Creative Real Estate vs Traditional Investing

Is creative real estate right for you or should you go the traditional route? You'll discover the differences, the pros and the cons of both approaches and which one is right for you.

First let's take a look at what each one looks like:

With traditional real estate, an investor...

  • Buys investment properties on the MLS.
  • Finds deals by calling up a real estate agent.
  • Buys foreclosures that are listed on the MLS.
  • Buys foreclosures at the foreclosure auction sale.
  • Buys properties from wholesalers.
  • Gets into bidding wars with other buyers.
  • Uses big earnest money checks to get properties under contract.
  • Puts down big down payments.
  • Applies for investor bank loans.
  • Gives loan underwriters their proverbial first born child.
  • Makes tons of offers to get a few accepted.
  • Constantly looks at deals, on the web and in person.
  • Negotiates deals based on price.

With creative real estate, an investor...

  • Finds deals by marketing for motivated sellers.
  • Gets to the deals before anyone else knows about them.
  • Has little or no competition.
  • Works with sellers directly without agents involved in the purchase.
  • Usually puts up very little earnest money (i.e. $10).
  • Rarely needs down payments.
  • Doesn't fill out loan applications.
  • Buys properties with owner financing.
  • Takes over existing mortgages subject to.
  • Makes several offers on the same property.
  • Creates bidding wars when selling their deals to others.
  • Turns every lead into money by assigning the bad ones to agents.
  • Uses transactional funding, hard and private money.
  • Rarely looks at properties unless to get it under contract.
  • Negotiates deals based on terms, price or both.

Both have barriers to entry; creative real estate requires significant education whereas traditional real estate requires money and/or the ability to borrow money.

The biggest challenge to creative real estate is acquiring the education. First, you have to get access to the right education. As usual, you get what you pay for so typically there is a cost associated with acquiring the right education. Second, having the right mentor or coach to help you along the way is critical to acquiring the right education. Third, you must carve out the time out of your busy life and take the action to actually learn from the education. This is where many people fall short. They want the amazing results creative real estate can give them but they aren't able to follow through with acquiring the education (even if they have invested in the right materials and are working with the right mentor).

Another important point about creative real estate is that having just a little bit of money can go a long way. This can sound like conflicting information since a creative investor can oftentimes buy real estate without cash or credit, but there are costs associated with setting up and operating a small business. When I first got started, I ended up going homeless. Being in such financial dire straights made everything difficult. I couldn't accept incoming faxes because I didn't have a fax line. I couldn't make long drives because of my lack of gas money. I couldn't get motivated sellers calling me because I couldn't put any money into marketing. Certainly the amount of money needed to successfully launch a creative real estate endeavor is not nearly as much as even the down payment required on just one traditional investing deal, but it is helpful for you to know that having a few bucks to invest in your fledgling creative real estate operation can make all the different in the world. In fact, for those who are in the financial situation I was in when I first got started (can't rub two nickels together), I strongly recommend those people put creative real estate on hold for a short period of time and save up some money and then go back at real estate. Otherwise, it will feel like trying to walk down the street in a hurricane. Instead, patiently wait for the storm to pass before you begin your trek.

The biggest challenge to traditional real estate is getting access to the money; money for earnest money checks, money for down payments, borrowing money from banks and in some cases, the money to conduct renovations on purchased property. Although it is possible to get access to money through private individuals, most use the money they have accumulated over their lifetime, such as in a retirement fund or the selling of a business or an inheritance, along with leveraging their good credit and strong financial position to borrow money from banks. Although there is some education required to be effective with traditional investing, the traditional formula is relatively simple; hire a real estate agent to find potential deals, make tons of low offers, get one accepted, buy the property, fix it up & resell it or rent it out. Then, repeat. Creative real estate isn't quite as simple and has many, many different facets so the education required is substantially more involved.

Which one is better?

In full transparency, I am a bit biased toward creative real estate because when I got started, I was homeless so I didn't have much of a choice, I had to go the creative route. So I am a creative guy from the onset. But the traditional approach is powerful as well. For example, the traditional way allows an investor to buy a whole lot of property very quickly. A very recent trend in the marketplace involves Wall Street (large hedge funds and private equity firms) buying up single family homes at a very rapid pace. They are buying foreclosures in bulk as well as listed properties. Since now is the perfect time to be buying real estate (most experts agree that we have hit the bottom of the market), for those organizations that have a whole lot of cash, taking the traditional route allows them to buy thousands of properties very quickly.

In addition, when you go the traditional route, you can buy property for long term wealth building purposes at a lower amount than the creative approaches of owner financing or subject to. The reason is that typically, a seller will either give up favorable terms for you as the investor in exchange for a higher sales price or the seller will take a lower price in exchange for all cash in their hand quickly.

Also, with absolute auctions, there are cases where a traditional investor can get a tremendous deal by being the high bidder when there are little or no other bidders.

