It spreads their risk.In regard to market, there's a couple of different approaches my clients take:1.)

Many Loan Officers like to BS to get a client in the door.

New to real estate but possess a deep understanding of the responsibilities to continue to gain knowledge and remain loyal with my clients and professionally with my colleagues.  

They also have a fiduciary responsibility to their client, in this case the seller.

A lot of my clients buying in FL are happy with minimal return but are buying for second homes, tax benefits, etc.I would stick with value add - with refi you can still achieve high CoC and a good equity position. 

This post does not create a CPA-Client relationship.

Primarily self limiting beliefs.One of my clients just closed on their first commercial deal and they only had one duplex before I started working with them. 

Most reverse exchanges are done with cash from the client or a private loan of some sort from an individual or a portfolio bank.When your old property sells you will have that cash in your account to purchase the new property. 

Our clients are very active in buying pre-foreclosures.

I had a client that had an illegal garage rented out for $1k per month and when he attempted to sell the property, the tenant went to the city and the owner had to pay the tenant back 2 years worth of rent.