Multiple Syndicatiors sending out the same deal

[Matthew Nicklin]

So I have been reading up a lot on syndication lately and getting familiar with the process. I have done a lot of reading and learning and I feel pretty comfortable with the overall structure and the way these deals are setup. 

I have joined a few syndicators investor lists and attending their presentations, reading over their offering memorandums, and PPMs. As I have joined a few lists I have seen a few deals and the way they are presented. I received an email for a deal earlier this week then a follow up later that day stating they have raised all the required capital. Then today I received an email from a completely different syndicator with the same apartment complex name etc stating they are going to have a webex next week to present the deal. 

Is this common? This seems odd to me as neither one of the syndicators mentions working with the other. Is it possible that they both think they have a contract on the property? Anyway for me to vet this further? 

[Nick B.]

@Matthew Nicklin,

This is quite common practice among members of some guru programs. I don't invest in such deals because usually they have multiple sponsors (6 was the highest number I've seen) and only one or two of those sponsors have some experience. Others are money raisers who like to boast about the number of units they "own". More often than not, the "experience" partner is a guru himself but the real operator is his rookie student. That's a recipe for disaster in my opinion. Too many cooks in a kitchen and the main chef may not even be there as he has too many kitchens to attend.

Nick