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Smoky Mountain Log Cabin Ownership Program The Village _ Alarka


									                 Smoky Mountain Log Cabin Ownership Program

                          The Village @ Alarka Highlands

Our successful log cabin rental business has grown over the years and we’re
offering you a chance to be part of that success. We have been one of the leading
rental companies in Bryson City North Carolina. The city itself is thriving and
opportunities abound. Our business has been expanding ever since we started
and opened our doors in 1999. Prior to relocating here in 1994, I had vacationed
on Deep Creek with family and friends, and fell in love with the area just as you
will when you visit us. The allure of the mountains and the adventures in the
surrounding areas captured my heart and convinced me that this was the land of
opportunity and I immediately knew that I would call Bryson City and the Smoky
Mountains my home. Sixteen years later, not only do I call this place home, but
so does my wife, our kids, my parents, my cousin Ray and his family, and now my
Aunt as well. This breathtaking area will captivate your heart from the very first
visit. With its laid back unhurried tranquil pace of life, you can sit back and enjoy
all of its benefits nestled amongst the highest mountain peaks east of the Rocky
Mountains. Bryson City is surrounded by mountain vista’s unequaled this side of
the Mississippi River. From the Alarka Mountains to the Blue Ridge Mountains to
the Great Smoky Mountains and the Nantahala National Forrest, this landscape is
awe inspiring and touches a part of your soul and brings you closer to nature
while instilling a sense of wellbeing and inner peace. You can experience this as
often as you’d like in the comfort of your own log cabin at Alarka Highlands.

Since we rented our first cabin in 1999, many of our guests have become friends.
They keep returning year after year often renting the same cabin with their
families creating great memories and traditions. Many of our guests return to
the area because they themselves remember visiting this tranquil space with their
parents during their childhood. They continue the tradition with their children
and join our extended family in the comfort and relaxation of our spacious cabins.
I believe that one of the reasons this area is so popular is that parents are able to
recall their adventures here when their parents brought them as kids. They are
now passing on the tradition to their children as they enjoy all the area has to

People who return year after year have become our friends and part of our
extended family. As our relationship developed, we have offered those folks a
chance to own their very own log cabin. It kind of started as a joke when one of
my repeat guests had booked for their 5 th time with us in less than 3 years and I
jokingly said to them, “ don’t get me wrong, I love renting to you guys, but it
might be cheaper if I just build you a cabin of your own” Well shortly after that,
we started to discuss building them a cabin and allowing us to manage it as one of
our rental properties. They agreed and said, “Let’s build a cabin and you guys rent
it out for us when we are not here”. That’s how it all started and we’re offering
you a chance to own your own vacation log cabin while allowing our sister
company, Bryson City Cabin Rentals, to manage and rent it out on your behalf.

Over the past several years we have been building and managing log cabins for
family, friends and investors. Our business has spread by word of mouth among
our friends and guests over the years. In total we have been involved in the
construction of over 20 log cabins here in the Bryson City area. We have managed
and cared for many of these properties on behalf of the owners and they have
been generating revenue year after year. It’s very rare to see one of these cabins
come up for sale due to the fact that the owners are extremely happy with the
rental performance and their vacation use of the properties.

Now with several years of experience under our belts, the best interest rates of
our lifetime being offered by banks, and an expanding rental market, we decided
that it was time to expand even more by offering people like yourselves “The
Smoky Mountain Log Cabin Ownership Program”. We will build, maintain and
manage the rental schedule on your log cabin located in the prestigious gated
community of Alarka Highlands in Bryson City North Carolina. Come join us in this
beautiful community centrally located near all the great adventures the Smoky
Mountains have to offer.

With millions of people visiting the Great Smoky Mountains each year, there is a
growing demand for guest accommodations in strategically located, well
maintained and spacious log cabins. Many visitors’ to the area are looking for the
complete mountain experience and staying in a log cabin is just the type of
accommodations they demand. We have been successful at attracting the
knowledgeable, experienced and adventurists’ vacationers keeping our rental
properties full or near capacity year round. Thanks to our use and advertisement
on the internet, the private vacation home and log cabin business has grown
tremendously. We have found a lot of success attracting and retaining to savvy
travelers who once stayed only in large hotels. Now they are able to experience
the mountains in the comfort and convenience of our log cabins. Here is a report
from a leading vacation rental directory called

Whether traveling for business or pleasure, when given the choice of renting an entire
vacation home, apartment or condo, or staying in a private or shared room, 98 percent
of travelers say they prefer to rent an entire home. Less than 2 percent prefer
renting a private room in a home and less than 1 percent prefers a shared-room
Dreaming of a Vacation Home of Their Own
When asked if they have considered buying a vacation home, about one in five (20
percent) of travelers say they have dreamed of owning a vacation home.

