Company: RWT-PA
Filing Date: 2025-01-16
Form Type: 424B5
Source: 0001104659-25-004099
Chunk: 128

Company: REDWOOD TRUST INC
Filing Date: 2025-01-16
Form: 424B5
Chunk 128
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 of interests in real property located within the United States, excluding for this purpose, interests
in real property solely in a capacity as creditor. We do not believe we are currently, and do not anticipate becoming, a USRPHC. However,
because the determination of whether we are a USRPHC depends on the fair market value of our USRPIs relative to the fair market value
of our non-U.S. real property interests and our other business assets, there can be no assurance we currently are not a USRPHC or will
not become one in the future.

Even if we were a USRPHC,
our capital stock will not constitute a USRPI so long as we are a “domestically controlled qualified investment entity.”
A “domestically controlled qualified investment entity” includes a REIT in which at all times during a five-year testing
period less than 50% in value of its stock is held directly or indirectly by non-United States persons, subject to certain rules. For
purposes of determining whether a REIT is a “domestically controlled qualified investment entity,” a person who at all applicable
times holds less than 5% of a class of stock that is “regularly traded” is treated as a United States person unless the REIT
has actual knowledge that such person is not a United States person. Although we believe that we are a “domestically controlled
qualified investment entity,” because our common stock is (and, we anticipate, will continue to be) publicly traded, we cannot
make any assurance that we will remain a “domestically controlled qualified investment entity.”

Even if we were a USRPHC
and we do not qualify as a “domestically controlled qualified investment entity” at the time a Non-U.S. Holder sells our
capital stock, gain realized from the sale or other taxable disposition by a Non-U.S. Holder of such capital stock would not be subject
to U.S. federal income tax under FIRPTA as a sale of a USRPI if:

| (1) | such class                                                                                                               
 of stock is “regularly traded,” as defined by applicable Treasury Regulations, on an established securities market, such 
 as the New York Stock Exchange, and                                                                                      |

| (2) | such Non-U.S.                                                                                                                       
 Holder owned, actually and constructively, 10% or less of such class of stock throughout the shorter of the five-year period ending 
 on the date of