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In this video, Seth provides a quick overview of promissory notes, which are lending instruments detailing the terms between a borrower and a lender. A promissory note specifies the amount of money owed and any applicable interest payments. Seth explains that promissory notes can be structured in various ways, including balloon payments—where interest-only payments are made for a period, followed by a lump sum to settle the total balance—or straight line amortization, where fixed payments are made throughout the loan's duration without a balloon payment at the end.