Log Cabin Property Available for Sale

I was recently visiting my Georgia Blue Ridge Mountain log cabin property. Since I was in the neighborhood, I stopped by the developer’s sales office to say hello. My sales rep was there and we started discussing the current state of the market. He mentioned two properties for sale that were special bargains. He offered to show them to me and always being curious, I agreed.

The first property was over an acre with a four bedroom house. Fortunately, there was a couple looking at the house when we arrived and the house was open. Although it wasn’t a log cabin, I still found it to be of interest. It had three floors and two of them opened to large decks off the back. The view was nothing like my property provided, but the bottom line was the asking price, $150,000. The owner was apparently anxious to unload it.

My first thought was to buy it primarily as an investment, live there for a few years and then sell. The gain would be applied to building my log cabin. There was only one problem. I already had a home that was under water and I needed to hold onto it until its resale value re-surfaced.

The second property was undeveloped land. However, it was special. Next door is a private waterfront trout lodge. It borders on Talking Rock Creek with almost 250 feet of creek footage. The property is pie shaped and covers 1.32 acres. The land across the river rises straight up. Part of the opposite cliff is pure rock while the rest is tree covered. It is a rather impressive view. Even more impressive is the asking price, $125,000. Check out two scenes of the river from this property.

                                                  The view up river from the property

                                                                     Just next door.



If you have any interest in property, send me your contact info. I will get you set up with the right person. Contact me, Bob Saunders, at rbs0804@aol.com.

Log Cabin Land in North Georgia

Since moving to Georgia, my wife and I bought some Blue Ridge Mountain land on which to build our log cabin retirement home. We had taken a few day trips to northern Georgia and were very impressed with the scenery and recreational alternatives. One day, I received a sales call from a company that was selling properties in one of its resort developments in the mountains. I accepted a free Saturday night stay in Ellijay in return for looking at a couple of their available properties.

The salesperson first drove us to Carter Lake which was just north of the development. The lake was beautiful and designed for boating, swimming and fishing. Then he drove us the long way through the development to our first destination. The mountain scenery was spectacular. We finally reached what I assume was their best remaining unsold property. The property was at the end of a cul-de-sac that ran along the top of one of the mountain ridges. The ridge was surrounded by several other ridges as well as some long distance mountain views. We looked at a couple other pieces of land but we were already sold on the first one. We negotiated and signed the purchase contract within a week.

Despite our abbreviated research, I have no regrets having made the decision to purchase. The property’s mountain views are awesome and it was the ideal location for a log cabin. Nonetheless, if you plan on buying land for a mountain cabin, I would recommend checking out your alternatives more thoroughly than we did. Since we bought the land, we have done some more sightseeing in the Blue Ridge Mountains. One time, we headed east from our property on Route 136. We missed our turn to get onto Route 511 south and continued east. Our missed turn proved to be good fortune. Route 136 ran through more mountains and some pull over areas with rather spectacular views. Eventually, we hit Route 400 and were able to head back south.

More recently, I visited the town of Blue Ridge, northeast of my property. I asked for the best way back to Route 411 which runs north/south nearby my property. I was given directions and found myself on Route 52 west. It proved to be an impressive drive. The road ran up and down the mountain, again with spectacular views. I was finally compelled to pull over and take some pictures. I noticed a number of log cabins situated alongside the road.

So, once again, I recommend checking out your alternatives. There’s a lot of undeveloped land in the northern Georgia mountains upon which to build your log cabin home. Given our current economy, now is definitely the time to check it out.

Buying Your Log Cabin Land through an IRA

I discovered a while back, that I could make real estate investments through my IRA where all of my investment money was situated. The real estate market was (and still is) ripe for a killing if you have the money available. I ended up buying a repossessed four bedroom, two bath house from a bank for $36,000. I paid for it as well as the rehab costs from my IRA. It’s now generating $900 a month rent (less property tax, insurance and maintenance) that goes back into the IRA tax deferred. I’ll probably sell the house when the market comes back. The gain will go back to the IRA still tax deferred.

