Redwood Mortgage Investors IX, LLC is a Delaware Limited Liability Company focused on mortgage lending and investing in California real estate, externally managed by Redwood Mortgage Corp.

### Redwood Mortgage Investors IX, LLC Overview

**Company Structure and Management:**
- **Formed:** October 2008
- **Type:** Delaware Limited Liability Company
- **Management:** Externally managed by Redwood Mortgage Corp. (RMC), which provides all necessary personnel and services. The company does not have any employees of its own.
- **Business Model:** Primarily operates as a mortgage lender and investor, making and holding mortgage loans secured by California real estate, primarily through first and second deeds of trust.

**Business Objectives:**
- Yield a favorable rate of return from mortgage lending and investing.
- Preserve and protect the company's capital by investing in loans secured by California real estate, with a focus on income-producing properties in the San Francisco Bay Area and Southern California.
- Generate and distribute cash flow from mortgage lending and investing activities.

**Financial Highlights:**
- **Members’ Capital:** Approximately $65.6 million as of December 31, 2024.
- **Number of Units Outstanding:** Approximately 65.4 million units.
- **Number of Members:** 1,156 unit-holders.
- **Revenue:**
  - **2024:** $6,818 thousand from interest income.
  - **2023:** $6,776 thousand from interest income.
- **Net Income:**
  - **2024:** $3,388 thousand
  - **2023:** $3,808 thousand
- **Cash Available for Distribution:** 
  - **2024:** Approximately $3.1 million
  - **2023:** Approximately $3.5 million
- **Member Distributions:**
  - Total distributions to members in 2024 amounted to approximately $3.1 million.

**Loan Portfolio:**
- **Total Loans Outstanding:** $53.5 million as of December 31, 2024, down from $62.9 million in 2023.
- **Number of Secured Loans:** 36 total, including 27 first trust deeds and 9 second trust deeds.
- **Loan Characteristics:** 
  - Secured loans have an average weighted loan-to-value (LTV) ratio of approximately 58.9% at the time of origination.
  - Interest rates range from 7.8% to 12.5%.
  
**Segment Operations:**
- Operates primarily in the California real estate market, focusing on mortgage loans secured by properties in coastal metropolitan areas and income-producing properties.
- Engages in sales of certain loans to unaffiliated third parties, managing a portfolio of secured loans that generate interest income.

**Commitments and Limitations:**
- **Unit Redemption Program:** Allows members to redeem units, with certain restrictions in place to limit the total percent of units that can be redeemed in any given period.
- Members are subject to limitations on owning units and are not guaranteed immediate liquidity due to the lack of a public trading market for the units.

**Conclusion:**
Redwood Mortgage Investors IX, LLC focuses on mortgage lending against California real estate, managing a modestly sized portfolio with a commitment to returning cash flows to its members. The company operates without direct employees, relying entirely on RMC for its management and operational execution. Financial performance showcases a typical structure of income derived from interest on loans, with ongoing distributions to members functioning under specific agreements.

Redwood Mortgage Investors IX, LLC is a Delaware limited liability company specializing in mortgage lending and investment, primarily focused on California real estate, managed externally by Redwood Mortgage Corp.

# Company Overview: Redwood Mortgage Investors IX, LLC (RMI IX)

## Business Description
Redwood Mortgage Investors IX, LLC (referred to as "we," "RMI IX," or "the company") is a Delaware limited liability company founded in October 2008 that engages primarily in the business of mortgage lending and investment. The company focuses on making and holding-for-investment mortgage loans backed by California real estate, with a primary focus on first and second deeds of trust.

### External Management
- **Manager:** RMI IX is externally managed by Redwood Mortgage Corp. (RMC), which provides all personnel and services necessary for the company's operations. RMI IX does not employ any personnel directly.
- **Operations:** RMC arranges and services the mortgage loans funded by RMI IX.

## Operational Details
- **Location of Loans:** Primarily California, with a focus on the San Francisco Bay Area and the coastal metropolitan areas of Southern California.
- **Investment Objectives:**
  - Yield favorable returns from the lending and investment business.
  - Preserve capital by investing in loans secured by real estate.
  - Generate and distribute cash flow from mortgage lending and investing activities.

## Financial Structure
- **Management Fees:** RMC is entitled to 1% of the profits and losses of the company plus fees and reimbursements for qualifying costs as specified in the Operating Agreement.
- **Income Allocation:** Net income is distributed among the members based on their respective capital accounts after allocating 1% to the manager.

### Revenue Streams
- **Funding Sources for Loans:** The company’s ongoing sources of funds come from:
  - Loan payoffs.
  - Borrowers’ monthly principal and interest payments.
  - Line of credit advances.
  - Sale of loans (to third parties or affiliated mortgage funds).
  - Sales of units under a dividend reinvestment plan (DRIP).

## Financial Performance
- **Revenue and Income:** Specific revenue figures and income amounts are not provided in the summary; however, the aggregate gross proceeds from sales of units under the DRIP as of December 31, 2023, is approximately **$9.6 million**.
- **Unit Redemption Requests:** Eligible members' capital redemption requests approximated **$12.0 million** as of December 31, 2023.

## Customer and Market Details
- **Customers:** RMI IX does not disclose the exact number of customers or borrowers; however, it primarily serves real estate borrowers in California seeking mortgage loans.
- **Market Position:** The company operates in a highly competitive mortgage lending market, competing with banks, insurance companies, mortgage bankers, and real estate investment trusts (REITs).

## Employment and Workforce
- **Employees:** The company has no employees, as it is entirely managed by RMC, which provides all necessary staffing and management services.

### Conclusion
RMI IX is a mortgage lender focused on investing in loans secured by California real estate, managed by an external entity, RMC. The company is structured to offer favorable returns while preserving capital and generating cash flow, operating in a competitive marketplace heavily regulated by state and federal laws. Specific figures regarding profits and the exact number of customers are not disclosed in the information provided.

Redwood Mortgage Investors IX

10-K / April 24, 2025

10-K / April 18, 2024

10-K / April 24, 2025

Redwood Mortgage Investors IX, LLC Overview