The Fund’s primary focus is creating and maintaining investor wealth through local alternative real estate investment strategies. The management team’s collective abilities provide an advantage over investing individually by allowing the Fund to quickly and efficiently address any real estate acquisition and management issues. The Fund’s ability to invest with aggregated capital also provides greatly enhanced negotiation leverage as the Fund can close acquisitions quickly and without the typical financing delays encountered with other purchasers that require institutional financing to close on a property. Since the Fund’s primary managers are directly involved in the placement of investment funds into select real estate assets, we can manage our investments more actively than large institutional investors. By investing in a Fund with experienced and specialized management, investors are freed from the complexities and time required for individual property ownership.

Over the years, our individual Fund managers have seen extreme market fluctuations; because of this, the Fund management team is always researching market trends to develop strategies allowing us to mitigate this volatility and reduce negative effects on our investors. This experience has also better positioned the Fund to take advantage of market opportunities presented in times of uncertainty. This proactive approach sets Redwood Real Estate Fund, LLC apart from our competition.

The Fund’s management team has identified compelling market opportunities for the acquisition of multi-family and apartment assets in certain markets within California and Washington. This prospectus will outline the Fund’s proprietary strategies for executing on these opportunities and the pertinent details regarding investment in the Fund’s securities.

FUND MANAGEMENT METHODOLOGY

The Fund will pursue investments by utilizing the extensive expertise of the Fund Manager in acquiring and managing compelling multi-family and apartment assets that meet the Fund’s asset acquisition criteria. The Fund may also target certain off-market, bank owned non-performing distressed multi-family assets to achieve attractive risk-adjusted returns. The Fund will target investment opportunities in the primary target markets of San Diego, California, San Francisco, California and Seattle, Washington (the “Target Markets”).

FUND MANAGEMENT TRACK RECORD

The Fund Manager believes that its core industry expertise in implementing a balanced investment ideology coupled with consistent focused approach to property management, leasing and timely disposition of assets has strongly impacted its past performance. Since 2004, the Fund Manager, while jointly investing nearly $62.7 million of capital with private investors, has successfully acquired and managed over fifty off-market, bank owned properties and executed over sixty two real estate asset acquisition transactions including office buildings, shopping centers, industrial, medical and multi-family properties. The Fund Manager previously managed a successful real estate focused investment fund originating in 2009 and closed in 2012. The prior real estate focused fund, Altrian Property Fund, LP, achieved a 53% net aggregate internal rate of return and a 1.42x multiple in sold properties on realized $20 million of invested equity. The Fund Manager believes that these returns are particularly compelling on a risk-adjusted basis as conservative leverage was utilized on average across all investments within the operational model for the Altrian Property Fund.

The Fund Manager intends to deploy a similar, non-leveraged investment methodology in the Redwood Real Estate Fund to produce superior anticipated returns for investors.

GEOGRAPHIC FOCUS

In the opinion of the Fund Manager, the California multi-family real estate markets of San Diego and San Francisco provide a compelling opportunity for the purchase, management, and disposition of under valued and distressed multi-family and apartment class real estate assets. The Fund Manager’s construction and distressed real estate mitigation background provides it the capability to accurately evaluate certain acquisition opportunities with the intent to rehabilitate the asset, engage in a reposition and lease-up, and then ultimately sell the improved asset for a net gain. Certain secondary markets in the Seattle, Washington area also offer similar opportunities and are also areas wherein the Fund Manager has significant market operating history and expertise.