Around the same time, I began to look at retirement properties in the southern Appalachian mountains. I found an awesome two acre property on a ridge of the Blue Ridge Mountains in North Georgia. This was the ideal location for my log cabin. Because it was still a buyers market, it was also the ideal time to buy it. Due to personal considerations, I needed to tap my IRA to make the purchase. I could have withdrawn money but because I was under 59 ½, it would have been subject to a 10% penalty as well as become currently taxable as income.

I called up my IRA company and was advised that I could buy land as an investment. Given the discounted price I was paying, it really could be considered an investment. I ended up purchasing the land through the IRA. Property taxes and any other ongoing expenses are also paid by the IRA as they come due. When it comes time to build my log cabin on the land, I can take total control of the land by distributing to myself.

To invest in real estate, you need to set up a self directed IRA. You can roll over funds from a regular IRA tax free. There are a number of companies that specialize in self directed IRAs and real estate investing including Guidant Financial and the Entrust Group. If the value of the real estate is expected to appreciate, you can also utilize a self directed Roth IRA and pay the taxes over the next four years. If the real estate is not distributed for five years, it will incur no tax when the deed is transferred to you personally. They do charge annual fees that are not nominal but they can provide invaluable advice.

Financing Your Log Cabin Land Purchase

You’ve decided to make that land purchase for your eventual log cabin retirement home site. Now is definitely the time to buy. The drawback is getting financing. If you haven’t already started your research, you’ll soon discover that undeveloped land is not exactly a lender’s favorite collateral. A lot of major banks aren’t interested in financing only land. First of all, you will want to focus on smaller local lenders that are at least familiar with the area of the property.

Why is undeveloped land so much more risky than developed? It’s primarily because unimproved land can’t be used to generate income. It’s also a lot easier for the borrower to stop making payments and walk away from land than a property with his home on it. If there’s no road and/or no utility access to the land which is not unusual for a log cabin site, lenders are even less interested. There’s a lot more downside risk than interest income for the lender.

Due to this collateral risk profile, lenders that do finance land, will have much more stringent conditions than a home mortgage. They want to be assured that you have the ability to make the payments. The more confident they are, the lower the down payment required. You can also provide other collateral besides the land. In any case, they don’t want your land. They want your monthly payments. They will typically require:

Higher credit standing
Higher interest rate
Shorter term – 10-15 years compared to 30 year mortgage
Higher down payment 25-30%

If you don’t have the full down payment or your credit doesn’t cut the mustard, what do you do? There’s always one possibility. Who is possibly even more motivated than you for you to be able to buy the land? The seller may be willing to provide you with financing. The conditions such as financing term and rate will depend on your negotiating skills, how desperate the seller is and when the seller needs the money. He may be perfectly content to just get a payment every month for a long term. A seller will usually want at least 20% down but again, that is negotiable.

I bought my log cabin land from a developer. I ended up paying 100% cash from my IRA (see my related article “Using Your IRA to Buy Land for a Log Cabin.”) I did find out that the developer had occasionally lent short term money to buyers. The financing structure was a ‘land contract’, also known as a ‘contract for deed.’ The term is 12-18 months and a down payment is required. The monthly payments include some principal amortization. A large balloon payment (remaining principal) is payable at the end of term.

The developer still holds title and if the buyer does not refinance/pay off the balloon at the end of the term, the developer keeps all the payments as well the property. If you do refinance, you get the title. You had better be confident in your ability to refinance or this option is quite expensive.

Your Land Purchase

Rural land is a popular choice for a log cabin location. My top factors were the view (had to be a mountain), the terrain for building and then the price. There are a number of other factors that should be considered when choosing your property location.

Medical Care Retirees in particular need to be concerned about quantity, quality and distance to Medical facilities.