“While many people dream of buying a beach home or mountain cabin, most don’t
realize that it’s more affordable than they think,” says Tom Kelly, real estate
expert and author of “How a Second Home Can Be Your Best Investment.” By
buying the home and then renting it to travelers, second home owners can
generate rental income that can help offset the mortgage and other home costs.”

The Home Away report found nearly one-third (31 percent) of vacation rental
owners have generated more revenue this year compared with the same period
last year, and approximately 40 percent of owners reported generating about the
same amount of income from their properties as they did last year.

What we have put together for our friends and guests is a complete, “Turn Key
Program” that allows you to own your very own Smoky Mountain Log Cabin while
letting other family vacationers help pay for and maintain your log cabin home.

With interest rates at historic lows, land prices down over 20, 30 and in some
cases 50%, and with banks willing to lend money again to qualified buyers, now is
the time to consider investing in a log cabin. There is no better opportunity then
to buy real estate and to build a log cabin here in Alarka Highlands.

Many financial experts agree that real estate is once again a solid investment with
steady long term growth. Most banks today will lend up to 80% of the appraised
value for investment property. The Smoky Mountain Log Cabin Ownership
Program that we are offering today is based on our most popular Log Cabin floor
plan. On average, this unit is currently selling for $249,000. This price will vary
depending on the lot size which ranges from 1.5 to 2.5 acres.

Here are some photos from the most recent two cabins we built and sold. One
was sold to some friends/repeat guests and the other to a family member.
Using the $249k figure an 80% loan would require a qualified buyer to invest
roughly $49,800 towards the purchase of the cabin and property. This is actually
a good thing. Banks require this so that you yourself have a vested interest in
your vacation cabin. Unlike prior years where banks were loaning 100% and in
some cases 120% of the value of the property, many people had no money vested
in the homes. Consequently, “the Bubble” burst. Thankfully the trend is going
back up on the value of property and log cabins. Let us help you make your
vacation home dream come true.

We will work hard every day to rent your cabin and you will benefit from our
dedication, experience and market knowhow, maximizing your return on the
cabin when you are not vacationing in it yourself. Below is a historical chart
showing the median value of homes from 1940 until 2000. This chart shows that
since 1930 home values have quadrupled during this time. We choose this time
period to leave out the “irrational exuberance” that was witnessed in the past few
years. This rapid appreciation is not what we want to base our information on.
Our model is based on steady, long term generational growth.

Historical Census of Housing Tables - Home Values US Census

Median home values adjusted for inflation nearly quadrupled over the 60-year period
since the first housing census in 1940. The median value of single-family homes in the
United States rose from $30,600 in 1940 to $119,600 in 2000, after adjusting for
inflation (see graph). Median home value increased in each decade of this 60-year
period, rising fastest (43 percent) in the 1970s and slowest (8.2 percent) in the
1980s. Both home values adjusted and unadjusted for inflation are presented.

Median Home Values for the United States Adjusted to 2000 dollars

 2000         1990        1980         1970          1960        1950        1940

$119,600     $101,100     $93,400      $65,300       $58,600    $44,600    $30,600

This final chart shows the visitation to the Great Smoky Mountains National Park.
With over 9 million annual visitors per year, the GSMNP is the number one most
visited National Park in the United States.

   Great Smoky Mountains National Park
   Park Visitation
  Over 9,000,000 visitors enter the park each year. The following table lists the number of
  visitors entering the park each month for the past five years.

