Final answer:
The false statement regarding the use of financial leverage by real estate investors is that higher leverage always guarantees higher returns.
Step-by-step explanation:
The false statement regarding the use of financial leverage by real estate investors is: C) Higher leverage always guarantees higher returns.
Financial leverage involves borrowing funds to invest in properties, which amplifies both profits and losses. However, higher leverage does not always guarantee higher returns. While it can potentially lead to higher returns, it also carries the risk of magnifying losses and increasing the overall level of risk in real estate investments. Leverage can magnify risks in real estate investments.