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Seth provides a quick overview of promissory notes, which are lending instruments detailing the terms between a borrower and a lender. He explains that a promissory note outlines the amount owed, including any interest payments. These notes can be structured in various ways: one option is a balloon payment, where the borrower makes interest-only payments for a set time before paying off the entire balance; another option is straight-line amortization, featuring fixed payments throughout the loan's term without a balloon payment.