Christian Osgood explains what a T12 is: a trailing 12-month financial statement showing month-by-month income and expenses that ends in net operating income. Sellers usually provide it quarterly or annually. If you can't get a full T12, a T3 (three months) works as a quick check before signing.
So my question, what does T12 mean? Like, it's like a seller, they have it? Yeah.
So a T12 is a trailing 12 months. Yeah. So they should have that, especially if you're selling a property. Everyone's going to ask for it.
Like T12 means like it's from the accountant or it's from the property management company. How does it— do you have any sample? Like I can look it up in the online, anything like that?
Yeah, I'll be able to pull a few. I'll email you a couple of examples. It is your trailing 12 months. So it's like a P&L. Often they're updated quarterly or annually. You should do them monthly, but a lot of times I see that they're usually 3 months behind or they'll show me like a 2025 full year P&L. Trailing 12 means the last 12 months, which is my favorite to look at one year from where we're at today. If they don't have that and they can't easily put it together, I'm like, hey, just to make basic decisions, can I see a T3? Can I just see what your collections and expenses were over the last 3 months? It doesn't show everything. You really want a T12, But P&L or T12, if you can't get that, at least get a T3 before going on a contract.
Oh, okay. I get it. That's why I was thinking, because I know I'm supposed to get that. I wasn't like— I Google it, how does a T12 look like? And I'm like, where do I get the T12?
Yeah, it will look very similar to a P&L. It's just gonna be a list of incomes and expenses, and then it will show— traditionally you'll see net operating income, gross income.
Okay.
But you'll just be an itemized list of all of your operating costs.
So it's like basically like a spreadsheet and everything, you know, they just add it up.
Yeah, exactly, exactly. It should be broken out by month in a, in a normal setup. You can see every month and the associated expenses, so you can look at it and apply some logic to it and go, okay, I'm looking at this, these numbers make sense. And usually when you do it, you'll have a few questions. You'll be like, hey, one month your maintenance had an extra $25,000 of stuff, what was this allocated for, just so I know? And you usually have some clarification.
I get it. That's why I was like, I Googled like, what's the T12 look like? And I'm like, I'm like, I don't know exactly. What if like, you know, the seller sent me the T12, how do I know exactly, this is a real one like that. So that's why—
yeah, and if you see a bunch of like completely round numbers, it usually means that they made it up or it's not based on anything real. If you see a T12 where everything looks like a real number, you know, it's like electric was $512.17, they probably didn't make that up. If everything looks real, if everything is like nice even numbers, I'm like, okay, so this is, this is not exactly accurate.
