FORM 10-Q
SECURITIES & EXCHANGE COMMISSION
WASHINGTON DC 20549
Quarterly Report Under Section 13 or 15 (d)
of the Securities Exchange Act of 1934
For Period Ended June 30, 1995
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Commission file number 33-12519
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REDWOOD MORTGAGE INVESTORS VI
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(exact name of registrant as specified in its charter)
California 94-3031211
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(State or other jurisdiction of I.R.S. Employer
incorporation or organization) Identification No.
650 El Camino Real, Suite G, Redwood City, CA. 94063
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(address of principal executive office)
(415) 365-5341
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(Registrant's telephone number, including area code)
NOT APPLICABLE
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(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file reports), and (2) has been subject to such
filing requirements for the past 90 days.
YES XX__________ NO___________
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents
and reports required to be filed by Sections 12, 13 or 15 (d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.
YES________ NO________ NOT APPLICABLE ____XX___
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the issuer's class
of common stock, as of the latest date.
NOT APPLICABLE
<PAGE>
<TABLE>
Part I
Item 1
REDWOOD MORTGAGE INVESTORS VI
(A California Limited Partnership)
Balance Sheets
December 31, 1994 (audited) and
June 30, 1995 (unaudited)
ASSETS
<CAPTION>
June 30, 1995 Dec. 31, 1994
(unaudited) (audited)
<S> <C> <C>
Cash ............................................... $ 218,287 $ 447,804
Accounts receivable:
Mortgage loans, secured by deeds of trust .... 11,004,047 10,993,996
Accrued interest on mortgage loans ........... 401,036 322,173
Advances on mortgage loans ................... 42,912 30,273
Accounts receivable-unsecured ................ 310,757 297,426
---------- -----------
11,758,752 11,643,868
Less allowance for doubtful accounts ......... 210,000 209,073
---------- -----------
$11,548,752 $11,434,795
----------- -----------
Real Estate Owned, acquired through foreclosure, at
estimated net realizable value ............... 1,525,465 2,231,592
Partnership Interest ............................... 456,821 -0-
Formation loan due from Redwood Home Loan Co. ...... 217,982 246,505
---------- -----------
$13,967,307 $14,360,696
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Notes payable - Bank line of credit .......... $ 2,233,511 $ 2,376,511
Accounts payable and accrued expenses ........ -0- -0-
Deferred interest on Mortgage Loans .......... -0- -0-
---------- ---------
2,233,511 2,376,511
Partners' capital .................................. 11,733,796 11,984,185
---------- ----------
$13,967,307 $14,360,696
=========== ===========
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
REDWOOD MORTGAGE INVESTORS VI
(A California Limited Partnership)
STATEMENTS OF INCOME
FOR THE SIX AND THREE MONTHS ENDED JUNE 30, 1995
AND 1994 (unaudited)
<CAPTION>
6 Months 6 Months 3 Months 3 Months
ended ended ended ended
06/30/95 06/30/94 06/30/95 06/30/94
(unaudited) (unaudited) (unaudited) (unaudited)
Revenues:
<S> <C> <C> <C> <C>
Interest on Mortgage Loans .................................... $647,568 $673,614 $323,493 $332,883
Interest on Bank Deposits ..................................... 3,508 6,775 1,797 3,456
Late Charges & Other .......................................... 4,547 6,406 3,531 3,604
Miscellaneous ................................................. 2,169 968 610 340
----- --- --- ---
657,792 687,763 329,431 340,283
------- ------- ------- -------
Expenses:
Interest on Bank Loan ......................................... 107,822 83,255 51,553 47,786
General Partner Management Fees ............................... -0- 3,870 -0- -0-
Clerical costs through Redwood Home Loan Co. .................. 9,280 14,964 4,625 7,453
Professional Fees ............................................. 16,746 42,917 3,774 31,304
Other ......................................................... 11,023 14,277 6,706 2,764
Provision for Loss on Real Estate Acquired
through Foreclosure and Doubtful Accounts ..................... 202,426 192,968 107,783 83,645
------- ------- ------- ------
347,297 352,251 174,441 172,952
------- ------- ------- -------
Net Income ......................................................... $310,495 $335,512 $154,990 $167,331
======== ======== ======== ========
Net Income: to General Partners (1%) .............................. $ 3,105 $ 3,355 $ 1,550 $ 1,673
