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In this video, Seth provides a brief overview of promissory notes, which are lending instruments used for centuries. A promissory note is a simple document outlining the terms between a borrower and a lender, specifying the amount owed and any interest payments. There are various ways to structure promissory notes, including options for balloon payments, where the borrower makes interest-only payments for a set time before paying off the entire balance, or straight-line amortization, which involves fixed payments throughout the loan's duration without a balloon payment at the end.