Redwood Mortgage Investors Viii 10-Q 11 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	3 Months Ended
	Mar. 31, 2018shares
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Trading Symbol	CK0000889123
Entity Registrant Name	REDWOOD MORTGAGE INVESTORS VIII
Entity Central Index Key	889,123
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding	0

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
ASSETS
Cash, in banks	$ 12,632	$ 1,723
Loans, Secured by deeds of trust
Principal	114,753	129,955
Advances	99	484
Accrued interest	1,151	1,209
Loan balance, secured	116,003	131,648
Unsecured	17	24
Allowance for loan losses	0	0
Loans, net	116,020	131,672
Real estate owned (REO)	5,476	7,014
Other assets, net	99	124
Total assets	134,227	140,533
Liabilities
Accounts payable and other liabilities	284	157
Payable to affiliate		4
Total liabilities	284	161
Partners’ capital
Limited partners’ capital, subject to liquidation, net	140,167	146,791
General partners’ capital (deficit)	(773)	(785)
Total partners’ capital, net	139,394	146,006
Receivable from manager (formation loan)	(5,451)	(5,634)
Partners’ capital subject to liquidation, net of formation loan	133,943	140,372
Total liabilities and partners’ capital	$ 134,227	$ 140,533

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Loans
Interest income	$ 2,407	$ 1,994
Late fees	8	7
Revenue, loans	2,415	2,001
Provision for (recovery of) loan losses	(6)
Loans, net	2,421	2,001
REO
Rental operations, net		(134)
Realized gains/(losses) on sales	93	102
Holding costs, net of other income	(65)	(7)
REO, net	28	(39)
Total revenues, net	2,449	1,962
Operations Expense
Mortgage servicing fees	473	352
Asset management fees	138	158
Costs from Redwood Mortgage Corp.	475	481
Professional services	232	255
Other	(64)	(6)
Total operations expense	1,254	1,240
Net income	1,195	722
Limited partners (99%)	1,183	714
General partners (1%)	$ 12	$ 8

Consolidated Statements of Inc4

Consolidated Statements of Income (Unaudited) (Parenthetical)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Limited partners	99.00%	99.00%
General partners	1.00%	1.00%

Consolidated Statements of Chan

Consolidated Statements of Changes in Partners' Capital (unaudited) - 3 months ended Mar. 31, 2018 - USD ($) $ in Thousands	Total	Capital Subject to Liquidation Net [Member]Limited Partner [Member]	Partners Capital (Deficit) [Member]General Partner [Member]	Capital Units [Member]
Beginning balance at Dec. 31, 2017	$ 140,372	$ 146,791	$ (785)	$ 146,006
Net income	1,195	1,183	12	1,195
Distributions		(682)		(682)
Liquidations		(7,125)		(7,125)
Ending balance at Mar. 31, 2018	$ 133,943	$ 140,167	$ (773)	$ 139,394

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash from Operations
Interest received	$ 2,466	$ 1,926
Other loan income	8	7
Operations expense	(1,121)	(1,494)
Rental operations, net	21	(100)
Holding costs	(65)	(7)
Total cash provided (used) by operations	1,309	332
Cash from Investing Activities
Principal collected on loans - secured	9,912	3,995
Loans sold to affiliates	5,890
Unsecured loan payments received	6	7
Loans originated	(600)	(7,798)
Advances on loans	384	1
Total - Loans	15,592	(3,795)
Sales	1,632	1,317
Development and acquisition		(69)
Total - REO	1,632	1,248
Total cash provided (used) by investing activities	17,224	(2,547)
Distributions to partners
Cash – partner liquidations	(7,125)	(5,263)
Formation loan payment, net of early withdrawal fees	183	62
Cash – partner distributions	(682)	(710)
Cash Distributions to partners, net	(7,624)	(5,911)
Total cash provided (used) by financing activities	(7,624)	(5,911)
Net increase/(decrease) in cash	10,909	(8,126)
Cash and cash equivalents, beginning of period	1,723	45,323
Cash and cash equivalents, end of period	12,632	37,197
Net income	1,195	722
Adjustments to reconcile net income to net cash provided by (used in) operating activities
REO – loss/(gain) on disposal	(93)	(102)
Change in operation assets and liabilities
Accrued interest	58	(68)
Other assets	23	(46)
Accounts payable and other liabilities	130	(174)
Payable to affiliate	(4)
Total cash provided (used) by operations	$ 1,309	$ 332