                             2005             2006             2007         2008              2009
   January                345,009        363,998            350,818       322,865       323,614
   February            347,144       332,912      342,540      340,558       334,515
   March               524,650       557,555      564,878      553,078       521,140
   April               652,265       725,298      701,353      628,593       770,858
   May                 767,056       732,978      810,438      783,847       788,974
   June               1,124,130    1,113,186    1,116,371     1,063,589    1,181,938
   July               1,333,994    1,280,865    1,313,210     1,257,396    1,404,034
   August              997,352       920,331    1,011,693     1,049,206    1,035,277
   September           854,342       928,487      951,432      819,816       845,655
   October            1,054,311    1,128,927    1,092,798     1,096,711    1,052,137
   November            721,684       702,589      677,203      652,023       708,797
   December            470,540       502,089      439,519      476,328       524,771
   Total              9,192,477    9,289,214    9,372,253     9,044,010    9,491,436

Some other things that highlight this area is the Nantahala River which sees over
200,000 rafters per year and in an overwhelming vote in January 2007, the
Eastern Band of Cherokee Tribal Council approved a massive $633 million
expansion for Harrah's Cherokee Casino & Hotel. Completion of the $633 million
project is expected by 2012. The 5 year project calls for total renovation and
expansion of the casino floor and construction of a 3rd hotel tower, luxury spa
and a new 3,000 seat Events center. In addition we will have new hotel and casino
parking garages and food and retail outlets.

Some will always like the to stay in a hotel but as the HomeAway report showed
earlier, 98 percent of travelers say they prefer to rent an entire home. That’s why
we believe that many travelers to the Smoky Mountains do opt for that real
mountain vacation preferring to stay with us in the coziness and comfort of an
authentic Log Cabin.

With 89% of the land in Bryson City and Cherokee ( Swain County ) owned by
either the Federal Government ( Smoky Mountain National Park ),The Cherokee
Indians ( Indian Reservation ), The TVA ( Tennessee Valley Authority ) and the
USFS ( United States Forrest Service ), that leaves only 11% of the land available
for purchase for private use. With land use restrictions already in place on much
of the remaining 11% and developments such as Alarka Highlands where 150 of
the 350 acres are preserved as common areas and nature preserves, local
estimates are that only 7% of the land in this county is available for building.
When this runs out, it’s gone. Of course there will always be re-sales available but
it’s getting harder to find a good log cabin for sale in the area. If you do find one,
chances are it needs repairs or the asking price is too high because it has been a
successful rental property for the owner and they know they can ask for a
premium price.

As evidenced by Bryson City’s local population of just under 1500 residents and
the entire county population, according to the 2008 census, consisting of just
13,512 people, it’s obvious we will never be a Gatlinburg TN, a Branson MO, or an
Aspen Colorado. And that’s good news. We hope to always be just what the
welcome sign reads as you enter our small mountain town.

The “Turn Key Program” also offers you a complete property management team
whose primary goal is to rent your cabin. Our Sister company, Bryson City Cabin
Rentals, handles all of the marketing, reservations, cleaning, and maintenance of
your “Investment Vacation Log Cabin”. Our dedicated team will look after your
cabin like it’s our own. Quite frankly, we have to so that we ensure that our
guests, your tenants, are happy. We thrive on repeat business and that wouldn’t
happen if we didn’t offer our guests’ superior service in clean well maintained

Based on the scenario we were discussing earlier, with an 80% mortgage on your
$249k Vacation Log Cabin, you’re required down payment of $49,800 would be
your direct investment. Using comparable cabins in our rental program, past
performance for this size cabin has yielded an average of $32,000 in gross
revenue per year. Subtracting our 50% management fee and you can expect to
earn $16,000 from the rental of the cabin per year. That should just about cover
your mortgage payments for the year and you still get to use the cabin for your
own vacation.

Please note that while we have been in this business for over 11 years and like to
believe we have a pretty good idea of what we are doing, past performance is no
indication of future performance. We feel we have been blessed to have
weathered all kinds of global events such as the dot com boom and bust, the
tragic events of 9/11/2001, and the recent real estate crash. We have seen many
changes in the vacation rental business over the years and we feel we have
positioned ourselves to continue to be a market leader in our area. We have
witnessed firsthand that no matter what seems to be going on in the world
around us, people still want to get away to spend quality time with their families.
It’s why most of us work so hard for 50 weeks out of the year, just so we can
spend 2 weeks away from it all with our loved ones.

When you consider your down payment of $49,800, rounded up to $50k for
easier math, and we compare that to the gross revenue paid to you of $16K, you
can see that you would be receiving a gross return of 32%. Compare that rate
against the average savings account yielding 1.2% (as of 11/15/10 per

There are expenses associated with the ownership of a cabin. First and foremost
is the monthly mortgage payment which based on today’s 30 year fixed rate, for
investment property, of 4.75%, your monthly mortgage payment, without taxes,
would be $1,040.