Creative real estate has its own set of benefits too. Most importantly, you can make a whole lot of money and build a fortune with very little money and/or no credit. But also helpful is that creative real estate is consistent whereas traditional investing ebbs and flows with the changes in the marketplace. When the market is booming, there are less traditional deals. When the market is depressed, there are tons of traditional deals. With the creative approach, the source of deals is this customer called a motivated seller. A motivated seller is created by extenuating circumstances that are typically external to real estate; life challenges such as divorce, illness, financial problems, death, job transfer, downsizing, upgrading, and so on. These are things that humans will be dealing with in good times and bad for centuries to come.

Also worthy of note is competition. There is very little competition in the creative real estate realm unlike the traditional arena. Interestingly enough, traditional investor competition benefits creative investors because they can sell their deals to the traditional investors. For example, while traditional investors are panicking that the sky is falling because Wall Street has entered the game, creative real estate investors benefit from the hedge funds getting in the market because they can flip their deals to them. (Now if all the traditional investors figured out how the creative investors were doing what they were doing, then those creative ones would be in trouble!)

Ironically, now that I am in a financial position to be a traditional investor, I still prefer investing in real estate creatively. I would rather pay a little more for a long term hold property than put my name on a loan. Andrew Carnegie said in his autobiography written over 100 years ago that you should never personally guarantee a business loan. I consider a mortgage on an investment property a business loan so applying Carnegie's rule, I avoid getting bank loans for the properties I purchase. And as you will learn from my discussion on Flipping Houses, I would rather wholesale rather than rehab and resell.

Which one are you (or which one do you want to be)? And which one do think is better?

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[Total: 13 Average: 4.5]


  1. Harry Neasse says

    Your materials, books and videos are winds beneath my wings.

  2. Julian Felix says

    Man!! I am the creative kind of investor… all the way!

  3. Oscar Meza says

    Hello Phil, first time reading this comments, what video are we speaking off? I want to learn about real estate investing. Any information would be very appreciated.

  4. David Johnson says

    This video has great insight for both styles of investing. I’m more on the creative side. I thank you for this opportunity to learn this knowledge.. 👍

  5. Evelyn Hunter says

    Very interesting!!! Very informative!!! Explaining the difference between “traditional real estate” and “creative investor” was most interesting to me. I can’t wait to start my adventure!!

  6. Watch the video but still how exactly i make money according to ur method

    • Freedom Mentor says

      Keep investing in your education and consider finding a mentor to help you learn how to be a creative real estate investor the right way.

  7. Marcy Northrup says

    Hi Phil,

    Without knowing it i too was a creative realest investor. 15 years ago I supported 3 children for 5 years. I could have used a lot of help back then. Could you be a mentor for someone like myself?

  8. Mertlyn McGarrell says

    Hi Phil
    I would like to go the creative because I need the education and I have no money please help I need the guidance of your mentorship. Thank you Mertlyn from New York.

  9. This is my husband and I first time as a real estate investor. This is good information I would go with creative way but need to be educated on investing. We in need of a mentor.

  10. Les Lherisson says

    Hey Phil.
    Definetely Creative. I have been following your videos on your program and I am about ready to get involved and have the mentorship program. So please get me the details on how to be a student on your program. Thanks. Les. From Florida.

  11. Hi Phil, the fun thing is, all of your Videos are great. This one is no exception. Thought to energy gives you mater or substance. I believe you agree, “what you think about you bring about”. Your creative ideas show you take action on your thoughts creating these outstanding results. Glad to be on your email list.

  12. Breemichellekelly says

    Thank u

  13. I get what you’re saying. So how do you find these motivated sellers? Become an ambulance chaser or read the obits. lol

  14. How can I learn the creative way?

  15. So how do u buy a house with no cash/ no credit? Who does that? Can I be so lucky?

  16. Creative. Lower competition is my first requirement for any venture.

  17. Patricia Taylor-Starnes says

    I fit in creative way.

  18. Hi Phil,

    Great video!

    Quick question: If you get a property under contract and are looking to assign it to someone else would you list it on the MLS? (I do not have a license.)


  19. Terrance Wayne says

    im ready to learn real estate . I read you all post and get motivated . Im only 21 . & i know i jave the drive and confident heart for this . Ive had many downfalls but i always manage to keep my head up . But the real estate investments (fix & flip) is calling my name i just need the knowledge from the right person . i asked god and hopefukly one day my time will come .

  20. Phil, I have been reading and watching your bideos and definitely want to become your apprentice and partner. I had a FL real estate license for 8 yrs but now live in AL. Do you offer apprenticeship opportunities in AL? I’m working on getting licensed here because you have stated the positive aspects of being licensed. I don’t have investment capital or credit but I do have a lot of heart and desire and am willing to invest my time and knowledge to succeed. I am a senior citizen but have always wanted to be a real estate investor. You are the only one among all the so called gurus that makes sense, seems to be honest and is a man who answers to the Almighty. This is the kind of leader I want to follow. I think I signed up for the apprenticeship program but may have missed the calls from your mentors because of not recognizing the telephone number. Do the calls come from FL?

