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In today's video, we explore the relationship between promissory notes, deeds of trust, and the lending process essential for buying houses, particularly for investors and wholesalers. Understanding this process is crucial for those looking to flip houses or establish an acquisition company. A case study is presented where an investor identifies a property available for $40,000, which has potential equity after renovations. The investor approaches a lender with this deal, emphasizing the need for financing to proceed. This understanding of lending mechanics is vital for securing funding and successfully acquiring properties.