What the Grade is
The Top1031 Sponsor Grade summarizes a Sponsor's completed property-sale experience and documented capital losses or impairments. It is not a rating of an Offering, a recommendation, or a forecast.
The record starts with SEC-identified Programs linked to the Sponsor. It is not a complete history of every affiliate investment. Older or unmatched investments may be absent until their Program identity is established; absence from the record does not establish that no loss occurred.
The two questions
How many completed property sales are established by the evidence? How many Programs have documented losses or impaired investor capital?
Counted outcomes
Completed sales are validated completed property-sale Programs with a deciding document identifying the Program or explicitly matching its property. A Sponsor publication, prior-performance schedule, deed, SEC disposition filing, or supported transaction report can establish a sale. A Form D, acquisition, Offering sellout, or generic portfolio page alone cannot.
Losses or impairments are Programs meeting the documented capital-loss rules. Bankruptcy or receivership can establish impaired capital while proceedings continue; it does not mean the final investor loss is already known.
Counted Programs equals Completed sales plus Losses or impairments. Each CIK counts once. A qualifying loss takes precedence over a sale. Conversions, partial sales and unresolved sale identities receive no completed-sale credit.
The number of results reported by the Sponsor remains descriptive. It does not decide sale-experience credit. A disputed return figure is omitted; a separately established sale can still count. A disputed Program identity or unresolved gain-versus-loss conflict cannot count as a sale until resolved.
How the letter is decided
The first matching rule applies. Share means losses or impairments divided by Counted Programs.
| Letter | The rule |
|---|---|
| F | At least three losses or impairments, comprising at least half of Counted Programs. A final finding of fraud or misappropriation connected to the Sponsor's Programs also forces F. |
| D | At least two losses or impairments, with either two within three years or a share greater than 10%. |
| NR | Fewer than three Counted Programs. One recent impairment can therefore remain NR; its evidence is still shown. |
| C | At least one loss or impairment within three years, or fewer than three Completed sales. |
| B | A Notable loss: at least one within five years or undated, a share above 5%, or fewer than 20 Counted Programs. Otherwise, three to nine Completed sales. |
| A | At least ten Completed sales, with no losses or only Rare losses: all older than five years, no more than 5% of Counted Programs, and at least 20 Counted Programs. |
An event exactly three or five years old remains within that window. An undated loss is within the five-year window until dated, but is not assumed to be within three years.
Pending regulatory records, or final records whose scope awaits adjudication, cap A or B at C. They do not improve D or F or turn NR into C. Other final actions retain their documented scope.
The record card
Each Sponsor's Card shows its letter or NR, literal reason, Completed sales, Losses or impairments and Counted Programs. The detailed category record includes Sponsor-reported results, conversions and Programs with no recorded outcome, with deciding documents beside the figures.
Why this is hard to fool
The evidence must establish the completed sale and exact Program identity. Repeated articles do not create additional Programs. A loss and sale of the same Program cannot enter both sides of the denominator. An internal article cannot be its own deciding source.
What a Grade cannot tell you
A past property sale is not proof of a profitable investment. Sponsor-stated performance figures remain labeled as reported by the sponsor and linked to their evidence. The Grade does not estimate investor returns or predict future performance.
How a Grade changes
Corrected evidence can change the counts. A published Sponsor Grade or method revision changes only through the exact reviewed Grade-release process. Each Card links to the method that produced it.
Corrections
Source corrections use the existing evidence record. A disputed figure is not published merely because it appeared in an older summary. The method changes page records methodology revisions, not individual Sponsor Grade histories.
Method revision 2.1 · effective September 6, 2026