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If you can read this article you can sell your house without using a realtor. I’m doing it now and its taken 2-4 hours a week to keep the sale on track. Selling without using a realtor will save you 4-7% on the sale price. The median priced home in the US in 2008 is $212,400. A 4-7% commission on the sale is $8500- $15,000! That’s a lot of money. How long would it take you to save $15K after you pay your mortgage, food, clothing, children’s school, insurance, car payments, income taxes, state taxes and pizza on Fridays? This is the story of what I did to sell my own house; how it happened, what worked, and what didn’t. I’ll tell you what I would do differently the next time, problems that had to be solved and tips I would offer other sellers who want to sell their house without using a realtor.

Worse Time to Sell, Ever!

There has never been a worse time to sell a house than now (10/8/2008). Truth be told: I had the ability to avoid selling at the wrong time, but, got caught for reasons beyond the scope of this article. I’m not complaining: At least I was able to sell, to find the buyer myself and for what I know to be the highest price possible. The excess inventory of houses on the market is huge, prices are down 30% and the average house is on the market for 11.2 months before being sold or taken off the market. What made the process harder for me was the constantly falling prices throughout the sale. If I can sell a house in this market, without a realtor, from three thousand miles away without even showing up for the closing then every seller has good reason to be optimistic.

Help-U-Sell Wouldn’t Return My Calls

The first thing I did was look for a company I saw on 60 minutes called Redfin. I liked their philosophy on breaking out realtor services into parts and giving the seller the option of choosing which services they wanted. Since I was selling from a distance I thought paying for the help would be a wise tradeoff. There were no Redfin offices in Boca Raton, Florida. So, I looked for a local Help-U-Sell since they break out their services, too. My wife used them to sell her house in California and had a good experience. She believes it saved her a lot by using them instead of a old-school realtor. They added her to the MLS, advised her on price, did several open houses which eventually produced a buyer. My first call to Help-U-Sell was not returned. My second phone call to Help-U-Sell was not returned. My friend David called a third time and they didn’t return his call, either. This is what lit my fuse and got me thinking about selling it myself. If they won’t return my calls maybe they won’t return calls from potential buyers, either? And after my wifes experience I didn’t want to have to pay the whole 6% commission to an old-school realtor.

Brief Summary of My Sale

I live in California and will be closing on the sale of my house in Florida, this week. I hired a friend to prepare the house for the sale, set the price, found the buyer, arranged for a Title Company to handle the escrow and the paperwork and will not be present at the closing. The title company is sending all the documents to me in California to perform what they call a ‘mailaway’ closing. I’m not bragging. It’s a description of what happened. My friend David spent two weeks at the property preparing the house, painting, putting up the sign, hanging a lockbox on the door, gathering info on the local market and fixing up the kitchen and bathroom. Excluding David’s work, its taken 2-4 hours per week to find the buyer and keep the sale on track.

The Steps

These are the steps you’ll be going through to sell your house:

  1. Preparing the House
  2. Setting the Price
  3. Finding a Buyer
  4. Negotiating the Details
  5. Doing the Paperwork
  6. Solving Problems
  7. Closing

If you’re like me you may think you need a realtor to help with every step. What I’m going to explain in this article is that realtors help you mostly with Step 3.: Finding a Buyer. I was worried about all the paperwork. All those contracts, disclosures and escrow forms. Don’t realtors handle all that? No, they don’t. The Title company does. Your realtor just calls one and turns it over to them. You can call one, just as easily. They make the paperwork a breeze. You have to manage all the other steps, anyway, whether you use a realtor or not. With a little extra effort you can find your own buyer (Step 3), too. If you do, you’ll be paid handsomely by saving yourself a large commission. To put it another way: Finding a buyer is the most expensive part of the process to outsource.

Warning: This Article Could Be a Book

Some books have one thing to say and take a book to say it. This article has a books worth of things to say and will take an article to say it. Update: I did have to make this article into a book. It grew to ~20,000 words and is now a mini-book. I’ll post a few more thousands words, here, and you can download the book, for free … Click here to subscribe A web search reveals that people have written books about this subject. I haven’t read them, so, can’t vouch for them. Searching Google turns up many articles about this topic. I found these articles to be encouraging, but, not conclusive. They don’t seem to be written by actual sellers who went through the whole process of selling their own house. The next time you search for articles you’ll find this one. Problem solved. The goals for this article are:

  1. To document and guide you through every aspect of one sale: My own.
  2. To be complete enough that you could make a decision to use, or not use a realtor for your own sale.

I’ll be as brief as the subject allows. When you’re selling your own house it won’t seem too long. Hopefully, it will be saving you time, effort and some money, too.

