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In this video, Seth provides an overview of promissory notes, which are lending instruments that outline the terms between a borrower and a lender. A promissory note specifies the amount owed and typically includes details about interest payments. There are various configurations for these notes, such as balloon payments, where the borrower makes interest-only payments for a set period before paying the full balance, and straight-line amortization, where fixed payments are made throughout the loan's term without a balloon payment at the end. Seth emphasizes that creating a promissory note can be done quickly if needed.