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

yes

Maximum 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

yes

Max 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

yes

Will Provide Proof of Funds Letter

yes

Will Consider Lending on Purchase from Auction

yes

Allowed 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

no

Minimum Number of Value-Add Projects Completed by Borrower

0

Will Provide Funds for Renovation Costs

yes

Max LTC for Renovation Costs

75.00%

Interest Charged for Renovation Costs

Entire Amount of Total Project Costs

Typical Number of Days for Funds Draw

10

Construction Loan

Development Experience Required

no

Minimum Number of Ground-Up Construction Projects Completed by Borrower

0

Max LTC for Ground-Up Construction Costs

75.00%

Interest Charged for Construction Costs

Entire Amount of Total Project Costs

Will Lend on Partially Completed Construction Projects

yes

Details and Requirements

Typical Closing Time (Days)

10

Fastest Closing Time (Days)

3

Works 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

yes

Will Consider Collateralizing Multiple Properties in One Loan

yes

Will 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

Sometimes

Credit Check Required

no

Appraisal Required for Residential Property

Sometimes

Appraisal Required for Commercial Property

Sometimes

Broker Price Opinion (BPO) Accepted for Residential Property

Sometimes

Broker Price Opinion (BPO) Accepted for Commercial Property

Sometimes

Fees

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 94104

Primary 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 Information
CA 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 Information
CA 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 Information
CA DRE - 01298771
NMLS - 285938

Completed Transactions

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.


 

Loan Request

Short Description of your Loan Request or Property Address

This information is about yourself, not the subject property.

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(temp use, storage, billboard, parking, etc.)

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Requested loan amount divided by the purchase price + rehab/construction costs

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If Borrower is not seeking additional funds for the renovation, change the Loan Type to Purchase or Acquisition.

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(temp use, storage, billboard, parking, etc.)

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Requested loan amount divided by the purchase price + rehab/construction costs

%

If Borrower is not seeking additional funds for the renovation, change the Loan Type to Purchase or Acquisition.

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how will the loan be paid off?

acres

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