Terminology

A broker holds the licence for a Real Estate office. They are the only legal party eligible to receive the entire commission. It is harder to become a broker than an agent in that there are more tests involved and more legal requirements to keep the license active. An agent works for a broker and receives a percentage of the commission for conducting the sale. A realtor could be either an agent or a broker. This article will use the term Realtor, in most cases. It does’nt matter whether you’re working with an agent or a broker. They’re both realtors and, therefore, working for a commission.

Real Estate Commissions – The Last Dinosaur

The internet has destroyed or brought into the new millennium every commission known to man. Every commission, that is, except for what realtors take for connecting sellers with buyers.

Realtors Make More than Architects?

My brother was an architect. Architects earn one of the hardest BS degrees taking five years of college, not four. When they graduate they spend 5 years preparing for the boards. During that dues paying period they make half as much as a good waitress. When they finally get their board certification they still have to work another five years for another architect because its so difficult to establish a practice. Yet another another 5-year dues-paying phase. Architects design, draw, code, change, every aspect of material and space and attend to every imaginable detail to bring a building into existence. Their exposure to liability is insane to the point that many can’t afford the insurance. If an architect does manage to have his own practice the costs to run the practice dwarf those of a brokers office. What’s the architects commission on a building after this lifetime of preparation, exposure to liability and detailed work on the building, itself? Six percent. That’s right, the same commission a broker gets. How would you compare what an architect does for a building to what a realtor does for it? How would you compare the cost of education and training of an architect to that of a broker? Case closed. I’m not criticizing Realtors, agents or brokers. I’m criticizing the size of their commission. It’s disproportionately large for what they do compared to an architects work on the same building. How much work does it take you to earn the money your about to turn over to the realtor for finding a buyer?

The Biggest Deal of Your Life

Selling your house is the largest deal most people will ever do. Optimizing the 6-7% commission on that transaction should be a priority. I say ‘optimize’ instead of save because, if you do pay a commission, you should get the best service you can and pay only for the services you get. Many people would say they want to use a realtor because it’s the biggest deal of their life. After all, if you pay 7% to an agent that’s still leaves 93%. If you feel this way I still think you should try selling yourself for the first 30-days.

What About the Other Transaction Costs?

Can you save on them, too? Yes. But, why talk about them before you’ve gone after your biggest cost? The other transaction costs pale in comparison.

DIY, Not!

Just because I want to save the 6% commission to a Realtor doesn’t mean I want to conduct the whole sale, myself. No, thank you! These two things are not the same thing. Enlisting the talents of other people is a smart thing to do. And its a brilliant thing to do when selling your own house. I received (And paid for) an extensive amount of help on each step of the process. Several things motivated me to attempt the sale without using a Realtor:

  • My opportunity cost is currently low.
  • I’ve read a lot on the subject and am familiar with the process.
  • I’m an experienced buyer, but not seller.
  • I wanted to see if saving the 6% commission was possible.
  • I have another house for sale and could save 6% on that one, too.
  • If successful I could write this article and help others save a chunk of money in bad economic times.

And, like I said above, Help-U-Sell wouldn’t return my calls. Too bad for them.

Real Estate Expert, Not!

The subject of Real Estate is vast. One could devote a lifetime to all the various aspects to become an expert. Even then, a true expert would have to specialize because there are so many fields of knowledge involved. So, what?! I didn’t have to be an expert to sell my house, expertly. And, neither do you. A mere play on words? Not in my case. I’m selling a house, not running a business or a career. I suspect my perspective is more useful to other sellers because I’m not an expert. You don’t need to be an expert to have each step of your sale be expertly done.

Don’t Become an Agent

Becoming an agent to sell your own house is like “Burning down a house to make toast”. Total overkill. Not needed. In fact, being an agent is probably a liability, see below. Don’t become an agent just to sell your house.

Liability, Not an Asset

In 2002 I studied to become a real estate broker. I enjoy the subject, read all the prep material and thought about taking the tests. But, working as a broker or agent did not fit my personality so there was little point in getting the license. One of the things I learned is there’s a downside to being an broker: They’re held to a higher legal standard of performance. In practice, this means you’re exposed to more legal liabilities because its easier to accuse you of negligence if you have a license proving competence. So, why not just be competent without a license? I’m more interested in having knowledge and understanding than in having a license saying I do. Dishonesty at any stage of selling a house is more likely to blow the deal than anything. But, the law can often be an ass. Let it be an ass to someone else. Don’t get me wrong: I’m not claiming to know as much as a broker or an agent. They have their focus and I have mine. Theirs is to run a business and earn commissions. Mine is to sell my house for the optimal price and keep as much of the proceeds of the sale as possible. Those two areas of focus are not the same.

