Dictionary of Business Terms: sweat equity
sweat equity
value added to a property by improvements resulting from work performed personally by the owner.
Dictionary of Finance and Investment Terms: sweat equity
sweat equity
equity created in a property by the hard work of the owner. For example, a small business may be built up more on the efforts of its founders than on the capital raised to finance it.
Dictionary of Real Estate Terms: sweat equity
sweat equity
value added to a property due to improvements as a result of work performed personally by the owner.
Example: The Watsons purchase an old house for $20,000. Working in their spare time, the Watsons repair and repaint the structure to the point that the property is valued at $30,000. The $10,000 increment is sweat equity.
