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In this video, Seth provides a brief 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 and any interest payments. Seth describes various ways to structure these notes, including options for balloon payments—where the borrower makes interest-only payments for a time before paying the full balance—and straight-line amortization, which involves fixed payments throughout the loan's duration without a balloon payment.