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In this video, Seth provides a brief overview of promissory notes, which are documents outlining the terms between a borrower and lender regarding a loan. He explains that a promissory note specifies the amount owed and any interest payments involved. These notes can be structured in various ways, including options for balloon payments—where initial payments are interest-only followed by a full balance payment—or straight-line amortization, which involves fixed payments throughout the loan's life without a balloon payment at the end.