- Development Project
- Primary Residence Purchase
- Personal Use
Property Occupancy
- Vacant
- Tenant Occupied 100%
- Owner Occupied Commercial
- Owner Occupied Residential
Property Types and Loan Types
Collateral Types
- Residential Property
- Commercial Property
- Commercial Property Ground Lease
Property Types
- 2-4 Units Residential
- Adult Day Care
- Agricultural
- Assisted Living Facility
- Auto Dealership
- Auto Repair
- Bed and Breakfast
- Cannabis Dispensary
- Cannabis Grow Facility
- Car Wash
- Casino
- Child Day Care
- Cinema
- Club
- Commercial Condominium
- Commercial Land
- Community Center
- Condominium
- Equestrian
- Gas Station
- Golf Course
- Gym
- Healthcare
- Hospital
- Hostel
- Hotel
- Industrial
- Marina
- Mixed-Use
- Mobile Home Park
- Motel
- Multifamily
- Night Club
- Office
- Parking Lot
- Portfolio of Commercial Properties
- Portfolio of Residential Properties
- RV Park
- Ranch
- Recreational
- Rehabilitation Facility
- Residential Land
- Retail
- Senior Housing
- Single Family Residence
- Sports Facility
- Storage Facility
- Student Housing
- Theater
- Vehicle Parking
- Winery
Loan Types
- Commercial Bridge
- Commercial Property Value Add
- Commercial Ground-Up Construction
- Residential Ground-Up Construction
Specialty Loan Types
- 2nd Mortgage Equity Cash Out
- 3rd Mortgage Equity Cash Out
- Note Purchase
- Reverse 1031 Exchange
- Partner Buyout
- Discounted Note Payoff
- Line of Credit Single Property
- Cannabis Use Properties
- PACE - Property Assessed Clean Energy
- Commercial Permanent Financing
- Primary Residence Bridge
- Primary Residence Business Purpose Cash Out
- Residential Equity Share
Junior Liens
Junior Lien Loan Amounts
$50,000.00 to $3,000,000.00
Junior Lien Interest Rates
9% to 15%
Junior Lien Loan-to-Value
70.00%
Junior Lien Loan-to-Cost
70.00%
Junior Lien Origination Fees
1.00% to 6.00%
We Fund Junior Position Loans
Rarely
Junior Lien Types
- Purchase
- Refinance
- Equity Cash Out
- Mezzanine
- Preferred Equity
Agribusiness Loan
Agribusiness Types
- Cannabis
Will Consider Cannabis Use Properties
yesMaximum LTV for Cannabis Use Properties
70.00%Cannabis Property Use Type
- Cultivation
- Retail Dispensary
- Retail Sales
- Manufacturing
- Processing
- Production
Land Loan
Land Types Considered
- Residential Land
- Multifamily Land
- Industrial Land
- Office Land
- Retail Land
- Hospitality Land
- Cannabis Use Land
Will Consider Land That is NOT Entitled
yesMax LTV for Land
50.00%Max LTC for Land Acquisition
50.00%Purchase Loan
Max Loan-To-Purchase Price
75.00%Borrower Must Have Property Under Contract
yesWill Provide Proof of Funds Letter
yesWill Consider Lending on Purchase from Auction
yesAllowed Source of Borrower’s Equity
- Own Cash
- Partner
- Equity in Subject Property
- Equity in Another Investment Property
- Equity in Primary Residence
- Seller Financing
- Crowdfunding
- Family
Rehab Value Add Loan
Experience Required
noMinimum Number of Value-Add Projects Completed by Borrower
0Will Provide Funds for Renovation Costs
yesMax LTC for Renovation Costs
75.00%Interest Charged for Renovation Costs
Entire Amount of Total Project CostsTypical Number of Days for Funds Draw
10Construction Loan
Development Experience Required
noMinimum Number of Ground-Up Construction Projects Completed by Borrower
0Max LTC for Ground-Up Construction Costs
75.00%Interest Charged for Construction Costs
Entire Amount of Total Project CostsWill Lend on Partially Completed Construction Projects
yesDetails and Requirements
Typical Closing Time (Days)
10Fastest Closing Time (Days)
3Works With
- Brokers
- Borrowers
Payment Structure
- Interest Only
- Amortized
- Interest Reserve
- No Monthly Payments Required
Pre Payment Penalty
no
Will lend to a foreign national
yes
Will Allow Junior Position Mortgage(s) Behind Our Senior Mortgage
yesWill Consider Collateralizing Multiple Properties in One Loan
yesWill Consider Equity Joint Venture
yes
Case by case JV investments. Typically, these involve a strong sponsor with a good track-record and solid project, but the sponsor just happens to be under-capitalized currently. Usually looking for San Francisco Bay Area project location and project that supports bank-priced senior debt.Borrower Entity Types Considered
- Individual(s)
- LLC
- Limited Partnership
- Trust
- Corporation
- Non-Profit Corporation
- Self-Directed IRA
