One of the most curious questions I get asked is, “Why Justin Buys Houses?” The answer isn’t always as straightforward as one might think. Justin does own property in California, so if you’re wondering why he’d want to buy a house there, it might have something to do with his connection to the real estate market there. His parents were very active in their real estate business. They had properties all over the place, including a million-dollar beachfront home that they had built themselves when Justin was still a toddler.
He learned later in life that they were involved in real estate, though, and by working with his siblings and cousins, he picked up many tips and tricks along the way. He learned about financial planning and managing money. He’s also invested in some businesses, most notably one that he managed as a teenager. All of this may help explain why Justin does the kinds of deals that he does. It’s not uncommon for younger folks to become successful in the business world while still having parents with substantial incomes, after all.
One question that always comes up when I talk to people about real estate is, “Why does Justin buy houses instead of renting them?” The simple answer is that most houses are much more expensive to rent than they are to buy. If you don’t make your payments on time, you end up losing your rental income, which can seriously hurt your credit rating. If you can afford your payments, then you might not even be in a position to keep your house in the long term, and that means you’ll have to move. By making Justin Montoya the owner of at least one property, he avoids the serious damage done by early payment and rental defaults.
Another common question is, “What does Justin do with his real estate?” Well, he does everything a smart investor would do with his own portfolio-invest, buy and hold, and expand and manage his portfolio to earn a handsome return. There’s no indication that Justin is thinking about retirement.
A third question often asked is, “What does Justin’s family to do with all this real estate?” One of the reasons why Justin buys real estate is to leave something behind for his family. Many successful investors are known to leave money behind for their family. For example, Steve Jobs reportedly had a huge estate portfolio left for his family upon his death. The reality is that most successful people are known to leave a few pieces of real estate behind for their immediate family.
People often ask me why Justin doesn’t get involved with the stock market or another financial instrument like bonds. My answer to that question is that Justin doesn’t know how to play the game. I know that sounds like an excuse, but the truth is that there are very few people who know how to invest effectively in real estate without having any experience with it at all. I know of very few people who have made real estate their bread and butter. Unless you know how to invest and create deals to generate income from properties you can’t succeed in the game.
Finally, many people are confused by Justin’s refusal to get into the limelight. He refuses to be a spokesperson for a couple of high profile murders that took place in Encinitas. I don’t understand why anyone who has the intelligence and resources to buy real estate would not want to get involved. If someone else was to make a mistake, the media would blast the shill out of the story, while Justin sits back quietly, making big money while not having to say a word.
While I believe that Justin’s lack of notoriety is unfortunate, I also believe that he is doing what is necessary to succeed in the game. Many successful people don’t have the name recognition that they do. They play it safe. As long as they make enough money with real estate to cover their expenses and then some they figure that they’re done. I don’t fault Justin for any of this, but I will note that I am 100% sure that he would make far more money had he taken advantage of the real estate boom that we’ve recently seen.