Taxes are another expense of ownership. North Carolina has one of the lowest
tax rates on investment property like a log cabin and for a property valued at
$249k the yearly property tax is $822. When I tell folks what the taxes will be,
they always ask if that’s per month! When I tell them that it’s per year, they have
to ask again because they just can’t seem to believe it.
Going with the gross past performance revenue of $16k per year paid to you, this
would average out to $1,333 per month in gross rental revenue.

With estimated monthly expenses of:

       Mortgage payment                 $ 1,040
       Property taxes                   $    68
       Insurance                        $ 100
       Power                            $ 150
       Water                            $     20
       Sat/phone/net                    $ 100
       HOA Dues                         $     40

Total Monthly Expenses                   $ 1,518

So with average gross monthly revenue of $1,333 less $1,518 in average monthly
expenses, this nets a negative of $185 per month. So technically our “Smoky
Mountain Log Cabin Ownership Program” would cost you $185 per month to own
your very own cabin in the mountains.

Now, let’s factor in a few other benefits of owning this Vacation Log Cabin and
you can see that $185 is a small price to pay for your financial and lifestyle
investment. First and foremost, I would encourage you to use your cabin as your
family destination for your vacations. After all, I would image that in addition to
you seeing this as a good investment you must also enjoy visiting this area and
the many things to do here such as:

Enjoy waterfalls in   Tubing and         Whitewater rafting   The nation's largest The Mountain Farm
the Deep Creek        swimming on Deep   and kayaking on      private residence    Museum near the
area of the GSMNP    Creek in the          the Nantahala River Biltmore Estate is     Cherokee Entrance
                     GSMNP                                     just an hour away      to the GSMNP

The Great Smoky      Harrah's Cherokee     The drama Unto        Smoky Mountain       The Deals Gap Tail
Mountains Railroad   Casino offers         These Hills is just   Jet Boats is just    of the Dragon is
offers scenic        entertainment,        one reason to visit   one way to enjoy     just one of the
excursions year      restaurants and 24-   the Cherokee          boating on Fontana   area's scenic
'round.              hour gaming           Indian Reservation    Lake                 roadways

The massive          World-class fishing   The Great Smoky       Smoky Mountain       Stecoah Valley
Fontana Lake is      in our mountain       Mountains National    Trains is a museum   Center celebrates
contained by the     streams or the        Park offers 800       of more than 7000    our Appalachian
highest dam in the   placid Fontana Lake   miles of hiking       Lionel train cars    heritage with music
eastern US                                 trails                and engines          and crafts.

So what better way to check up on your investment than to spend your vacation
time in your very own Log Cabin. You save a few ways here. First, check with
your accountant as you might be able to deduct a portion of your travel expenses
while checking up on your property and of course certain repairs and
maintenance on your property can also have some tax benefits. Another big
savings is the cost you would have spent to stay at a comparable Vacation Rental.
If we use the average rate we charge for a cabin like the one you would own, it
would cost $150 per night. If you typically vacation 2 full weeks out of the year
and get away for a weekend here and there you would most likely use your cabin
20 days out of the calendar year. Of course to benefit you I would consider not
using the peak times of year when we can typically charge a premium for your
cabin. So at 20 days a year times $150 per night that is equal to $3000 and after
travel expenses, groceries, and entertainment, you would most likely be spending
roughly $3600 per year in lodging expenses. That’s a savings of $300 per month
so when you factor that into the $185 out of pocket monthly expenses you would
have from the cabin, you now have a net gain of $115 per month.

Another huge benefit of owning this Vacation Rental is the Mortgage interest
deduction you can claim on your yearly taxes with the IRS. The benefits of this
will vary depending on your individual circumstances so please be sure to consult
your tax advisor for the true benefit to you and also inquire about depreciation
allowances that can also benefit you.

The last thing to factor into the investment equation is that with every monthly
mortgage payment you make, you are building equity in your log cabin. Over
time this equity will increase and if historical land prices continue to rise over the
long term, your equity will increase even more. This is not a get rich quick
investment but rather a long term opportunity designed to build “family wealth”.