Documentation Required
- Loan Application
Personal Guaranty (Recourse) Required
SometimesCredit Check Required
noAppraisal Required for Residential Property
SometimesAppraisal Required for Commercial Property
SometimesBroker Price Opinion (BPO) Accepted for Residential Property
SometimesBroker Price Opinion (BPO) Accepted for Commercial Property
SometimesFees
Underwriting Fee
$0 to $0
Processing Fee
Documents Fee
Fees which are mandatory for all new borrower clients
- Underwriting Fee
- Processing Fee
- Documents Fee
Fees which are paid to a third party company
- Appraisal Fee
- Environmental Report Fee
Red Tower Capital, Inc. is an independent private real estate lending and investment firm, specializing in bridge loans, mezzanine and joint venture financing and alternative investments. Our Principals have over 60 years of collective real estate industry experience, including expertise in mortgages, development, property management, acquisitions and sales. Their valuable market knowledge, especially in the Bay Area, enables them to identify successful, secure and profitable opportunities. We are committed to providing efficient funding and servicing to our borrowers and exceptional performance and client service to our investors.
License
CABRE #01912381, NMLS# 951838
Company Size (Number of Employees)
8
Year Established
2011
Associations
- California Mortgage Association - Member
Office Locations
1 Sansome Street, Suite 1500, San Francisco, California 94104Primary Capital Source
- Debt Fund We Manage
Alternative Capital Sources
- Own Funds
- Individual Investors
- Family Offices
Loan Structure for Majority of Loans
- Own Balance Sheet
Alternative Loan Structures
- One Investor One Loan
- Multiple Investor Fractionalized Note
Percentage of company’s lending business focused on private mortgage
100%
Company’s Other Business Activities Besides Private Mortgage Lending
- Note Investing
- Commercial Real Estate Investing
- Residential Real Estate Investing
Percentage of Loans Secured by Commercial Property
50%
Percentage of Loans Secured by Residential Property
50%
Percentage of Residential Property Loans Which are Fix and Flip
25%
Percentage of Residential Property Loans Which are Buy and Hold
70%
Percentage of Residential Property Loans Which are Owner-Occupied
5%
Percentage of Loans Secured by Land
5%
Percentage of Commercial Property Loans Which are Ground-Up Construction
5%
Percentage of Residential Property Loans Which are Ground-Up Construction
5%
Percentage of Residential Property Loans Which are Long-Term Rental (5+ years)
5%
Solomon Gorlick
Co-Founder & Principal
Solomon Gorlick is a Co-Founder and Principal of Red Tower Capital, Inc. Since 2003, he has been involved in the real estate industry, with a particular focus on private lending and residential property investment and rehabilitation. Previously, he spent several years in the technology industry serving in software development and management roles for various private technology companies based in the San Francisco Bay Area. During this time, he had the opportunity to lead technology teams in the US and India as well as manage product integration for Fortune 2000 clients in the United Kingdom. He is also an active member of the California Mortgage Association. Mr. Gorlick received a B.A. degree from the University of California, Berkeley and is a licensed California Real Estate Broker.
License InformationCA DRE - 01420631
NMLS - 251257
Daniel Rabb
Co-Founder & Principal
Daniel Rabb is a Co-Founder and Principal of Red Tower Capital, Inc. Most recently, he was a Principal at Industry Capital Management, a private equity firm specializing in real estate investment. Prior to IC, Mr. Rabb worked as a Director at Brog Properties with a core focus around transit-oriented, infill development and the re-creation of downtown Oakland. Mr. Rabb also served as the Director of Property Acquisitions & Management for ATEL Capital Group. He began his career in New York where he held positions at The Staubach Company and at JP Morgan Chase in their Real Estate Investment Banking Group. Mr. Rabb received a B.A. from Tufts University and an MBA from the Haas School of Business at the University of California, Berkeley. He received his Chartered Financial Analyst (CFA) charterholder designation and is a licensed California Real Estate Broker.
