[Verse 1]
Started with a property, need to know its worth
Discounted cash flow tells us what it's earning from this earth
Cap rates are the shortcut, NOI divided by the price
Comparable sales show us what the market thinks is nice
[Chorus]
DCF and cap rates, comps will show the way
IRR and equity multiple, returns we calculate each day
Office retail industrial, multifamily too
Real estate investing, here's what you need to do
[Verse 2]
Mortgage markets fund the deals, debt and equity combined
Cash-on-cash returns tell us what our yearly cash will find
REITs trade on public markets, real estate you can buy
Liquid shares of property portfolios that reach up to the sky
[Chorus]
DCF and cap rates, comps will show the way
IRR and equity multiple, returns we calculate each day
Office retail industrial, multifamily too
Real estate investing, here's what you need to do
[Verse 3]
Development starts with entitlements, zoning laws must align
Construction management keeps the project running right on time
Project finance structures deals with phases and milestones
Urban economics shows us why some areas are zones
[Bridge]
Agglomeration clusters businesses together in one place
Housing policy shapes the market, sets the regulatory pace
Environmental liability, leases you negotiate
Due diligence protects you from a costly real estate mistake
[Chorus]
DCF and cap rates, comps will show the way
IRR and equity multiple, returns we calculate each day
Office retail industrial, multifamily too
Real estate investing, here's what you need to do
[Outro]
From land use to the lease terms, every detail matters now
Real estate finance mastery, you've learned the why and how