John T. Reed – Thumbs Up

Much more helpful than reading the material for the brokers license was reading John T. Reed’s books on the subject of Real Estate. I read all 20 of them and they’re the best survey of the field of Real Estate I’ve ever found. Each of his books describe a different aspect of Real Estate mostly for the benefit of investors, specifically. However, taken in total, the reader is given a practical overview of the subject like no other. What’s great about John’s writing is his readability when writing about a complex subject. He will tell you in two pages what would take another author an entire chapter if they had the knowledge to say it. In my opinion that makes John an expert’s expert. Although I highly recommend all of John’s Real Estate books I don’t think reading them is a prerequisite to sell your house without using a realtor. However, there is no doubt that you’ll do a better job of it if you do. You’ll have to decide that based on your goals and time available. It should go without saying that the cost of buying all of his books is nothing compared to the deal you’re trying to optimize. (Note: This article is a report from the battlefield of my sale. Don’t blame John for mistakes I made and write about in this article. At some point, we all have to stop reading and start doing. I read until I was blue in the face and still made mistakes. That’s just the way it goes when you’re in the ring and have to get the job done. Rest assured I made less mistakes, and lost less money, by learning from others experience and writings.)

How Do You Handle a Hungry Realtor?

By understanding what they do, what they charge, how they talk and what motivates them. You may even end up hiring one. If you do I hope you’ll be able to put their role in perspective and limit their service to the help you need to conduct the sale.

Realtors Want Speed, Not Price

Brokers use price when deciding what state, region, city, neighborhood or type of property to specialize in selling. After that its all about speed. Any broker in their right mind values speed over price. Brokers make more money if they sell more houses in less time. Even if they’re only selling one house it’s a better use of their time to sell it quickly. No problem, so far. Why tell you the obvious you may be wondering. Because the higher the price the slower the sale. In fact, if you know the fair market value (FMV) for your house and take 5% off that price John T. Reed refers to it as the ‘Quick Sale Price’. Its called that because you can sell it within a week if the market is efficient. Click here to subscribe

Doesn’t Higher Price Means More for Them?

Sure, their commission, based on percentage, goes up with the price. But, the amount the commission goes up as the price rises is small compared to the commission on the whole deal. Sure they’re supposed to represent your interests and a lot of that is getting the highest price possible. But advising you on the highest price you can get will almost always add time to the length of the sale. That may be ok with you, but, it is not in the realtors best interest. Even worse, setting too high a price is the most common reason for a deal not going through, at all. And setting the price, even for the ‘experts’ is not an exact science. Why take any risk at all, the realtor may conclude. I’m not making a blanket accusation of realtors, here. I’m merely pointing out there’s a natural tension between getting the highest price you can and the time it takes to sell. And you should know that the realtor cares a lot more about speed than you do about price. There’s little to no incentive for the buyer or sellers broker to hold out for a higher price. A realtor will probably tell you if what you’re asking for is too low for the area. But, its more likely a broker will need to talk a seller down in price. Some of that may be to correctly adjust a sellers unrealistic expectations, fine. However, be on the lookout for the suggestion being offered merely to increase the speed of the sale. If it is, make sure that’s what you want to accomplish. Unfortunately, its always to the brokers advantage to lower the price . . . to increase the speed.

6-7% and The Seller Pays It All

Realtors say they only charge 3%. But, there are two realtors: The buyers and the sellers. They each charge 3%. That makes realtor fees 6%. Most of the time the seller pays it all. The marketplace has decided the seller has more to gain from the sale than the buyer. I don’t like that, but, it makes sense when you realize the seller has one house to sell and the buyer has many houses to choose from. Why would a buyer pay broker fees if they can buy the same or similar house and negotiate those fees away? This has become standard behavior so sellers know they have to pay all the broker fees and most of the other closing costs, as well. The exceptions to this are when the buyer doesn’t have competing choices for the house or has decided they must have a particular house. Any situation that would inspire these feelings in the buyer have the potential for the seller to get the buyer to share in the broker fees.

Do I Have to Pay the Buyers Broker?

Not, at all. But, don’t blow a good deal over it. Even if you don’t use a realtor you may get a call from a realtor who has ‘found’ you a buyer. As with all people interested in your house I recommend you show it to them.

Don’t Let Them Screen You

Don’t let the buyers realtor screen your position on paying their commission before they show their buyer the house. If they don’t like what you say they may not show their buyer your house even if your house is perfect for their buyer. This would be a violation of their ethical code as a realtor. But, I don’t recommend you risk losing a buyer for your house by relying on their broker adhering to their own ethical code. On the initial phone call just tell them the truth: You’re willing to consider any offer, agreeable to all parties, that will make the sale go through.

Your Options

If their buyer is interested in making an offer you have the following options for paying the commission to the buyers broker:

  • Recommend the buyer pay since the buyer benefited from their service.
  • Agree to pay them a commission, but, you only pay X% to buying brokers.
  • Tell them you’ll pay if the buyer increases the sales price (Same as buyer pays).
  • Don’t pay them and leave the choice to the buyer (Probably resulting in splitting it).