    Looking forward to working with you so I can have the financial freedom to enjoy my “golden years “. Not looking to being a millionaire, just making enough to live a nice life where I can travel and enjoy my days until it’s time to go “home”. Yhanks for all you do. All and any suggestions are greatly appreciated. Be blessed always.

  21. I love the idea of creative investing and have my eye on a property right now. However, it is an estate (no loans that I can tell) listed by an agent. Is there room for creative investing here? Would you write out the creative offer with a letter to the sellers as a way to communicate with them?

    • Phil Pustejovsky says

      One of the first rules of creative investing is to do deals directly with sellers and don’t involve agents. You would need to go directly to the seller but even then, the seller has an agreement with the agent so chances are, you won’t be able to follow this rule so my suggestion is to either wait until the listing agreement ends or go find another deal.

  22. Carol Martling says

    Hi Phil,

    What you’re saying about creative rings true for me as I don’t have the cash to buy traditionally at this point, or the credit ability to borrow as I work for myself. Also, having been a financial advisor for a decade (years ago), and a real estate agent (in two markets in the mid to late 1990s, and also 2013-2014) and a mortgage broker 1998-2001 (in two markets), I feel that my financial understanding is good and I certainly understand the concept of creative strategies.

    I completely understand how critical education is to be a creative real estate professional from my past work experience working as a consultant teaching small to medium sized company CEOs how to build virtual sales team. This strategy also involved using systems and strategies that a virtual sales team can access for training and reporting online, and monitored by their managers in the same online method.

  23. Larry Konyha says

    I really like the creative real estate investing idea. I am just wondering how you talk someone into working with a person who has no money. I just got my real estate license in January. Have a few deals under my belt but no cash. How does this work?

  24. Hi, Phil
    I agree with you about being creative vs traditional buy of homes. I just want the best property if im going to keep it and give the not so good ones away and make money. I appreciate your advise on waiting if funds are low before I wreck myself…lol..I will stay in touch. Thanks for everything

  25. Hi Phil,
    Am really enjoying your book, and appreciated your video! I’m definitely creative, and am chomping at the bit to do more! I starting out with not wanting to talk with motivated sellers (emailing them instead), I now relish talking with them!
    Thanks for the invaluable training.

  26. Steve Daniel says

    Hello Phil,

    Very good information for a Rookie as myself, I am just getting into Wholesale, just lost my job 2 months ago and decided that i wanted to do wholesaling after doing some research . Creative Real Estate is going to be the way i am going to go, i do not have an ALTERNATIVE because of my financial status . thank you for doing what you are doing.

    • Phil Pustejovsky says

      Bad idea Steve to put all your eggs in the wholesaling basket. Go find some steady income and do real estate investing on the side.

  27. David Jackson says

    Hey Phil how are old bud? hey man i have a question:::: I HAVE A SUBJECT TO DEAL THAT IM ABOUT TO

  28. Kyle Barnett says

    I choose the creative. Because I lack the education and the money.

  29. Kyle Barnett says

    I choose creative because I lack the education and money.

  30. I would go for the creative side. even I have no experience in the real estate. I will put what it needs to understand how it works. I need you to take my hand and guide me thru the first steps. Thank you

  31. Never done this before.

    Have an acquaintance who just wants out of her place. Bad memories/lost job etc. And she wants to try and save her credit as well if possible.

    She bought the house 2 yrs ago and put down 10K. She has a mortgage with Wellsfargo for 160K

    owes 5 k – which is house payment /Tax and Insurance rolled together((She hasn’t paid since November). Also owes about 1 K in utilities.

    Its a 4 bed 2 bath split level onn 11000 in Champlin MN. Nice area and the house is in perfect condition.

    Wellsfargo and a realtor is telling her to just sell it regular way or short sale. She is VERY motivated to do it NOW. I told her she could stay in the home a few months to get on her feet which she likes as well.
    I want to do what is best for her and for myself.
    Im just not sure if it makes sense or how to proceed. I’d consider making it my main residence or renting/flipping.

    Any ideas on creative means would be great as WF only says to go traditional route

    Thanks so very much,

    Kevin Rooney

    • Phil Pustejovsky says

      With a real estate agent listing the property, that pretty much stops any creative solutions you may want to employ in its tracks. However, she may be able to negotiate a loan modification.

  32. Tammy Zalucky says

    I am definitely on the creative side. I as well would rather not have to put my name a ton of loans. Second I do not have much money to put in. I had no idea there were two types of investors. I really look forward to learning how to reach the goals I have made and working with you.

  33. Creative Investing sounds more my speed along with the fact that its more constant.
    and that’s what I want..something I can do all year long…year after year..
    and not just when the market is high…

  34. To be a creative investor you don’t need any money or credit how are you going to be serious talking to a homeowner to buy his or her $100, property with put anything on the table

  35. Dan Davidson says


    I would surely use the creative way in my situation, because of the no money option, I have been watching a lot of your training, and I fill that I am ready to start into this business. Thanks again for all the helpful info.