Organization and General

Organization and General	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Organization and General	NOTE 1 – ORGANIZATION AND GENERAL In the opinion of the general partners, the accompanying unaudited consolidated financial statements contain all adjustments, consisting of normal, recurring adjustments, necessary to present fairly the consolidated financial information included therein. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the partnership’s Form 10-K for the fiscal year ended December 31, 2017 filed with the U.S. Securities and Exchange Commission (SEC). The results of operations for the three month period ended March 31, 2018 are not necessarily indicative of the operations results to be expected for the full year. Redwood Mortgage Investors VIII, a California Limited Partnership (RMI VIII or the partnership), was formed in 1993 to engage in business as a mortgage lender and investor by making and holding-for-investment mortgage loans secured by California real estate, primarily by first and second deeds of trust. The ongoing sources of funds for loans are the proceeds (net of withdrawals from partner capital accounts) from: • loan payoffs; • borrowers’ monthly principal and interest payments; • earnings retained (i.e. not distributed) in partners’ capital accounts; • REO sales; and, • to a lesser degree and, if obtained, a line of credit. The partnership is externally managed by Redwood Mortgage Corp., a general partner (RMC or the manager). The manager is solely responsible for managing the business and affairs of the partnership, subject to the voting rights of the partners on specified matters. The manager acting alone has the power and authority to act for and bind the partnership. RMC provides the personnel and services necessary to conduct our business as we have no employees of our own. The mortgage loans the partnership funds and/or invests in are arranged and generally are serviced by RMC. The general partner is required to contribute to capital one tenth of one percent (0.1%) of the aggregate capital accounts of the members. Limited partners representing a majority of the outstanding units may, without the consent of the general partners, vote to: • dissolve the partnership; • amend the partnership agreement subject to certain limitations; • approve or disapprove the sale of all or substantially all of the assets of the partnership; and, • remove or replace one or all of the general partners. A majority in interest of partnership units is required to elect a new general partner to continue the partnership business after a general partner ceases to be a general partner due to its withdrawal. Profits and losses are allocated among the limited partners according to their respective capital accounts after one percent (1%) of profits and losses are allocated to the general partners. The monthly results are subject to subsequent adjustment as a result of quarterly and year-end accounting and reporting. Investors should not expect the partnership to provide tax benefits of the type commonly associated with limited liability partnership tax shelter investments. Federal and state income taxes are the obligation of the partners, other than the annual California franchise tax and any California LLC cash receipts taxes paid by the partnership’s subsidiaries. Distribution policy At the time of their subscription for units, partners elect to have distributed to them their monthly, quarterly or annual allocation of profits, or to have profits allocated to their capital accounts be retained by the partnership to compound. Subject to certain limitations, those electing compounding may subsequently change their election. A partner’s election to receive cash distributions is irrevocable. Liquidity, capital withdrawals and early withdrawals Because there are substantial restrictions on transferability of units, there is no established public trading and/or secondary market for the units, and none is expected to develop. To provide liquidity to limited partners, the partnership agreement provides that limited partners, after the minimum five-year period, may withdraw all or a portion of their capital accounts in 20 quarterly installments or longer, as determined by the general partners in light of partnership cash flow, beginning the last day of the calendar quarter following the quarter in which the notice of withdrawal is given. A limited partner may liquidate all or a part of the limited partner’s 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, subject to a 10% early withdrawal penalty applicable to any sums withdrawn prior to the time when such sums could have been withdrawn without penalty. There is also a limited right of liquidation for an investor’s heirs upon an investor’s death. The partnership has not established a cash reserve from which to fund withdrawals and, accordingly, the partnership’s capacity to return a limited partner’s capital is subject to the availability of partnership cash. No more than 20% of the total limited partners’ capital account balances at the beginning of any year may be liquidated during any calendar year. Investment objectives and lending guidelines Our primary investment objectives are to: • yield a high rate of return from mortgage lending, after the payment of certain fees and expenses to the general partners and their affiliates; and, • preserve and protect the partnership’s capital. The partnership generally funds loans: • having monthly payments of interest only or of principal and interest at fixed rates, calculated on a 30-year amortization basis; and, • having maturities of 5 years or less. The partnership’s loans generally have shorter maturity than typical mortgages. In the event that a loan is performing, and collection is deemed probable at maturity, we may elect to extend the loans maturity. In the event a borrower is unable to repay in full the principal owing on the loan maturity, we may elect to modify the loan payment terms and place the designated loan as impaired, or may foreclose and take back the property for sale. Generally, interest rates on the partnership’s mortgage loans are not affected by market movements in interest rates. If, as expected, we continue to make and invest in fixed rate loans primarily, and interest rates were to rise, a possible result would be lower prepayments of the partnership’s loans. This increase in the duration of the time loans are on the books may reduce overall liquidity, which itself may reduce the partnership’s investment into new loans at higher interest rates. Conversely, if interest rates were to decline, we could see a significant increase in borrower prepayments. If we then invest in new loans at lower rates of interest, a lower yield to partners may possibly result. The cash flow and the income generated by the real property securing the loan factor into the credit decisions, as does the general creditworthiness, experience and reputation of the borrower. However, for loans secured by real property, other than owner-occupied personal residences, such considerations are subordinate to a determination that the value of the real property is sufficient, in and of itself, as a source of repayment. The amount of the loan combined with the outstanding debt and claims secured by a senior deed of trust on the real property generally will not exceed a specified - - as determined by an independent written appraisal at time the loan is made. The LTV generally will not exceed 80% for residential properties (including multi-family), 75% for commercial properties, and 50% for land. The excess of the value of the collateral securing the loan over our debt and any senior debt owing on the property is the “protective equity.” We believe our LTV policy gives us more potential protective equity than competing lenders who fund loans with a higher LTV. However, we may be viewed as an “asset” lender based on our emphasis on LTV in our underwriting process. Being an “asset” lender may increase the likelihood of payment defaults by borrowers. Accordingly, the partnership may have a higher level of payment delinquency and loans designated as impaired for financial reporting purposes than that of lenders, such as banks and other financial institutions subject to federal and state banking regulations, which are typically viewed as “credit” lenders. Term of the partnership The partnership will continue until 2032, unless sooner terminated as provided in the partnership agreement.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The partnership’s consolidated financial statements include the accounts of the partnership, its wholly-owned subsidiaries (consisting of single member limited liability companies owning a single real property asset). All significant intercompany transactions and balances have been eliminated in consolidation. Management estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions about the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities, at the dates of the financial statements and the reported amounts of revenues and expenses during the reported periods. Such estimates relate principally to the determination of the allowance for loan losses, including, when applicable, the valuation of impaired loans, (which itself requires determining the fair value of the collateral), and the valuation of real estate held for sale and held as investment, at acquisition and subsequently. Actual results could differ significantly from these estimates. Fair value estimates GAAP defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are: • independent; • knowledgeable; • able to transact; and, • willing to transact. Fair values of assets and liabilities are determined based on the fair value hierarchy established in GAAP. The hierarchy is comprised of three levels of inputs to be used. • Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the partnership has the ability to access at the measurement date. An active market is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. • Level 2 inputs are inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly in active markets and quoted prices for identical assets or liabilities that are not active, and inputs other than quoted prices that are observable or inputs derived from or corroborated by market data. • Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs reflect the partnership’s own assumptions about the assumptions market participants would use in pricing the asset or liability (including assumptions about risk). Unobservable inputs are developed based on the best information available in the circumstances and may include the partnership’s own data. The fair value of the collateral is determined by exercise of judgment based on management’s experience informed by appraisals (by licensed appraisers), brokers’ opinion of values, and publicly available information on in-market transactions. Appraisals of commercial real property generally present three approaches to estimating value: • market comparables or sales approach; • cost to replace; and, • capitalized cash flows or investment approach. These approaches may or may not result in a common, single value. The market-comparables approach may yield several different values depending on certain basic assumptions, such as, determining highest and best use (which may or may not be the current use); determining the condition (e.g. as-is, when-completed, or for land when-entitled); and determining the unit of value (e.g. as a series of individual unit sales or as a bulk disposition). Management has the requisite familiarity with the markets it lends in generally and of the properties lent on specifically to analyze sales-comparables and assess their suitability/applicability. Management is acquainted with market participants – investors, developers, brokers, lenders – that are useful, relevant secondary sources of data and information regarding valuation and valuation variability. These secondary sources may have familiarity with and perspectives on pending transactions, successful strategies to optimize value, and the history and details of specific properties – on and off the market – that enhance the process and analysis that is particularly and principally germane to establishing value in distressed markets and/or property types. Cash and cash equivalents The partnership considers all highly liquid financial instruments with maturities of three months or less at the time of purchase to be cash equivalents. At March 31, 2018, certain partnership cash balances in banks exceed federally insured limits. Loans and interest income Loans generally are stated at the unpaid principal balance (principal). Management has discretion to pay amounts (advances) to third parties on behalf of borrowers to protect the partnership’s interest in the loan. Advances include, but are not limited to, the payment of interest and principal on a senior lien to prevent foreclosure by the senior lien holder, property taxes, insurance premiums, and attorney fees. Advances generally are stated at the unpaid principal balance and accrue interest until repaid by the borrower. The partnership may fund a specific loan origination net of an interest reserve (one to two years) to insure timely interest payments at the inception of the loan. As monthly interest payments become due, the partnership funds the payments into the affiliated trust account. In the event of an early loan payoff, any unapplied interest reserves would be first applied to any accrued but unpaid interest and then as a reduction of principal. If based upon current information and events, it is probable the partnership will be unable to collect all amounts due according to the contractual terms of the loan agreement, then a loan may be designated as impaired. Impaired loans are included in management’s periodic analysis of recoverability. If a valuation allowance had been established on an impaired loan, any subsequent payments on impaired loans are applied to late fees and then to reduce first the accrued interest, then advances, and then unpaid principal. From time to time, the partnership negotiates and enters into loan modifications with borrowers whose loans are delinquent. If the loan modification results in a significant reduction in the cash flow compared to the original note, the modification is deemed a troubled debt restructuring and a loss is recognized. In the normal course of the partnership’s operations, loans that mature may be renewed at then current market rates and terms for new loans. Such renewals are not designated as impaired, unless the matured loan was previously designated as impaired. Interest is accrued daily based on the unpaid principal balance of the loans. Impaired loans continue to recognize interest income as long as the loan is in the process of collection and is considered to be well-secured. Impaired loans are placed on non-accrual status if 108 days delinquent or at the earlier of management’s determination that the primary source of repayment will come from the foreclosure and subsequent sale of the collateral securing the loan (which usually occurs when a notice of sale is filed) or when the loan is no longer considered well-secured. When a loan is placed on non-accrual status, the accrual of interest is discontinued; however, previously recorded interest is not reversed. A loan may return to accrual status when all delinquent interest and principal payments become current in accordance with the terms of the loan agreement. Allowance for loan losses Loans and the related accrued interest and advances (i.e. the loan balance) are analyzed on a periodic basis for ultimate recoverability. Delinquencies are identified and followed as part of the loan system. Collateral fair values are reviewed quarterly and the protective equity for each loan is computed. As used herein, “protective equity” is the arithmetic difference between the fair value of the collateral, net of any senior liens, and the loan balance, where “loan balance” is the sum of the unpaid principal, advances and the recorded interest thereon. This computation is done for each loan (whether impaired or performing), and while loans secured by collateral of similar property type are grouped, there is enough distinction and variation in the collateral that a loan-by-loan, collateral-by-collateral analysis is appropriate. For loans designated impaired, a provision is made for loan losses to adjust the allowance for loan losses to an amount such that the net carrying amount (unpaid principal less the specific allowance) is reduced to the lower of the loan balance or the estimated fair value of the related collateral, net of any senior loans and net of any costs to sell in arriving at net realizable value. Loans determined not to be individually impaired are grouped by the property type of the underlying collateral, and for each loan and for the total by property type, the amount of protective equity or amount of exposure to loss ( i.e., The partnership charges off uncollectible loans and related receivables directly to the allowance account once it is determined the full amount is not collectible. At foreclosure, any excess of the recorded investment in the loan (accounting basis) over the net realizable value is charged against the allowance for loan losses. Real estate owned (REO) Real estate owned (REO) is property acquired in full or partial settlement of loan obligations generally through foreclosure, and is recorded at acquisition at the lower of the amount owed on the loan (legal basis), plus any senior indebtedness, or at the property’s net realizable value, which is the fair value less estimated costs to sell, as applicable. The fair value estimates are derived from information available in the real estate markets including similar property, and often require the experience and judgment of third parties such as commercial real estate appraisers and brokers. The estimates figure materially in calculating the value of the property at acquisition, the level of charge to the allowance for loan losses and any subsequent valuation reserves. After acquisition, costs incurred relating to the development and improvement of property are capitalized to the extent they do not cause the recorded value to exceed the net realizable value, whereas costs relating to holding and disposition of the property are expensed as incurred. After acquisition, REO is analyzed periodically for changes in fair values and any subsequent write down is charged to operations expense. Any recovery in the fair value subsequent to such a write down is recorded, not to exceed the value recorded at acquisition. Recognition of gains on the sale of real estate is dependent upon the transaction meeting certain criteria related to the nature of the property and the terms of the sale including potential seller financing. Rental income/depreciation Rental income is recognized when earned in accordance with the lease agreement. For commercial leases, the costs associated with originating the lease are amortized over the lease term. Residential lease terms generally range from month-to-month to one-year, and the expenses of originating the lease are expensed as incurred. Real estate owned that is designated held for sale is not depreciated. Real estate that was designated held for investment, and rented was depreciated on a straight-line basis over the estimated useful life of the property. Recently issued accounting pronouncements - Accounting and Financial Reporting for Revenue Recognition On May 28, 2014, Financial Accounting Standards Board (FASB) issued a final standard on revenue from contracts with customers. The standard issued as Accounting Standard Update (ASU) 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The standard is effective January 1, 2018, and has been adopted using the modified retrospective approach. The goals of the revenue recognition project are to clarify and converge the revenue recognition principles under U.S. GAAP and to develop guidance that would streamline and enhance revenue recognition requirements. A core principle of the standard is to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. Revenue is recognized when a performance obligation is satisfied by transferring goods or services to a customer. The FASB intentionally used the wording “be entitled” rather than “receive” or “collect” to distinguish collectability risk from other uncertainties that may exist under a contract. Adoption of the revenue standard did not have an impact on the partnership’s current revenue recognition policies since the scope of guidance is not applicable to financial instruments including loans and therefore did not have an impact on the recognition of interest income or late fees. The adoption of the revenue standard also did not change the revenue recognition from the sale of REOs as the REO dispositions are cash sales with no contingencies and no future involvement by the partnership in the property. The revenue recognition standard may impact the gain on sale of real estate when the sale is financed by the partnership, however there have been no such sales during 2018. - Accounting and Financial Reporting for Expected Credit Losses The FASB issued an ASU that significantly changes how entities will account for credit losses for most financial assets that are not measured at fair value through net income. The new standard will supersede currently in effect guidance and applies to all entities. Entities will be required to use a current expected credit loss (CECL) model to estimate credit impairment. This estimate will be forward-looking, meaning management will be required to use forecasts about future economic conditions to determine the expected credit loss over the remaining life of an instrument. This will be a significant change from the current incurred credit loss model and generally may result in allowances being recognized in earlier periods than under the current credit loss model. RMI VIII invests in real estate secured loans made with the expectation of zero credit losses as a result of substantial protective equity provided by the underlying collateral. For a loss to be recognized under the CECL or incurred loss model, if the lending/loan-to-value guidelines are followed effectively, an intervening, subsequent-to-loan-funding, event must negatively impact the value of the underlying collateral of the loan in an amount greater than the amount of protective equity provided by the collateral. Such an event would be either (or both) of: • an uninsured event(s) specifically impacting the collateral; or, • a non-temporary decline in values in the applicable real estate market. In both of these instances the treatment would be the same in the incurred loss and CECL models of approximately the same amount. Other than in these events, the probable of occurrence criteria of the incurred loss model is not triggered and a loss is not recognized. Further, if the zero-expected-loss lending guideline is preserved and the protective equity provided by the collateral is not expected to be impaired over the life of the loans, then a loss is not required to be recognized under the CECL model. This convergence between the CECL and incurred loss models as to loss recognition – as an event driven occurrence – in low LTV, real estate secured programs caused RMC to conclude that the CECL model will not materially impact the reported results of operations or financial position as compared to that which would be reported in the incurred loss model. The manager expects to adopt the ASU for interim and annual reporting in 2020.