It’s possible the buyer signed a contract with their broker. That’s got nothing to do with you. Don’t interfere with a contract the buyer may have signed with his broker. In other words, you have options, but not obligations, if a realtor shows up and wants money from you for a buyer.

Offers to Help With the Sale

When they find out you’re not using a realtor they may offer to help you conduct the sale in exchange for a commission. You should already be prepared to handle the sale, yourself. Tell them no thank you. They have enough to do helping their buyer find a house, a loan and guiding them through the sale. You’ve already got a Title company handling everything and don’t require assistance.

Be Prepared For Intimidation Tactics

You may get all sorts of intimidating advice from Realtors, at this point. All of it is aimed at trying to get you to use a realtor instead of finding a buyer yourself:

  • They may threaten to ‘take away’ their buyer (Which violates their professional obligation to act for the benefit of their buyer).
  • They may imply you’re a fool and know nothing about real estate and should let the experts handle it.
  • They may claim you’ll never sell the house if its not on the MLS, which they can generously put you on (For 3%).
  • They may throw escrow terms around in the hopes that you’ll be intimidated.
  • They may try to confuse you on the steps of the process.

Hopefully, you’ve read my entire article by then and don’t fall for any of it.

Divide and Conquer

This is how ‘experts’ do it: They talk fast and confidently, using terms you havn’t heard, about a subject that’s new to you. Your wife, or you, get nervous and says, “Maybe we should stick with the professionals”. The remainder of the conversation is you pitting your instinct up against their ‘expertise’ on a subject you haven’t yet studied. Even if you ‘win’ the argument they change the subject and say another misleading 50 words to start over again. Since you’re going with instinct and it appears the agent is going with ‘facts’ you get in an argument with your wife because she wants to go with the ‘experts’ because the deal involves so much money. I truly hope this article helps you with that situation. I will give you one example, and how I would handle it, below. However, I can’t address everything that may come up. If you do decide to talk with a realtor I recommend studying up on all the potential things that might come up before the meeting. Especially if your meeting as a couple. Why not print out a copy of this article for your wife? Heck, at the very least you can show the realtor this article and say, “Why can’t I do what this guy did?”. Maybe it will change the subject into a service you might want to purchase from the realtor. Something costing less than their entire 3%, I would hope.

One Example and How I Would Handle It

Here’s one example of the kind of misleading advice brokers give out. Its from an article on the web written by a Realtor named Elizabeth Weintraub on about.com. The title of the article is Who Pays the Real Estate Commission? How Does an Agent Get Paid? Elizabeth writes: “It can be argued and, quite rightfully so, that the buyer always pays the commission. Why? Because it’s typically part of the sales price. If the seller did not sign an agreement to pay a commission, the sales price might have been lowered. And therein lies the appeal of buying homes through unrepresented sellers because, given the same logic, those prices should reflect a net sales price without a commission. But those sellers haven’t quite figured this out yet which causes potential buyers of those listings to be consistently disappointed.” Ms. Weintraub’s advice is wrong, misleading, insulting to sellers and meant to intimidate potential buyers and sellers of FSBO (For Sale By Owner) properties. Let me explain why: (Note: This concludes the excerpt from Chapter One of the e-book,  “How To Sell Your House Without Using A Realtor”. It grew to ~20,000 words and is now a mini-book. You can download it, for free, from McGillespie Free Resource Library.) Click here to subscribe

As promised by investor Lt. Col. Thomas Baker, the forensic reconstruction of Galt’s Gulch Chile has been completed and was hand-delivered to the FBI and the IRS on June 8th, 2015. Informed by the reconstruction, investor David McLeod filed criminal charges against Kenneth Johnson and Pamela Del Real in Chile (Docket number RUC 4710-2015) on May 20th. More US civil suits against Johnson are likely to follow.

On a phone call with Cathy Cuthbert, she described the forensic recontruction as a wellspring of previously unknown facts and details about what actually transpired around GGC. Timelines, Contracts, Accounting, Wire Transfers, Corporate reports, Recorded conversations between Johnson and investors, Videos, Credit reports, etc. showing Johnson to be at the heart of the problems surrounding GGC he has blamed on others. In other words, despite Johnson’s claims of working for the investors as a developer the reconstruction shows that the “service” Johnson has been providing them is similar to that which the bull provides the cow.

Readers of this GGC series will find it no surprise that Johnson used investor funds to spin a complex web of deceit involving multiple entities, off-shore trusts, multiple bank accounts, share swaps with Mario Del Real and others, inflated prices, ridiculous late fees, absurdly negotiated prices, etc. all while using corporate bank accounts like a personal checking account.

