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In this video, Seth provides a brief overview of promissory notes, which are lending instruments outlining the terms between a borrower and a lender. A promissory note details the amount owed and any interest payments. They can be structured in various ways, including balloon payments—where the borrower makes interest-only payments for a period before repaying the entire balance—or straight line amortization, which involves fixed payments throughout the loan's duration without a balloon payment at the end. Seth emphasizes the simplicity of creating a promissory note to meet lending needs.