How many of you in your 30’s and 40’s would love to be able to leave behind an
asset for your children, one that would be paid for by other renters and not
yourself? As we have mentioned earlier, past performance is no indication of
future performance but if the long term trends continue, a Log Cabin valued at
249k today could very well be worth much more in the future then it is worth

I am certainly no scholar on the subject but like you I hear many financial experts
who believe the best way to build “real wealth” over the “long term” is by
investing in real estate. And if that still holds true today, as I believe it does, then
I can’t think of a better time in history to buy an investment Log Cabin. Interest
rates are at their lowest prices of our lifetime and we’ll probably never see these
rates again. Also, let’s not forget that land prices have come down as much as
50% in some areas. How’s this for a good reason as to why it’s a good time to
buy. Just 2 short years ago a few lots in the Alarka Highlands Development sold
for $350k each. That was just the land alone with NO cabin. So by you taking
advantage of buying on this market correction, you are getting the same land for
$100K LESS plus you are getting a Log Cabin.
After you have had a chance to consider this opportunity for your family, please
feel free to call me on my personal cell phone at 828-507-5627 with any questions
you might have. There will be no high pressure sales pitch from us. Quite frankly
we have never chased people down to pressure them into buying an investment
cabin. The investment numbers and the ownership benefits speak for
themselves. It’s either something you see a benefit in or you don’t. If you would
like to discuss this further, please call between 8am and 6pm any day but Sunday.
Remember, we live here, we work here and we love calling the Smoky Mountains
home. We are not offering some get rich quick scheme, or promising you that you
can quit your real job. What we are offering is a real tangible investment in a Log
Cabin that we believe represents a great long term investment for you and your
family to not only create lifetime memories in but to also assist in building “long
term wealth”.

One last consideration. How many of you watched your stock or 401k portfolio
nose dive after the market crashed in 2008 only to sell at the bottom? And how
many of you watched the market come roaring back stronger than it did after the
Great Depression while you were sitting on the sidelines? The biggest question to
ask yourself is will you stand by and watch the real estate market steadily rise
while you are sitting that one out too? The program we are offering obviously
works best when we can keep your monthly expenses down and the biggest
monthly expense is your mortgage payment. I personally do not think we will
ever see rates this low again in our lifetime. At some point rates will go up and
while this program would still work with higher interest rates, why not make it
work during the most profitable time?

So that we don’t create our own “little real estate bubble” we are limiting the
development and sales of our Log Cabins for rental purposes to just 10 per year in
the Alarka Highlands project. Unlike the excess on Wall Street, we don’t care to
dilute ourselves and grow at a rate faster than supply can keep up with. We want
to sustain all of our investments in our community and 10 cabins will achieve that
One last thing, for a limited time only we are currently offering a free 2 night
stay in a cabin, similar to the ones we have been discussing, to those who are
interested in talking further about this program. To insure that you are a
qualified buyer we ask that you obtain a pre-approval letter, from the bank of
your choice, for a loan for this kind of investment property. Most banks and
lenders will pre-screen you right over the phone or internet in less than 1 day.

 Here is a link to a frequent guest of ours, Robert Owen, who has agreed to assist
in the mortgage part of the process. I have personally met him and his family as
they have stayed in our cabins several times recently and Robert just put a loan
package together for my Mom Rita who is purchasing her first Log Cabin here in
Bryson City. Although I would love for Robert to get your loan business, you are
under no obligation to use him as your mortgage broker.

Robert Owen, Mortgage Banker

Brand Mortgage
101 Lochlyn Place
Suite-B Bonaire, GA 31005
478.322.4000 ext.21321 Direct 478.334.5018 Cell 866.975.7911
Apply online:

For those of you that take us up on the free 2 night stay by simply providing a
pre-approval letter from your lender of choice, we are also offering, to those
who decide to purchase and sign a contract between now and May 31st, a free
hot tub and furniture package with a retail value of $11,000. With just a few
personal touches, some decorations, your kitchen wares, some odds and ends,
an initial linen order, some photography and integration to our website, your
investment Log Cabin will be ready to start generating revenue to immediately
help you to recoup your investment.
Well I think that’s it. Thanks for taking the time to read about this exciting
opportunity and again, if you have any questions please feel free to call me on my
home number at 1-828-488-5626 or my cell at 1-828-507-5627

Best Regards,

Kevin Beauchesne and Family

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