  36. I will be approaching this from the Creative Side, because I don’t have a lot of money and don’t want to be competing with the “big” guys out there. Thank you for the information, Phil!

  37. Anthony Brown says


    I read your book, and have done an assessment of where my skills would be best suited. I believe the creative side with the right mentor can work for me long term. I would love to learn more about your apprentice program. You are the real deal and I would love to explore what that could look like.



  38. Phil,

    I honestly can’t agree with you more with everything you’re saying. Why work hard when you can work smart.


  39. I prefer creative real estate investing because it involves more creativity to find, fund, fix and flip deals. However, I know there is room for both types of investing. There will never be a world where 100% of the investors are traditional or creative. We need both types. It’s a perfect fit because if you’ve got more time and less money then the creative route is probably the best way to go. On the other hand if you’ve got tons of money but little time then the traditional method is a good strategy.

  40. Phil, I love what you are saying. I have 5, no 6 deals that I am looking at, that I have connections with the sellers. I am now in the process of reaching out to buyers by doing presentations of what I have for sale. I appreciate all of your information that you share, because you really don;t have to. I appreciate you Phil.

  41. I am a creative type for sure. It’s where you can practice the art of real estate. I know most people are afraid of not going traditional route but I wasn’t born w a trust fund so I have to be creative

  42. Yaron Yeger says

    Hi Phil,

    Thanks again for another good video.
    I understand you rather not put your own money in a deal, and reduce the risk with creative investments.
    My question is, what do you do with money when you do have it? do you invest in bonds? in mutual funds? or you do put money the traditional way?


  43. I have been trying at real estate for a long time.
    Never was able to get off the mark.
    I am interesting in creative and wholesaling
    How to get started here in Arkansas.

    • Phil Pustejovsky says

      The same way you would get started in any state in the US or province in Canada…by educating yourself on how to successfully wholesale and creatively invest. This course will get you on the right path: Creative Real Estate Investing. Use the coupon code “freedommentor” to get it for free.

  44. Ken Gurta says

    I think that I would be interested in both Traditional and creative investments. I have owned 2 properties in Ga. since 2008. Both of them are rented out with good tenants. But that hasn’t always been the case. I bought them to help support me when I retire, but every day can be stressful, and there are always times when you have to spend a lot of money to repair them. I just recently had to buy a new heat pump and air handler or blower for one of them. I have been introduced to other inventor’s and mentor’s ideas, but have never felt comfortable with working with them for one reason or another. I will be getting on board with your program however. Keep the videos coming!

  45. Jayne Lookofsky says


  46. Brandon Gray says

    Do you have to be licensed and bonded or be a real estate agent to be a part of a deal like getting a house on contract in ga ?

    • Phil Pustejovsky says

      Ask yourself this question…do you have to have any sort of a license to buy real estate in Georgia? You’ll discover that the answer is no. Anyone can buy real estate in Georgia. To purchase a house in Georgia, you first must sign a contract with a seller. Do you need a special license to sign a contract with a seller to buy a property in Georgia? You’ll discover that the answer is no. The next part is very critical…if you are not licensed as a real estate agent or attorney in Georgia, do you have the right to re-sell the property prior to being the owner of record? THAT’s the question. I know the answer but unfortunately can’t provide you with “legal advice”. The right type of creative real estate attorney knows the right answer too.

      • Lando Duarte says

        The answer to the critical question lies within the sentence after, “THAT’s the question”. In this sentence, Phil says, “I know the answer but unfortunately can’t provide you with ‘legal advice'”. If the answer were no, he technically wouldn’t need to address the fact that he can’t provide you with legal advice. Since the answer to the critical question of “Do you have the right to re-sell the property prior to being the owner of record?” isn’t “no”, you’d should be able to put two and two together to figure this one out. I am neither in any way providing you legal advice.

  47. Brandon gray says

    Hey phil

    I live in ga and herd from a real estate agent that getting properties on contract and flipping it is illegal

    • Phil Pustejovsky says

      I’ve heard of licensed agents in Georgia who use the correct paperwork to get properties under contract in Georgia and then flip those properties legally to other buyers. Depends on who you are talking to I guess?

  48. Eric Volkers says

    I am starting creative but wonder if you could do both. Lots of foreign money is coming here and they will buy over retail price. I wonder if I can do like a contract to purchase or buy under me with not any really earnest money and then close with transactional funding and then assign to one of these cash buyers for a fee? Phil it’s changing here in Los Angeles to fast but there is so many price ranges and areas close to here there has to be a way to do this HELP :0/

    • Phil Pustejovsky says

      Flip deals to the foreign investor buyers. That’s still creative. You get to the deals before anyone else and you’ll dominate your part of LA. It’s changing everywhere fast, but what doesn’t change is motivated sellers. They are here, yesterday, today and tomorrow. Get to them before anyone else.