License InformationCA DRE - 01441275
NMLS - 357894
Kenneth Wei
Co-Founder & Principal
Mr. Wei is a Co-Founder and Principal of Red Tower Capital, Inc. Prior to this, Kenneth Wei founded his own business, VGI Venturestar Group and in 2002 alone funded over $200 million of loans. In 2007, he complemented this business with a second company to originate private money loans. Before starting Venturestar, Mr. Wei was a branch manager at New Century Financial and began his career in 1996 as a Loan Officer with Ameriquest Mortgage. He has also ventured into residential investments and founded Pathmark Group, a successful developer of TIC units in San Francisco. Mr. Wei received a B.S. from San Francisco State University and is a licensed California Real Estate Broker.
License InformationCA DRE - 01298771
NMLS - 285938
Completed Transactions
Red Tower Capital
Oakland, CA
$2,800,000
Refinance
Red Tower Capital
Woodland, CA
$2,350,000
Commercial Ground-Up Construction
Red Tower Capital
San Francisco, CA
$1,200,000
Refinance
Northern California Mortgage Fund – RTC Investors V
Target Return Time: Quarterly
Minimum Investment
$50,000
Target Return
8% - 10%
Property Type
Residential Investment, Residential Land, Commercial Land, Multifamily, Retail, Office, Industrial, Mixed-Use, Hospitality, Healthcare, Assisted Living Facility, Storage Facility, Senior Housing, Student Housing, Automotive, Cannabis,
Investment Type
Debt Fund
Strategy Type
Debt Short-Term
Collateral Types
Residential Property, Commercial Property,
Description
RTC V, LLC (“RTC V”) is a private mortgage fund managed by Red Tower Capital, Inc. The primary strategy of the fund is to provide current income to qualified investors by securely investing in real estate loans. Since 2015, investors have received 10+% annualized returns, net of fees.
Private mortgage funds, like this one, are a great alternative to traditional real estate investing, such as rental property. They can offer lower comparative risk without a significantly lower return. Additionally, these funds are similar to mutual funds; however they are secured by real estate and less subject to market volatility.
RTC V targets carefully underwritten and well-collateralized real estate loans, typically secured against single family homes and small residential and commercial properties with loan-to-value ratios of 70% or less. Fund investments are actively managed and serviced to mitigate risk and protect investor equity.
Diversification
Diversify and enhance your financial portfolio from traditional asset classes that have higher volatility and/or lower yields.
Income
Earn stable, passive income that is distributed quarterly or can be reinvested. Expect higher relative returns relative to CDs, money markets, savings accounts, etc.
Security
Loans are typically secured by first position liens, providing asset-backed protection.
Simplicity and Convenience
Participate passively in real estate, without the burden of property management or maintenance.
Disclaimer
Red Tower Capital, Inc. (“RTC”), a California Corporation, is a private real estate investment firm, specializing in private lending. RTC Investors V, LLC and individual separate accounts (collectively “Funds”) are managed by RTC. RTC Investors V, LLC is offered pursuant to relevant securities laws and is open accredited investors.
No investment returns or loan performance are guaranteed by the respective Funds. Loans made or purchased by the respective funds may default or otherwise not perform. These investments have risks associated with it. Investment returns are variable and investment losses are possible. Investments are also subject to significant restrictions (e.g. limits on withdrawal, restrictions on transfers, etc.). The website and the information contained herein is not intended as and does not constitute an offer to sell or a solicitation of any person or any offer to purchase any securities or interest in Red Tower Capital, Inc. or its respective funds. Such an offer or solicitation for securities can be made only by the confidential offering circular or other formal disclosure document of the respective fund. All prospective investors must obtain and read the confidential offering circular for the respective fund. Prospective investors must meet certain minimum standards of income and/or net worth to qualify. Potential investors should consult their own investment, legal, tax and accounting advisors before making an investment decision.