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In this video, Seth provides a quick overview of promissory notes, which are lending instruments used for centuries. A promissory note is a simple document outlining the terms between a borrower and a lender, detailing the amount owed and any interest payments. There are different ways to structure these notes, including balloon payments—where the borrower makes interest-only payments for a period before paying off the entire balance—and straight-line amortization, which involves fixed payments throughout the loan's term without a balloon payment. Seth emphasizes the flexibility in setting up promissory notes.
