FAQ for Investors
We've answered the questions we hear most often below. If you don't see yours, reach out — our investor relations team is available to speak directly with prospective investors.
Who can invest in Hope RE Funding?
This offering is available exclusively to accredited investors — individuals with a net worth over $1 million (excluding primary residence) or annual income over $200,000 ($300,000 jointly), as well as qualifying institutional investors. Investors must be domiciled in an eligible state. Contact us to confirm your eligibility.
What is the minimum investment?
The minimum initial subscription is $250,000. Hope RE Funding reserves the right to accept smaller subscriptions at its discretion. Please reach out to discuss your specific situation.
What return can I expect?
Notes bear a fixed interest rate based on the applicable federal rate (AFR) for the term of the note at the time of subscription — currently up to 6% APR. Investments above $500,000 may qualify for rates above the AFR. Interest is paid quarterly.
How are my interest payments made?
Interest-only payments are made on a calendar quarterly basis, beginning the first day of the first fiscal quarter after your note is issued. Principal is returned at maturity.
What is the term of the notes?
Terms vary. The interest rate is tied to the applicable federal rate for the specific maturity of your note. Please request the Investment Packet or schedule a call for current term details.
Is my investment secured by real estate?
The Notes are not secured by a lien on assets of Hope RE Funding directly. However, Hope RE Funding anticipates holding mortgages on the real estate acquired by Hope RE Holdings. Where bank financing is used alongside offering proceeds, the mortgage securing the Funding-to-Holdings loan would be in second position. Please review the Risk Factors section of the Private Placement Memorandum for full details.
Can I get my money back early?
Investors may request early repayment during specified annual windows. Hope RE Funding will accommodate requests to the extent funds are available at that time. This is not a liquid investment — investors should be prepared to hold for the full term. Hope RE Funding may also prepay notes without penalty at any time.
Is my investment tax-deductible?
Purchasing the Notes is not a donation and is not tax-deductible. Interest earned on the Notes is taxable as ordinary income. However, investors who choose to forgo repayment of interest and/or principal may be eligible for a charitable income tax deduction, given Hope RE Funding's anticipated 501(c)(3) status. We strongly encourage you to consult your own tax advisor before investing.
What happens to my investment if Blessings of Hope can't pay rent?
This is the primary operational risk of this offering. Blessings of Hope is the sole tenant of all properties acquired, meaning investor returns depend on Blessings' ability to pay rent to Hope RE Holdings. Blessings generates revenue through food handling fees and projects profitability on a pro forma basis. However, there is no guarantee of Blessings' future performance. Please review the full Risk Factors section in the Private Placement Memorandum.
How do I know this offering is legitimate?
Hope RE Funding is a Pennsylvania nonprofit corporation represented by Barley Snyder LLP. This offering is made under Rule 506(c) of Regulation D — a federal exemption from SEC registration that requires verified accredited investor status. No commissions or sales fees are paid in connection with the offering. David Lapp, President, is the only authorized spokesperson for this offering.
How do I get started?
The best first step is to download our Investment Packet and review the Private Placement Memorandum. Then schedule a 15-minute call with David Lapp to discuss your questions. If you decide to invest, you'll complete a Subscription Agreement and we'll verify your accredited investor status before accepting your subscription.
What reporting will I receive as an investor?
Each investor receives annual financial statements of Hope RE Funding within 120 days of each fiscal year end.
Legal Footnote
Nothing on this page constitutes legal, tax, or investment advice. Prospective investors should carefully review the Private Placement Memorandum and consult their own legal, tax, and financial advisors before making any investment decision. The Notes involve significant risk, including the possible loss of the entire investment.
Shall We Meet to Talk?
One of our investor relations team would be happy to discuss your investment goals, answer your questions, and explain how you can partner with Hope RE Funding to make a positive impact on the nation.