  49. Jim Graff says

    I greatly appreciate your teaching and approach. Your book is great too.
    Thanks for helping us.

  50. erwin simangunsong says

    Hi Phill
    Creative real estate approach is very interesting. Ho can I do it

  51. HapsaiGeorge says

    Thanks a lot phil,
    I think i’m more on the CREATIVE SIDE, why? you’ve explain all the reasons in the video
    Thanks once again, if all the people in the globe willing to provide the right information through their long years of experience, i think we will reduce the level of poverty in the globe, especially in the context of Third world countries…..
    May god bless you and your families

  52. Hey Phil,

    I am probably the biggest skeptic I know. Whenever I see all these comments and rave reviews and such, I automatically think it’s people who are friends or who have been compensated. I get these ideas mainly due to the IM products I have researched. I just hope nobody thinks I’m one of those people. I haven’t bought into your mentor program due to the fact that I simply can’t afford it these days. However, in the past I have bought into some of the Guru programs. I didn’t do the mentoring thing though, just the books. One of them I’m sure you are intimately familiar with is based or was based in Florida and always sported a crewcut hair cut. Anyway, that was back in 2001.

    Well, I learned a lot about real estate from these courses, but didn’t really know enough to go ahead with it but I followed their advice and just went for it. I tried the traditional way. I qualified for a $123,000 loan and bought a duplex in Oregon. Well I was overleveraged on the place as I got one of those Amerithing first time homebuyer 3% down and overpaid on the property so the seller would pay my down payment. I lost my job and one of my tenants at the same time so I was in a bind and was so lost I just let it go into foreclosure. If I knew then what I know now, I would have done things much differently.

    I didn’t really know how to put a no money down deal together and wasn’t sure what wholesaling was. I knew about assigning contracts was and lease options, but things didn’t really click until one night not so long ago I was watching your into video and something you said just clicked and made things fall into place. And once again I’m hearing just go and get started. But at least you are saying to consult with an attorney and to put a team together. I have learned that before but didn’t really know how to go about it. Your e-book that I just read was more informative about that.

    Sorry looks like I’m rambling. The point I’m trying to make is I wish I had taken the mentoring way back then. Maybe I would have done much better and would be more successful now. I live in Oklahoma now and did a successful deal just last year. I bought 2 real junky houses for $10,000, about $4,000 down including closing costs and $150/mo ZERO interest until paid. I sold one house for $5,000 cash and the other on an owner carry for $16,000 with $2,000 down which I also financed the down at $50/week. So I have a $300 positive cash flow. I wish my situation were different so I could get out and work, but I have to stay with my wife due to her Alzheimer’s getting to bad. But I really would LOVE to get your mentoring program. If things work out with my sis-in-law and she does me a deal on the house I’m living in maybe I can get a small loan on it but I’m not gonna hold my breath because I don’t have ANY income other than that $300 from the note and my wife’s SSA of barely over $600. But I’m going to keep following your videos and garnering any other free information I can find on the internet and I’m also going to give things a try on my own even though I am terrified to do this without any help. I’m so afraid I will get in over my head again. And it would be so much easier using the resources you offer not to mention the mentoring. After hearing some of these testimonials, I sure do wish I were a very close friend of yours. I really do love what I have heard from you and about you so far. And your story was a great read. I know what you were talking about with the deer. There are some things that happen in life that you just KNOW was due to divine intervention.

    I had one of those moments before when I was starting a new job. It was sort of like deja vu. only it was much more vivid and there was this man in my memory that wasn’t ever present at any time in my life. But I knew almost ever aspect of the job even though I had never done anything remotely like it.

    Oh man I’m rambling again. Signing off right now!!!!!!!!

    Or……… just gonna say! And probably look like I’m getting paid for this but I’m not. Anyone considering getting into investing who doesn’t know much about it would greatly benefit from getting a mentor period. And your mentoring deal sound real good. I would buy it if I could afford it. Because like you say 50% of making money much more quickly is MUCH better than 100% of what I’m doing now by far!

    OK I’m ending this RIGHT NOW!!!!!!!!!!

    RL Williams

  53. Paul mirjahangir says

    I do share same position as yourself for starting this business. Although I am not homeless , do have same problems as far as
    Lack of capital and money is concerned.
    Do believe as you do . Starting creatively.
    To compensate for lack of capital , have to on
    Educating myself in Real estate , so as to be
    Able to create capital and profit for the business. Also want you to become my mentor to teach , what one needs to know
    In order to succeed.

  54. james yokley says

    I think creative to start but want to learn both but how soon could I be making money

  55. love the creative side of investing simply because makes more financial sense and little money involved however, love the education/techniques to gain leverage etc and opportunity for great profit/cash quickly!

  56. Pamela Jones says


    • I think creative to start out,but I deff want to learn both.To me knowledge is power in any arena,especially business.So just starting,it would be creative,but I would deff have traditional investing in my business plan some where down the line.