General Partners and Other Rela

General Partners and Other Related Parties	3 Months Ended
	Mar. 31, 2018
Related Party Transactions [Abstract]
General Partners and Other Related Parties	NOTE 3 – GENERAL PARTNERS AND OTHER RELATED PARTIES The general partners, RMC and Michael R. Burwell (Burwell) are entitled to one percent (1%) of the profits and losses, which amounted to approximately $12,000 and $8,000 for the three months ended March 31, 2018 and 2017, respectively. Beginning in 2010, and continuing until January 1, 2020, RMC assigned its right to two-thirds of one percent (0.66%) of profits and losses to Burwell in exchange for Burwell assuming one hundred percent (100%) of the general partners’ equity deficit. • Mortgage servicing fees RMC earns mortgage servicing fees of up to 1.5% annually of the unpaid principal balance of the loan portfolio. The mortgage servicing fees are accrued monthly on all loans. Remittance to RMC is made monthly unless the loan has been assigned a specific loss reserve, at which point remittance is deferred until the specific loss reserve is no longer required, or the property has been acquired by the partnership. Mortgage servicing fees paid to RMC were approximately $473,000 and $352,000 for the three months ended March 31, 2018 and 2017, respectively. No mortgage servicing fees were waived in any period reported. • Asset The general partners receive monthly fees for managing the partnership’s loan portfolio and operations of up to 1/32 of 1% of the “net asset value” (3/8 of 1% annually). Asset management fees paid to the general partners were approximately $138,000 and $158,000, for the three months ended March 31, 2018 and 2017, respectively. No asset management fees were waived in any period presented. • Costs from Redwood Mortgage Corp . RMC is reimbursed by the partnership for operating expenses incurred on behalf of the partnership, including without limitation, accounting and audit fees, legal fees and expenses, postage and preparation of reports to limited partners, and out-of-pocket general and administration expenses. Other costs are allocated pro-rata based on the percentage of total capital of all mortgage funds managed by RMC. Payroll and consulting fees are broken out first based on activity, and then allocated to the company on a pro-rata basis based on percentage of capital to the total capital of all mortgage funds. The decision to request reimbursement of any qualifying charges is made by RMC at its sole discretion. For the three months ended March 31, 2018 and 2017, operating expenses totaling approximately $475,000 and $481,000, respectively, were reimbursed to RMC. Commissions and fees are paid by the borrowers to RMC • Brokerage commissions, loan originations For fees in connection with the review, selection, evaluation, negotiation and extension of loans, the general partners may collect loan brokerage commissions (points) limited to an amount not to exceed 4% of the total partnership assets per year. The loan brokerage commissions are paid by the borrowers and thus, are not an expense of the partnership. The proceeds from loan brokerage commissions and other fees earned are the source of funds for the repayment of the formation loan by RMC. • Other fees RMC receives fees for processing, notary, document preparation, credit investigation, reconveyance and other mortgage related fees. The amounts received are customary for comparable services in the geographical area where the property securing the loan is located, payable solely by the borrower and not by the partnership. In the ordinary course of business, performing loans may be assigned, in-part or in-full, between the affiliated mortgage funds at par. During the three months ended March 31, 2018, the partnership assigned two performing loans in-full to Redwood Mortgage Investors IX, LLC, an affiliated mortgage fund, at par value of approximately $5,890,000. The partnership received cash for the assignment and has no continuing obligation or involvement on the assigned loans. There were no loans assigned during the three months ended March 31, 2017. Formation loan/Commissions paid to broker-dealers Commissions for sales of limited partnership units paid to broker-dealers (B/D sales commissions) were paid by RMC and were not paid directly by the partnership out of offering proceeds. Instead, the partnership advanced to RMC amounts sufficient to pay the B/D sales commissions and premiums paid to partners in connection with unsolicited orders up to 7% of offering proceeds. The receivable arising from the advances is unsecured, and non-interest bearing and is referred to as the “formation loan.” The primary source of the repayments made by RMC on the formation loan is expected to be loan brokerage commissions. As of March 31, 2018, the partnership had made such advances of approximately $22,567,000, of which approximately $5,451,000 remain outstanding on the formation loan. If the general partners are removed and RMC is no longer receiving payments for services rendered, the formation loan is forgiven, per the terms of the partnership agreement. The formation loan activity is summarized in the following table for three months ended March 31, 2018 ($ in thousands). 2018 Balance, January 1 $ 5,634 Early withdrawal penalties (183 ) Repayments — Balance, March 31 $ 5,451 The future minimum payments on the formation loan as of March 31, 2018 are presented in the following table ($ in thousands). 2018 $ 650 2019 650 2020 650 2021 650 2022 650 Thereafter 2,201 Total $ 5,451

Loans

Loans	3 Months Ended
	Mar. 31, 2018
Receivables [Abstract]
Loans	NOTE 4 – LOANS Loans generally are funded at a fixed interest rate with a loan term of up to five years. As of March 31, 2018, 53 (82%) of the partnership’s 65 loans (representing 97% of the aggregate principal of the partnership’s loan portfolio) have a term of five years or less from loan inception. The remaining loans have terms longer than five years. Substantially all loans are written without a prepayment penalty clause. As of March 31, 2018, 28 (43%) of the loans outstanding (representing 67% of the aggregate principal balance of the partnership’s loan portfolio) provide for monthly payments of interest only, with the principal due in full at maturity. The remaining loans require monthly payments of principal and interest, typically calculated on a 30-year amortization, with the remaining principal balance due at maturity. Loans unpaid principal balance (principal) Secured loan transactions are summarized in the following table for the three months ended March 31, 2018 ($ in thousands). 2018 Principal, January 1 $ 129,955 Loans funded or acquired 600 Principal payments received (9,912 ) Loans sold to affiliates (5,890 ) Principal, March 31 $ 114,753 During the three months ended March 31, 2018, the partnership renewed two loans, at then market terms, with an aggregate principal balance of approximately $4,800,000, which are not included in the activity shown above. Loan characteristics Secured loans had the characteristics presented in the following table as of March 31, 2018 and December 31, 2017 ($ in thousands). March 31, December 31, 2018 2017 Number of secured loans 65 72 Secured loans – principal $ 114,753 $ 129,955 Secured loans – lowest interest rate (fixed) 5.0 % 5.0 % Secured loans – highest interest rate (fixed) 10.5 % 10.5 % Average secured loan – principal $ 1,765 $ 1,805 Average principal as percent of total principal 1.5 % 1.4 % Average principal as percent of partners’ capital, net of formation loan 1.3 % 1.3 % Average principal as percent of total assets 1.3 % 1.3 % Largest secured loan – principal $ 14,000 $ 14,000 Largest principal as percent of total principal 12.2 % 10.8 % Largest principal as percent of partners’ capital, net of formation loan 10.5 % 10.0 % Largest principal as percent of total assets 10.4 % 10.0 % Smallest secured loan – principal $ 43 $ 44 Smallest principal as percent of total principal 0.0 % 0.1 % Smallest principal as percent of partners’ capital, net of formation loan 0.0 % 0.1 % Smallest principal as percent of total assets 0.0 % 0.1 % Number of California counties where security is located 18 20 Largest percentage of principal in one California county 20.7 % 20.8 % Number of secured loans with a filed notice of default 1 2 Secured loans in foreclosure – principal $ 7,443 $ 7,607 Number of secured loans with an interest reserve — — Interest reserves $ — $ — As of March 31, 2018, the partnership’s largest loan, in the unpaid principal balance of approximately $14,000,000 (representing 12.2% of outstanding secured loans and 10.4% of partnership total assets), had an interest rate of 7.25%, was secured by a commercial building in Contra Costa county, and has a maturity of January 1, 2019. As of March 31, 2018, the partnership had no outstanding construction or rehabilitation loans and no commitments to fund construction, rehabilitation or other loans. In compliance with California laws and regulations, all borrower receipts are deposited into a bank trust account maintained by RMC, and subsequently disbursed to the partnership after an appropriate holding period. At March 31, 2018, the trust account held a balance relating to the partnership’s loan portfolio of $100,186, consisting of both interest and principal payments from borrowers, all of which was disbursed to the partnership on or before April 13, 2018. Lien position At funding, secured loans had the following lien positions and are presented in the following table as of March 31, 2018 and December 31, 2017 ($ in thousands). March 31, 2018 December 31, 2017 Loans Principal Percent Loans Principal Percent First trust deeds 44 $ 99,515 87 % 48 $ 104,244 80 % Second trust deeds 21 15,238 13 23 22,711 17 Third trust deeds — — — 1 3,000 3 Total secured loans 65 $ 114,753 100 % 72 $ 129,955 100 % Liens due other lenders at loan closing 38,425 52,444 Total debt $ 153,178 $ 182,399 Appraised property value at loan closing $ 293,108 $ 346,738 Percent of total debt to appraised values (LTV) at loan closing (1) 55.0 % 55.6 % (1) Based on appraised values and liens due other lenders at loan closing. The weighted-average loan-to-value (LTV) computation above does not take into account subsequent increases or decreases in property values following the loan closing, nor does it include decreases or increases of the amount owing on senior liens to other lenders. Property type Secured loans summarized by property type are presented in the following table at of March 31, 2018 and December 31, 2017 ($ in thousands). March 31, 2018 December 31, 2017 Loans Principal Percent Loans Principal Percent Single family (2) 37 $ 39,217 34 % 41 $ 48,117 37 % Multi-family 4 4,588 4 4 4,589 4 Commercial 23 70,498 61 26 76,799 58 Land 1 450 1 1 450 1 Total secured loans 65 $ 114,753 100 % 72 $ 129,955 100 % (2) Single family properties include owner-occupied and non-owner occupied 1-4 unit residential buildings, condominium units, townhouses, and condominium complexes. The single family property type as of March 31, 2018 consists of 17 loans with principal of approximately $10,686,000 that are owner occupied and 20 loans with principal of approximately $28,531,000 that are non-owner occupied. Single family property type as of December 31, 2017 consists of 18 loans with principal of approximately $12,681,000 that are owner occupied and 23 loans with principal of approximately $35,436,000 that are non-owner occupied. As of March 31, 2018, and December 31, 2017, two and three, respectively, of the partnership’s loans with a principal balance of approximately $380,950 and $2,782,000, respectively, were secured by condominium properties Distribution by California counties The distribution of secured loans outstanding by the California county in which the primary collateral is located is presented in the following table as of March 31, 2018 and December 31, 2017 ($ in thousands). March 31, 2018 December 31, 2017 Unpaid Principal Balance Percent Unpaid Principal Balance Percent San Francisco Bay Area (3) San Francisco $ 23,166 20.2 % 26,206 20.2 % San Mateo 15,482 13.5 15,506 11.9 Contra Costa 14,455 12.5 16,856 13.1 Alameda 8,476 7.4 11,730 9.0 Santa Clara 6,859 6.0 6,873 5.3 Solano 2,875 2.5 2,875 2.2 Marin 1,596 1.4 1,597 1.2 Napa 566 0.5 569 0.4 73,475 64.0 82,212 63.3 Other Northern California Sacramento 3,300 2.9 3,300 2.4 El Dorado 2,043 1.8 2,044 1.6 Amador 750 0.7 754 0.6 Santa Cruz 748 0.7 769 0.6 Monterey 653 0.6 656 0.5 Lake — — 296 0.2 Mariposa 43 — 44 0.1 7,537 6.7 7,863 6.0 Total Northern California 81,012 70.7 90,075 69.3 Los Angeles & Coastal Los Angeles 23,891 20.7 26,971 20.8 Orange 3,758 3.3 6,653 5.1 San Diego — — 164 0.1 27,649 24.0 33,788 26.0 Other Southern California San Bernardino 5,900 5.1 5,900 4.5 Riverside 192 0.2 192 0.2 6,092 5.3 6,092 4.7 Total Southern California 33,741 29.3 39,880 30.7 Total Secured Loans Balance $ 114,753 100.0 % $ 129,955 100.0 % (3) Includes the Silicon Valley Scheduled maturities Secured loans are scheduled to mature as presented in the following table as of March 31, 2018 ($ in thousands). Scheduled maturities, as of March 31, 2018 Loans Principal Percent 2018 (4) 19 $ 38,729 33 % 2019 27 65,258 57 2020 9 6,695 6 2021 7 2,396 2 2022 2 928 1 Thereafter 1 747 1 Total secured loan balance 65 $ 114,753 100 % (4) Loans maturing in 2018 from April 1 to December 31. It is the partnership’s experience that loans may be repaid or refinanced before, at or after the contractual maturity date. For matured loans, the partnership may continue to accept payments while pursuing collection of amounts owed from borrowers. Therefore, the above tabulation for scheduled maturities is not a forecast of future cash receipts. Matured loans There were no loans past maturity at March 31, 2018 or December 31, 2017. Delinquency Secured loans summarized by payment delinquency are presented in the following table as of March 31, 2018 and December 31, 2017 ($ in thousands). March 31, 2018 December 31, 2017 Loans Amount Loans Amount Past Due 30-89 days 2 $ 3,275 2 $ 3,700 90-179 days — — — — 180 or more days 1 7,443 2 7,607 Total past due 3 $ 10,718 4 11,307 Current 62 104,035 68 118,648 Total secured loan balance 65 $ 114,753 72 $ 129,955 Loans in non-accrual status Secured loans in non-accrual status are summarized in the following table as of March 31, 2018 and December 31, 2017 ($ in thousands). March 31, December 31, 2018 2017 Number of loans 2 3 Principal $ 7,670 $ 7,834 Advances 45 429 Accrued interest 318 322 Total recorded investment $ 8,033 $ 8,585 Foregone interest $ 364 $ 64 At March 31, 2018 and December 31, 2017, there were no loans that were contractually 90 or more days past due as to principal or interest and not in non-accrual status. In April 2018, one loan designated impaired and non-accrual substantially paid off, including previously forgone and default interest. Loans designated impaired Impaired loans had the balances shown and the associated allowance for loan losses presented in the following table as of March 31, 2018 and December 31, 2017 ($ in thousands). March 31, December 31, 2018 2017 Principal $ 7,670 $ 7,834 Recorded investment (5) 8,033 8,585 Impaired loans without allowance 8,033 8,585 Impaired loans with allowance — — Allowance for loan losses, impaired loans — — Number of Loans 2 3 (5) Recorded investment is the sum of principal, advances, and interest accrued for financial reporting purposes. Impaired loans had the average balances and interest income recognized and received in cash as presented in the following table as of, and for, the three months ended March 31, 2018 and the year ended December 31, 2017 ($ in thousands). March 31, December 31, 2018 2017 Average recorded investment $ 8,309 $ 4,410 Interest income recognized 6 607 Interest income received in cash 6 344 Allowance for loan losses At March 31, 2018, and December 31, 2017, the partnership had no allowance for loan losses as all loans had protective equity such that at March 31, 2018, and December 31, 2017, collection was deemed probable for amounts owing. Modifications, workout agreements and troubled debt restructurings At March 31, 2018 and December 31, 2017, the partnership had no modifications, workout agreements, or troubled debt restructurings in effect.