It’s tempting to leave Jeff Berwick out of discussions about GGC now that he’s so publicly apologized. Unfortunately, his involvement in cutting Cobin and German out, starting a different entity into which to take title (IGGSA) and trying to get the New Zealand trust and offshore structures in place is quite evident in the reconstruction documents. There’s little doubt Ken Johnson was the instigator of the most serious problems with GGC, and continues to make all things worse with his presence and current behavior. However, to say Berwick wasn’t right there at the beginning is to not tell the story, correctly, at all. As mentioned in Part 3 my hope is that Berwick will externalize his contrite heart into some modest assistance to ongoing recovery efforts or investors in extreme need. With the introduction of these new charges, with more to follow, the publicity surrounding the aftermath of GGC is not going away, anytime soon.

Note: The criminal charges filed by David McLeod, and some documents of the forensic reconstruction I was able to coax from the recovery team, have been added to the free E-book, “The Creature from Galt’s Gulch”. I will continue to add such elements to the book as I receive them and within the boundaries of preserving the privacy of the investors.

Justice Provided by the People Involved

As described by Cathy Cuthbert and Thomas Baker, the breadth and depth of the forensic reconstruction they’ve put together is quite impressive. It’s not only a meticulous investigation and gathering of documents but they’ve formatted the whole thing into a package that makes it accessible to outside parties.

I’m not sure what may have transpired between Tom and Ken but the USMC motto of “No better friend, no worse enemy” might echo in Johnson’s mind for some time to come. That is, if Johnson is able to comprehend what has just happened to him. The agencies he’s just been reported to will hound him for the next decade. Half of that decade will be spent defending himself against the criminal charges that were filed against him in Chile on May 20th, by David McLeod. And, there’s more to come. A rather obvious tip to Johnson would be: The next time Tom makes an offer of either “Friend” or “Enemy” . . . go with the former choice. Who knows? Maybe the recovery team would still let Johnson wiggle out of his fraud if he’d just hand over the land the investors paid for.

The FBI white collar crime fraud division will find that most of the investigative, forensic accounting, and reconstructive work has been done and hand-delivered to them by the recovery team. With so much work already complete perhaps the agency will bump the case to the top of their case-load so they may stand in front of their logo at a news conference and receive some good publicity.

The Del Real Factor

Johnson is solely responsible for inviting a local Chilean, Mario Del Real, into GGC affairs. And yet, investors have been made to suffer Johnson’s endless complaining about problems he’s had with Mario and his daughter, Pamela. That’s because Johnson performed a bizarre GGC stock swap with Mario hoping to make big money on the value of water in an Andes Water company called Rio Colorado. By the time the smoke had cleared Mario owned most of IGGSA and his daughter was the general manager of the company! In other words, Johnson was no longer the dominant share holder of GGC and had lost all control over the entity that holds the land. What great “Development” work, Ken!

(To understand more about this failed deal see Chapter 7, “The Rio Colorado/GGC Share Swap”, in the GGC E-book.)

If you’ve read my “Stolen Car Metaphor” at the end of Part 7 you know my take that Johnson’s epic fail with the Del Real share swap is merely the lamentations of a thief who bungled and lost the proceeds of a previous theft. The fact that Johnson’s audience for these lamentations are the victims of the first theft is exactly the kind of behavior I find consistent with Dr. Robert Hare’s psychopathy checklist.

Any deal Johnson made with stolen shares of stock can, and should be, overturned. Therefore, whether the Del Reals colluded with Johnson, or are merely his victims, is a matter for a judge to decide (Yes, there is no longer any way to resolve GGC disputes without involving state agencies, unfortunately). Pamela Del Real’s resume (She’s now the general manager for IGGSA) shows substantial accounting expertise. Such expertise will make it impossible for her to plead ignorance if there was any foul-play on the Del Reals part.

Johnson’s Latest Ploy, Revealed

Johnson has now revealed his latest ploy and what’s behind his re-occupation of the GGC hacienda and grounds. And, surprise, surprise, it’s a variation on his usual … lies mixed with just enough truth to confuse and divide his listeners against themselves while holding out a carrot and stick for those who either cooperate or resist.

More specifically, Johnson is trying to confuse and divide investors against lead investor Josh Kirley hoping they’ll put pressure on Josh to relent in his legal actions which have locked up Johnson’s sale and pillage of IGGSA assets. He also wants the investors to help him get rid of his “Del Real” problem. The carrot Johnson offers is the same old title to land he’s been promising investors, and not delivering, for the past two years. The stick is his continued presence and purported counter-attacks on investors who “continue to attack him”. For those not familiar with Johnson-speak, the word “attack” describes the actions of anyone who points out to Johnson another of his own broken promises.

If only the investors will help him convince Kirley to relent, and help him get rid of the Del Reals, then Johnson can deliver, at long last, the coveted Titles to actual land the investors have been pestering him about, all this time.

