Phil Pustejovsky Reviews

Phil Pustejovsky taught short sale real estate investing techniques during the real estate market crash. Starting in 2007, short sales became a very prevalent occurrence as real estate prices began to plummet below the amount many homeowners owed against their properties. A short sale is when a bank agrees to a payoff that is less than the full mortgage balance. Banks agree to short sales because it can actually save them money in the long run over having to foreclose on a property. To learn more about short sales and how they effect homeowners, check out a website Phil built to answer the most commonly held questions about short sales,

The golden years of short sale investing occurred from 2007 to 2010. Short sales were in their infancy and the lack of competition coupled with the lack of knowledge allowed a select few to make a fortune. Phil trained hundreds of investors on the art of making big money with short sales. During those golden years, banks were reasonable and greed had taken a back seat to simply making intelligent financial decisions.

However, short sale investing profitability began to decline precipitously in 2011. First, real estate agents began to focus on acquiring short sale listings and this created much more competition. Unfortunately for homeowners and real estate agents, the problem with the traditional approach to selling a house with an agent when applied to a short sale, is that banks will not move forward with considering a short sale unless an offer has been made. So many short sales got stuck in limbo for months as real estate agents and homeowners waited for offers. Meanwhile, investors taught by Phil were an ideal solution for homeowners who needed a short sale because there was no waiting around for an offer. The offer was being made immediately by the investor which sped up the short sale process. And in a declining market, the longer you wait to sell, the less you can sell it for, so investors were ideal for short sales.

Rather than embrace investors though, greed began to set in with the banks and they looked upon investors as making too much money (although after a longer time to find a buyer which reduced the end sales price due to a declining market, commissions, etc, it was shown that investors actually saved the banks money). Starting in about 2011, banks began to do everything they could to eliminate investors from buying short sales. They tried to demand deed restrictions be added to the title to properties to prevent investors from re-selling quickly, but legal cases brought against the banks stopped them from being able to enforce such a plan because it was illegal for previous lien holders to restrict what a new buyer could do with their property once they owned it. Previously, banks had tried to cut agents out of short sales to save money on closing costs but soon they began requiring real estate agents to be involved in all short sale transactions (no doubt the result of hard work by National Association of Realtors lobbyists in Washington). This created added expenses and slowed down an investor from getting more short sale deals done. Eventually, the banks had to back off of their deed restriction demands and instead, simply require all parties (buyer, seller, agents, closing company) sign an affidavit which spells out that the new buyer can’t resell the property for a specified number of days, usually 90 days. Nowadays, short sales are dominated by real estate agents and many short sales no longer have the profit potential that they used to.

As the short sale business matured, Phil spent less and less time training investors on short sales and adjusted his trainings to more profitable approaches that fit the current climate. But Phil’s mark on short sale investing education remains. He made a very big impact on investors all across the US who embarked on short sale investing. Does Phil Pustejovsky do short sales today? He has a few of those deals in the works but he says he cherry picks for just the best ones these days. He assigns the rest to agents and other investors who want to do a ton of work for very little upside. That’s how Phil Pustejovsky is connected to the phrase short sale.


  1. Nick says

    Hi Phil,
    I had a question regarding DTI and acquiring a new mortgage. If I already have a loan on my primary residence, how would I qualify for a new loan or take over someone’s loan subject to? If my DTI won’t allow it wouldn’t I get rejected?
    Also would the additional income I get from a purchasing a new business, or a residential property, cancel out the debt for my loan?

    • Phil Pustejovsky says

      Acquiring a new loan would be difficult if you didn’t have a strong enough DTI to cover the new payments (banks accept 75% of rental income on a single family home towards your DTI if it is rented out at the time of loan application), which is WHY you would want to learn creative investing, such as taking over a property Subject To because you wouldn’t have to qualify and be restricted based on DTI.

  2. Johnny Lantz says

    Hey Phil,

    I’ve been watching your videos and I have a question regarding properties in tax-default. It has to do with going to properties that are in tax-default but haven’t yet gone to the foreclosure process. I would love to pick your brain sometime.

  3. Victor Estrada says

    Hello Phil,

    I am considering in getting started in real state/ Flipping houses. I would like to use my VA Benefits and get started. Where or what would you recommend to go, or do first?


  4. Bill Lee says

    I was wondering about the creative side of financing. I’d like to know what would you do if you were in a situation where you had no money, found 4 rental properties that were producing roughly 21% return for each one but the sellers did not want to do seller financing. A bank is willing to do a blanket loan for the purchase but only 75% LTV and you don’t have the 25% required. No one will lend you the money except another bank but that would bring the return cash to negatives. Stuck between a rock and a hard place. Thanks any input would be appreciated.

