I suspect that whatever the reason, CA experienced investors could state why it is BS.The reality is - CA RE has on average produced better return than any other state. 

Quote from @Melanie Baldridge: Why I like investing in real estate more than 401(k)s.Both offer tax deferrals, but here's the difference:If you're making pre-tax contributions to your 401(k), then withdrawals = ordinary income tax.With real estate gains, you're paying capital gains tax (which is typically lower).Plus, RE investors get:1.

I am a RE agent in Stephenville, Tx. and it is poised for big growth.

This has been forming-- phys RE cracks are slow to mature but swift in it's action.Austin, among other cities, is one to watch for.

The next day you get a RE State promulgated contract from them for full ask, but they want you to pay 2% towards their closing costs.Let's say it's a 500k house and the listing agreement is for 5%, with 2 to the sellers agent.

Imagine making millions of dollars over the course of your career and then having to pay 30-50% every year to uncle sam instead of compounding that cash over time.
This is exactly what real estate professionals have ...

That means that unless your state allows you to just keep their money you have to try to re-rent the house.

Welcome to BP Bianca, if you currently don't have much capital, find some partners in your network that have the funds to get started in RE but are hesitant since they never purchased anything yet.

What grabs your attention to this kind of RE. 

It IS required that you at least sign a RE-05 (Prior to Showing Agreement).