E-mail Between Host and Parasite

A recent e-mail exchange between Josh Kirley (The host) and Ken Johnson (The parasite) is an excellent illustration of what actually went wrong with GGC. It’s also an excellent example of what happens when “The creature” is confronted with truth.

My thanks to Josh Kirley for making this e-mail exchange available:

On Thu, May 28, 2015 at 12:27 PM, Josh Kirley <joshkirley@gmail.com> wrote:

“Ken,

For two years, you keep sending out the same emails. Always full of juicy drama, promising the release of more information in the future. This behavior is unprofessional. It inspires no confidence. Why can’t you just do your job?Try building something. Try living up to your responsibilities. Produce something. Be accountable. If you are GGC’s Minister of Propaganda, who is the Project Manager? Your accusations are baseless and defy all logic.

Tell me if you can refute the accuracy of the following facts. I swear to their order and authenticity.

1) You are wholly responsible for bringing the del Reals into this nightmare.

2) You pleaded with me to give 1 to 2.5 million dollars to Mario del Real for his Rio Colorado Project. You personally vouched for Mario, insisting the Rio Colorado deal was a “No Brainer” and a “Homerun”

3) I told you that I had my suspicions about del Real and would get back to you after performing some due diligence.

4) Once I told you that I was not willing to put money into a second Chilean investment, you totally reversed course.

5) You refused to provide me with del Real’s Ruta number, or even his full name, intentionally stonewalling my attempts to research his background.

6) You told an entire room full of defrauded investors at the second festival that your deal with del Real was a “totally separate” matter between you and him.

7) You told all of us that your alliance with del Real was “none of our business” and would have no impact on our contracts.

8) When I offered to pay, out of my own pocket, to have del Real looked into for you, you refused my help, saying that you feared if I looked into del Real, he might “get spooked” and walk away from your deal.

9) Weeks later, you came back to me, begging for a million dollars. You said that you were double crossed by del Real and you needed me to buy back the shares that you gave to him.

10) When I would not bail you out, you predictably changed your characterization of my relationship to the project from savior to saboteur.

I’m sorry if I cannot respond to each of your lying emails. But, I have to give priority to my day job. I suggest you do the same. Maybe start by paying employees, repaying loans, and living up to the contracts you signed.

Josh Kirley”

The Parasite Responds

“Josh,

As you know, you are lying about most all that you discuss. There are communications between you, Monica Wehrhahn, Ken Carpenter, Alison Sherman, the Del Reals and more. Do you think that those just disappear because you are now pitching your false storyline to yet another news outlet? This has always seemed to be a publicity stunt for you, just as GGC always have been for Jeff Berwick.”

Johnson then goes on a bizarre rant about Jeff Berwick and BitcoinATM, Wire Transfers, Cafayate, Argentina (If you can believe it) and ends with:

“We are working on completing what Mr. Aguirre was unable to complete, or was unwilling to complete. We are working to fix the $1m+ damages that those labeling themselves “rescuers” of GGC have inflicted upon the farm, buildings and property. We don’t spend our time pitching a false story line for our own publicity, as Mr. Berwick and yourself seem to focus on quite a lot.

Ken”

Notice that Johnson does not dispute, nor even address, any of Kirley’s questions or statements. This is the way e-mail “Exchanges” and “Dialogues” go with Johnson. For readers who may have wondered . . . “Why don’t they just ask Johnson if [Insert simple question here] the above exchange with Josh Kirley is your example. Josh speaks the pure truth and asks sincere questions and, in response, Johnson doesn’t respond, at all.

The last paragraph is classic Johnson-speak. For readers who don’t understand the dialect his e-mails usually end with a payoff like this if you know how to read Johnson-speak. That is, you take all accusations as a literal description of what Johnson, himself, has done or is doing. In his last paragraph, therefore, we learn that Johnson has caused more than a million dollars of damage and is pitching false story lines for his own publicity.

Johnson’s Assaults

I’ve spoken with two people who were physically assaulted by Ken Johnson. The first was a young man Johnson tried to push around (Mentally and physically) during Johnson’s employment with The Dollar Vigilante. This young man would not tolerate Johnson’s nonsense and was the first person to speak up to Berwick about his suspicions about Johnson poisonous behavior. If Berwick had listened it’s anyone’s guess how Galt’s Gulch Chile might have played out without the involvement of Ken Johnson.

The second assault was that of a 70-year-old Salesman that worked for GGC who didn’t fare so well in the “Encounter”. Sandy “Clarence” Sandfort was grabbed by the lapels and thrown over a couch by Johnson when he learned that Sandy was about the leave Chile after all of Johnson’s promises had remained unfulfilled. Sandy was severely bruised and Johnson had almost managed to break a few of Sandy’s ribs. He was so shaken up by Johnson’s assault that Berwick had to fly in the next day and negotiate an NDA and payoff to keep Sandy quiet about the assault. Johnson later broke the terms of that NDA by talking about the assault with a third-party. Hence, Sandy’s retelling of the assault to me.

and Taunting . . .