  5. Dax Giunta says

    Hi Phil – I started doing some real estate investing a couple years ago and purchased a 6-plex in need of a little TLC. Well that little TLC turned into A LOT, and I’m now in a position where my parents (the ones who backed a credit line from the bank so that we could do the renovations) are demanding their loan back (part of the reason being that they have pledged other investments as collateral and are feeling financially strapped).
    Since you are the creative financing guy, would you happen to have any leads for potential lenders who would be willing to whom I could explain the situation and who would perhaps be open to acting as a bank for to relieve the credit line from my parents? Perhaps even yourself?;)
    Let me know.
    Dax Giunta

    • Phil Pustejovsky says

      Contact 10 mortgage brokers in your area and ask each one to scour their rolodex for potential lenders to help you. I avoid these problems altogether by not doing what you did so I don’t have any potential lenders. But mortgage brokers sometimes do since this would be a cash out refinance.

  6. Gloria says

    I signed up for your video instructions and I really love your videos. (I’ve already watched all the vids on Youtube!)
    First I was skeptical why you’re telling people how to invest but I now really appreciate your sharing!

    Here I have a town house that has:
    Value: $420,000
    Owed: $460,000 (equity)
    The residents pay: $2,400/month (only the interest they said).
    They get $600 for the basement rent (a studio includes bathroom and kitchen).
    The seller wants to get rid of the house under their name because their business is down and they might get sued.
    But they don’t want to move out of the place, they still want to live their as a rent.
    The value was assessed a while ago, but is there any possible investing potential here?

    I’m a beginner and I need your insightful opinion.
    Thank you very much! :)

    • Phil Pustejovsky says

      Sounds like the deal is upside down a short sale would be needed. NEVER leave the original sellers in the property after you purchase. NEVER.

  7. Charles says

    Phil, you said that your methods work everywhere in the US and Canada. How would they work in my country?

    I live in another country and hold a degree in Engineering with an MBA from a top ten business school. The average house price here is $1.1 million USD. Would you be interested in taking on a partner and mentee in another country?

    I`m not interested in paying for a mentor, I consider myself smart enough to figure things out for myself and am pretty resourceful. I own three small businesses in addition to my six figure salary.

    I have money to invest but would love to bring you aboard as a partner to test your methods in this market. Bigger deals, less saavy sellers, more opportunity.

    Are you interested? My father is a developer and so I have access to trustworthy contractors at fair prices.


    • Phil Pustejovsky says

      Sounds like you already have it all figured out. I am not interested in partnering in a non-North American country. I wish you the best of luck in the future.

  8. Samuel A. Byers says

    Sir, I have watched pretty much all your videos and read all your books and am convinced I should start building some dang wealth and equity myself. I am in the Colorado Springs area and have a stable income of around 900 guarenteeda month and want to know if I should try to go for a subject to type home or a foreclosure/short sale to try to turn into a rental property when I move in two years. I realize buying a home to set up close to colleges for renting attraction is important. Should I rent or should I buy?

    Thank you so much for your time.

  9. Anthony Golesorkhi says

    Howdy Phil,

    Big fan of your book and your videos. Wanted to ask you, a buddy of mine (who is a real estate agent), says this is technique is too risky, because I want cash quick. I don’t have much cash now…and this is really my only opportunity to keep living in my house before I start going behind on payments. My main question was that he said that houses now a days for rent have just security deposits and first months rent paid upfront. Why would someone pay a down-payment? Also, what happens if a pipe bursts and you are the landlord, that is taking a toll on my pocket correct? I want to mainly know what level of risk is there in getting into this because I need to know fast.

    Thank you


    • Phil Pustejovsky says

      The larger the down payment you collect from a Tenant Buyer, the more money you have to pay for a busted pipe. In my leases with Tenant Buyers, I have them agree to pay for all repairs; but sometimes extenuating circumstances like a busted pipe (depending on your Landlord and Tenant Act provisions) may require you to fix it, regards of what you got them to sign. Real Estate Agents don’t know the first thing about offering a house on a Rent to Own because they rarely do them because they wouldn’t make a commission on them. Why would someone agree to give you a big, fat down payment on a Rent to Own? So that they can start building equity as opposed to just renting.

