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.

Max Loan Calculator

What Will It Cost to Get Out?

Prepayment penalties are deliberately opaque. This calculator estimates your cost—so you can decide if refinancing or selling makes financial sense.

Current Loan

Outstanding Balance

Note Rate

Your current interest rate

Months Remaining

7.0 years until maturity

Open Window PeriodMost agency loans have a 90-day penalty-free period before maturity

days

Penalty Type

Current Treasury Rate

Use 10-year Treasury for most calculations

What If Rates Move?

Your penalty changes as Treasury rates move. Slide to see the impact.

-1.5%+1.5%

Current: 4.25%

Estimated Prepayment PenaltyHigh

$300,011

15.00% of balance

The lender is entitled to the interest income they would have earned. With 7.0 years remaining at 1.25% above current Treasuries, they're owed the present value of that spread.

Treasury Rate Sensitivity

-1.5%2.75%$696,093

-1%3.25%$559,439

-0.5%3.75%$427,470

0%4.25%$300,011

+0.5%4.75%$176,892

+1%5.25%$57,952

+1.5%5.75%$0

Key insight: When rates rise, your penalty drops (and vice versa).

Is Refinancing Worth It?

If you refinance at 6.75% (current market):

Annual Interest Savings-$25,000

Months to Break EvenNever

Time Remaining84 months

✗Won't break even before maturity. Consider waiting.

Understanding Prepayment Penalties

Yield Maintenance

Compensates the lender for lost interest income. When rates drop, your penalty rises (they're losing more). When rates rise, your penalty shrinks (they can relend at higher rates).

Formula: PV of (Note Rate − Treasury) × Balance × Remaining Term

Defeasance

Instead of prepaying, you substitute Treasury securities that match your remaining payments. The loan stays on the lender's books, but you're released from it. More complex and expensive than yield maintenance.

Costs: Treasury portfolio + Legal fees ($25-75K) + Admin fees

Step-Down

Simple and predictable: a fixed percentage that decreases each year. Common on shorter-term loans. Doesn't adjust based on interest rates, so it can be more or less expensive than yield maintenance depending on the market.

Example: 5% in Year 1, 4% in Year 2, 3% in Year 3...

The Open Window: Your Free Exit

Most agency loans (Fannie Mae, Freddie Mac) include a 90-day open window before maturity where you can prepay without penalty. Some loans offer 120 or 180 days. This is your chance to refinance, sell, or pay off debt-free.

Check your loan docs: The open window period varies by loan. Don't assume 90 days.

Plan ahead: If you're within 6 months of your open window, it may be worth waiting.

Rate lock timing: You can lock a new rate during the open window for a smooth transition.

Estimates only. Actual prepayment penalties depend on your specific loan documents. Yield maintenance and defeasance calculations vary by lender and may include additional fees. Always verify with your servicer before making decisions.

Current Loan

Penalty Type

Treasury Rate Sensitivity

Is Refinancing Worth It?

Understanding Prepayment Penalties

Yield Maintenance

Defeasance

Step-Down

The Open Window: Your Free Exit

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