Real Estate Owned (REO)

Real Estate Owned (REO)	3 Months Ended
	Mar. 31, 2018
Real Estate [Abstract]
Real Estate Owned (REO)	NOTE 5 – REAL ESTATE OWNED (REO) Transactions and activity, including changes in the net book values, are presented in the following table for the three months ended March 31, 2018 ($ in thousands). 2018 Balance, beginning of period $ 7,014 Acquisitions — Dispositions (1,538 ) Balance, end of period $ 5,476 The following transactions closed during the three months ended March 31, 2018: • Sold 5 of 6 units remaining at the beginning of the period, in a condominium complex in Los Angeles County with a gain of approximately $93,000. The partnership held the following six properties at March 31, 2018: • In Los Angeles County, 1 residential unit in a condominium complex. The final unit was sold in April 2018. • In San Francisco County, 3 residential units in a condominium complex • In Contra Costa County, a commercial office property • In Fresno County, a partially completed home subdivision • In Marin County, approximately 13 acres zoned for residential development • In Stanislaus County, approximately 14 acres zoned commercial Rental operations were substantially wound down, and all rental units had been made vacant for sale at December 31, 2017. As such, there were no rental operations for the three months ended March 31, 2018. The table below details the rental activity for the three months ended March 31, 2017. 2017 Rental income $ 207 Operating expenses, rentals Administration and payroll 31 Homeowner association fees 43 Professional services 10 Utilities and maintenance 202 Advertising and promotions 1 Property taxes 43 Other 9 Total operating expenses, rentals 339 Net operating income (132 ) Depreciation — Receiver fees 2 Rental operations, net (134 ) Interest on mortgages — Rental operation, net of mortgage interest $ (134 )

Fair Value

Fair Value	3 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Fair Value	NOTE 6 – FAIR VALUE The partnership does not record loans, REO or mortgages payable at fair value on a recurring basis. The recorded amount of the performing loans (i.e., the loan balance) is deemed to approximate the fair value, as is the loan balance of loans designated impaired for which a specific reserve has not been recorded (i.e., the loan is well collateralized, such that the collection of the amount owed is assured, including foregone interest, if any). The following assets and liabilities would be measured at fair value on a non-recurring basis. • Loans designated impaired with a specific reserve. • REO acquired through foreclosure during the year. • REO for which a valuation reserve has been recorded. No assets or liabilities were measured at fair value on a non-recurring basis at and for the periods ended March 31, 2018, and December 31, 2017. The following methods and assumptions are used when estimating fair value. • Secured loans, performing (i.e. not designated as impaired) (Level 2) - Each loan is reviewed quarterly for its delinquency, LTV adjusted for the most recent valuation of the underlying collateral, remaining term to maturity, borrower’s payment history and other factors. Also considered is the limited resale market for the loans. Most companies or individuals making similar loans as the company intend to hold the loans until maturity as the average contractual term of the loans (and the historical experience of the time the loan is outstanding due to pre-payments) is shorter than conventional mortgages. As there are no prepayment penalties to be collected, loan buyers may be hesitant to risk paying above par. Due to these factors, sales of the loans are infrequent, because an active market does not exist. The recorded amount of the performing loans (i.e. the loan balance) is deemed to approximate the fair value, although the intrinsic value of the loans would reflect a premium due to the interest to be received. • Secured loans, designated impaired (Level 2) - Secured loans designated impaired are deemed collateral dependent, and the fair value of the loan is the lesser of the fair value of the collateral or the enforceable amount owing under the note. The fair value of the collateral is determined by exercise of judgment based on management’s experience informed by appraisals (by licensed appraisers), brokers’ opinion of values and publicly available information on in-market transactions (Level 2 inputs). The following methods and assumptions are used to determine the fair value of the collateral securing a loan. Single family – Management’s preferred method for determining the fair market value of its single-family residential assets is the sale comparison method. Management primarily obtains sale comps via its subscription to the RealQuest service, but also uses free online services such as Zillow.com and other available resources to supplement this data. Sale comps are reviewed for similarity to the subject property, examining features such as proximity to subject, number of bedrooms and bathrooms, square footage, sale date, condition and year built. If applicable sale comps are not available or deemed unreliable, management will seek additional information in the form of brokers’ opinions of value or appraisals. Multi-family residential – Management’s preferred method for determining the aggregate retail value of its multifamily units is the sale comparison method. Sale comps are reviewed for similarity to the subject property, examining features such as proximity to subject, rental income, number of units, composition of units by the number of bedrooms and bathrooms, square footage, condition, amenities and year built. Management’s secondary method for valuing its multifamily assets as income-producing rental operations is the direct capitalization method. In order to determine market cap rates for properties of the same class and location as the subject, management refers to published data from reliable third-party sources such as the CBRE Cap Rate Survey. Management applies the appropriate cap rate to the subject’s most recent available annual net operating income to determine the property’s value as an income-producing project. When adequate sale comps are not available or reliable net operating income information is not available or the project is under development or is under-performing to market, management will seek additional information and analysis to determine the cost to improve and the intrinsic fair value and/or management will seek additional information in the form of brokers’ opinion of value or appraisals. Commercial buildings – Where commercial rental income information is available, management’s preferred method for determining the fair value of its commercial real estate assets is the direct capitalization method. In order to determine market cap rates for properties of the same class and location as the subject, management refers to reputable third-party sources such as the CBRE Cap Rate Survey. Management then applies the appropriate cap rate to the subject’s most recent available annual net operating income to determine the property’s value as an income-producing commercial rental project. When adequate sale comps are not available or reliable net operating income information is not available or the project is under development or is under-performing to market, management will seek additional information and analysis to determine the cost to improve and the intrinsic fair value and/or management will seek additional information in the form of brokers’ opinion of value or appraisals. Management supplements the direct capitalization method with additional information in the form of a sale comparison analysis (where adequate sale comps are available), brokers’ opinion of value, or appraisal. Commercial land – Commercial land has many variations/uses, thus requiring management to employ a variety of methods depending upon the unique characteristics of the subject land. Management may rely on information in the form of a sale comparison analysis (where adequate sale comps are available), brokers’ opinion of value, or appraisal. • Unsecured loans (Level 3). Unsecured loans are valued at their principal less any discount or loss reserves established by management after taking into account the borrower’s creditworthiness and ability to repay the loan.

Commitments and Contingencies,

Commitments and Contingencies, Other Than Loan and REO Commitments	3 Months Ended
	Mar. 31, 2018
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies, Other Than Loan and REO Commitments	NOTE 7 – COMMITMENTS AND CONTINGENCIES, OTHER THAN LOAN AND REO COMMITMENTS Commitments The partnership’s only commitment is to fund scheduled capital account withdrawal requests at March 31, 2018 as presented in the following table ($ in thousands). 2018 $ 18,926 2019 15,847 2020 8,787 2021 5,427 2022 2,481 Thereafter 239 Total $ 51,707 Legal proceedings In the normal course of its business, the partnership may become involved in legal proceedings (such as assignment of rents, bankruptcy proceedings, appointment of receivers, unlawful detainers, judicial foreclosure, etc.) to collect the debt owed under the promissory notes, to enforce the provisions of the deeds of trust, to protect its interest in the real property subject to the deeds of trust and to resolve disputes with borrowers, lenders, lien holders and mechanics. None of these actions, in and of themselves, typically would be of any material financial impact to the net income or balance sheet of the partnership. As of the date hereof, the partnership is not involved in any legal proceedings other than those that would be considered part of the normal course of business.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2018
Subsequent Events [Abstract]
Subsequent Events	NOTE 8 – SUBSEQUENT EVENTS None.