  10. Kyle says

    Hi Phil. I am very interested in applying for you mentor program, but I am still in college. Do you think this apprenticeship opportunity will be available in a few years from now? Thanks.

    • Phil Pustejovsky says

      I don’t know. I have no idea what the future may bring. I have been kicking around the idea of retiring from mentoring others sometime in the near future but who knows? I love what I do so maybe I’ll end up doing a very long time?

  11. Patrick says

    Hey Phil! I loved your book and I idolize your journey. My two questions are
    1. How do I get more real experience as a minor while living in a small town? I have 9 months before I begin marketing.

    2. there are two title companies in my beautiful town of 50 thousand people but neither of them seem to have done many, if any, double escrows or assignments in there many years of experience. Is there a way to do deals without using a title company in my area if so what and if not should I abandon the marke?

    • Phil Pustejovsky says

      (1) Start finding deals and talking to sellers.
      (2) You don’t need a local title company, just within the same state is you is fine.

  12. Jr says

    Hey Phil,

    I was wondering if you still mentor new people intresed in real estate investing like you mentioned in one of your books?

  13. Tara says

    Hi Phil! I am taking your free course. I am learning a lot. They are very helpful! I have some questions for you about a solo 401k. I am thinking to buy a rental property and let’s say, I would have $200 a month as cash flow from that enough to open a solo 401k as a sole proprietorship? I was not sure when I saw your video and I kinda Googled about this…? I work as full time in a different area and would like to have some rental properties as the second income, I don’t have to have a LLC…but I think I could have a sole proprietorship with a liability insurance to protect myself and hopefully I could grow my retirement account to invest in real estate and have tax advantages thru the solo 401k.. Do you know how much Money I have to make a year as a sole proprietorship to be qualify to open the solo 401k? ( I have a Roth IRA that I can roll over to solo 401k if I can…). Please let me know what you think…
    Thank you!

  14. mike says

    thanks mr. pustejovsky, your name is a mouthful. lol have enjoyed your videos and this new website. thanks again for this new website and downloads. god bless. mike s.

  15. Tim Yattaw says

    Hello Phil.
    I’m 52 and have been in construction for two thirds of my life.
    No money hard working never take time off from work.
    I have a vacation coming and might not take it
    I wish there was a way for me to get involved with real estate
    With out having to pay upfront money.
    Please help in a direction that would get my foot in the door
    I know many people must ask for free help
    I’m not looking for free.
    I’m passionate and ambitious. And extremely hard working.
    Always doing for others and want to do something for me for once.
    Anything that could help to get started.
    Thanks Tim

  16. Tara says

    Hi Phil! I have some questions for you.
    1. Let’s say, If I buy a house and rent that out to somebody, then something goes wrong, that renter sue you…and that renter win that lawsuit against it the true that the renter can take your personal assets such as your saving, house, car, 401k, etc.. So you better have own company like LLC, then own that rental house under your LLC company. That’s way, no one can take your personal assets ( Someone told me about this..) Some landlords who I know, they don’t have any LLC company….? I heard that you own some rental properties. How do you own them? Are there some ways that you can protect yourself from losing your personal assets if your renter sue you and they win that lawsuit against you without having own LLC?
    2. Have you had some deals in Sonoma county CA before? If you have..are you going to look for more deals in this area in the near future? If you have never had, have you thought about it?

    Thank you for your time.

      • Tara says

        Thank you! Phil. I checked your video. That was very helpful. I have more questions for you to come…
        1. I am just wondering if you deal with a private money lender for your deal. They usually charge you around 12% of the interest…(that’s what I heard from somebody who have done a flip..). Is that possible that I can be your private money lender when you have a deal ? Or you don’t use them because of high interest that you have to pay…?
        2. Also let’s say , you find a deal in Sonoma county in CA..before you put that on market (MLS). Is that possible that I can buy that house from you if I like that house? Off course I understand that You would make more money to put that property on the MLS than selling to me…but I am just curious . ( I’ve just got tired of competition of the market lately… I would like to have maybe 2 to 3 houses to rent them out for my retirement as passive income (or as a private money lender to earn passive income) and would like to end up to live one of the houses myself…maybe about $2000 a month from passive income would be ideal to earn for me now…but I don’t know how because of retail’s high price, so…
        3. Are there some options in your apprentice program that help me to reach my goal rather than having my own RE business because I don’t have good negotiation skills because of my language barrier.
        Please let me know what you think…

        Thank you again!

