[Verse 1] When you're looking at a building, wonder what it's worth today There's a method that's quite brilliant, let me show you the smart way Take the rents that it will generate, year by year into the future Then we bring them to the present, that's our valuation suture [Chorus] Discount cash flows, bring them back in time Present value shows us what's the bottom line Project all the income, then discount the stream DCF for real estate, it's the investor's dream Future cash today, that's the DCF way Future cash today, shows us what we pay [Verse 2] First we estimate the rental income, growing year by year Add the other revenue streams, make assumptions crystal clear Subtract the operating expenses, taxes, maintenance, and repair What's left is net operating income, handle it with care [Chorus] Discount cash flows, bring them back in time Present value shows us what's the bottom line Project all the income, then discount the stream DCF for real estate, it's the investor's dream Future cash today, that's the DCF way Future cash today, shows us what we pay [Bridge] Choose your discount rate with wisdom, reflects the risk you take Higher risk means higher rates, that's the choice you make Terminal value at the end, when you sell the property Add it all together now, that's your NPV [Verse 3] Five or ten years of projections, cash flows mapped ahead Discount each year separately, use the rate we said Sum them up with terminal value, discounted back as well Now you know the property value, DCF will tell [Chorus] Discount cash flows, bring them back in time Present value shows us what's the bottom line Project all the income, then discount the stream DCF for real estate, it's the investor's dream Future cash today, that's the DCF way Future cash today, shows us what we pay [Outro] When the market price is higher, maybe you should wait When it's lower than your DCF, could be your real estate fate Future cash flows tell the story, discounted to today DCF analysis, lights the investor's way
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