to Limited Partners (99%) ............................. 307,390 332,157 153,440 165,658
------- ------- ------- -------
$310,495 $335,512 $154,990 $167,331
======== ======== ======== ========
Net Income for $1000 invested by Limited Partner
for entire period
- where income is reinvested and compounded ................... $ 25.99 $ 27.19 $ 12.95 $ 13.50
======== ======== ======== ========
- where Partner receives income in monthly
distributions ............................................... $ 25.71 $ 26.88 $ 12.89 $ 13.43
======== ======== ======== ========
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
REDWOOD MORTGAGE INVESTORS VI
(A California Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1995
AND 1994 (unaudited)
<CAPTION>
June 30, 1995 June 30, 1994
(unaudited) (unaudited)
<S> <C> <C>
Cash flows from operating activities:
Net Income $ 310,495 $ 335,512
Adjustments to reconcile net income to net cash
provided by operating activities:
Increase (decrease) in allowance for doubtful accounts 927 ( 40,663 )
(Increase) decrease in accrued interest and other receivables ( 91,502 ) 70,059
Increase (decrease) in accounts payable, accrued expenses
and deferred interest -0- ( 29,328 )
(Increase) decrease in prepaid expenses and other assets -0- 1,524
---------- ---------
Net cash provided by operating activities 219,920 337,104
------- -------
Cash flows from investing activities:
Net (increase) decrease in:
Real estate acquired through foreclosure 706,127 ( 1,002,892 )
Mortgage loans ( 10,051 ) 850,498
Accounts receivable - unsecured ( 13,331 ) -0-
Formation loan 28,523 34,242
Partnership Interest ( 456,821 ) -0-
---------- -----------
Net cash provided by or (used in) investing activities 254,447 ( 118,152 )
------- -----------
Cash flows from financing activities:
Net increase (decrease) in note payable - bank ( 143,000 ) 298,295
Partners withdrawals ( 556,855 ) ( 470,453 )
Early withdrawal penalties, net ( 4,029 ) ( 3,079 )
----------- -----------
Net cash provided by or (used in) financing activities ( 703,884 ) ( 175,237 )
----------- -----------
Net increase (decrease) in cash and cash equivalents $ (229,517 ) $ 43,715
Cash and cash equivalents at the beginning of period 447,804 422,305
------- -------
Cash and cash equivalents at the end of period $ 218,287 $ 466,020
========== ===========
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
REDWOOD MORTGAGE INVESTORS VI
(A California Limited Partnership)
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
FOR THE THREE YEARS ENDED DECEMBER 31, 1994 (audited)
AND SIX MONTHS ENDED JUNE 30, 1995 (unaudited)
-------------------PARTNERS CAPITAL----------------
<CAPTION>
UNALLOCATED
GENERAL LIMITED SYNDICATION
PARTNERS PARTNERS COSTS TOTAL
--------- -------- ----------- ----------
<S> <C> <C> <C> <C>
Balances at December 31, 1991 ..... $ 9,773 11,944,096 (105,610) 11,848,259
Net Income ........................ 10,585 1,047,952 -0- 1,058,537
Allocation of syndication costs ... ( 732) ( 72,481) 73,213 -0-
Early withdrawal penalties ........ -0- ( 15,055) 5,518 ( 9,537)
Partners' withdrawals ............. ( 9,853) ( 530,499) -0- ( 540,352)
--------- ----------- --------- -----------
Balances at December 31, 1992 ..... $ 9,773 12,374,013 ( 26,879) 12,356,907
Net Income ........................ 8,978 888,810 -0- 897,788
Allocation of Syndication Costs ... ( 232) ( 22,947) 23,179 -0-
Early withdrawal penalties ........ -0- ( 10,365) 3,700 ( 6,665)
Partners' withdrawals ............. ( 8,746) ( 887,338) -0- ( 896,084)
--------- ----------- --------- -----------
Balances at December 31, 1993 ..... $ 9,773 12,342,173 -0- 12,351,946
Net Income ........................ 6,647 658,055 -0- 664,702
Early withdrawal penalties ........ -0- ( 12,790) -0- ( 12,790)
Partners' withdrawals ............. ( 6,654) (1,013,019) -0- (1,019,673)
--------- ----------- --------- -----------
Balances at December 31, 1994 ..... $ 9,766 11,974,419 -0- 11,984,185
Net Income ........................ 3,105 307,390 -0- 310,495
Early withdrawal penalties ........ -0- ( 4,029) -0- ( 4,029)
Partners' withdrawals ............. ( 3,105) ( 553,750) -0- ( 556,855)
--------- ----------- --------- -----------
Balances at June 30, 1995 ......... $ 9,766 11,724,030 -0- 11,733,796
======= ========== ========= ==========
<FN>
See accompanying notes to Financial Statements
</FN>
</TABLE>
<PAGE>
REDWOOD MORTGAGE INVESTORS VI
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1994 (audited) AND
JUNE 30, 1995 (unaudited)
1. ORGANIZATION AND GENERAL
Redwood Mortgage Investors VI, (the "Partnership"), is a California limited
partnership, of which the General Partners are D. Russell Burwell, Michael R.
