When compared to a traditional home mortgage where the borrower repays the principal of the loan along with interest in regular monthly payments over the term of the loan, a bond has the borrower paying the interest on the borrowed amount throughout the term of the loan and repaying the initial amount loaned at the end of the term.
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In May of 2025, the Omaha Magical Society board and the Abbott House board authorized the issuance of ten $10,000 sixty-month bonds to fund the completion of The Abbott House’s Resident Property Manager’s Apartment.
NINE bonds have already been sold.
These bonds pay 4% simple interest per annum with these interest payments being made annually.
Then the principal ($10,000) on each bond will be paid sixty months from its issuance.
Although the club reserves the right to repay the principal anytime during the sixty months, the timetable presented in this proposal is based on the agreement with Teller (of Penn and Teller) that he will deed the house (with an approximate value of $400,000) over to The Omaha Magical Society with no encumbrance on October 1, 2026, anytime after which the club will be able to secure a mortgage against the property if needed to repay a bond's principal.
It is the belief of the boards that as the membership of the club continues to grow, the ability to service a mortgage (if needed) will be a viable option.
Please reach out to us using the yellow button above if you cannot find the answer to your question(s).
The terms are clarified in the legally binding Promissory Note signed by both the borrower and the lender - a copy of which you may download HERE.
The funds will be used to construct a Resident Property Manager’s apartment on the lower level of The Abbott House complete with its own utility room, kitchen, and separate entrance. Once occupied this apartment will allow the house to remain compliant with its city zoning as a residence.
The Omaha Magical Society board and The Abbott House board desire to have ten bonds secured in May, 2025, with construction beginning in June, 2025, and completed by September 1, 2025.
The process of hiring a Resident Property Manager would proceed during the construction of the apartment so that occupancy could begin in September, 2025.
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