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.

T-12 Readiness Checklist | Bhumi Knowledge Base

This checklist covers every item lenders verify during underwriting. Complete it before you submit. Every "no" is a potential stip, delay, or deal-killer.

Pro tip: Print this page. Check each box with a pen. If you can't check a box, fix it before submission.

Section 1: T-12 Operating Statement

Income Verification

T-12 covers the most recent 12 consecutive months
Gross Potential Rent matches current rent roll × 12
Vacancy loss is calculated and documented
Other income (laundry, parking, fees) is itemized separately
Total income matches bank deposits within 5%
Any variance over 2% has a written explanation

Expense Verification

Property taxes match county tax bill
Insurance expense matches policy premium
Utilities are separated from tenant-paid utilities
Management fee is included (even if self-managed, note "0% - owner managed")
Repairs and maintenance are reasonable (not suspiciously low or high)
No personal expenses included
No capital expenditures in operating expenses

NOI Calculation

NOI = Effective Gross Income − Operating Expenses (math is correct)
Debt service is NOT included in expenses
NOI is consistent with prior year performance (or variance is explained)

Section 2: Bank Statement Reconciliation

Documentation Complete

12 months of complete statements (all pages)
All accounts touching the property are included
Account holder name matches borrower/entity name
No missing months or pages

Reconciliation Complete

Each month's T-12 income ties to that month's deposits (within 5%)
Large deposits ($5,000+) are identified and sourced
Non-recurring deposits (insurance claims, security deposit refunds) are excluded from T-12 income
Transfers between accounts are not double-counted

Section 3: Rent Roll

Current and Complete

Rent roll dated within 30 days of loan application
All units listed (including vacant units)
Unit numbers match property addresses/building layout

Required Information

Tenant name (or "Vacant") for each unit
Lease start date and end date
Monthly rent amount
Rent type (market, Section 8, affordable housing)
Security deposit amount
Any delinquencies or outstanding balances

Consistency Checks

Rent roll totals match T-12 monthly rent
Unit count matches property description
Lease terms match actual lease documents

Section 4: Leases

Documentation

Copy of every current lease on file
All amendments and addenda included
Month-to-month tenants identified
Lease rent amounts match rent roll exactly
Lease dates match rent roll exactly

Section 5: Section 8 / Subsidized Housing

Skip this section if you have no subsidized tenants.

HAP Contracts

HAP contract for each voucher holder
Contract rent amounts documented
Tenant portion vs. HAP portion clear

Payment Verification

Bank statements show HAP deposits
Deposits can be traced to specific tenants
If HAP hits a different account, allocation schedule is provided

Section 6: Insurance

Coverage

Property insurance with replacement cost coverage
Liability coverage minimum $1M per occurrence
Flood insurance (if property is in flood zone)
All buildings included on the policy
Addresses match property addresses exactly

Endorsements

Policy is current (not expired)
Ready to add lender as loss payee at closing

Section 7: Entity Documentation

Ownership Structure

Operating Agreement or Articles of Organization
Certificate of Good Standing (current year)
EIN letter from IRS
Ownership chart showing all members/managers

Authorization

Signing authority documented in operating agreement
Resolution authorizing the loan (if required by lender)

Final Pre-Submission Check

Before You Hit Send

All documents are legible (clear scans, not blurry photos)
Documents are properly labeled and organized
T-12, rent roll, and bank statements all use consistent property name
No confidential information visible that shouldn't be shared
You can explain every number if asked

If you checked every box: you're ready to submit.

If you have unchecked boxes: fix them first. Every gap is a delay waiting to happen.