Looking for the net worth of Phil Pustejovsky? If you are doing your research about me and would like to know how much money I have made, let's just say that real estate has been very good to me and I am quite blessed financially. All of my assets are held in different corporate structures to maximize liability protection as well as mitigate paying more in taxes than my fair share.
NOTE: If you are a paralegal working on behalf of an attorney (perhaps hired by one of my tenants), in attempt to determine if a frivolous lawsuit filed against me could result in a big payday, then unfortunately, I hate to burst your bubble, but due to my asset protection plan, the most you could collect would be close to nothing.
Even the most honest, ethical and morally upright business people can deal with attorneys who stay on the prowl for unsuspecting victims. That's the darker side to financial prosperity...you become a target. Many people may not realize that Donald Trump is taken to court quite often. Even if he has done everything as agreed to, and followed his responsibilities correctly, he is still a big target for lawsuits. Although rarely does he lose big in legal battles, it is also quite time consuming and expensive to appear on the witness stand as well as plan and defend against legal onslaughts.
For literally almost everyone researching Phil Pustejovsky Net Worth, there is no such malicious intent, of course. You're probably just curious. And that is more than understandable. I hope the answer on this page suffices your curiosity.
Real Estate is IDEAL
Let's talk about the acronym "IDEAL" when talking about net worth building in real estate.
You need to be bringing in good income or cash flow. It is all too easy to buy properties that don't cash flow. This is a big No No! The property will not be worth it if it does not bring in income for you. There are a lot of expenses in real estate such as taxes, a mortgage payment, insurance, potential HOA fees, and maintenance costs. But after those are deducted, the hope is that the rest left over is the money that you can bring in for yourself.
You get to take depreciation on the income that you are bringing in. The IRS suggests that a single family home can be depreciated over 27 1/2 years. Most houses if maintained properly, will last well beyond 27 years, but the beauty of this is it becomes a phantom expense that doesn't actually come out of your pocket, but goes against your income, making it "tax advantaged". The goal is not money today. It is to build your net worth.
I hope that you are buying your properties wisely so that when you first begin you can walk into instant equity when you purchase. This will really help you begin to build your net worth.
Be careful here because over the long haul, single family homes usually keep pace with inflation, rather than appreciating. Most properties however have the potential to appreciate!
This is where things get interesting. Let's say you put 10k into a property that is worth 100k. You are leveraging borrowed money and controlling this property with only 10k! The other 90k is coming from somebody else. The gains that you can receive from appreciate, such as the property appreciating by 3%, will then set the property value at 103k. This increases your net worth by 30%!
Drawbacks of Growing Net Worth in Real Estate
#1. Cash Flow Positive
Your property has to cash flow positive. Negative cash flow is wasting your time and money.
#2. Management (Time)
Even if you hire a manager, you still need to manage the manager! This requires YOUR time so it better earn you some money. I have a helpful free training on What Every Landlord Should Know About Property Management.
Be prepared for disasters. Hurricanes, tornados, evictions, and plumbing issues all happen in the real world. Make sure you have insurance for your property.
It is not about how many property's you own but which ones will cash flow positive for you!
"Kiss a lot of Frogs to Find a Prince"
My real estate mentor often said this quote to me when I was beginning my real estate journey. If you are looking to build your net worth in real estate you need to look at A LOT of deals to find the right one.
Check out my video on How to Turn A Little Into A Lot that will provide you with the practical knowledge to make the most of your real estate investment.