Utilities Does the property have access to public water, sewer and electrical utilities? My property has water and electrical access. There will be a charge for me to connect to the water line. I will need to put in a septic system. With a septic system, a ‘perc’ test is needed to determine if the ground drainage is at an acceptable level. I had the land developer pay for this test and guarantee acceptable results as part of my purchase agreement. Make sure you create a list of all utility related expenses you will incur and research what how much they are.

Other Access Concerns Where is the location of nearest water hydrant and fire department? How far is shopping? How far are recreation facilities? How far is regional airport? Are roads well maintained? Any problem with construction equipment and log delivery trucks getting to property?

Building Terrain My property is on a ridge and the slope of the building area is about thirty degrees. I will need a basement to accommodate the slope. That’s fine for me because the basement will provide the grandchildren’s entertainment and sleeping areas. There were a number of other properties available with better views but with steeper grades. A builder told me that retaining walls would have to be constructed on those properties…more money. Don’t forget what’s underneath the top soil. My brother bought some lakefront property but it wasn’t until the construction began that the rock ledge was uncovered…more money. And don’t ignore the possibility of flooding. Do your research!

Zoning and Development Research zoning rules for the area. How will future growth affect your enjoyment of the area? Will there be industrial development allowed nearby? What will be population density? What are rules affecting your building plans for the property? Does your land development have their own set of rules? I am pleased to say that mine does. The association has to approve all land improvements. No trailer habitation is allowed. There will be no miniature chicken farms. Do your research!

Local taxes

How much property tax will be assessed on your improved property at today’s rates? Will local infrastructure costs increase as area is developed? Higher taxes will surely follow. Fixed income residents need to be prepared.

Our Land Purchase Experience

Where do you buy land for your dream home? Like Robin and myself, many log cabin fans are looking for a rural mountain experience. We moved to an apartment just outside Atlanta from Connecticut in 2005 and liked the southern climate and friendlier (except behind the wheel of a car) residents. We eventually bought a town house in Marietta and then began to consider a retirement home location. We took advantage of the ‘free weekend’ offers from real estate developers and looked at a number of mountain properties in Tennessee and Georgia. Last year, we finally found a property at the end of a cul de sac ridge in a Georgia Blue Ridge Mountain land development with gorgeous views of the surrounding mountains. There is also an accessible lake at the northern end of the development. I immediately envisioned myself sitting on the back porch with my early morning coffee gazing at nature’s majesty. The developer had repossessed the property from the original purchaser and offered it at a discounted price. We fell in love with the location and views. The property sold itself. We negotiated a lower price (now is the time to buy) and closed. God willing, in the not too distant future, I will be walking the numerous roads and cul de sacs in my development and experiencing both the physical and mentally uplifting benefits. I also plan on acquiring a canoe. I’m not a fisherman but you can’t let a beautiful lake go to waste.

The area surrounding our property is still quite rural. The three top industries are logging, cattle and chickens. Our property is located in the metropolis of Ranger, a ‘Georgia Pioneer City.’ That means the 2000 census results were 85 citizens and 44 households. I haven’t bothered to find out the latest update. The current downtown strip surprisingly includes a post office along with an antique store, a small industrial business and a few deserted buildings. If you don’t love nature like me, you might become a little bored. However, there is a more developed region to the east, about a half hour drive, which includes a Super Walmart, restaurants and other retail signs of civilization. If Walmart is there, you know that the experts expect the population to continue to grow. With the continuing influx of retiree imports like ourselves, even Ranger may eventually support a McDonalds.

Ranger is only an hour drive north from Marietta which in turn is only a twenty minute drive (non rush hour) from downtown Atlanta. Ranger may be in the boondocks but the city is within a reasonable distance. Although not so important to me, you don’t have to give up the benefits of city entertainment and social activities.

In any case, now is the time to buy. Don’t wait until the economy recovers. If you’re a nature lover like me, I recommend the southern Appalachians. There will be some occasional snow in the winter but I won’t mind. I’ll have that fireplace cranking. Spring arrives early and the Falls are just as colorful as up north. My bottom line recommendation: fall in love with a property like we did and take the plunge.