Objective:

Evaluate and discuss the key risks faced by real$-$estate and financial investors in California, and compare how those risks differ for a first$-$time investor versus a seasoned property owner.

Instructions

Initial Post $(1$ pt$.)$

submit a $$post addressing all three of the following:

Identify Two Major Risks:

Choose one real$-$estate risk $($e$.$g$.,$ new rent$-$control or condo$-$conversion laws, seismic retrofit insurance costs$)$

Choose one financial risk $($e$.$g$.,$ rising interest rates, tax$-$law changes, market volatility$)$

Analyze Their Impact:

For each risk, explain how and why it could affect an investor$$s cash flow, asset value, or leverage strategy in California.

Provide at least one concrete example or recent news reference.

Compare Investor Experience:

Describe how each risk might impact a first$-$time real$-$estate investor differently than an experienced owner.

Consider factors like access to credit, network of advisors, capital reserves, and familiarity with local regulations.