Exhibit 11

Redwood Trust, Inc.
Computation of Per Share Earnings

	Twelve Months		Twelve Months		Twelve Months
	Ended		Ended		Ended
	December 31, 2004		December 31, 2003		December 31, 2002
Basic:
Average common shares outstanding		21,437,253		17,759,346		15,177,449
Total		21,437,253		17,759,346		15,177,449
Net Income	$	232,634,946	$	131,698,361	$	53,441,217
Per Share Amount	$	10.85	$	7.42	$	3.52
Diluted:
Average common shares outstanding		21,437,253		17,759,346		15,177,449
Net effect of dilutive stock options outstanding during the period — based on the treasury stock method		791,676		827,303		481,174
Net effect of preferred stock		—		225,517		—
Total		22,228,929		18,812,166		15,658,623
Net Income	$	232,634,946	$	131,698,361	$	53,441,217
Per Share Amount	$	10.47	$	7.04	$	3.41