  57. I love all the videos and I have applied for the Apprentice program

  58. In the past 2 weeks, i’ve had a life changing experience. And it is because I’ve found minds like Phil.
    I knew it was only a matter of time. Because I knew what I was looking for. I was looking for all of you guys. Not suprisingly, We are all a very elite group of individuals. I believe that we are the new future. Keep up the good work guys.

  59. I would personally go with creative investment because I do not have money to start a real estate .However the problem with Traditional investment in my opinion is that it is dependant on the economy ,what do you think will happen if the economy went into a bigger recession than in 2008? the traditional investors will be in trouble.

  60. hi, phil. I like your video. I have lost my job. and I am looking to be my own boss and I have a financial freedom . actually I have no money and I wish if I can make some deal in real estate without cash. but , I am living in CT and I think it is hard to find for instance a owner finance .

    • Phil Pustejovsky says

      Every area carries with it the same level of difficulty in doing this business. Connecticut is no different from Wyoming, or Arizona, or Minnesota or wherever. Once you truly understand this business, you come to realize that the diamonds are in your own backyard and there are deals everywhere, you just have to know how to find, structure and close them.

  61. monicaleon says

    Phil am ready but , I don’t know where to start I mean i looked at your training tapes, still working on them but where do I find all the important people to make it happen ? Private lenders,is the #1 concern.

    • Phil Pustejovsky says

      Private lenders is not a concern for a creative real estate investor but for a traditional investor, it can become their biggest concern if they run out of money.

  62. Wow you do have a knack to get us motivated, and explain and go right to it . Go doit more

  63. Naeem Joseph says

    Hi Phil, I’m extremely grateful for the pieces of gold nuggets you keep dropping in our laps. I’ve been in the real estate investment game for about three months now and I have yet to have my first deal, my wife starting to look at me funny,I want to be one of your apprentice, but I received a call from one of your coaching student who told me you not taking students in my area right now. What are your suggestions?

    P.s, Tell me anything but quit, because that’s not an option for me.

    • Phil Pustejovsky says

      Read my book, read/listen/watch my trainings, join my Freedom Club and go out there and keep trying until you succeed.

  64. I am a thinker and I like helping the underdog. In order to do this, you must be creative. I believe being creative is a gift from God. I am a poet, writer, connoisseur of music, art, and theater.

    to be oneself, one must know oneself
    to know oneself, one must love oneself

  65. I studied and trained in the traditonal way. I bought several properties in the tradtional way over the years with all three turning out to have lemons attached to them in one way or another. My creative side would prefer to work with the creative market. My problem would be once I have it where am I going to find a buyer to flip it to in 30 days if agents I’ve contacted don’t have prospects. I could cover real estate offices and put out the word to the community, run adds in Craigs list, and scatter the area with signs. I’m not one to socialize heavily by attending events, dinners, and meetings or becoming involved in local organizations. Where does that leave me?

    I would like to find a four, six, eight or 12 unit property with creative financing where I can live in one with room for my art work studio, and have a management company manage the property without my involvement. Once that property would be stabilized I would probably look for one or two more of similar size with similar creative type financing. Its also possible I would convert them to indepent affordable retirement age and income related properties for retirees.

    Thanks for the educational videos…worth thinking about.

    Janet Tiffany

    • Phil Pustejovsky says

      That’s perhaps the best part of creative investing…if you can’t find a buyer because the deal isn’t good enough or there isn’t enough room in the deal to get a buyer, then at least you didn’t buy it! At least your only loss was a little but of time. But the reality is, if you know what you are doing, you rarely, if ever, run into that predicament.
      And as to hiring a property manager, why would you if you were living there? Property Managers slice off 10% (or more) of gross which is a ton of cashflow. If you are living in the property, you can manage it yourself. Property management isn’t rocket science. The tenants pays, they stay. The tenant doesn’t pay, you hire an eviction attorney and the tenant doesn’t stay. Then, if anything goes wrong, you hire a handyman to go fix it. (That wasn’t so bad, now was it?)

  66. Tony Mainolfa says

    Love your style, Phil! You exude the enthusiasm and personality that motivates all of us wannabees to emulate you. Would love to learn from you and your group!


      Hi PHIL, firstly i thank you so much for teaching me so far about real estates investiment.
      PHIL, as for my first deal i m about to make i don t have any problem for money and i can manege to buy it for cash from a creative investor , rehab it and resell it for the profit , you thing is better for me to start that way? or to wait little bit , get some education ,then start as creative investor? from buying directly from sellers? this big quation is in side of me now. START now or WAIT little bit? what advice can you give me Mr PHIL?
      other thing i want to know Mr PHIL , it is possible for me to get a good forclosure wich can genarate a positive cashflow if i have a cach of 30000 US dollard? there in united states?

      • Phil Pustejovsky says

        My vote would be you hold off for a few months and truly educate yourself. Please check out WORST Way to Invest in Real Estate.
        Also, there are plenty of markets in the US where you can buy a rental property for $25,000 and bring in a monthly cashflow, but again, refer back to the link I have in the previous sentence before you dive into one of those.

