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RTC VI - Private Mortgage REIT

Income
San Francisco, CA
Target Return
9.20%
Minimum
$25,000
Hold Period
2 Years
Red Tower CapitalSponsored by Red Tower Capital · $80M AUM
Overview

RTC VI is a real estate private credit fund structured as a Mortgage REIT, focused on originating and acquiring senior secured bridge loans backed by improved real estate. The fund is managed by Red Tower Capital, a San Francisco-based private lender with 13+ years of continuous operation and a 10-year audited track record of 9+% annualized returns. RTC VI targets a $100M fund size and offers accredited investors income-oriented exposure to first-position residential and commercial real estate debt, primarily concentrated in California.

Why This Opportunity

  • Consistent audited track record: 10-year audited investor returns averaging 9.7% annualized, outperforming the California mortgage fund average by approximately 2% per year

  • First-position focus: 93% of the current portfolio is in first-position loans, providing senior payment priority within the capital stack

  • Conservative underwriting: Current portfolio carries an average loan-to-value ratio of 48% and an average note rate of 11.91%

  • Mortgage REIT tax advantages: Eligible for the 20% Qualified Business Income Deduction on REIT dividends, no UBTI for IRAs and qualified plans, simpler single-state tax filing, and no withholding requirements for foreign investors

  • Low public market correlation: Real estate debt exposure with predictable current income, minimal correlation to public market volatility

  • Experienced team: Over 60 years combined real estate experience, with 502+ non-bank loans originated totaling nearly $300M since the firm's founding in 2011

  • Projected returns: 9.2% target return with an 8% preferred return, 1.18x equity multiple over a 24-month hold

Deal Structure

  • Fund structure: Mortgage REIT

  • Target fund size: $100M

  • Minimum investment: $25,000

  • Preferred return: 8% annually to investors

  • Performance fee: 50/50 split over the 8% preferred return

  • Management fee: 1% of total fund size

  • Distributions: Quarterly

  • Audit: Annual third-party audit

Current Portfolio Snapshot (Q1 2025)

  • 29 active loans totaling $14.4M in principal balance

  • 93% first-position loans

  • Average loan size: $496,489

  • Average note rate: 11.91%

  • Average loan-to-value ratio: 48.00%

  • Average loan term: 36 months

  • Portfolio return of 9.36% annualized for Q1 2025

Loan Strategy and Product Types

RTC VI focuses on short to mid-term bridge financing, typically $250,000 to $2M per loan at rates of 8% to 13% per annum. Loans are secured primarily by first-position interests in improved real estate (non-land), with a California concentration and nationwide flexibility. Core loan products include:

  • Bridge loans: Transitional financing across property types where borrowers need speed, flexibility, or time to secure bank financing. Typically 6-24 month terms

  • Owner-occupied SFR bridge: Bridge financing for borrowers unable to qualify for bank loans in time, typically single-family through 4-plex properties. Maximum 11-month term

  • Fix & flip and construction: Usually single-family residential, with substantial funds control and typically 12-24 month terms

Portfolio Diversification (Historical)

  • Property type: 47% SFR, 22% industrial, 15% retail, 5% multifamily 5+, 4% 2-4plex, 5% lot & land, 2% office

  • Geography: 40% East Bay, 15% LA & Southern CA, 14% San Francisco, 10% South Bay, 9% North Bay, 9% Sacramento & Central Valley, 2% Northern CA, 1% Central Coast, 1% Out of CA

  • Loan size: 31% between $1M-$3M, 26% between $100K-$500K, 22% between $500K-$1M, 15% between $3M-$5M, 4% over $5M, 2% under $100K

Mortgage REIT Tax Advantages

  • 20% QBI Deduction: Investors may deduct 20% of qualified REIT dividends regardless of tax bracket

  • No UBTI: Eliminates unrelated business taxable income for IRAs and other qualified retirement plans, even when the fund uses leverage

  • Simplified tax filing: Single-state filing, no multi-state withholding required

  • No foreign withholding: Dividends can qualify as portfolio income, avoiding withholding for foreign investors

How Allocation Works
$100,000,000
Offering Size
÷
$25,000
Minimum
=
4,000
Investor Limit
4,000 is the investor limit if everyone invests the minimum. Since many invest more, the offering typically fills with fewer.
Project Your Returns
The Market

San Francisco, CA

RTC VI lends primarily across California, with a concentrated focus on the San Francisco Bay Area and Los Angeles metropolitan markets.

California Private Credit Landscape

  • California is one of the largest and most liquid real estate markets in the U.S., with sustained demand for bridge and transitional financing across residential and commercial property types

  • Limited land availability, long entitlement timelines, and high construction costs have historically constrained supply, supporting long-term real estate value resilience

  • Traditional bank lenders continue to maintain tighter underwriting standards, creating sustained demand for flexible private credit solutions from property owners executing renovations, refinancing maturing loans, or navigating transitional situations

San Francisco Bay Area Focus

  • Highly educated workforce and diversified economy driven by technology, healthcare, financial services, and life sciences

  • Significant venture capital activity supporting regional economic activity and real estate demand

  • Red Tower Capital is established as a top non-bank real estate lender in the San Francisco Bay Area, providing consistent deal flow and local underwriting expertise

  • East Bay (28%), Peninsula (19%), North Bay (15%), and San Francisco itself represent the firm's primary lending footprint, with additional concentration in the Los Angeles Area (26% of current portfolio)

Market Opportunity

Disciplined underwriting and conservative loan-to-value structures remain critical to preserving capital through market cycles. With traditional lenders continuing to pull back, senior secured bridge lenders operating in defensible submarkets have an ongoing opportunity to originate high-quality loans at attractive risk-adjusted yields, particularly in California's supply-constrained core markets.

Common Questions

Relli is a private real estate marketplace that connects investors directly with institutional sponsors. We source opportunities that typically move through private networks and closed investor circles, vet each deal and sponsor, and list them in one accessible marketplace. When you find a deal that fits, express your interest and we connect you directly with the sponsor. No commissions, no middleman fees.

Experienced real estate operators and fund managers with proven track records. Every sponsor is vetted for operational history, assets under management, and prior performance before any deal is listed.

No. Relli is free for investors. You invest directly with the sponsor with no platform fees, no commissions, and no extra charges.

Property visits are not currently available. Each investment page includes detailed property information, photos, financial projections, and sponsor materials so you can evaluate every deal before expressing interest.

Sponsors provide regular updates on property performance, distributions, and key developments. The frequency varies by deal but you can expect quarterly updates at minimum through your Relli dashboard.

Within 24 hours, our team reaches out to confirm fit and introduces you directly to the sponsor. You have a one-on-one conversation to ask questions, review terms, and evaluate the deal. If it is right for you, you invest directly with the sponsor. No middleman, no extra fees.

Target Return
9.20%
Equity Multiple
1.18x
0 Views
4,000 Investor Limit

Initial Investment ($)

$25,000$25,000$1M

Assuming your selected investment, after 2 years you could expect a return of:

Projected Return (2 yrs at 9.2% IRR)
$29,600
Irvine, CA 92612

Relli is a technology marketplace. We do not process transactions, hold investor funds, or act as a broker-dealer. All investments are made directly between the investor and the sponsor.

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