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In this video, Seth provides a quick overview of promissory notes, which are simple lending instruments outlining the terms between a borrower and lender. A promissory note specifies the amount owed and any applicable interest payments. It can be structured in various ways, such as balloon payments—where interest-only payments are made for a time before the full balance is due—or straight-line amortization, involving fixed payments throughout the loan's duration without a balloon payment at the end.