Company: RWT-PA
Filing Date: 2025-01-16
Form Type: 424B5
Source: 0001104659-25-004099
Chunk: 13

Company: REDWOOD TRUST INC
Filing Date: 2025-01-16
Form: 424B5
Chunk 13
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 including:

| · | increasing                                                     
 our vulnerability to adverse economic and industry conditions; |

| · | limiting                                    
 our ability to obtain additional financing; |

| · | requiring                                                                                             
 the dedication of a substantial portion of our cash flow from operations to service our indebtedness, 
 thereby reducing the amount of our cash flow available for other purposes;                            |

| · | limiting                                                                      
 our flexibility in planning for, or reacting to, changes in our business; and |

| · | placing                                                                                   
 us at a possible competitive disadvantage with less leveraged competitors and competitors 
 that may have better access to capital resources.                                         |

We cannot assure you that
we will continue to maintain sufficient cash reserves or that our business will continue to generate cash flow from operations at levels
sufficient to permit us to pay principal, premium, if any, and interest on our indebtedness, or that our cash needs will not increase.
If we are unable to generate sufficient cash flow or otherwise obtain funds necessary to make required payments, or if we fail to comply
with the various requirements of the notes to be offered and sold in this offering, or any other indebtedness then outstanding, we would
be in default, which would permit the holders of the affected indebtedness to accelerate the maturity of such indebtedness and could
cause defaults under our other indebtedness. Any default under these notes or any other indebtedness could have a material adverse effect
on our business, results of operations and financial condition.

We conduct a significant amount of our operations through our subsidiaries and will rely significantly on our subsidiaries to make payments under the notes.

We conduct a significant
amount of our operations through our subsidiaries. Accordingly, our ability to pay amounts due on the notes will significantly depend
on the cash flows of our subsidiaries and their ability to make distributions to us. None of our subsidiaries has guaranteed or otherwise
become obligated with respect to the notes. Furthermore, none of our subsidiaries is under any obligation to make payments to us, and
any payments to us would depend on the earnings or financial condition of our subsidiaries and various business considerations. Statutory,
contractual or other restrictions may also limit our subsidiaries’ ability to pay dividends or make distributions, loans or advances
to us. For these reasons, we may not have access to any assets or cash flows of our subsidiaries to make payments on the notes.

Despite our current indebtedness, we and our subsidiaries may still be able to incur substantially more indebtedness.

We and our subsidiaries may
be able to incur substantial additional indebtedness