Burwell (collectivelly the "Individual General Partners") and Gymno Corporation,
a California corporation owned and operated by the Individual General Partners.
The Partnership was organized to engage in business as a mortgage lender for the
primary purpose of making loans secured by Deeds of Trust on California real
estate. Partnership loans are being arranged and serviced by Redwood Home Loan
Co. (RHL Co.), an affiliate of the General Partners. At December 31, 1989, the
offering was closed with contributed capital totalling $9,781,366.
Each month's income is distributed to partners based upon their
proportionate share of partners' capital. Partners may elect to withdraw income
on a monthly, quarterly, or annual basis.
A. Sales Commission - Formation Loan
Sales commissions ranging from 0% (on units sold by the General Partners)up
to 10% of gross proceeds were paid by RHL Co., an affiliate of the General
Partners that arranges and services the mortgage loans. To finance the sales
commissions, the Partnership loaned to RHL Co. $623,255 (the "Formation Loan")
in connection with the broker-dealer selling the Partnership interests of
$9,781,366 contributed capital. The Formation Loan is unsecured, and is being
repaid, without interest, in ten annual installments of principal, which
commenced on December 31, 1989. As of June 30, 1995, RHL Co. had already repaid
$369,048 and early withdrawal penalties of $36,225 had been credited against the
loan amount, leaving a remaining balance of $217,982.
B. Other Organizational and Offering Expenses
Organizational and offering expenses, other than sales commissions,
(including printing costs, attorney and accountant fees, registration and filing
fees, and other costs), paid by the Partnership from the offering proceeds
totalled $360,885 or 3.69% of the gross proceeds contributed by the Partners.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenues and expenses are accounted for on the accrual basis of accounting.
The Partnership bears its own organization and syndication costs (other
than certain sales commissions and fees described above) including legal and
accounting expenses, printing costs, selling expenses, a 1% wholesale brokerage
fee and filing fees. Organizational costs of $14,750 were capitalized and were
amortized over a five year period. Syndication costs of $346,135 were charged
against partners' capital and were allocated to individual partners consistent
with the partnership agreement over a five year period.
Property acquired through foreclosure will be held for prompt sale to
return the funds to the loan portfolio. Such property is recorded at the lesser
of (i) cost, which includes the principal balance of the former loan made by the
Partnership plus accrued interest, payments made to keep the senior loans
current, costs of obtaining title and possession, less rental income, or (ii) at
estimated net realizable value. The difference between such "cost" and
estimated net realizable value is deducted from cost in the Balance Sheet to
arrive at the carrying value of such property.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
In preparing the financial statements, management is required to make
estimates based on the information available that affect the reported amounts of
assets and liabilities as of the balance sheet date and revenues and expenses
for the related periods. Such estimates relate principally to the determination
of the allowance for doubtful accounts and the valuation of real estate acquired
through foreclosure. Actual results could differ significantly from these
estimates.
Mortgage loans and the related accrued interest, fees and advances are
analyzed on a continuous basis for recoverability. Delinquencies are identified
and followed as part of the mortgage loan system. A provision is made for
doubtful accounts to adjust the allowance for doubtful accounts to an amount
considered by the management to be adequate to provide for unrecoverable
accounts receivable.
