Redwood Mortgage Investors IX Files 10-Q for Q2 2025

TL;DR

Redwood Mortgage Investors IX 10-Q filed. Real estate portfolio details for Q2 2025.

AI Summary

Redwood Mortgage Investors IX filed its 10-Q for the period ending June 30, 2025. The filing details financial performance and operational aspects, including information on commercial loans and various property types across different California regions. Redwood Mortgage Investors IX is a real estate investment entity incorporated in Delaware.

Why It Matters

This filing provides investors and stakeholders with a quarterly update on the financial health and real estate portfolio performance of Redwood Mortgage Investors IX.

Risk Assessment

Risk Level: low — This is a routine quarterly filing with no immediate red flags or significant negative events indicated.

Key Numbers

• 120 months — Loan Term (Indicates the duration of commercial loans)
• 2025-06-30 — Reporting Period End Date (The end date for the financial data presented)
• 2024-12-31 — Previous Year End Date (For comparative financial analysis)

Key Players & Entities

• Redwood Mortgage Investors IX (company) — Filer of the 10-Q
• 20250630 (date) — End of reporting period
• 177 BOVET ROAD, SUITE 520, SAN MATEO, CA 94402 (address) — Business and mailing address
• 650-365-5341 (phone_number) — Business phone number
• DE (state) — State of incorporation

FAQ

Filing Documents

• ck0001448038-20250630.htm (10-Q) — 4112KB
• ck0001448038-ex31_1.htm (EX-31.1) — 16KB
• ck0001448038-ex32_1.htm (EX-32.1) — 9KB
• 0000950170-25-109980.txt ( ) — 15415KB
• ck0001448038-20250630.xsd (EX-101.SCH) — 1628KB
• ck0001448038-20250630_htm.xml (XML) — 3853KB

Financial Statements

Financial Statements 3 Balance Sheets 3 4 5 7

Notes to Financial Statements

Notes to Financial Statements 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 30 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 42 Item 4.

Controls and Procedures

Controls and Procedures 42 PART II. OTHER INFORMATION 44 Item 1.

Legal Proceedings

Legal Proceedings 44 Item 1A.

Risk Factors

Risk Factors 44 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 44 Item 3. Defaults Upon Senior Securities 44 Item 4. Mine Safety Disclosures 44 Item 5. Other Information 44 Item 6. Exhibits 45

Signatures

Signatures 46 2 3

– FI NANCIAL INFORMATION

Part I – FI NANCIAL INFORMATION Ite m 1. FINANCIAL STATEMENTS REDWOOD MORTGAGE INVESTORS IX, LLC Balance Sheets June 30, 2025 (unaudited) and December 31, 2024 ($ in thousands) June 30, December 31, ASSETS 2025 2024 Cash, in banks $ 14,883 $ 12,058 Loan payments in trust 21 29 Loans held for sale — 1,065 Loans Principal 45,185 53,475 Advances 106 54 Accrued interest 611 611 Prepaid interest — ( 11 ) Loan balances secured by deeds of trust 45,902 54,129 Allowance for credit losses ( 320 ) ( 210 ) Loan balances secured by deeds of trust, net 45,582 53,919 Debt issuance costs, net 25 41 Prepaid expenses 32 — Other receivable 9 3 Total assets $ 60,552 $ 67,115 LIABILITIES AND MEMBERS' CAPITAL Liabilities Accounts payable and accrued liabilities $ 31 $ 109 Payable to manager (Note 3) 68 93 Line of credit — 4,000 Total liabilities 99 4,202 Commitments and contingencies (Note 6) Members' and manager's capital, net 63,043 65,607 Receivable from manager (formation loan) (Note 3) ( 2,590 ) ( 2,694 ) Members' and manager's capital, net of formation loan 60,453 62,913 Total liabilities and members' capital $ 60,552 $ 67,115 The accompanying notes are an integral part of these unaudited financial statements. 3 4 REDWOOD MORTGAGE INVESTORS IX, LLC For the Three and Six Months Ended June 30, 2025 and 2024 (unaudited) ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenue Interest income $ 1,058 $ 1,605 $ 2,137 $ 3,105 Interest expense ( 8 ) ( 162 ) ( 35 ) ( 216 ) Net interest income 1,050 1,443 2,102 2,889 Late fees 2 2 7 6 Gain on sale, loans — 24 8 24 Total revenue, net 1,052 1,469 2,117 2,919 Provision for credit losses 110

