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In this video, Seth provides a quick overview of promissory notes, which are lending instruments used for centuries. A promissory note is a simple document that outlines the terms between a borrower and a lender, detailing the amount owed and any interest payments. There are various ways to structure these notes, including options for balloon payments—where the borrower makes interest-only payments for a set period, followed by a full balance payment—or straight-line amortization, which involves fixed payments throughout the loan term without a balloon payment at the end.