Amounts reflected in the statements of income as net income per $1,000
invested by Limited Partners for the entire period are actual amounts allocated
to Limited Partners who have their investment throughout the period and have
elected to either leave their earnings to compound or have elected to receive
monthly distributions of their net income. Individual limited partner income is
allocated each month based on the limited partners pro rata share of partnership
capital. Because the net income percentage varies from month to month, amounts
per $1,000 will vary for those individuals who make or withdraw investments
during the period, or select other options. However, the net income per $1,000
average invested has approximated those reflected for those whose investments
and options have remained constant.
No provision for Federal and State income taxes is made in the financial
statements since income taxes are the obligation of the partners if and when
income taxes apply.
The interim financial statements dated June 30, 1995 are unaudited, but in
the opinion of the General Partners all adjustments (consisting solely of normal
recurring adjustments) necessary to a fair presentation of the financial
condition at June 30, 1995 have been made.
3. GENERAL PARTNERS AND RELATED PARTIES
The following are commissions and/or fees which are paid to the General
partners and/or related parties.
A. Loan Brokerage Commissions
Loan brokerage commissions for services in connection with the review,
selection, evaluation, negotiation and extension of the mortgage loans were
limited up to 12% of the principal amount of the loans through the period ending
6 months after the termination date of the offering. Thereafter, commissions are
limited to an amount not to exceed 4% of the total Partnership assets per year.
Such commissions are paid by the borrowers, thus, not an expense of the
Partnership.
B. Loan Servicing Fees
Monthly loan servicing fees are paid to Redwood Home Loan Co. up to 1/8 of
1% (1.5% annual) of the unpaid principal, or such lesser amount as is reasonable
and customary in the geographic area where the property securing the loan is
located (currently at 1/12 of 1% or 1% annual). The amount remitted to the
partnership and recorded as interest on mortgage loans is net of such fees. In
1993, $27,532 of the total loan servicing fees of $121,838, and in 1994, all of
the $123,758 of total loan servicing fees were waived by Redwood Home Loan Co.
For the six months through June 30, 1995, $40,755 of the total loan service fee
of $49,074 was also waived by Redwood Home Loan Co.
GENERAL PARTNERS AND RELATED PARTIES (continued)
C. Asset Management Fee
Pursuant to the Partnership agreement, the General Partners receive a
monthly fee for managing the Partnership's loan portfolio and operations equal
to 1/32 of 1% (3/8 of 1% annual) of the "net asset value". Such fees were
reduced from $46,569 to $15,523 in 1993, $45,974 to $8,942 in 1994 and for the
six months through June 30, 1995, all of the management fee totalling $22,417
were waived by the General Partners.
D. Other Fees
The Partnership Agreement provides for other fees such as reconveyance,
loan assumption and loan extension fees. These fees are paid by the borrowers to
parties related to the General Partners.
E. Income and Losses
All income is credited or charged to partners in relation to their
respective partnership interests. The partnership interest of the General
Partners (combined) is a total of 1%.
F. Operating Expenses
The General Partners or their affiliate (RHL Co.) are being reimbursed by
the Partnership for all operating expenses actually incurred by them on behalf
of the Partnership, including without limitation, out-of-pocket general and
administration expenses of the Partnership, accounting and audit fees, legal
fees and expenses, postage and preparation of reports to Limited Partners. In
1993, and in 1994, clerical costs totalling $31,642 and $0 respectively, were
reimbursed to RHL Co. For the six months through June 30, 1995, $9,280 of the
total expense of $13,862 was reimbursed to RHL Co. with the difference being
waived.
4. OTHER PARTNERSHIP PROVISIONS
A. Term of the Partnership
The term of the Partnership is 40 years, unless sooner terminated as
provided. Investors have the right to withdraw over a five year period or
longer.
B. Election to Receive Monthly, Quarterly or Annual Distributions
Upon subscriptions, investors elected either to receive monthly, quarterly
or annual distributions of earnings allocations, or to allow earnings to
compound for at least a period of 5 years.