Notes to Financial Statements

Notes to Financial Statements June 30, 2025 (unaudited) The ongoing sources of funds for loans are the proceeds (net of redemption of members' capital and operating expenses) from: loan payoffs; borrowers' monthly principal and interest payments; line of credit advances; loan sales to unaffiliated third parties; and payments from RMC on the outstanding balance of the formation loan. Lending and investment guidelines and criteria The company intends to hold until maturity the loans in which it invests and does not presently intend to invest in mortgage loans primarily for the purpose of reselling such loans in the ordinary course of business; however, the company may sell mortgage loans (or fractional interests therein) when the manager determines that it appears to be advantageous for the company to do so, based upon prevailing and expected interest rates, the length of time that the loan has been held by the company and the expected time to maturity and/or payoff of the loan, the company's credit risk and concentration risk and the overall investment objectives of the company. Loans sold to third parties may be sold for par, at a premium or, in the case of non-performing or under performing loans, at a discount. Company loans may be sold to third parties or to the manager or its related mortgage funds; however, any loan sold to the manager or a related mortgage fund will be sold for a purchase price equal to the greater of (i) the par value of the loan or (ii) the fair market value of the loan. The manager will not receive commissions or broker fees with respect to loan sales conducted for the company; however, selling loans will increase members' capital available for investing in new loans for which the manager will earn brokerage fees and other forms of compensation. The manager has discretion to pay amounts (advances) to third parties on behalf of borrowers to protect the company's interest in the loan. Advances include, but are not limited

Notes to Financial Statements

Notes to Financial Statements June 30, 2025 (unaudited) Liquidity and unit redemption program There are substantial restrictions on transferability of units, and there is no established public trading and/or secondary market for the units and none is expected to develop. In order to provide liquidity to members, the Operating Agreement includes a unit redemption program, whereby a member may redeem all or part of their units, subject to certain limitations. The price paid for redeemed units is based on the lesser of the purchase price paid by the redeeming member or the member's capital account balance as of the date of each redemption payment. The company redeems units quarterly, subject to certain limitations as provided for in the Operating Agreement. The maximum number of units which may be redeemed per quarter per individual member shall not exceed the greater of (i) 100 thousand units, or (ii) 25% of the member's total outstanding units. Pursuant to the Operating Agreement, eligible redemption requests are to be honored in the following order of priority: first, to redemptions upon the death of a member, subject to a cap of $ 100 thousand per quarter for each deceased member's account; and next, to all other eligible redemption requests on a pro rata basis. Pursuant to the Operating Agreement, the company will not, in any calendar year, redeem more than five percent ( 5 %) and in any calendar quarter one and one-quarter percent ( 1.25 %) of the weighted average number of units outstanding during the twelve (12) month period immediately prior to the date of the redemption; however, the manager may, but is not required to, waive this limitation if it deems it in the best interest of the company. In the event unit withdrawal requests exceed 5 % in any calendar year, and are held by the company, units will be redeemed in the order of priority provided in the Operating Agreement. The manager may, in its sole discretion, waive any applicable holding pe

Notes to Financial Statements

Notes to Financial Statements June 30, 2025 (unaudited) Fair value estimates The fair value of real property (as to loan collateral and REO) is determined by exercise of judgment based on RMC's management's experience informed by appraisals (by licensed appraisers), brokers' opinion of values, and publicly available information on in-market transactions. Appraisals of commercial real property generally present three approaches to estimating value: 1) market-comparables or sales approach; 2) cost to replace; and 3) capitalized cash flows or income approach. These approaches may or may not result in a common, single value. The market-comparables approach may yield different values depending on certain basic assumptions, including the consideration of adjustments made for any attributes specific to the real estate. Management has the requisite familiarity with the markets it lends in generally and of the properties lent on specifically to analyze sales-comparables and assess their suitability/applicability. Management is acquainted with market participants – investors, developers, brokers, and lenders – that are useful, relevant secondary sources of data and information regarding valuation and valuation variability. These secondary sources may have familiarity with and perspectives on pending transactions, successful strategies to optimize value, and the history and details of specific properties – on and off the market – that enhance the process and analysis that is particularly and principally germane to establishing value in distressed markets and/or property types. GAAP defines fair value as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. An orderly transaction is a transaction that assumes exposure to the market

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