Posted by David Butler on July 25, 2001 at 14:50:41:
Hello DJ,
“Birddogging” still has it’s place. Many active note investors (including myself) work almost exclusively with other note brokers, or skilled “birddogs”, as a source of closing more note transactions.
But “Birddogging” isn’t what it used to be. Efficient marketing techniques have advanced to the point, where simply providing another broker/investor a name and phone number of a possible “interested” note seller is generally a more costly lead to work with, than a lead simply generated by other methods… not counting the possible referral fee paid out if the “deal” actually closes.
It is much cheaper for a serious note broker or investor to chase down his own deals and “triage” them quickly, than to waste time on a “make-believe” note.
Where a birddog has real value is in two ways…
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he has an influential relationship with the note seller, strong enough that the fact that the birddog referred a deal to me, gives me a decided advantage in talking with this note seller; and/or
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the birddog has gathered enough information both about the “interested” seller (why is Seller selling now?, how much does he need?, and what are his expectations) - and about the note itself (how was note created, original balance, current balance, rate and term, payments made, account history, do the numbers make sense?), that I can quickly evaluate the deal and either move on it, or kill it off.
“Make-believe” notes cost time and money, and the last 18 months or so, we have had a very severe rash of these “fantasy” notes flying around, almost universally coming from “birddogs” and inept (or just plain lazy) brokers. I hear at least two “war-stories” every week (some of these fellows even send bid requests, with no contact information???).
Birddogging generally does not pay near as well as working the deal through as your own (i.e. flipping); but, a first class birddog can generally earn “finder’s fees” 50% to 75% of what a “flipper” could make - the efficiency in gathering information and making a short, clear, and concise presentation to broker/investors is the determining factor.
Perhaps the easiest, fastest, and least expensive method for finding buyers for the “REAL” notes you track down, would be to list them on ANN’s FREE nationwide Note Listing Service, at: notenetwork.com - This website is for sale! - notenetwork Resources and Information.
America’s Note Network has facilitated over $1 Billion in such transactions during the past six years, and the past 18 months have seen volume at an all time high.
Hope that helps, and best of luck in gaining more “birds” in the hand, than you leave in the bush 
David P. Butler