C. Profits and Losses
Profits and losses are allocated monthly among the Limited Partners
according to their respective capital accounts, after 1% is allocated to the
General Partners.
D. Withdrawal from Partnership
Capital accounts can be returned over a five year period in 20 equal
quarterly installments or such longer period as requested.
Notwithstanding the above, in order to provide a certain degree of
liquidity to the Limited Partners, the General Partners will liquidate a Limited
Partner's entire capital account in four quarterly installments beginning on the
last day of the calendar quarter following the quarter in which the notice of
withdrawal is given. Such liquidations shall, however, be subject to a 10% early
withdrawal penalty applicable to any sums withdrawn prior to the time when such
sums otherwise could have been withdrawn pursuant to the liquidation procedure
set forth in the previous paragraph. The 10% early withdrawal penalty will be
received by the Partnership, and a portion of the sums collected as such penalty
will be applied by the Partnership toward the next installment(s) of principal
under the Formation Loan owed to the Partnership by Redwood Home Loan Co. Such
portion shall be determined by the ratio between the initial amount of the
Formation Loan and the total amount of other organization and syndication costs
incurred by the Partnership in this offering. The balance of any such early
withdrawal penalties shall be retained by the Partnership for its own account
and applied against Syndication Costs. Since the syndication costs have been
fully amortized, the early withdrawal penalties gained in the future will all be
applied on the same basis as before with the amount otherwise being credited to
the Syndication Costs being credited to the income for the period.
The Partnership will not establish a reserve from which to fund withdrawals
and, accordingly, the Partnership's capacity to return a Limited Partner's
capital account is restricted to the availability of Partnership cash flow.
Furthermore, no more than 20% of the total Limited Partners' Capital Accounts
outstanding at the beginning of any calendar year shall be liquidated during any
calendar year.
5. NOTES PAYABLE BANK - LINE OF CREDIT
The Partnership has a bank line of credit secured by its mortgage loan
portfolio of up to $2,500,000 at 1% over prime as of June 30, 1995. The initial
borrowing took place in March, 1989 and the balance as of June 30, 1995 was
$2,233,511.
6. LEGAL PROCEEDINGS
The Partnership is not a defendant in any legal actions. However, legal
actions against borrowers and other involved parties have been initiated by the
Partnership to collect unsecured accounts receivable totalling an aggregate of
$310,757. Management anticipates that the ultimate outcome of these legal
matters will not have a material adverse effect on the net assets of the
Partnership, in light of the Partnership's allowance for doubtful accounts.
7. PARTNERSHIP INTEREST
The Partnership holds a Limited Partnership interest in a partnership
("Local Partnership") which was formed to develop land parcel, previously
acquired through foreclosure, into single family homes. The Partnership expects
to receive a fixed sum which it contributed to the local partnership, as well
as, a portion of the profits.
Note 8 - ASSET CONCENTRATIONS AND CHARACTERISTICS
The mortgage loans are secured by recorded deeds of trust. At June 30,
1995, there were 93 loan investments outstanding with the following
characteristics:
Number of loan investments outstanding ......................... 93
Total loans outstanding ........................................ $ 11,004,047
Average loan investment outstanding ............................ $ 118,323
Average loan investment as a percent of total .................. 1.08%
Average loan investment as a percent of Partners' Capital ...... 1.01%
Largest loan investment outstanding ............................ $ 1,060,283
Largest loan investment as a percent of total .................. 9.64%
Largest loan investment as a percent of Partners' Capital ...... 9.04%
Number of counties where security is located (all California)..... 14
Largest percentage of loan investment in one county ...................21.17 %
Average loan investment to appraised value of security at time loan
was consummated ......................................................62.39 %
Number of loans in foreclosure ...........................................-0-
The cash balance at June 30 1995 of $218,287 was in accounts of two
different banks, of which a total of $190,450 was in interest bearing account.
The balances held in such accounts exceeded FDIC limits (up to $100,000 per
bank) by $116,821.
ITEM II
MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
On June 30, 1995, the Partnership's net capital totalled $11,733,796.