Summary of Significant Accoun15

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of presentation The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The partnership’s consolidated financial statements include the accounts of the partnership, its wholly-owned subsidiaries (consisting of single member limited liability companies owning a single real property asset). All significant intercompany transactions and balances have been eliminated in consolidation.
Management Estimates	Management estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions about the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities, at the dates of the financial statements and the reported amounts of revenues and expenses during the reported periods. Such estimates relate principally to the determination of the allowance for loan losses, including, when applicable, the valuation of impaired loans, (which itself requires determining the fair value of the collateral), and the valuation of real estate held for sale and held as investment, at acquisition and subsequently. Actual results could differ significantly from these estimates.
Fair Value Estimates	Fair value estimates GAAP defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are: • independent; • knowledgeable; • able to transact; and, • willing to transact. Fair values of assets and liabilities are determined based on the fair value hierarchy established in GAAP. The hierarchy is comprised of three levels of inputs to be used. • Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the partnership has the ability to access at the measurement date. An active market is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. • Level 2 inputs are inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly in active markets and quoted prices for identical assets or liabilities that are not active, and inputs other than quoted prices that are observable or inputs derived from or corroborated by market data. • Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs reflect the partnership’s own assumptions about the assumptions market participants would use in pricing the asset or liability (including assumptions about risk). Unobservable inputs are developed based on the best information available in the circumstances and may include the partnership’s own data. The fair value of the collateral is determined by exercise of judgment based on management’s experience informed by appraisals (by licensed appraisers), brokers’ opinion of values, and publicly available information on in-market transactions. Appraisals of commercial real property generally present three approaches to estimating value: • market comparables or sales approach; • cost to replace; and, • capitalized cash flows or investment approach. These approaches may or may not result in a common, single value. The market-comparables approach may yield several different values depending on certain basic assumptions, such as, determining highest and best use (which may or may not be the current use); determining the condition (e.g. as-is, when-completed, or for land when-entitled); and determining the unit of value (e.g. as a series of individual unit sales or as a bulk disposition). Management has the requisite familiarity with the markets it lends in generally and of the properties lent on specifically to analyze sales-comparables and assess their suitability/applicability. Management is acquainted with market participants – investors, developers, brokers, lenders – that are useful, relevant secondary sources of data and information regarding valuation and valuation variability. These secondary sources may have familiarity with and perspectives on pending transactions, successful strategies to optimize value, and the history and details of specific properties – on and off the market – that enhance the process and analysis that is particularly and principally germane to establishing value in distressed markets and/or property types.
Cash and Cash Equivalents	Cash and cash equivalents The partnership considers all highly liquid financial instruments with maturities of three months or less at the time of purchase to be cash equivalents. At March 31, 2018, certain partnership cash balances in banks exceed federally insured limits.
Loans and Interest Income	Loans and interest income Loans generally are stated at the unpaid principal balance (principal). Management has discretion to pay amounts (advances) to third parties on behalf of borrowers to protect the partnership’s interest in the loan. Advances include, but are not limited to, the payment of interest and principal on a senior lien to prevent foreclosure by the senior lien holder, property taxes, insurance premiums, and attorney fees. Advances generally are stated at the unpaid principal balance and accrue interest until repaid by the borrower. The partnership may fund a specific loan origination net of an interest reserve (one to two years) to insure timely interest payments at the inception of the loan. As monthly interest payments become due, the partnership funds the payments into the affiliated trust account. In the event of an early loan payoff, any unapplied interest reserves would be first applied to any accrued but unpaid interest and then as a reduction of principal. If based upon current information and events, it is probable the partnership will be unable to collect all amounts due according to the contractual terms of the loan agreement, then a loan may be designated as impaired. Impaired loans are included in management’s periodic analysis of recoverability. If a valuation allowance had been established on an impaired loan, any subsequent payments on impaired loans are applied to late fees and then to reduce first the accrued interest, then advances, and then unpaid principal. From time to time, the partnership negotiates and enters into loan modifications with borrowers whose loans are delinquent. If the loan modification results in a significant reduction in the cash flow compared to the original note, the modification is deemed a troubled debt restructuring and a loss is recognized. In the normal course of the partnership’s operations, loans that mature may be renewed at then current market rates and terms for new loans. Such renewals are not designated as impaired, unless the matured loan was previously designated as impaired. Interest is accrued daily based on the unpaid principal balance of the loans. Impaired loans continue to recognize interest income as long as the loan is in the process of collection and is considered to be well-secured. Impaired loans are placed on non-accrual status if 108 days delinquent or at the earlier of management’s determination that the primary source of repayment will come from the foreclosure and subsequent sale of the collateral securing the loan (which usually occurs when a notice of sale is filed) or when the loan is no longer considered well-secured. When a loan is placed on non-accrual status, the accrual of interest is discontinued; however, previously recorded interest is not reversed. A loan may return to accrual status when all delinquent interest and principal payments become current in accordance with the terms of the loan agreement.
Allowance for Loan Losses	Allowance for loan losses Loans and the related accrued interest and advances (i.e. the loan balance) are analyzed on a periodic basis for ultimate recoverability. Delinquencies are identified and followed as part of the loan system. Collateral fair values are reviewed quarterly and the protective equity for each loan is computed. As used herein, “protective equity” is the arithmetic difference between the fair value of the collateral, net of any senior liens, and the loan balance, where “loan balance” is the sum of the unpaid principal, advances and the recorded interest thereon. This computation is done for each loan (whether impaired or performing), and while loans secured by collateral of similar property type are grouped, there is enough distinction and variation in the collateral that a loan-by-loan, collateral-by-collateral analysis is appropriate. For loans designated impaired, a provision is made for loan losses to adjust the allowance for loan losses to an amount such that the net carrying amount (unpaid principal less the specific allowance) is reduced to the lower of the loan balance or the estimated fair value of the related collateral, net of any senior loans and net of any costs to sell in arriving at net realizable value. Loans determined not to be individually impaired are grouped by the property type of the underlying collateral, and for each loan and for the total by property type, the amount of protective equity or amount of exposure to loss ( i.e., The partnership charges off uncollectible loans and related receivables directly to the allowance account once it is determined the full amount is not collectible. At foreclosure, any excess of the recorded investment in the loan (accounting basis) over the net realizable value is charged against the allowance for loan losses.
Real Estate Owned (REO)	Real estate owned (REO) Real estate owned (REO) is property acquired in full or partial settlement of loan obligations generally through foreclosure, and is recorded at acquisition at the lower of the amount owed on the loan (legal basis), plus any senior indebtedness, or at the property’s net realizable value, which is the fair value less estimated costs to sell, as applicable. The fair value estimates are derived from information available in the real estate markets including similar property, and often require the experience and judgment of third parties such as commercial real estate appraisers and brokers. The estimates figure materially in calculating the value of the property at acquisition, the level of charge to the allowance for loan losses and any subsequent valuation reserves. After acquisition, costs incurred relating to the development and improvement of property are capitalized to the extent they do not cause the recorded value to exceed the net realizable value, whereas costs relating to holding and disposition of the property are expensed as incurred. After acquisition, REO is analyzed periodically for changes in fair values and any subsequent write down is charged to operations expense. Any recovery in the fair value subsequent to such a write down is recorded, not to exceed the value recorded at acquisition. Recognition of gains on the sale of real estate is dependent upon the transaction meeting certain criteria related to the nature of the property and the terms of the sale including potential seller financing.
Rental Income/Depreciation	Rental income/depreciation Rental income is recognized when earned in accordance with the lease agreement. For commercial leases, the costs associated with originating the lease are amortized over the lease term. Residential lease terms generally range from month-to-month to one-year, and the expenses of originating the lease are expensed as incurred. Real estate owned that is designated held for sale is not depreciated. Real estate that was designated held for investment, and rented was depreciated on a straight-line basis over the estimated useful life of the property.
Recently Issued Accounting Pronouncements	Recently issued accounting pronouncements - Accounting and Financial Reporting for Revenue Recognition On May 28, 2014, Financial Accounting Standards Board (FASB) issued a final standard on revenue from contracts with customers. The standard issued as Accounting Standard Update (ASU) 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The standard is effective January 1, 2018, and has been adopted using the modified retrospective approach. The goals of the revenue recognition project are to clarify and converge the revenue recognition principles under U.S. GAAP and to develop guidance that would streamline and enhance revenue recognition requirements. A core principle of the standard is to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. Revenue is recognized when a performance obligation is satisfied by transferring goods or services to a customer. The FASB intentionally used the wording “be entitled” rather than “receive” or “collect” to distinguish collectability risk from other uncertainties that may exist under a contract. Adoption of the revenue standard did not have an impact on the partnership’s current revenue recognition policies since the scope of guidance is not applicable to financial instruments including loans and therefore did not have an impact on the recognition of interest income or late fees. The adoption of the revenue standard also did not change the revenue recognition from the sale of REOs as the REO dispositions are cash sales with no contingencies and no future involvement by the partnership in the property. The revenue recognition standard may impact the gain on sale of real estate when the sale is financed by the partnership, however there have been no such sales during 2018. - Accounting and Financial Reporting for Expected Credit Losses The FASB issued an ASU that significantly changes how entities will account for credit losses for most financial assets that are not measured at fair value through net income. The new standard will supersede currently in effect guidance and applies to all entities. Entities will be required to use a current expected credit loss (CECL) model to estimate credit impairment. This estimate will be forward-looking, meaning management will be required to use forecasts about future economic conditions to determine the expected credit loss over the remaining life of an instrument. This will be a significant change from the current incurred credit loss model and generally may result in allowances being recognized in earlier periods than under the current credit loss model. RMI VIII invests in real estate secured loans made with the expectation of zero credit losses as a result of substantial protective equity provided by the underlying collateral. For a loss to be recognized under the CECL or incurred loss model, if the lending/loan-to-value guidelines are followed effectively, an intervening, subsequent-to-loan-funding, event must negatively impact the value of the underlying collateral of the loan in an amount greater than the amount of protective equity provided by the collateral. Such an event would be either (or both) of: • an uninsured event(s) specifically impacting the collateral; or, • a non-temporary decline in values in the applicable real estate market. In both of these instances the treatment would be the same in the incurred loss and CECL models of approximately the same amount. Other than in these events, the probable of occurrence criteria of the incurred loss model is not triggered and a loss is not recognized. Further, if the zero-expected-loss lending guideline is preserved and the protective equity provided by the collateral is not expected to be impaired over the life of the loans, then a loss is not required to be recognized under the CECL model. This convergence between the CECL and incurred loss models as to loss recognition – as an event driven occurrence – in low LTV, real estate secured programs caused RMC to conclude that the CECL model will not materially impact the reported results of operations or financial position as compared to that which would be reported in the incurred loss model. The manager expects to adopt the ASU for interim and annual reporting in 2020.

General Partners and Other Re16

General Partners and Other Related Parties (Tables)	3 Months Ended
	Mar. 31, 2018
Related Party Transactions [Abstract]
Schedule of Formation Loan Activity	The formation loan activity is summarized in the following table for three months ended March 31, 2018 ($ in thousands). 2018 Balance, January 1 $ 5,634 Early withdrawal penalties (183 ) Repayments — Balance, March 31 $ 5,451
Formation Loan, Future Minimum Payments	The future minimum payments on the formation loan as of March 31, 2018 are presented in the following table ($ in thousands). 2018 $ 650 2019 650 2020 650 2021 650 2022 650 Thereafter 2,201 Total $ 5,451

Loans (Tables)

