What is a T-12 in real estate?

A T-12 (Trailing Twelve Months) is an operating statement showing the last 12 months of income and expenses for a property. Lenders use it to calculate Net Operating Income (NOI) and determine loan amounts. Bhumi provides forensic T-12 audits that reconcile every line item to bank statements.

How long does a T-12 audit take?

Bhumi delivers a complete, lender-ready T-12 package within 48 hours of receiving your documents. Full forensic reconstruction typically takes 1-2 weeks. Deal closing support runs approximately 30 days.

What size multifamily portfolios does Bhumi work with?

Bhumi specializes in $500K to $5M multifamily portfolios with 5-50 units. This is the sweet spot where institutional lenders require documentation but owners often lack institutional-grade bookkeeping - too complex for most accountants, too small for institutional advisors.

What documents do I need to start a T-12 audit?

To start, Bhumi needs three things: 12 months of bank statements for all accounts touching the property, a current rent roll showing units, tenants, and rent amounts, and your most recent tax return or Schedule E for the property.

How much does a T-12 audit cost?

Bhumi charges a flat fee based on portfolio complexity - number of units, bank accounts, and document condition. No hourly billing surprises. Contact for a specific quote based on your situation.

What lenders does Bhumi work with?

Bhumi is lender-agnostic and has prepared packages for Freddie Mac Small Balance Loans, Fannie Mae Small Loans, regional banks, credit unions, and private lenders. The documentation standards are tailored to each lender's requirements.

What is NOI variance and why does it matter?

NOI variance is the gap between what your T-12 operating statement shows and what your bank deposits prove. Lenders require zero variance for loan approval. Bhumi's forensic reconciliation traces every dollar of revenue to a specific bank deposit, eliminating phantom income and protecting your loan amount.

Can Bhumi help with inherited real estate portfolios?

Yes. Bhumi specializes in inherited portfolios where the previous generation ran operations manually. We've handled portfolios with Venmo payments, cash deposits with no paper trail, commingled personal and business expenses, and decades of accumulated documentation gaps.

The Aged Receivables Narrative: Turning Delinquency Into Context

The Contrarian View

Delinquency isn't always bad. A 14-year tenant who's $1,200 behind but always catches up is a lower risk than a new tenant who pays on time but might leave in 6 months. Lenders understand this—but only if you give them the context.

When we submitted our Aged Receivables report showing $3,832 outstanding across 5 tenants, we could have just sent the numbers. That would have been a mistake.

Instead, we sent a narrative. Each tenant with an outstanding balance got a note explaining why the balance existed and what the resolution path was. The lender never asked a single follow-up question about delinquency.

The Raw Data vs. The Narrative

Here's what a B-tier analyst would have sent:

Unit	Tenant	0-30 Days	30-60 Days	60-90 Days	Total
24	Maria Burkett	$0	$895	$305	$1,200
10	Marleeta Veeder	$845	$422	—	$1,267
25	Marcelo Trevino	$845	$0	—	$845
11	Alex Hayes	$420	—	—	$420
33	Noemi Hayes	$100	—	—	$100
TOTAL					$3,832

The lender sees this and thinks: "This property has a collections problem."

Here's what we actually sent:

The S-Tier Aged Receivables Report

Unit	Total Owed	Status	Context
24	$1,200	Moved Out	Moved out 11/5. Balance reflects unpaid Oct & Nov rent. Unit possession recovered. Lease in place for collections.
10	$1,267	Current	Partial balance. Tenant is communicative and long-standing (14 years); history of consistent catch-up payments.
25	$845	Current	Dec rent due. Tenant promised payment by Jan 15.
11	$420	Current	Partial balance outstanding.
33	$100	Current	Minor variance.

The lender sees this and thinks: "This operator knows their tenants. They have a plan for each situation."

Same data. Different narrative. Completely different lender perception.

The "14-Year Tenant" Frame

Marleeta in Unit 10 owed $1,267. That's the second-highest balance on the report. A B-tier analyst would have flagged her as a problem tenant.

But when we audited her payment history, we found something important: she's been in that unit for 14 years. Her ledger shows a consistent pattern—she falls behind occasionally, then catches up with a larger payment the following month.

Look at her payment history from our rent roll:

Month	Rent Paid	Notes
October 2025	$1,000	Arrears Collected
September 2025	$1,000	—
August 2025	$900	—
June 2025	$1,100	Arrears Collected
February 2025	$1,045	Includes catch-up of $200

The pattern is clear: Marleeta pays. Sometimes late, but she pays. And she's been doing this for 14 years without ever requiring eviction proceedings.

That context transforms her from a "delinquent tenant" into a "stable, long-term resident with a predictable payment pattern." The lender's risk assessment changes completely.

The "Possession Recovered" Frame

Maria in Unit 24 moved out owing $1,200. Without context, this looks like bad debt—money we'll never see.

But we framed it differently: "Unit possession recovered. Lease in place for collections."

This tells the lender three things:

The unit is no longer occupied by a non-paying tenant. The bleeding has stopped.
We have legal documentation. The lease is in place to pursue collections if we choose.
This is a sunk cost, not an ongoing risk. Future rent from Unit 24 will come from a new tenant.

The lender may still haircut this $1,200 as bad debt. But they won't worry about Unit 24 as an ongoing collections problem—because it's not.

The Notes Column is Mandatory

Every row in your Aged Receivables report needs a Notes column. No exceptions.

What to Include in Notes

Tenant tenure: "Long-standing (14 years)" signals stability.
Payment pattern: "History of consistent catch-up payments" reframes delinquency as a pattern, not a crisis.
Resolution status: "Promised payment by [date]" or "Payment plan in place."
Unit status: "Moved out" + "Possession recovered" for former tenants.
Magnitude context: "$100 minor variance" tells the lender not to worry about small numbers.

The Data Integrity Check

Critical: Your Aged Receivables report must match your rent ledger. If the ledger shows Marleeta paid $1,000 in December, you cannot list her as owing $845 for December. Lenders cross-reference.

During our submission, we caught an error: the A/R report showed a tenant as delinquent for a month when our ledger clearly showed she had paid. Had we submitted that inconsistency, the lender would have questioned all of our data.

Before submitting any A/R report:

Pull your rent ledger for the same period
Verify each "outstanding" balance actually exists
Check that payment dates in the ledger don't contradict "past due" claims in the A/R
Reconcile any discrepancies before submission

The Threshold That Triggers Scrutiny

There's no official "maximum" delinquency rate for Freddie Mac SBL or similar lenders, but in our experience:

Delinquency Level	Lender Response
Under 3% of GPR	Generally no additional scrutiny
3-5% of GPR	May ask for explanations (notes help here)
5-10% of GPR	Will require detailed breakdown + collection plan
Over 10% of GPR	Significant DSCR impact; may affect loan sizing

Our $3,832 outstanding against ~$32,000/month in GPR (Gross Potential Rent) put us around 1% delinquency. With proper narrative context, it wasn't even a conversation.

Lenders don't fear delinquency. They fear uncertainty. Your job is to provide certainty—even when the numbers aren't perfect.