The Partnership began funding mortgage investments in October 1987, and as
of June 30, 1995 had distributed income at an average annualized (compounded)
yield of 8.45%. Current earnings are somewhat lower, primarily because interest
rates generally have dropped dramatically since 1992 and reserves for losses
have been increased. The Partnership does not anticipate a significant increase
or decrease in mortgage rates in the foreseeable future and expects the
prevailing rates to fluctuate in a narrow range for the rest of the year.
Management expects the yield, net of provision for losses on loans, to fluctuate
in a narrow range of 5% to 6% for the balance of 1995.
Each year, the Partnership negotiates a line of credit with a commercial
bank which is secured by its mortgage loan portfolio. Currently, it has the
capacity to borrow up to $2,500,000 at prime plus 1%, (10.00%). Current
borrowings of $2,233,511 have the effect of leveraging the portfolio about 20%.
The Partnership relies upon the line of credit, amortization of notes,
pay-off of notes and the re-investment of earnings, after paying Partnership
distributions and operating costs, for the creation of new capital for mortgage
(loan) investments.
Considering Northern California's recent economic slump (5 out of the last
6 years) and the current state of our economy, the Partnership's operating
results and delinquencies are within the normal range of the General Partners'
expectations, based upon their experience in managing similar partnerships over
the last seventeen years. Foreclosures are a normal aspect of partnership
operations and the General Partners anticipate that they will not have a
material effect on liquidity. Cash is continually being generated from interest
earnings, late charges, prepayment penalties, amortization of notes and payoff
of notes. Currently, this amount substantially exceeds Partnership expenses and
earnings payout requirements. As loan opportunities become available, excess
cash and available funds are invested in new loans.
The General Partners are continuously reviewing the loan portfolio, the
status of delinquencies, the underlying collateral securing these properties,
REO expenses, sales activities, and borrower's payment records and other data
relating to the loan portfolio. Data on the local real estate market and on the
national and local economy are studied. Based upon this information and more,
loan loss reserves and allowance for doubtful accounts are increased or
decreased. Because of the number of variables involved, the magnitude of
possible swings and our inability to control these many factors, actual results
could and do sometimes differ significantly from the General Partners'
estimates.
<PAGE>
<TABLE>
I. COMPENSATION OF THE GENERAL PARTNERS AND AFFILIATES BY PARTNERSHIP
The following compensation has been paid to the General Partners and
Affiliates for services rendered during the six months ending June 30, 1995. All
such compensation is in compliance with the guidelines and limitations set forth
in the Prospectus and Partnership Agreement. In addition, the General Partners
and/or related companies pay certain expenses on behalf of the Partnership for
which it is reimbursed as noted in the Statement of Income.
<CAPTION>
Entity Receiving Description of Compensation Amount
Compensation and Services Rendered
================================================================================
<S> <C> <C>
RHL Co. Loan Servicing Fee for servicing $8,319
loans ($40,755 waived by RHL Co.
--------------------------------------------------------------------------------
General Partners &/or Affiliates Asset Management Fee for managing $ -0-
assets ($22,417 waived by the
General Partners
--------------------------------------------------------------------------------
General Partners 1% interest in profits, losses $3,105
and distributions of cash
available for distribution
--------------------------------------------------------------------------------
II. FEES PAID BY BORROWERS ON MORTGAGE LOANS PLACED BY COMPANIES RELATED
TO THE GENERAL PARTNERS WITH THE PARTNERSHIP (EXPENSES OF
BORROWERS NOT OF THE PARTNERSHIP)
RHL Co. Loan Brokerage Commissions for $29,915
services in connection with the
review, selection, evaluation,
negotiation, and extension of the
Partnership Loans paid by the
borrowers and not by the
Partnership
--------------------------------------------------------------------------------
RHL Co. Processing and Escrow Fees for $ 626
services in connection with
notary, document preparation,
credit investigation, and escrow
fees payable by the borrower and
not by the Partnership
--------------------------------------------------------------------------------
</TABLE>
<PAGE>
LOAN PORTFOLIO SUMMARY AS OF JUNE 30, 1995
Partnership Highlights
Loan to Value ratio
First Trust Deed Loans ................................... $ 4,992,898.15
Appraised Value of Properties * .......................... 8,784,446.00
Total Investment as a % of Appraisal ................. 56.84%
First Trust Deed Loans ................................... $ 4,992,898.15
Second Trust Deed Loans .................................. 5,140,742.12
Third Trust Deed Loans ................................... 727,549.86
Fourth Trust Deed Loans ** ............................... 142,856.80
---------------
$ 11,004,046.93
First Trust Deeds due other Lenders ...................... $ 18,530,351.00
Second Trust Deeds due other Lenders ..................... 1,393,100.00
Third Trust Deeds due other Lenders ...................... 178,571.00
---------------
Total Debt ............................................... $ 31,106,068.93
Appraised Property Value ............................. $ 49,855,354.00
Total Investment as a % of Appraisal ................. 62.39%
Number of Loans Outstanding .............................. 93
Average Investment ....................................... $ 118,323.08
Average Investment as a % of Net Partners Capital ........ 1.01%
Largest Investment Outstanding ........................... 1,060,282.65
Largest Investment as a % of Net Partners Capital ........ 9.04%
* Amounts shown reflect the aggregate appraisal values utilized at the time
the loans were consummated.
