[Verse 1] Three pathways lead to property treasure Direct ownership brings hands-on pressure Indirect routes through REITs and funds CMBS packages where mortgage money runs Bricks and mortar versus paper shares Each approach has profits, each declares [Chorus] Cap rate equals NOI divided by price Income approach cuts through the dice FFO and AFFO measure the flow Cost, sales comparison help you know Real estate math makes fortunes grow Cap rate, NOI, that's how pros go [Verse 2] Income approach dominates the scene Direct cap method keeps it clean DCF discounts future cash streams Modeling years ahead of rental dreams Cost approach sums up replacement price Sales comparison rolls the market dice [Chorus] Cap rate equals NOI divided by price Income approach cuts through the dice FFO and AFFO measure the flow Cost, sales comparison help you know Real estate math makes fortunes grow Cap rate, NOI, that's how pros go [Bridge] Due diligence digs beneath surface gleam Lease analysis reveals the scheme Vacancy rates and cap-ex drain LTV and DSCR measure mortgage strain Index construction weights the market whole But limitations plague the goal [Verse 3] FFO strips out depreciation's mask AFFO adjusts for maintenance task Mortgage types from fixed to ARM DSCR shows if cash can charm Loan-to-value sets the lending bar Property debt can lift you far [Chorus] Cap rate equals NOI divided by price Income approach cuts through the dice FFO and AFFO measure the flow Cost, sales comparison help you know Real estate math makes fortunes grow Cap rate, NOI, that's how pros go [Outro] Three methods value every plot Cap rates tell you what is what Direct or indirect, choose your lane Real estate knowledge breaks the chain
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