Loans (Tables)	3 Months Ended
	Mar. 31, 2018
Secured Loan Principal Transactions	Secured loan transactions are summarized in the following table for the three months ended March 31, 2018 ($ in thousands). 2018 Principal, January 1 $ 129,955 Loans funded or acquired 600 Principal payments received (9,912 ) Loans sold to affiliates (5,890 ) Principal, March 31 $ 114,753
Secured Loans Characteristics	Secured loans had the characteristics presented in the following table as of March 31, 2018 and December 31, 2017 ($ in thousands). March 31, December 31, 2018 2017 Number of secured loans 65 72 Secured loans – principal $ 114,753 $ 129,955 Secured loans – lowest interest rate (fixed) 5.0 % 5.0 % Secured loans – highest interest rate (fixed) 10.5 % 10.5 % Average secured loan – principal $ 1,765 $ 1,805 Average principal as percent of total principal 1.5 % 1.4 % Average principal as percent of partners’ capital, net of formation loan 1.3 % 1.3 % Average principal as percent of total assets 1.3 % 1.3 % Largest secured loan – principal $ 14,000 $ 14,000 Largest principal as percent of total principal 12.2 % 10.8 % Largest principal as percent of partners’ capital, net of formation loan 10.5 % 10.0 % Largest principal as percent of total assets 10.4 % 10.0 % Smallest secured loan – principal $ 43 $ 44 Smallest principal as percent of total principal 0.0 % 0.1 % Smallest principal as percent of partners’ capital, net of formation loan 0.0 % 0.1 % Smallest principal as percent of total assets 0.0 % 0.1 % Number of California counties where security is located 18 20 Largest percentage of principal in one California county 20.7 % 20.8 % Number of secured loans with a filed notice of default 1 2 Secured loans in foreclosure – principal $ 7,443 $ 7,607 Number of secured loans with an interest reserve — — Interest reserves $ — $ —
Secured Loans by Lien Position in the Collateral	At funding, secured loans had the following lien positions and are presented in the following table as of March 31, 2018 and December 31, 2017 ($ in thousands). March 31, 2018 December 31, 2017 Loans Principal Percent Loans Principal Percent First trust deeds 44 $ 99,515 87 % 48 $ 104,244 80 % Second trust deeds 21 15,238 13 23 22,711 17 Third trust deeds — — — 1 3,000 3 Total secured loans 65 $ 114,753 100 % 72 $ 129,955 100 % Liens due other lenders at loan closing 38,425 52,444 Total debt $ 153,178 $ 182,399 Appraised property value at loan closing $ 293,108 $ 346,738 Percent of total debt to appraised values (LTV) at loan closing (1) 55.0 % 55.6 % (1) Based on appraised values and liens due other lenders at loan closing. The weighted-average loan-to-value (LTV) computation above does not take into account subsequent increases or decreases in property values following the loan closing, nor does it include decreases or increases of the amount owing on senior liens to other lenders.
Secured Loans by Property Type of the Collateral	Secured loans summarized by property type are presented in the following table at of March 31, 2018 and December 31, 2017 ($ in thousands). March 31, 2018 December 31, 2017 Loans Principal Percent Loans Principal Percent Single family (2) 37 $ 39,217 34 % 41 $ 48,117 37 % Multi-family 4 4,588 4 4 4,589 4 Commercial 23 70,498 61 26 76,799 58 Land 1 450 1 1 450 1 Total secured loans 65 $ 114,753 100 % 72 $ 129,955 100 % (2) Single family properties include owner-occupied and non-owner occupied 1-4 unit residential buildings, condominium units, townhouses, and condominium complexes. The single family property type as of March 31, 2018 consists of 17 loans with principal of approximately $10,686,000 that are owner occupied and 20 loans with principal of approximately $28,531,000 that are non-owner occupied. Single family property type as of December 31, 2017 consists of 18 loans with principal of approximately $12,681,000 that are owner occupied and 23 loans with principal of approximately $35,436,000 that are non-owner occupied. As of March 31, 2018, and December 31, 2017, two and three, respectively, of the partnership’s loans with a principal balance of approximately $380,950 and $2,782,000, respectively, were secured by condominium properties
Secured Loans Distributed within California	The distribution of secured loans outstanding by the California county in which the primary collateral is located is presented in the following table as of March 31, 2018 and December 31, 2017 ($ in thousands). March 31, 2018 December 31, 2017 Unpaid Principal Balance Percent Unpaid Principal Balance Percent San Francisco Bay Area (3) San Francisco $ 23,166 20.2 % 26,206 20.2 % San Mateo 15,482 13.5 15,506 11.9 Contra Costa 14,455 12.5 16,856 13.1 Alameda 8,476 7.4 11,730 9.0 Santa Clara 6,859 6.0 6,873 5.3 Solano 2,875 2.5 2,875 2.2 Marin 1,596 1.4 1,597 1.2 Napa 566 0.5 569 0.4 73,475 64.0 82,212 63.3 Other Northern California Sacramento 3,300 2.9 3,300 2.4 El Dorado 2,043 1.8 2,044 1.6 Amador 750 0.7 754 0.6 Santa Cruz 748 0.7 769 0.6 Monterey 653 0.6 656 0.5 Lake — — 296 0.2 Mariposa 43 — 44 0.1 7,537 6.7 7,863 6.0 Total Northern California 81,012 70.7 90,075 69.3 Los Angeles & Coastal Los Angeles 23,891 20.7 26,971 20.8 Orange 3,758 3.3 6,653 5.1 San Diego — — 164 0.1 27,649 24.0 33,788 26.0 Other Southern California San Bernardino 5,900 5.1 5,900 4.5 Riverside 192 0.2 192 0.2 6,092 5.3 6,092 4.7 Total Southern California 33,741 29.3 39,880 30.7 Total Secured Loans Balance $ 114,753 100.0 % $ 129,955 100.0 % (3) Includes the Silicon Valley
Secured Loans Scheduled Maturities	Secured loans are scheduled to mature as presented in the following table as of March 31, 2018 ($ in thousands). Scheduled maturities, as of March 31, 2018 Loans Principal Percent 2018 (4) 19 $ 38,729 33 % 2019 27 65,258 57 2020 9 6,695 6 2021 7 2,396 2 2022 2 928 1 Thereafter 1 747 1 Total secured loan balance 65 $ 114,753 100 % (4) Loans maturing in 2018 from April 1 to December 31.
Secured Loans in Non-Accrual Status	Secured loans in non-accrual status are summarized in the following table as of March 31, 2018 and December 31, 2017 ($ in thousands). March 31, December 31, 2018 2017 Number of loans 2 3 Principal $ 7,670 $ 7,834 Advances 45 429 Accrued interest 318 322 Total recorded investment $ 8,033 $ 8,585 Foregone interest $ 364 $ 64
By Days Past Due [Member]
Past Due Financing Receivables	Secured loans summarized by payment delinquency are presented in the following table as of March 31, 2018 and December 31, 2017 ($ in thousands). March 31, 2018 December 31, 2017 Loans Amount Loans Amount Past Due 30-89 days 2 $ 3,275 2 $ 3,700 90-179 days — — — — 180 or more days 1 7,443 2 7,607 Total past due 3 $ 10,718 4 11,307 Current 62 104,035 68 118,648 Total secured loan balance 65 $ 114,753 72 $ 129,955
Impaired Loans [Member]
Impaired Financing Receivables	Impaired loans had the balances shown and the associated allowance for loan losses presented in the following table as of March 31, 2018 and December 31, 2017 ($ in thousands). March 31, December 31, 2018 2017 Principal $ 7,670 $ 7,834 Recorded investment (5) 8,033 8,585 Impaired loans without allowance 8,033 8,585 Impaired loans with allowance — — Allowance for loan losses, impaired loans — — Number of Loans 2 3 (5) Recorded investment is the sum of principal, advances, and interest accrued for financial reporting purposes.
Average Balances And Interest Income [Member]
Impaired Financing Receivables	Impaired loans had the average balances and interest income recognized and received in cash as presented in the following table as of, and for, the three months ended March 31, 2018 and the year ended December 31, 2017 ($ in thousands). March 31, December 31, 2018 2017 Average recorded investment $ 8,309 $ 4,410 Interest income recognized 6 607 Interest income received in cash 6 344

Real Estate Owned (REO) (Tables

Real Estate Owned (REO) (Tables)	3 Months Ended
	Mar. 31, 2018
Real Estate [Abstract]
REO Held for Sale	Transactions and activity, including changes in the net book values, are presented in the following table for the three months ended March 31, 2018 ($ in thousands). 2018 Balance, beginning of period $ 7,014 Acquisitions — Dispositions (1,538 ) Balance, end of period $ 5,476
Summary of Rental Activity of Real Estate Owned, Held as Investment	The table below details the rental activity for the three months ended March 31, 2017. 2017 Rental income $ 207 Operating expenses, rentals Administration and payroll 31 Homeowner association fees 43 Professional services 10 Utilities and maintenance 202 Advertising and promotions 1 Property taxes 43 Other 9 Total operating expenses, rentals 339 Net operating income (132 ) Depreciation — Receiver fees 2 Rental operations, net (134 ) Interest on mortgages — Rental operation, net of mortgage interest $ (134 )

Commitments and Contingencies19

Commitments and Contingencies, Other Than Loan and REO Commitments (Tables)	3 Months Ended
	Mar. 31, 2018
Commitments And Contingencies Disclosure [Abstract]
Scheduled Capital Account Withdrawal Requests	The partnership’s only commitment is to fund scheduled capital account withdrawal requests at March 31, 2018 as presented in the following table ($ in thousands). 2018 $ 18,926 2019 15,847 2020 8,787 2021 5,427 2022 2,481 Thereafter 239 Total $ 51,707

Organization and General - Addi

Organization and General - Additional Information (Details) - Installment	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Organizational and General Details [Line Items]
Ownership interest held by the general partner	1.00%	1.00%
Minimum Amount of Time Before Leaving Partnership Without Penalty	5 years
Early Withdrawal Penalty Percentage	10.00%
Maximum Percentage of Total Limited Partners Capital Available for Liquidation During One Year	20.00%
Loans Receivable, Amortization Term	30 years
Commercial [Member]
Organizational and General Details [Line Items]
Loan-to-value ratio percentage	75.00%
Land Loan [Member]
Organizational and General Details [Line Items]
Loan-to-value ratio percentage	50.00%
Minimum [Member]
Organizational and General Details [Line Items]
Formation Loan Repayment Period	5 years
Maximum [Member] | Multi-family [Member]
Organizational and General Details [Line Items]
Loan-to-value ratio percentage	80.00%
Limited Partner [Member]
Organizational and General Details [Line Items]
Number of Quarterly Installments for Withdrawal From Partnership	4
Limited Partner [Member] | After Five Year Period [Member]
Organizational and General Details [Line Items]
Number of Quarterly Installments for Withdrawal From Partnership	20
RMC [Member]
Organizational and General Details [Line Items]
Ownership interest held by the general partner	0.10%

Summary of Significant Accoun21

Summary of Significant Accounting Policies - Additional Information (Details)	3 Months Ended
	Mar. 31, 2018USD ($)Approach
Summary of Significant Accounting Policies Details [Line Items]
Estimating real property value, number of approaches | Approach	3
Cash and cash equivalents, maximum initial maturity	3 months
Interest reserve minimum length	1 year
Interest reserve maximum length	2 years
Threshold period past due for impaired loans placed on non-accrual status	108 days
ASU 2014-09 [Member]
Summary of Significant Accounting Policies Details [Line Items]
Adoption of revenue standard, impact on recognition of interest income or late fees | $	$ 0
Maximum [Member]
Summary of Significant Accounting Policies Details [Line Items]
Residential lease term	1 year

General Partners and Other Re22

General Partners and Other Related Parties - Additional Information (Details)	3 Months Ended
	Mar. 31, 2018USD ($)Loan	Mar. 31, 2017USD ($)Loan
General Partners And Other Related Parties Details [Line Items]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ 1,195,000	$ 722,000
Chargeable by RMC	$ 473,000	352,000
Management fee, description	The general partners receive monthly fees for managing the partnership’s loan portfolio and operations of up to 1/32 of 1% of the “net asset value” (3/8 of 1% annually).
Asset management fees	$ 138,000	158,000
Asset management fees waived	0	0
Operating Expenses	$ 475,000	$ 481,000
Loan Brokerage Commissions, Maximum Percent of Assets	4.00%
Number of performing loans | Loan	2	0
Performing loans mortgaged, par value	$ 5,890,000
Formation Loan [Member]
General Partners And Other Related Parties Details [Line Items]
Formation loan, advances	22,567,000
Receivable from affiliate (formation loan)	5,451,000
RMC [Member]
General Partners And Other Related Parties Details [Line Items]
Mortgage Servicing Fees Waived	0	$ 0
Operating Expenses	$ 475,000	481,000
Maximum [Member]
General Partners And Other Related Parties Details [Line Items]
Annual mortgage servicing fees, percentage	1.50%
Percentage of offering proceeds	7.00%
RMC and Burwell [Member]
General Partners And Other Related Parties Details [Line Items]
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Profit (Loss) Percentage	1.00%
Burwell [Member]
General Partners And Other Related Parties Details [Line Items]
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Profit (Loss) Percentage	0.66%
Equity Deficit Assumed by a General Partner	100.00%
One Percent of Profits and Losses [Member] | General Partner [Member]
General Partners And Other Related Parties Details [Line Items]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ 12,000	$ 8,000

General Partners and Other Re23

General Partners and Other Related Parties - Formation Loan Activity (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
Formation Loan - Transactions [Abstract]
Balance, January 1	$ 5,634
Early withdrawal penalties	(183)
Repayments	0
Balance, March 31	$ 5,451

General Partners and Other Re24

General Partners and Other Related Parties - Formation Loan, Future Minimum Payments (Details) $ in Thousands	Mar. 31, 2018USD ($)
Formation Loan Future Minimum Payments [Abstract]
2,018	$ 650
2,019	650
2,020	650
2,021	650
2,022	650
Thereafter	2,201
Total	$ 5,451

