Assume you’re an investor or buyer in today’s NYC Real Estate market with $100 to spend in a 10-year duration. You’re looking to get a 10% return on your investment, so you’ll spend $100 today to make $110 in 10 years. 

Which scenario is the best choice: 

Plan A: Spend $100 on a piece of property, receive $10 at the end of the first year you invested plus the original $100 at the end of year 10.

Plan B: The investor receives $1 at the end of each year for 10 years, plus the original $100 at the end of 10 years.

Place C: The Investor receives $10 at the end of the 10th year of the plan, plus the original $100

Answer: You should choose Plan A, receiving the interest or upfront value of your initial investment today while allowing the rest of that property to keep accruing value within the healthy economy. Getting an early return on your money allows you initial investment to keep growing. This goes for commercial property, as well as residential property that may be considered to be rented out in the future as supplemental income.