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.

Pillar

T-12 Fundamentals

The T-12 operating statement is the foundation of every multifamily loan. Master these fundamentals before you talk to a lender.

What You Need to Know

Every multifamily transaction—refinance, acquisition, or sale—requires a T-12. The lender uses it to calculate Net Operating Income, determine your loan amount, and assess risk. If your T-12 has problems, your loan has problems.

These articles cover the core concepts: what a T-12 is, how NOI is calculated, what variance means, and how to reconcile your numbers to bank statements. No theory. Just the mechanics that determine whether your deal funds.

Cluster 1: The Document

Understand the artifact itself. Why the P&L matters less, and what the T-12 actually represents.

What is a T-12 Operating Statement?

The single most important document in any multifamily transaction. What it is, why lenders demand it, and what kills deals.

8 min read

T-12 vs. Profit & Loss Statement

Two financial statements, two different purposes. Why your QuickBooks P&L can't substitute for a T-12.

6 min read

Cluster 2: The Math (NOI & DSCR)

The formulas that determine your loan amount. Lenders don't use your math; they use theirs.

NOI Calculation: The Number That Determines Your Loan

Net Operating Income drives everything—your loan amount, your rate, your valuation. Here's exactly how lenders calculate it.

6 min read

Physical vs. Economic Occupancy

The distinction that confuses 90% of property owners—and costs them loan proceeds. What Freddie Mac actually counts.

6 min read

Cluster 3: The Verification

How underwriters catch fraud and errors. If you can't prove it, you didn't earn it.

T-12 Variance Explained

The gap between what you claim and what you can prove. Understanding variance is understanding why deals fail.

7 min read

Bank Statement Reconciliation Guide

The process that separates funded deals from rejected applications. Step-by-step reconciliation methodology.

9 min read

Next Steps

Once you understand T-12 fundamentals, learn what specific lenders require:

Lender Requirements →Deal Room Documentation →