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In this video, Seth provides a quick overview of promissory notes, which are lending instruments utilized for centuries. A promissory note is a simple document outlining the terms and conditions between a borrower and lender, detailing the amount owed and any interest payments. Seth explains that these notes can be structured in various ways, including options for balloon payments—where interest-only payments are made for a period followed by a lump sum payment—or straight-line amortization, which involves fixed payments throughout the loan's duration without a balloon payment at the end.