Loans - Additional Information

Loans - Additional Information (Details)	1 Months Ended	3 Months Ended	12 Months Ended
	Apr. 30, 2018Loan	Mar. 31, 2018USD ($)LoanInterestMortgageLoan	Dec. 31, 2017USD ($)LoanMortgageLoan
Loans Details [Line Items]
Loans Receivable, Term		5 years
Loans Receivable Number of Loans | Loan		65	72
Loans Receivable, Percent		100.00%	100.00%
Loans Receivable, Number of Interest Only Loans | Interest		28
Loans Receivable, Amortization Term		30 years
Mortgage Loans on Real Estate, Number of Loans Renewed		2
Loans - principal renewed (in Dollars) | $		$ 4,800,000
Loans Receivable Largest Loan (in Dollars) | $		14,000,000	$ 14,000,000
Balance relating to loan portfolio held in bank trust account | $		$ 100,186
Mortgage Loans on Real Estate, Number of Loans		65	72
Allowance for loan losses | $		$ 0	$ 0
Subsequent Event [Member]
Loans Details [Line Items]
Number of loan designated impaired and non-accrual substantially paid off | Loan	1
Past Due 90 Days Or More [Member]
Loans Details [Line Items]
Mortgage Loans on Real Estate, Number of Loans		0	0
Loans Receivable, Interest Accrual, Period		90 days	90 days
Past Maturity [Member]
Loans Details [Line Items]
Mortgage Loans on Real Estate, Number of Loans matured		0	0
Modifications of Secured Loan [Member]
Loans Details [Line Items]
Mortgage Loans on Real Estate, Number of Loans		0	0
Workout Agreements [Member]
Loans Details [Line Items]
Mortgage Loans on Real Estate, Number of Loans		0	0
Troubled Debt Restructuring [Member]
Loans Details [Line Items]
Mortgage Loans on Real Estate, Number of Loans		0	0
Minimum [Member]
Loans Details [Line Items]
Loans Receivable, Remaining Term		5 years
Maximum [Member]
Loans Details [Line Items]
Balance relating to loan portfolio held in bank trust account, disbursement date to partnership		Apr. 13, 2018
Five Year Term or Less [Member]
Loans Details [Line Items]
Loans Receivable Number of Loans | Loan		53
Loans Receivable, Percent		82.00%
Loans Receivable, Percent of Aggregate Principal		97.00%
Interest Only [Member]
Loans Details [Line Items]
Loans Receivable, Percent		43.00%
Loans Receivable, Percent of Aggregate Principal		67.00%
Largest Loan [Member]
Loans Details [Line Items]
Loans Receivable, Percent		12.20%
Loans Receivable, Percent of Assets		10.40%
Loans Receivable, Yield of Loan Acquired		7.25%
Loans Receivable, Maturity Date		Jan. 1, 2019
Construction Loans [Member]
Loans Details [Line Items]
Loans outstanding | $		$ 0
Rehabilitation Loans [Member]
Loans Details [Line Items]
Loans outstanding | $		$ 0

Loans - Secured Loan Principal

Loans - Secured Loan Principal Transactions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Receivables [Abstract]
Principal, January 1	$ 129,955
Loans funded or acquired	600	$ 7,798
Principal payments received	(9,912)	$ (3,995)
Loans sold to affiliates	(5,890)
Principal, March 31	$ 114,753

Loans - Secured Loans Character

Loans - Secured Loans Characteristics (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2018USD ($)LoanMortgageLoanCounty	Dec. 31, 2017USD ($)LoanMortgageLoanCounty
Secured Loan Transactions [Line Items]
Number of secured loans | Loan	65	72
Secured loans - principal (in Dollars)	$ 114,753,000	$ 129,955,000
Average secured loan - principal (in Dollars)	$ 1,765,000	$ 1,805,000
Average principal as percent of total principal	1.50%	1.40%
Average principal as percent of partners’ capital, net of formation loan	130.00%	130.00%
Average principal as percent of total assets	1.30%	1.30%
Largest secured loan - principal (in Dollars)	$ 14,000,000	$ 14,000,000
Largest principal as percent of total principal	12.20%	10.80%
Largest principal as percent of partners’ capital, net of formation loan	1050.00%	1000.00%
Largest principal as percent of total assets	10.40%	10.00%
Smallest secured loan - principal (in Dollars)	$ 43,000	$ 44,000
Smallest principal as percent of total principal	0.00%	0.10%
Smallest principal as percent of partners’ capital, net of formation loan	0.00%	10.00%
Smallest principal as percent of total assets	0.00%	0.10%
Number of California counties where security is located | County	18	20
Largest percentage of principal in one California county	20.70%	20.80%
Number of secured loans with a filed notice of default | MortgageLoan	65	72
Secured loans in foreclosure - principal (in Dollars)	$ 7,443,000	$ 7,607,000
Minimum [Member]
Secured Loan Transactions [Line Items]
Secured loans - interest rate (fixed)	5.00%	5.00%
Maximum [Member]
Secured Loan Transactions [Line Items]
Secured loans - interest rate (fixed)	10.50%	10.50%
Filed Notice of Default [Member]
Secured Loan Transactions [Line Items]
Number of secured loans with a filed notice of default | MortgageLoan	1	2

Loans - Secured Loans by Lien P

Loans - Secured Loans by Lien Position in the Collateral (Details) $ in Thousands		3 Months Ended	12 Months Ended
		Mar. 31, 2018USD ($)MortgageLoan	Dec. 31, 2017USD ($)MortgageLoan
Loans Details - Secured Loans by Lien Position in the Collateral [Line Items]
Loans - principal (in Dollars)		$ 114,753	$ 129,955
Liens due other lenders at loan closing (in Dollars)		38,425	52,444
Total debt (in Dollars)		153,178	182,399
Appraised property value at loan closing (in Dollars)		$ 293,108	$ 346,738
Percent of total debt to appraised values (LTV) at loan closing	[1]	55.00%	55.60%
Loans - percent		100.00%	100.00%
Loans | MortgageLoan		65	72
First Trust Deeds [Member]
Loans Details - Secured Loans by Lien Position in the Collateral [Line Items]
Loans - principal (in Dollars)		$ 99,515	$ 104,244
Loans - percent		87.00%	80.00%
Loans | MortgageLoan		44	48
Second Trust Deeds [Member]
Loans Details - Secured Loans by Lien Position in the Collateral [Line Items]
Loans - principal (in Dollars)		$ 15,238	$ 22,711
Loans - percent		13.00%	17.00%
Loans | MortgageLoan		21	23
Third Trust Deeds [Member]
Loans Details - Secured Loans by Lien Position in the Collateral [Line Items]
Loans - principal (in Dollars)			$ 3,000
Loans - percent			3.00%
Loans | MortgageLoan			1
[1]	Based on appraised values and liens due other lenders at loan closing. The weighted-average loan-to-value (LTV) computation above does not take into account subsequent increases or decreases in property values following the loan closing, nor does it include decreases or increases of the amount owing on senior liens to other lenders.

Loans - Secured Loans by Proper

Loans - Secured Loans by Property Type (Details) $ in Thousands		3 Months Ended	12 Months Ended
		Mar. 31, 2018USD ($)MortgageLoan	Dec. 31, 2017USD ($)MortgageLoan
Loans (Details) - Secured Loans by Property Type [Line Items]
Number of loans | MortgageLoan		65	72
Loans - principal (in Dollars) | $		$ 114,753	$ 129,955
Loans - percent		100.00%	100.00%
Single Family [Member]
Loans (Details) - Secured Loans by Property Type [Line Items]
Number of loans | MortgageLoan	[1]	37	41
Loans - principal (in Dollars) | $	[1]	$ 39,217	$ 48,117
Loans - percent	[1]	34.00%	37.00%
Multi-family [Member]
Loans (Details) - Secured Loans by Property Type [Line Items]
Number of loans | MortgageLoan		4	4
Loans - principal (in Dollars) | $		$ 4,588	$ 4,589
Loans - percent		4.00%	4.00%
Commercial [Member]
Loans (Details) - Secured Loans by Property Type [Line Items]
Number of loans | MortgageLoan		23	26
Loans - principal (in Dollars) | $		$ 70,498	$ 76,799
Loans - percent		61.00%	58.00%
Land [Member]
Loans (Details) - Secured Loans by Property Type [Line Items]
Number of loans | MortgageLoan		1	1
Loans - principal (in Dollars) | $		$ 450	$ 450
Loans - percent		1.00%	1.00%
[1]	Single family properties include owner-occupied and non-owner occupied 1-4 unit residential buildings, condominium units, townhouses, and condominium complexes. The single family property type as of March 31, 2018 consists of 17 loans with principal of approximately $10,686,000 that are owner occupied and 20 loans with principal of approximately $28,531,000 that are non-owner occupied. Single family property type as of December 31, 2017 consists of 18 loans with principal of approximately $12,681,000 that are owner occupied and 23 loans with principal of approximately $35,436,000 that are non-owner occupied. As of March 31, 2018, and December 31, 2017, two and three, respectively, of the partnership’s loans with a principal balance of approximately $380,950 and $2,782,000, respectively, were secured by condominium properties

Loans - Secured Loans by Prop30

Loans - Secured Loans by Property Type (Parenthetical) (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2018USD ($)MortgageLoan	Dec. 31, 2017USD ($)MortgageLoan
Loans Details [Line Items]
Mortgage Loans on Real Estate, Number of Loans | MortgageLoan	65	72
Loans - principal (in Dollars) | $	$ 114,753,000	$ 129,955,000
Single Family Property-Owner Occupied [Member]
Loans Details [Line Items]
Mortgage Loans on Real Estate, Number of Loans | MortgageLoan	17	18
Loans - principal (in Dollars) | $	$ 10,686,000	$ 12,681,000
Single Family Property-NonOwner Occupied [Member]
Loans Details [Line Items]
Mortgage Loans on Real Estate, Number of Loans | MortgageLoan	20	23
Loans - principal (in Dollars) | $	$ 28,531,000	$ 35,436,000
Condominium Properties [Member]
Loans Details [Line Items]
Mortgage Loans on Real Estate, Number of Loans | MortgageLoan	2	3
Loans - principal (in Dollars) | $	$ 380,950	$ 2,782,000

