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.

Phantom Income Detector

Know Your Number Before You Apply

Lenders won't tell you upfront. This calculator shows the maximum loan your NOI supports—so you don't waste weeks chasing a number you can't get.

Your Numbers

Net Operating Income (NOI)

Annual NOI from your T-12

Property Value / Purchase Price

Appraised value or purchase price (whichever is lower)

Interest Rate

Current market rate for your loan type

Amortization

years

Typically 25-30 years for multifamily

Market Tier

Freddie Mac adjusts LTV and DSCR requirements based on market size and liquidity.

Standard Market: Austin, Denver, Nashville, Phoenix, Atlanta

Maximum Loan Amount

$1,500,000

in standard market (75% LTV / 1.25x DSCR)

LTV is your binding constraint

Your property value limits you to $1,500,000 at 75% LTV.

DSCR would allow $1,503,076—but the value isn't there.

To increase proceeds: Challenge the appraisal with better comps, or wait for value appreciation.

DSCR Constraint$1,503,076

LTV Constraint$1,500,000

Monthly Payment$9,979.54

Annual Debt Service$119,754

Your NOI$150,000

Actual DSCR1.25x

Actual LTV75.0%

The Math (So You Can Verify)

Max Loan by DSCR (1.25x required)

NOI ÷ DSCR ÷ Payment Factor = $150,000 ÷ 1.25 ÷ 0.0798 = $1,503,076

Max Loan by LTV (75% max)

Property Value × Max LTV = $2,000,000 × 75% = $1,500,000

Binding Constraint: LTV

min($1,503,076, $1,500,000) = $1,500,000

What Your Market Tier Costs You

Same property, same NOI—different loan amounts based on market classification

Market TierMax LTVMin DSCRMax Loan

Top Market80%1.20x$1,565,704

Standard75%1.25x$1,500,000

Small Market70%1.25x$1,400,000

Very Small65%1.30x$1,300,000

The spread: A Top Market property gets $265,704 more than the same deal in a Very Small Market.

Your NOI Determines Everything

Lenders don't use your NOI—they calculate their own. Vacancy adjustments, expense add-backs, and "stabilization" haircuts can drop your NOI by 10-20%.

Example: If your T-12 shows $150,000 NOI but the lender underwrites $127,500, your max loan drops from $1,500,000 to $1,277,614.

See What Lenders Will Cut

Use our Phantom Income Detector to preview lender adjustments

Understanding DSCR vs LTV Constraints

What is DSCR?

Debt Service Coverage Ratio measures how many times your NOI covers your loan payments. A 1.25x DSCR means you have $1.25 of income for every $1.00 of debt payment—25% cushion for the lender.

What is LTV?

Loan-to-Value ratio caps how much you can borrow relative to property value. At 75% LTV, a $2M property supports a $1.5M loan maximum—regardless of how much NOI you have.

Why both matter

Your loan is constrained by BOTH metrics. High NOI won't help if LTV caps you. High value won't help if NOI can't cover payments. Know which one is YOUR bottleneck.