        • Phil Pustejovsky says

          (1) I am my own hard money lender for my own deals and I am a hard money lender to my apprentices as well. The rates for hard money vary slightly, but usually you pay several points upfront plus 12-15% per year and the loans are usually very short term and less than 6 months.
          (2) I don’t fully follow your question but to take a stab at it, I suggest you find your deals OFF the MLS and then market them for sale or rent ON the MLS.
          (3) Being able to communicate is critical to this business. If language is a barrier, you may have to stick to the traditional side until your command of the English language improves.

  17. Kelley A says

    Hey Phil!
    I’m a casting director and wanted to speak to you about a tv show opportunity. If interested in learning more, give me a call or shoot me a email, thanks!

  18. Mark says

    Hi Phil,

    I am a Uni student in the UK and secured a placement with a firm that use a variety of creative ways to make money in the real estate industry. I was excited about this as I love business and never intended to end up in a boring office job especially one which includes pure selling. This was a chance to be mentored however, they have last minute decided to go against their word. I 100% know this is what I want to do so have researched reading books and watching videos online. I came across your YouTube videos and am very inspired. I feel I could start this on my own but it just seems overwhelming. Even after listening to yourself, I still am not sure where to start. Any advice you could give me at this stage would be strongly appreciated.

    Many thanks, mark.

  19. Jason A. Morales says

    Hey Phil , I just watched one of your YouTube videos and I know it probably isn’t really Phil who answers these posts. But I’m basically in the same predicament as you were before your first owner finance deal and I am in dire need of one. I’ve been asking myself who could and would be willing to help someone like me out, and I thought “why not the man himself?”. To me this is a long shot but a shot worth taking.. I live in Massachusetts and it would be wonderful to actually hear from you.

  20. Kevin Prieto says

    Hey Phil !! i have a few questions, i’ve been active on owner financing deals because im trying to increase my income im just getting held back cause im clueless on how taxes work when i acquire a home and lease the rooms out to tenants, how does it work ? And do i get tax advantages depending on a tax attorney ? or is it something i should learn on my own ? And my last question is are there any additional expenses other then taxes, insurance, and some cosmetic work ? Thanks Phil. You’re a good soul. :)

    • Phil Pustejovsky says

      Saving money on income taxes is the job of an accountant or CPA. Put one of those professionals to work on your questions. And as far as additional expenses above and beyond taxes, insurance and cosmetic work, also build up a small reserve in case a larger problem occurs with the property.

  21. Golden says

    Hello Phil.
    My name is golden & I’m 19 years old. For past year I been learning about real estate investing. Reading books & Watching your video’s on YouTube trying to improve because I’m not happy with my life. I’m very young but still I want to be very successful in life. I write many of my goals on the paper, one of them is to get MENTOR, I truly believe that every man has his journey in life, the most important thing is to have in journey is MENTOR. Someone who can guide to become great real estate investor, not okay or good but great real estate investor striving for greatness. I looking for coach go on experience flipping houses, investing in foreclosed homes & more.

    Thank you phil

  22. Trevor Mathews says

    Mr. Pustejovsky,
    My name is Trevor Mathews, a new wholesaler in Gainesville, FL. I currently have a house under contract, but have not been able to get a buyer to sign and closing is Friday. I know you are in Florida and I really love learning from you. I was wondering if you might have any buyers who would be interested so we could split the deal. I hope to hear back soon.
    God Bless!
    Trevor Mathews

    • Phil Pustejovsky says

      The reason why you didn’t find a buyer is either:
      (a) You didn’t market for a buyer correctly.
      (b) You are asking too much for the property (which is probably because you have it under contract for too much…which is why wholesaling is so difficult…you have to find an incredible deal to get it cheap enough to be able to flip it to another investor quickly).
      Either way, my solution would not be to give you a miracle buyer, but instead, to first evaluate if you marketed correctly, and if you did, then the problem would be that you have it priced too high.

  23. David Buford says

    Do you want to buy my house in Saint Cloud, FL? It’s free and clear I own it out right. Something unexpected happend and I need to get out FAST.

  24. Amanda says

    Hi Phil,

    My name is Amanda and I am a development associate for Storyville Entertainment, a New York City-based television company that produces award winning content for networks such as A&E, MTV, OXYGEN, MTV and more.

    We are currently working with a major TV network on casting for a potential reality-series about expert “house flippers” who would mentor new “house flippers” in the industry.

    I came across your youtube video “Biggest House Flipping Mistake”, and found it very interesting and charismatic. I would love to set up time for you to speak with myself, or a member of my team, to learn more.

    Let me know if you are available and I can help coordinate.



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