** This consists of a loan in which Redwood Mortgage Investors VI, together
with other Redwood partnerships, holds a second and a fourth trust deed against
the secured property. In addition, the principals behind the borrower
corporation have given personal guarantees as collateral. The overall loan to
value ratio on this loan is 76.52%. Besides the borrower paying an interest rate
of 12.25%, the Partnership and other lenders will participate in profits. The
General Partners and its affiliates have previously entered into loan
transactions with this borrower, all of which have been concluded successfully,
with extra earnings earned for the other lenders.
Loans as a Percentage of Total Loans
First Trust Deed Loans ......................... 45.37%
Second Trust Deed Loans ........................ 46.72%
Third Trust Deed Loans ......................... 6.61%
Fourth Trust Deed Loans ........................ 1.30%
------
Total .......................................... 100.00%
Loans by Type of Property ...................... Amount Percent
Owner Occupied Homes ........................... $ 2,646,882.45 24.05%
Non Owner Occupied Homes ....................... 749,485.11 6.81%
Apartments ..................................... 1,427,045.02 12.97%
Commercial ..................................... 6,180,634.35 56.17%
-------------- ------
Total .......................................... $ 11,004,046.93 100.00%
Statement of Conditions of Loans
Number of Loans in Foreclosure 0
Diversification by County
County ......................................... Total Loans Percent
San Mateo ...................................... $ 2,329,774.23 21.17%
Alameda ........................................ 2,254,929.64 20.49%
Santa Clara .................................... 2,127,465.71 19.34%
Contra Costa ................................... 1,179,923.33 10.72%
San Francisco .................................. 853,204.22 7.75%
Stanislaus ..................................... 766,146.21 6.96%
Sonoma ......................................... 338,991.50 3.08%
Sacramento ..................................... 303,779.41 2.76%
Marin .......................................... 199,099.57 1.81%
Napa ........................................... 172,746.81 1.57%
Santa Cruz ..................................... 149,133.05 1.36%
Solano ......................................... 26,825.66 0.24%
Miscellaneous * ................................ 302,027.59 2.75%
-------------- ------
Total .......................................... $ 11,004,046.93 100.00%
* El Dorado, Shasta
PART 2
OTHER INFORMATION
Item 1. Legal Proceedings
-----------------
No legal action has been initiated against
the Partnership. The Partnership had filed
a legal action for collection against a
borrower, which is routine litigation
incidental to its business. Please refer
to note (6) of financial statements.
Item 2. Changes in the Securities
-------------------------
Not Applicable
Item 3. Defaults upon Senior Securities
-------------------------------
Not Applicable
Item 4. Submission of Matters to a Vote of Security Holders
---------------------------------------------------
Not Applicable
Item 5. Other Information
-----------------
Not Applicable
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
(a) Exhibits
Not Applicable
(b) Form 8-K
The registrant has not filed any
reports on Form 8-K during the three
month period ending June 30, 1995.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Redwood Mortgage Investors VI
DATE: July 24, 1995 By:
--------------------- ------------------------------------
D. Russell Burwell, General Partner
DATE: July 24, 1995 By:
--------------------- ------------------------------------
Michael R. Burwell, General Partner
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<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
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