Different properties generate different levels of income. Many individual investors, for example because of the scale of their property, realize very meager levels of cash flow, perhaps around 2–4%. Suppose, instead, those investors could roll their equity into a commercial property with a higher level of cash flow that, even after debt service, would more than double their current income? Much of the outcome of such a transfer depends upon the manner in which financing is structured and the reliability of the rental income. If tenants are placed on a rent increase schedule, long-term leases with renewal options at expiration are in place, and demand for the rental space is strong, many investors would find the situation to be an improvement over their present arrangements?
Under such circumstances, the change in income can be dramatic. Of course, it's not guaranteed, but neither is an investor's present situation. We are confident that these options—particularly with upscale properties that we can identify for our clients—are worth the time to investigate.