Tatiana Moroz, who worked for Ken Johnson and wrote the GGC theme song, shares her experiences with GGC and with sociopaths in the liberty movement. Most of what involves GGC is in the first 25 minutes of the video, but, the ladies (With Julia Tourianski, BraveTheWorld.com, and Gigi Bowman, gigibowman.com) go on to tell other fascinating stories around the theme.

https://www.youtube.com/watch?v=KqQW5a4dJMk

Contrast the story Tatiana tells in the above video with the excitement she started out with and you’ll get a feeling for the roller coaster ride that was GGC. Tatiana perfectly captures the cognitive dissonance felt by most who’ve followed the promise, and then the reality, of GGC in the hands of Ken Johnson.

Favorite excerpts:

“This nonsense [Sociopaths in the Liberty Movement] is disgusting and ridiculous … and what’s gonna happen, here, is that people are going to leave and they’re not going to want anything to do with it (True Liberty) and all we’re going to be left with is the dirtbags who think this kind of behavior is ok. … And I’m sick and tired of the people that are trying to call attention to the sociopathic behavior within our own movement getting trashed.”

Tatiana’s right, of course. Natural law doesn’t evaporate around people who wish to retain and use their liberties. If anything, we must be more mindful of universal human truths because we are the people exploring the boundaries of liberty. A tolerance for lies, manipulation, sexual assault, and broken contracts is not “What’s up!” in Liberty. Anyone claiming that such tolerance is “Cool” is not a libertarian. They’re just another asshole in disguise.

John Cobin Interview

I had the pleasure of interviewing John Cobin about GGC for 1.5 hours, last week. The interview was mostly for my E-book about GGC. However, of interest, here, is the remarkable consistency of Dr. Cobin’s story with everything he’s said from the very beginning. Cobin is abundantly forthcoming about every meeting, document, e-mail and conversation he’s had with respect to GGC. My reaction to the interview was to tell him that it was a pleasure to speak with someone involved in GGC that looks better and better with each discovered and documented fact about the project.

Cobin said the impression he got from Jeff Berwick and Ken Johnson was that, they alone, might be able to supply the funding for GGC. He had no idea that they would, almost immediately, take his extensive research and information about Chile and GGC and cut him out of the deal. Although he concurs with the possible psychopathy of Johnson he puts Berwick in the same category in terms of the way they defrauded him. And yet, I had the impression that, even now, he would be forgiving of Berwick if approached in some meaningful way to make restitution.

Cobin said Johnson came after him, very agressively, in a libel suit in Chile. Guess what happened when the court date arrived? Johnson was a no-show! I won’t compare a libel suit with a podcast debate, but, I’m becoming quite familiar with Johnson’s cowardice in the face of someone determined to tell the truth. So far, Johnson’s been a no-show on two podcasts about GGC that he, himself, dared me to participate in.

For those interested in Chile I highly recommend the interview James and Johnathan conducted with Dr. Cobin on Monday over at Borderless. Cobin proves himself to be THE reliable source for all of Chile and much of the rest of the “Expat” world, as well. Cobin’s book, “Life in Chile” greatly increased the effectiveness of my 21-day country-vetting trip to Chile in 2012. I look forward to reading his latest book, “Living in Chile” when I can come up for air over the summer.

GGC Theatre

Johnson has been roaming around the property making absurd videos in an attempt to document the damage done by the recovery team. Perhaps the investors share my hope that Johnson continue making these videos as they are helpful in documenting what Johnson, himself, has done.

One of the things Johnson harps on in the videos are the “Damages” done by the recovery team causing a poor yield from the wells. In fact, such poor yields were caused by Johnson’s complete ignorance and inept handling of the well work around the property. Despite the pleadings of the local workers Johnson put Manuel Hermosillo in charge of the wells and the work was terribly bungled. And yet, somehow, the investors end up blamed, yet again, for Johnson’s incompetence. Such GGC Theatre might be a useful prop to help Johnson influence the Chilean locals who have no idea what’s going on with GGC. To those who’ve read the first thing about GGC, however, they are just that much more documentation of Johnson’s failings.

Message to local Chileans:

Johnson’s accusations of others are a reliable confession of his own failings. There is truth in many of the disasters he documents but your messenger is the culprit, not the victim. Johnson’s “Investment” into GGC remains at zero while 76-investors and buyers have given $10.45 million dollars for the purchase of everything you see associated with GGC. 72 of the investors have been begging Johnson to leave for over a year.

What happens next?

First, most of the predictions made in Part 6 seem to be coming true. That includes Johnson hinting that he wants to sell water rights, again. Happily, he’s unable to do so with the current injunctions in place.

