We've pointed people there when they are skiddish, overly concerned about being scammed.We don't flaunt that we are the owners, we only tell people if they directly ask.  

This is my first go at borrowing funds from a lenders IRA to buy 2nd NP notes and for some reason the concept of using a note as collateral for a prom note is confusing me.

Lender can sign the prom note but its not necessary also Prom notes can be notarized but most are not. 

The Prom Note (notarized, not recorded) references "projected" sales prices and anticipated profit of $125K to me, etc but is (unfortunately) silent on this potential issue - except it says Borrower needs to keep property (and improvements) insured etc.  

Could this be something, or is it a flop waiting to happen (pig in a prom dress)?

But, they'll flaunt it in front of their guests!

If he ever did go into a bank for a serious meeting he probably dressed like a high-school kid going to the prom (same as what he's wearing in the photo he posted). 

If you write a check it has to be cashed if its presented to escrow... in this instance many agents here use prom notes to be redeemed on acceptance that clears that issue up.I suspect the agent just had another buyer and moved on...

I saw my first EM prom note.. back in the early to late 90s virtually everyone used EM prom notes.. to be redeemed with in say 2 to 3 days from mutual acceptance.. this made shot gunning much easier and it was an accepted practice here.. 

One began selling custom flip flops, (bought their own material with money saved), Another who was always encouraged with a camera, attempted to take pics for young people proms, birthdays etc.Then they helped me with a former biz of cleaning up HUD properties during the housing crisis on early 2000’s.Next, but not all of the details for sake of my response.