Should an investment committee trust an NOI figure built without a T-12?

An NOI built without a T-12 is an estimate, and the committee should read it as one. It can be a sound estimate if the income comes from a current rent roll, the expenses from the asset's tax and insurance records and typical ratios for that property type, and every assumption is shown. It should never be presented as in-place NOI. How an NOI is estimated without operating statements - Income: the rent roll in force, adjusted for vacancy and credit loss at market levels, or market rents for comparable space where there is no rent roll. - Taxes: the current tax bill on record, and what a sale at the contract price would likely do to it. - Insurance: a current quote or a typical figure for the asset type and location. - Operating expenses: typical ratios for the property type, size and age, shown as an assumption. - Reserves: a per-unit or per-square-foot figure the committee can see and change. What the committee should ask 1. Which lines come from documents and which are assumptions? 2. What is the expense ratio, and how does it compare with similar assets? 3. What happens to value and DSCR if expenses run 10 percent higher? 4. When will actual statements arrive, and what would make the deal change? The honest answer Without a T-12, the right output is a range and a list of what would narrow it. A single confident number is a warning sign. How Titleman handles it Titleman keeps figures from your files apart from the ones it assumed, and labels each one. Where records stop, the report says so instead of filling the gap. See an example: https://titleman.ai/products/deal-review