Johnson has some time while the ocean water recedes in preparation for a tsunami of new legal problems.

Some think Johnson will stick it out to the end because his claim to be “Working for” the investors is his only defense against the legal actions that have been filed against him. But, Johnson also claims he controls or owns everything (Vacillating between claims of control or ownership) depending on his audience and the phases of GGC. How could someone who owns everything be an employee? How could a trustee (Controls everything) claim to be a trustee of beneficiaries who have been begging him to leave for the past year?

Perhaps Chile, and the local populace of Curacavi, will no longer tolerate Johnson as the criminal charges pile on. If he’s made to flee then we may see more pictures of his backpacks of stolen money while he’s on the run. I think he still has a Paraguayan passport from the passport scandal he was conducting at TDV. Still, all these charges filed with state agencies will haunt him wherever he goes. As of today, Johnson has put a digital data noose around his own neck that will follow him around the globe.

NOTE: Version 1 of this book is ready as of June 11th, 2015.

I’ve put all the articles of the McGillespie.com GGC series into book format and am supplementing it with the latest developments and documents from the recovery efforts. In addition to all the articles of the series the book contains:

  • An Index and description of all people involved, or referenced, in the GGC story.
  • QR Codes for videos, websites, media articles, etc.
  • Links to ALL publicly available articles and documents related to GGC.
  • A Chapter describing the types of fraud that were conducted around GGC.
  • A Chapter describing the five types of contracts that were used with investors and buyers of GGC “Products”.
  • A Chapter describing the Rio Colorado/GGC Share swap.
  • A comparison table of the eye-witnessed actions of Kenneth Johnson to Dr. Robert Hare’s Psychopathy Checklist (PCL-R).
  • Copies of all legal actions or criminal charges filed with regard to Galt’s Gulch Chile.
  • The original “Founders Club” document Cobin wrote, and Johnson later modified, and sent out to all investors who expressed interest in GGC.
  • The original Business Plan that got things started.
  • Download links for all PDF files related to GGC that are too large to be included in the book.

The book will be updated with all the latest developments around GGC including legal actions, criminal complaints, media articles, youtube videos, articles by Terence, and any significant releases from the recovery team.

This is not a traditional book but a working document meant to help the people involved and inform (And entertain!) the public. It’s currently 200 pages, and growing. I may add an index but the e-book format already enables the reader to search for their term of interest, quite easily. It’s currently in PDF format but I could convert it to EPUB and .MOBI if there’s enough interest. Please send me an e-mail if you would appreciate that potential effort.

The purpose of the Book

  • To Document, on an ongoing basis, what is happening with Galt’s Gulch Chile to assist recovery efforts, underway.
  • To be a trusted and reliable source for journalists and media outlets who may wish to write about various aspects of GGC.
  • To tell the truth about GGC while the facts are clearly in the memory of the participants and the evidence is freshly available.
  • To document the crimes of Kenneth Dale Johnson and others so possible future victims may be warned.
  • To Document GGC for legacy reference and lessons that may be gleaned for both GGC restoration and other such ambitious liberty-minded projects.

How to Get Your Copy

Version 1 is ready as of June 11th, 2015. If there’s an update I’ll post the version and date, here, on the page you’re reading.

Go to McGillespie.Com, type your name and e-mail into the boxes under “McGillespie Resource Library”, then hit the submit button. An e-mail will be sent with the password to the McGillespie Resource Library which contains the book and many other resources you might find useful.

For future updates (Or any problems downloading the book) use the “Contact Us” tab or leave a comment, below, on this page with your name and e-mail.

The Jetsetter Show with Jason Hartman

Jason Hartman and Terence Gillespie discuss Galt’s Gulch Chile and many ways to optimize the path for expatriates in Chile and Colombia. Jason has a wonderful transcription posted just below the link for the podcast:

JS 101: What Happened with Galt’s Gulch, Chile?

Borderless Network Podcast

In this episode we have Terence Gillespie on the show to discuss what happened with Galt’s Gulch Chile and some of the lessons that can be learned from what happened there.

Show notes:

The background on Galt’s Gulch Chile (0:50)
Who is Terence Gillespie (4:13)
Why does he care (5:18)
Was Galt’s Gulch a libertarian project? (6:36)
At what point in time did this deal fall apart? (9:40)
How was this theft possible? (11:42)
How much of the blame should go on the investors? (13:15)
What caused the change is perception in August 2014? (17:15)
What was Jeff Berwick’s role in this fiasco (22:30)
What is going to have to happen in order for this to turn into a successful project? (27:35)
Will the $10.5 million be recovered? (32:09)
Affinity Scam
Was GGC a fraud from the beginning? (34:54)
Lessons learned from GGC (36:36)