Loans - Secured Loans Distribut

Loans - Secured Loans Distributed within California (Details) - USD ($) $ in Thousands		Mar. 31, 2018	Dec. 31, 2017
Loans (Details) - Secured Loans by Property Type [Line Items]
Loans - principal (in Dollars)		$ 114,753	$ 129,955
Loans - percent		100.00%	100.00%
San Francisco [Member]
Loans (Details) - Secured Loans by Property Type [Line Items]
Loans - principal (in Dollars)		$ 23,166	$ 26,206
Loans - percent		20.20%	20.20%
San Mateo [Member]
Loans (Details) - Secured Loans by Property Type [Line Items]
Loans - principal (in Dollars)		$ 15,482	$ 15,506
Loans - percent		13.50%	11.90%
Contra Costa [Member]
Loans (Details) - Secured Loans by Property Type [Line Items]
Loans - principal (in Dollars)		$ 14,455	$ 16,856
Loans - percent		12.50%	13.10%
Alameda [Member]
Loans (Details) - Secured Loans by Property Type [Line Items]
Loans - principal (in Dollars)		$ 8,476	$ 11,730
Loans - percent		7.40%	9.00%
Santa Clara [Member]
Loans (Details) - Secured Loans by Property Type [Line Items]
Loans - principal (in Dollars)		$ 6,859	$ 6,873
Loans - percent		6.00%	5.30%
Solano [Member]
Loans (Details) - Secured Loans by Property Type [Line Items]
Loans - principal (in Dollars)		$ 2,875	$ 2,875
Loans - percent		2.50%	2.20%
Marin [Member]
Loans (Details) - Secured Loans by Property Type [Line Items]
Loans - principal (in Dollars)		$ 1,596	$ 1,597
Loans - percent		1.40%	1.20%
Napa [Member]
Loans (Details) - Secured Loans by Property Type [Line Items]
Loans - principal (in Dollars)		$ 566	$ 569
Loans - percent		0.50%	0.40%
San Francisco Bay Area [Member]
Loans (Details) - Secured Loans by Property Type [Line Items]
Loans - principal (in Dollars)	[1]	$ 73,475	$ 82,212
Loans - percent	[1]	64.00%	63.30%
Sacramento [Member]
Loans (Details) - Secured Loans by Property Type [Line Items]
Loans - principal (in Dollars)		$ 3,300	$ 3,300
Loans - percent		2.90%	2.40%
El Dorado [Member]
Loans (Details) - Secured Loans by Property Type [Line Items]
Loans - principal (in Dollars)		$ 2,043	$ 2,044
Loans - percent		1.80%	1.60%
Amador [Member]
Loans (Details) - Secured Loans by Property Type [Line Items]
Loans - principal (in Dollars)		$ 750	$ 754
Loans - percent		0.70%	0.60%
Santa Cruz [Member]
Loans (Details) - Secured Loans by Property Type [Line Items]
Loans - principal (in Dollars)		$ 748	$ 769
Loans - percent		0.70%	0.60%
Monterey [Member]
Loans (Details) - Secured Loans by Property Type [Line Items]
Loans - principal (in Dollars)		$ 653	$ 656
Loans - percent		0.60%	0.50%
Lake [Member]
Loans (Details) - Secured Loans by Property Type [Line Items]
Loans - principal (in Dollars)			$ 296
Loans - percent			0.20%
Mariposa [Member]
Loans (Details) - Secured Loans by Property Type [Line Items]
Loans - principal (in Dollars)		$ 43	$ 44
Loans - percent			0.10%
Other Northern California [Member]
Loans (Details) - Secured Loans by Property Type [Line Items]
Loans - principal (in Dollars)		$ 7,537	$ 7,863
Loans - percent		6.70%	6.00%
Northern California [Member]
Loans (Details) - Secured Loans by Property Type [Line Items]
Loans - principal (in Dollars)		$ 81,012	$ 90,075
Loans - percent		70.70%	69.30%
Los Angeles [Member]
Loans (Details) - Secured Loans by Property Type [Line Items]
Loans - principal (in Dollars)		$ 23,891	$ 26,971
Loans - percent		20.70%	20.80%
Orange [Member]
Loans (Details) - Secured Loans by Property Type [Line Items]
Loans - principal (in Dollars)		$ 3,758	$ 6,653
Loans - percent		3.30%	5.10%
San Diego [Member]
Loans (Details) - Secured Loans by Property Type [Line Items]
Loans - principal (in Dollars)			$ 164
Loans - percent			0.10%
Los Angeles And Coastal [Member]
Loans (Details) - Secured Loans by Property Type [Line Items]
Loans - principal (in Dollars)		$ 27,649	$ 33,788
Loans - percent		24.00%	26.00%
San Bernardino [Member]
Loans (Details) - Secured Loans by Property Type [Line Items]
Loans - principal (in Dollars)		$ 5,900	$ 5,900
Loans - percent		5.10%	4.50%
Riverside [Member]
Loans (Details) - Secured Loans by Property Type [Line Items]
Loans - principal (in Dollars)		$ 192	$ 192
Loans - percent		0.20%	0.20%
Other Southern California [Member]
Loans (Details) - Secured Loans by Property Type [Line Items]
Loans - principal (in Dollars)		$ 6,092	$ 6,092
Loans - percent		5.30%	4.70%
Southern California [Member]
Loans (Details) - Secured Loans by Property Type [Line Items]
Loans - principal (in Dollars)		$ 33,741	$ 39,880
Loans - percent		29.30%	30.70%
[1]	Includes the Silicon Valley

Loans - Secured Loans Scheduled

Loans - Secured Loans Scheduled Maturities (Details) $ in Thousands		Mar. 31, 2018USD ($)Loan	Dec. 31, 2017USD ($)Loan
Receivables [Abstract]
2018, Loan | Loan	[1]	19
2019, Loan | Loan		27
2020, Loan | Loan		9
2021, Loan | Loan		7
2022, Loan | Loan		2
Thereafter, Loan | Loan		1
Total secured loan balance, Loan | Loan		65	72
2018, Principal | $	[1]	$ 38,729
2019, Principal | $		65,258
2020, Principal | $		6,695
2021, Principal | $		2,396
2022, Principal | $		928
Thereafter, Principal | $		747
Total secured loan balance, Principal | $		$ 114,753	$ 129,955
2018, Percent	[1]	33.00%
2019, Percent		57.00%
2020, Percent		6.00%
2021, Percent		2.00%
2022, Percent		1.00%
Thereafter, Percent		1.00%
Total secured loan balance, Percent		100.00%
[1]	Loans maturing in 2018 from April 1 to December 31.

Loans - Secured Loans Summarize

Loans - Secured Loans Summarized by Payment Delinquency (Details) $ in Thousands	Mar. 31, 2018USD ($)MortgageLoan	Dec. 31, 2017USD ($)MortgageLoan
Past Due
Delinquent loans, number | MortgageLoan	65	72
Loans, amount | $	$ 114,753	$ 129,955
Past Due 30-89 Days [Member]
Past Due
Delinquent loans, number | MortgageLoan	2	2
Loans, amount | $	$ 3,275	$ 3,700
Past Due 180 Days or More [Member]
Past Due
Delinquent loans, number | MortgageLoan	1	2
Loans, amount | $	$ 7,443	$ 7,607
Past Due [Member]
Past Due
Delinquent loans, number | MortgageLoan	3	4
Loans, amount | $	$ 10,718	$ 11,307
Current [Member]
Past Due
Delinquent loans, number | MortgageLoan	62	68
Loans, amount | $	$ 104,035	$ 118,648

Loans - Secured Loans in Non-Ac

Loans - Secured Loans in Non-Accrual Status (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018USD ($)MortgageLoan	Dec. 31, 2017USD ($)MortgageLoan
Loans Details Secured Loans In Non-accrual Status [Line Items]
Number of loans | MortgageLoan	65	72
Loans - principal (in Dollars)	$ 114,753	$ 129,955
Accrued interest	$ 1,151	$ 1,209
Non-accrual Status [Member]
Loans Details Secured Loans In Non-accrual Status [Line Items]
Number of loans | MortgageLoan	2	3
Loans - principal (in Dollars)	$ 8,033	$ 8,585
Accrued interest	318	322
Foregone interest	364	64
Principal [Member] | Non-accrual Status [Member]
Loans Details Secured Loans In Non-accrual Status [Line Items]
Loans - principal (in Dollars)	7,670	7,834
Advances [Member] | Non-accrual Status [Member]
Loans Details Secured Loans In Non-accrual Status [Line Items]
Loans - principal (in Dollars)	$ 45	$ 429

Loans - Secured Loans Designate

Loans - Secured Loans Designated as Impaired Loans (Details) $ in Thousands		3 Months Ended	12 Months Ended
		Mar. 31, 2018USD ($)Loan	Dec. 31, 2017USD ($)Loan
Secured Loans Designated as Impaired Loans [Abstract]
Principal		$ 7,670	$ 7,834
Recorded investment	[1]	8,033	8,585
Impaired loans without allowance		$ 8,033	$ 8,585
Number of Loans | Loan		2	3
[1]	Recorded investment is the sum of principal, advances, and interest accrued for financial reporting purposes.

Loans - Impaired Loans - Averag

Loans - Impaired Loans - Average Balances and Interest Income (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Impaired Loans - Average Balances and Interest Income [Abstract]
Average recorded investment	$ 8,309	$ 4,410
Interest income recognized	6	607
Interest income received in cash	$ 6	$ 344

Real Estate Owned (REO) - REO,

Real Estate Owned (REO) - REO, Held for Sale (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
Reo Held For Sale [Abstract]
Balance, beginning of period	$ 7,014
Dispositions	(1,538)
Balance, end of period	$ 5,476

Real Estate Owned (REO) - Addit

Real Estate Owned (REO) - Additional Information (Details)	3 Months Ended
	Mar. 31, 2018USD ($)aProperty
Partnership Property Held For Sale [Member]
Real Estate Owned REO Details [Line Items]
Number of Real Estate Properties	6
Los Angeles [Member] | Condominium Complex [Member]
Real Estate Owned REO Details [Line Items]
Number of Units in Real Estate Property	6
Gains (Losses) on Sales of Other Real Estate (in Dollars) | $	$ 93,000
Los Angeles [Member] | Sold [Member] | Condominium Complex [Member]
Real Estate Owned REO Details [Line Items]
Number of Units in Real Estate Property	5
Los Angeles [Member] | Partnership Property Held For Sale [Member] | Condominium Complex [Member]
Real Estate Owned REO Details [Line Items]
Number of Units in Real Estate Property	1
San Francisco County [Member] | Partnership Property Held For Sale [Member] | Condominium Complex [Member]
Real Estate Owned REO Details [Line Items]
Number of Units in Real Estate Property	3
Contra Costa [Member] | Partnership Property Held For Sale [Member] | Commercial Property [Member]
Real Estate Owned REO Details [Line Items]
Number of Real Estate Properties	1
Fresno County California [Member] | Partnership Property Held For Sale [Member] | Home Subdivision [Member]
Real Estate Owned REO Details [Line Items]
Number of Units in Real Estate Property	1
Marin County [Member] | Partnership Property Held For Sale [Member] | Residential Single Family [Member]
Real Estate Owned REO Details [Line Items]
Area of Real Estate Property (in Acres) | a	13
Stanislaus County [Member] | Partnership Property Held For Sale [Member] | Commercial Property [Member]
Real Estate Owned REO Details [Line Items]
Area of Real Estate Property (in Acres) | a	14

Real Estate Owned (REO) - Summa

Real Estate Owned (REO) - Summary of Rental Activity of Real Estate Owned, Held as Investment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Professional services	$ 232	$ 255
Total operations expense	$ 1,254	1,240
REO Held for Sale [Member]
Rental income		207
Administration and payroll		31
Homeowner association fees		43
Professional services		10
Utilities and maintenance		202
Advertising and promotions		1
Property taxes		43
Other		9
Total operations expense		339
Net operating income		(132)
Receiver fees		2
Rental operations, net		(134)
Rental operation, net of mortgage interest		$ (134)

Fair Value - Additional Informa

Fair Value - Additional Information (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Assets measured at fair value on non-recurring basis	$ 0	$ 0
Liabilities measured at fair value on non-recurring basis	$ 0	$ 0

Commitment and Contingencies, O

Commitment and Contingencies, Other Than Loan and REO Commitments - Scheduled Capital Account Withdrawal Requests (Details) $ in Thousands	Mar. 31, 2018USD ($)
Partners Capital Account Withdrawals [Abstract]
2,018	$ 18,926
2,019	15,847
2,020	8,787
2,021	5,427
2,022	2,481
Thereafter	239
Total	$ 51,707