  67. Hi Phil,

    I’ve been doing a ton of reading on real estate and have attended a couple of workshops, but have been in the same boat for quite a while – little to no money to invest. So, I started looking at brokering property (mobile homes) and started wading into my first deal a couple days ago. Within hours I also saw your ad online and signed up. Since then I’ve been contacted a few times by one of your representatives and would just like to say THANK YOU! He has been very professional and helpful in our discussions! I am looking forward to apprenticing with you and your team! May God continue to bless you and your team for sharing your wisdom and knowledge!

  68. Julie Boston says

    Hi Phil,

    I have been looking at for sale by owner deals and it seems most who will finance or carry the contract want something down (which makes sense?) It can be 10 or 20K so there is a stake in the promise. Your creative investing advise mentioned not having to use your own credit, which this doesn’t) nor your own money. Can you comment on these types of deals?
    Thank you,

    Julie B

    • Phil Pustejovsky says

      It’s a process. It starts from the moment you speak with them. When you interview them, you’ll discover if they have pain and motivation. If they are simply motivated to sell but have no pain if they don’t sell, they will have retail-like demands, such as big down payments or full asking price, etc. However, if they truly need to get rid of the property and you handle the conversation correctly, you can have drastically different results. Much like a Horse Whisperer can get a horse to do things that others can’t, it is an art to negotiating in such a way whereby the seller is begging you to take their property without you having to put much, if anything, down.
      Further, FSBO leads are low quality. You have to “kiss a lot of frogs to find a prince.” There are diamonds in the rough with FSBOs but you have to turn over a lot of rocks.

  69. Trina Taplin says

    I am with you Phil! My desire is to become a “Transaction Engineer” through the practices and principles of creative financing! I agree that this is definetly the steady way and it results in true sovereignty!

  70. thanks for the free training. if u gave any info about what u call creative I would buy your book.

  71. I enjoyed this video, and I am wanting and searching for a mentor who can teach me this creative method.
    I am new to this and i dont have a lot of money. I am a Pastor, looking for a way to have this financial freedom. Look forward to learning more. Thanks

    • Phil Pustejovsky says

      Consider applying to be my next Apprentice. I’m always open to considering helping a fellow brother of Christ!

      • Hello Phil,
        I’m interested in becoming your next apprentice. I’ve received all your free information by the grace of God. For that I’m truly grateful for your knowledge and information.

  72. Hi Phil,that is really cool stuff I like that creative side because when one learn the creative way that will be good for a life time.

  73. Phil, you are doing a fabulous job of keeping it simple. I truly look forward to digesting all your info the next few days and putting it into action.

  74. II look forward to the education and coaching to see which shall prove to be more my arena but being a creative minded person I am intrigued by how this avenue will unfold.

  75. Darian Jefferson says

    I think the Creative side is more my speed Phil.i have $1000 to my name in savings i have a little boy and a little girl both are 1 years old different in willing to put everything i have into this for my kids future…

  76. Hi Phil, Creative investing is it, this will sure help me as a newbie.Besides,i don’t have money to invest but i am ready to be a part of your apprentice program even if it means moving to your state

  77. Delia L. Peterson says

    Phil… New to investing.. getting many emails from different investors about their system… have attended seminars and read books.. question.. can a person be a real estate agent and investor with the same opportunities (legally assign contracts, wholesale and flip)..I read that they couldn’t… but a book from another real estate investor group said get your license(they’re on TV.. very successful.. write books etc).. I believe that you are honest and very knowledgeable. I know you’re successful.

    • Phil Pustejovsky says


      I am a licensed real estate agent. Have been for many years. Most of my coaches are licensed. Most of my top student become licensed agents once they are making good money.

      It can be a license to print money.

      You’ll rarely, if ever, find a successful real estate investor who isn’t also a licensed agent. Experts that say you shouldn’t be licensed probably aren’t successful investors (they are probably better information sales people).

      As a licensed agent, you can wholesale, flip, lease option, and do every other legal creative real estate investing strategy but it does hold you to a higher professional and ethical standard to be licensed (but I consider that a good thing.)

      If you are trying to sort through the quality, factual investing information from the “noise”, I would put the content you find on my site and my videos among the most reliable you’ll find.

      Grab my book How to be a Real Estate Investor too. I wish it have been written and I wish I would have read it when I first started. It would have saved me a whole lot of heartache.

      Thanks for commenting on my site.


    • carlos howard says

      I Would love to learn creative investing were I can flip properties over to wallstreet, How do I get wall street buying criteria?

      • Phil Pustejovsky says

        The days of bulk REO packages are just about over. Much of that inventory has been sold off. You missed the boat on that one. Wait until the next real estate collapse 🙂

  78. Adaryl Johnson says

    I have been thinking more toward the creative side to becoming a Real Estate investor.I like the concept.The problem now is finding the right mentor.Your videos are Great and the books that you have suggested are a great insight to this whole real estate world.I am a newbie so how do I go about finding the right creative mentor?

