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Redwood Mortgage Investors IX

Sponsored by Redwood Trust·

Unknown· Other · 1 class· ● Low· PPM v1· Updated 26d ago
1 data note
Unusual structure
Run the numbers
Composite
61.2
median 53 +9
Pref Return
median 9.0% · Real Estate Debt / Mortgage Funds
LP Take (Base)
96.7%
median 88.1% +8.6%
GP Commit
0.0%
median 0.0% +0.0%
Min Investment
$2K
ticket size
Offering Size
target raise
Cascade · Distributions

Where each dollar goes

$875K
LP $850K · Fees $25K · GP $0
GROSS PROCEEDS$875KGPFFees to Manager$25,000 · 2.9% of grossLPT1Return of Capital$500,000 · 57.1% of grossLPGPT4Residual Split (100% / 0%) · 40.0%Limited Partners · $350KGeneral Partner · $0pool fully distributed
Standard scenario · $500K equity · 5y hold · 1.75× exitRun your own cascade →

Deal diligence11 findings · worst high

Automated checks across the fund's extracted PPM. Every finding is shown with the evidence it's based on — proven numbers or a verbatim quote and page.

Document quality

Drafting defects found in the PPM prose — numeric inconsistencies, broken cross-references, unfilled placeholders, and defined-term problems. Each is shown with the offending quote and its page.

Spelling / typo — Section 2.11 Power of Attorney

Info

Doubled phrase: 'statements of interest and holdings, designations,' is repeated verbatim within the same sentence, a copy-paste drafting defect.

such other and further statements of interest and holdings, designations, and further statements of interest and holdings, designations, powers of attorney and other instruments
PPM p.980% confidence

Spelling / typo — Section 3.15 Sole and Absolute Discretion

Info

Broken sentence: the phrase 'all determinations which any Manager may take and all determinations which any Manager may make' duplicates the clause, leaving a garbled provision.

all actions which any Manager may take and all determinations which any Manager may take and all determinations which any Manager may make pursuant to this Agreement may be taken and made at the sole and absolute discretion of such Manager.
PPM p.1680% confidence

Spelling / typo — Section 3.19(a) Indemnification

Info

Doubled word / broken text: 'for or on behalf of the Company or, or in furtherance' contains a stray duplicated 'or,'.

by reason of any act performed (or omitted to be performed) for or on behalf of the Company or, or in furtherance of or in connection with the business of the Company
PPM p.1770% confidence

Diligence gaps

Questions a standard diligence questionnaire would ask that the PPM leaves unanswered.

DDQ gap: Does the fund engage an independent auditor?

High

The offering documents don't answer a standard institutional DDQ question (Governance). An allocator will ask this directly — the GP should be ready with an answer.

90% confidence

DDQ gap: Does the fund have a GP clawback provision?

High

The offering documents don't answer a standard institutional DDQ question (Economics). An allocator will ask this directly — the GP should be ready with an answer.

90% confidence

DDQ gap: What is the LP/GP carried-interest split above the preferred return?

High

The offering documents don't answer a standard institutional DDQ question (Economics). An allocator will ask this directly — the GP should be ready with an answer.

90% confidence

DDQ gap: What is the preferred return (hurdle) rate offered to LPs?

High

The offering documents don't answer a standard institutional DDQ question (Economics). An allocator will ask this directly — the GP should be ready with an answer.

90% confidence

DDQ gap: Does the fund use a third-party fund administrator?

Medium

The offering documents don't answer a standard institutional DDQ question (Governance). An allocator will ask this directly — the GP should be ready with an answer.

90% confidence

DDQ gap: Is there a GP catch-up, and at what rate?

Medium

The offering documents don't answer a standard institutional DDQ question (Economics). An allocator will ask this directly — the GP should be ready with an answer.

90% confidence

DDQ gap: What is the GP's capital commitment (skin in the game)?

Medium

The offering documents don't answer a standard institutional DDQ question (Economics). An allocator will ask this directly — the GP should be ready with an answer.

90% confidence

DDQ gap: What is the target offering size?

Medium

The offering documents don't answer a standard institutional DDQ question (Structure). An allocator will ask this directly — the GP should be ready with an answer.

90% confidence

DDQ readiness

How much of a standard institutional due-diligence questionnaire this fund's offering documents answer out of the box. Gaps are questions an allocator will ask directly.

31%
Coverage
4 answered1 partial8 gaps13 questions
Economics
  • What is the preferred return (hurdle) rate offered to LPs?Gap
  • What is the LP/GP carried-interest split above the preferred return?Gap
  • Is there a GP catch-up, and at what rate?Gap
  • Does the fund have a GP clawback provision?Gap
  • What is the GP's capital commitment (skin in the game)?Gap
Structure
  • What distribution-waterfall structure does the fund use?3 distribution tier(s) extracted; structure type not classified.Partial
  • What is the fund's investment strategy / asset class?UnknownAnswered
  • What is the fund's vintage year?Vintage 2008.Answered
  • What is the target offering size?Gap
  • What is the minimum LP investment?Minimum investment of $2,000.Answered
Fees & Expenses
  • Is the fund's fee schedule disclosed (management fee, etc.)?6 fee line item(s) extracted from the offering documents.Answered
Governance
  • Does the fund engage an independent auditor?Gap
  • Does the fund use a third-party fund administrator?Gap

Fee scheduletaken before LP distributions

Total load 2.00%
Fee
Trigger
Basis
Rate
Monthly, ongoing during fund life
Annualized percentage of Base Amount (members' capital committed to Loans, net of leverage, recomputed annually after year 2), paid monthly; not charged on Subscription Account funds or from reserves
0.75%
Monthly, per Loan serviced
Annual rate (0.25% per annum) of the total unpaid principal balance of each Loan serviced, payable monthly; cap inclusive of all other servicing fees on that Loan
0.25%
Loan Administrative Fee (Origination)
Closing of each Loan
Up to 1% of the principal amount of each new Loan originated or acquired; paid by the Company at closing
1.00%
Loan Brokerage Commission
Origination of each Loan; paid by borrower
Approximately 2%-5% of principal amount of each Loan (negotiated case by case with borrowers); capped at 4% per annum of total Company assets. Paid by the borrower (not the Company), received by Redwood Mortgage Corp. as loan broker
0.00%
Sales Commissions (Formation Loan / Broker-Dealer)
Sale of Units in the Offering
Paid to participating broker-dealers; funded through the Formation Loan (a non-interest-bearing loan from the Company to Redwood Mortgage Corp. of up to 7% of total Member capital), repaid in 10 annual installments. Not paid by the Company directly out of offering proceeds.
0.00%
Early Redemption Penalty
Member redemption within the first 5 years after Unit purchase
Discount applied to redemption proceeds: 8% discount (year 1-2), 6% discount (year 2-3), 4% discount (year 3-4), 2% discount (year 4-5), 0% after year 5. Penalty partially applied to repay Formation Loan; remainder to Company account
0.00%

Service providers3 gaps

Legal Counsel
Gap
Not disclosed
No independent counsel named for investors. Common in small syndications where Manager and Fund share counsel — reduces independence. Verify during diligence.
Auditor
Gap
Not disclosed
Audit intent not stated in PPM. Ask the sponsor: will the fund be audited, by whom, and on what frequency?
Fund Administrator
Gap
Not disclosed
No third-party fund administrator referenced. Manager likely handles admin internally — common for <$10M raises but reduces independence.
Placement Agent
OK
No placement agent engaged
No placement agent engaged. Direct placement by Manager — no placement fees eat your invested capital.

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