Direct Private Money Lender for California Real Estate

Redwood Mortgage is a direct portfolio lender with over 40 years of experience making loans on commercial, multi-family, mixed-use and residential investment properties in California. Redwood Mortgage has the knowledge, expertise and financial strength to underwrite complex loan structures.

The Redwood Program:

  • Loans $200,000 to $7,500,000
  • Single level of decision-making
  • Expertise in commercial loan transactions
  • In-house document production and funding

Underwriting Philosophy

Our underwriting philosophy is one of simple common sense. We review the borrower’s financial situation, as well at the property’s quality and equity. More importantly, we listen to the story behind the loan. People come to Redwood from different economic backgrounds and with many different goals. We put together all of the pieces of the puzzle and try to come up with a solution that will work for everyone involved.

Property Geographic Area Details
Major Metropolitan areas in California
Loan Amounts
$200,000 to $7,500,000
Interest Rates
7.25% to 10.0%
Loan Terms
6 months to 180 months
Origination Fees
2% to 5%
Lien Position
1st, 2nd
Collateral Types
  • Residential Property
  • Commercial Property
Loan Purpose
  • Investment Acquisition
  • Investment Refinance
  • Improve Subject Property
  • Use Equity to Invest in Another Property
  • Invest in a Business
Property Occupancy
  • Vacant
  • Tenant Occupied 100%
  • Owner Occupied Commercial

Property Types

  • 2-4 Units Residential
  • Auto Repair
  • Commercial Condominium
  • Commercial Land
  • Condominium
  • Industrial
  • Mixed-Use
  • Multifamily
  • Office
  • Portfolio of Commercial Properties
  • Portfolio of Residential Properties
  • Residential Land
  • Retail
  • Single Family Residence
  • Storage Facility
  • Student Housing

Loan Types

  • Commercial Long-Term

Specialty Loan Types

  • 2nd Mortgage Equity Cash Out
  • Reverse 1031 Exchange
  • Primary Residence Business Purpose Cash Out

Junior Lien Loan Amounts

$200,000 to $4,999,999

Junior Lien Interest Rates

8.9% to 11.0%

Junior Lien Loan-to-Value

65%

Junior Lien Loan-to-Cost

65%

Junior Lien Origination Fees

3% to 5%

We Fund Junior Position Loans

Often

Junior Lien Types

  • Purchase
  • Refinance
  • Equity Cash Out
We only offer 2nd mortgages on residential investment properties. At this time we are NOT offering 2nd's on commercial real estate or owner-occupied homes. 1.5/1 Ratio, LTV/CLTV to 65%.

Land Types Considered

  • Residential Land
  • Multifamily Land
  • Industrial Land
  • Office Land
  • Retail Land

Will Consider Land That is NOT Entitled

no

Existing Land Improvements Required

  • Street Access
  • Electricity
  • Water

Max LTV for Land

50%

Max LTC for Land Acquisition

50%

Junior Lien Types

  • Purchase
  • Refinance
  • Equity Cash Out
We only offer 2nd mortgages on residential investment properties. At this time we are NOT offering 2nd's on commercial real estate or owner-occupied homes. 1.5/1 Ratio, LTV/CLTV to 65%.

Max Loan-to-Purchase Price

65%

Borrower Must Have Property Under Contract

yes

Will Provide Proof of Funds Letter

no

Will Consider Lending on Purchase from Auction

no

Allowed Source of Borrower’s Equity

  • Own Cash
  • Partner
  • Equity in Another Investment Property

Deposit Required

sometimes, on larger commercial transactions

Multi-Purpose Lender Fee

Covers documentation, processing and underwriting.

Credit Report Fee

If we pull credit we will charge for it.

Appraisal Fee

Borrower pays the appraiser directly

Environmental Report Fee

When applicable for certain commercial properties

Fees which are mandatory for all new borrower clients

  • Multi-Purpose Lender Fee

Fees which are paid to a third party company

  • Appraisal Fee
  • Escrow Fee
  • Title Fee
  • Environmental Report Fee

Details and Requirements

Typical Closing Time (Days)

21

Fastest Closing Time (Days)

10

Payment Structure
  • Interest Only
  • Amortized
Payment Structure Details

Residential investment 1-4 unit properties are amortized over 30 years (ie. 30/1 or 30/3, etc.) Commercial, Multi-family can be interest only or amortizing.

Pre Payment Penalty

no

Will lend to a foreign national

yes

Will Allow Junior Position Mortgage(s) Behind Our Senior Mortgage

no

Will Consider Collateralizing Multiple Properties in One Loan

yes

Will Consider Equity Joint Venture

no

Borrower Entity Types Considered
  • Individual(s)
  • LLC
  • Limited Partnership
  • Trust
  • Corporation
  • Non-Profit Corporation
Documentation Required
  • Credit Report
  • Tax Returns
  • Bank Statements
  • Financial Statements
  • Loan Application
Personal Guaranty (Recourse) Required
Sometimes
Credit Check Required

yes

Appraisal Required for Residential Property

Always

Appraisal Required for Commercial Property

Always

Broker Price Opinion (BPO) Accepted for Residential Property

Never

Broker Price Opinion (BPO) Accepted for Commercial Property

Never

Legal Disclaimer

This is not an advertisement to extend consumer credit as defined by section 1026.2, reg. Z. Rates, fees and terms are subject to change without notice.

Additional Details

For SFR investment properties, LTV to 75% on SFR Purchase with 25% cash down-payment approved by exception only. Rate and fee adders may be applicable on loan files with NOD, BK, Judgement, Low FICO. Commercial / Multi-family loans: LTV / CLTV to 65% (M/F up to 70%). C credit rate and fee adder applicable. Seconds; call for pricing. Streamlined loans (Low Documentation, no tax returns) for tenanted properties; SFR 1-4, small multi-family, Mixed-use, Office, Retail, Industrial/Warehouse and Commercial condos. This program is for income producing properties only. (No O/O or consumer loans.) 60% max LTV/CLTV. and up to $2,000,000 in First position and Seconds: $3,000,000 max total debt. 60/40 split. (1st/2nd).

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Redwood Mortgage is a Direct Portfolio Lender with over 40 years of experience, lending on residential investment, commercial, mixed-use and multi-family properties in California (CRE and Business purpose loans). Redwood Mortgage has arranged over $2 billion in loans. Redwood Mortgage provides tailor-made private money solutions and differentiates itself from traditional lenders with its single level of decision-making, and its long-held expertise in commercial loan transactions.

License

CA DRE Lic. 00619104, NMLS ID 232587

Year Established

1978

Associations

  • California Mortgage Association

Office Locations

177 Bovet Road, Suite 520, San Mateo, California 94402

Primary Capital Source
  • Own Funds
  • Debt Fund We Manage
Loan Structure for Majority of Loans
  • Own Balance Sheet
Percentage of Loans Secured by Commercial Property

50%

Percentage of Loans Secured by Residential Property

50%

Total Loan Volume Funded to Date

$2,000,000,000

Our Team

Steve Belleville

Director Sales and Marketing

CA DRE Lic. - 01390581
NMLS ID - 1464614

Funded Deals

Get In Touch

Redwood Mortgage pays us to be listed, so there is no fee to connect. Share your loan request, send a simple email, call, or visit their website.

Stay Informed About Private Lending

Receive our monthly newsletters with valuable insights and industry updates
subscribe-illustration
Before You Contact Us

Our Minimum Loan Amount Is

$200,000

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