  79. Hi Phil, I loved your video! I’ve always been interested in real estate since a young girl. Now, my husband and I own two homes, one is a duplex we rent out, the other we live in now but bought to use as a rental. But what you talk about in your video is exactly what we have talked about. Thank you for these videos!!! Theyre awesome!

  80. Chris Bobek says


    I’m out of a job with very little money. Can I make money in 2 months or less with you has my mentor?


  81. Mark Gutierrez says

    I had not realized that there were two separate schools of thought in the real estate investing world! Thanks for the video, it helped me to categorize the many techniques that I am working to understand. For now I am definitely more interested in creative real estate investing, because of low access to funds and because it seems there are types of transactions and opportunities. But once I have generated enough cash, I would love to use it to develop a more traditional business, one that bids low across the board. That way the money-making process could be broken down into simple tasks for others to do, instead of requiring that I invest time in strategically engineering each deal that comes my way in order to make profit.
    Great video, thanks for the help!

    • Phil Pustejovsky says

      I would add to your assessment and say that you can automate the Creative side as well. As I do personally at this point.

      • Eric Volkers says

        Hey Phil in regards to automating the creative side do you use VA’s at all to help find motivational sellers. Also if you don’t pick us as an apprentice would you recommend e partner to sign up with that could help us automate our business?God Bless

  82. Carlos De Jesus says

    Hey, ” Freedom Mentor”, Carlos De Jesus here. Real Estate Agent/ Investor-Owner. I am just starting my Investment Company and I’ve been searching for “Angel Investors.” Only problem is Angels don’t want to deal In “Real Estate and most Investors will not Allow a Newby into “Their Club.” I have been an Agent for Over 12 Years and Know a Great Properties when I see them! I have bad Credit from The Crash of 2008, and I do not have enough Cash for the 1rst. Home I’d like to purchase, $30k. Any Advice for an Agent Investor who can’t catch a Break?

    I know how to run this Business but need Backing!!! Those that did Come On-board would Stand To Gain Great Profits and More Time to Live Their Lives!!! In Our Line of Work, as you know, “Time is Money” and More Time will Also mean more Money, to My Investors!!! Thank you for Reading. I Loved your Video!!!

    P.s. I’m a “Creative Investor.” -Owner and Agent.” Carlos De Jesus “Canis Major Investment Capital (CANI) LLC.” Solid Source Realty GA.

  83. Phil:

    I like it ! I prefer a method that is creative and used lessly, it would appear that there would be less competition and therefore less stress on me and I really like it that is also cheaper!

    thanks for the email


  84. Justin Garcia says

    I definitely like the comparison between creative and traditional real estate investing. I’ve notice the past couple weeks a lot of the real estate “gurus” having been warning people about Wall Street buying up a lot of properties and it seems like there trying to use this as a scare tactic to get newbies to buy there investing programs. Anyway I appreciate you telling it how it is.

  85. Vincent Brown says

    Phil” this is my first year as a wholesaler and for 12 mos., that’s what I’ll be Concentrating on.


  86. Hi Phil,

    You’re exactly right. I choose to stay in the Creative arena. The recent scare tactics of a certain Guru saying that “Mom & Pop” Real Estate Investors are dead is not the truth. His problem is that He’s marketing REO’s to “Mom & Pop” Investors who can only buy one property at a time. Hedge Funds buy in bulk from BIG banks… not from “Mom & Pop” investors. He chased away the very people he’s marketing to. His properties are marked up at least twice, leaving little headroom for profit. When I saw the Video, I was literally MOCKED from beginning to end. You can’t MOCK the very people you want to sell to. A lot of dreams were shattered, and that’s a SHAME.

    I feel sorry for the thousands of Newbie Real Estate Investors that quit because of the nearly two weeks of scare tactics by the Guru’s. If they only could have seen your video above. If they would have seen your video… I honestly believe that they would have stayed. Your video is so simple, real and very powerful. It explains exactly where the creative investor fits in. It gave me a tremendous amount of confidence for now and in the future.

    You have clear logic and reasoning. It’s a product of being a Saint, which you are. You never sacrifice money for truth. That’s very rare these says.

    THANKS! … for Everything

    • Phil Pustejovsky says

      You are so right!
      In the news business, the old saying is, “If it bleeds, it leads.”
      So when a certain Guru uses headlines like, “The Death of Mom and Pop Real Estate Investors”, it gets more opens, more clicks, more views, more activity, then a bland and boring title like, “Creative Real Estate vs Traditional Investing.”
      But the truth is, times are better than ever for Mom and Pop investors if they go the creative route.
      Happy investing!

      • Hey Phil great lesson it helps me to understand a lot about real estate investing. Me myself like the creative way b/c it’s like your some what a hero you come to someone rescue and at the same time you earning money by help them out of bad situation.

    • Thank you Phil

    • This is an amazing concept, I rather go with the creative investing, very interested in more education on this. thanks for sharing

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