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TeachMeFinance.com - explain sweat equity Sweat equity --using labor to build or improve a property as part of the down payment another definition... sweat equity -- the investment of labor, in lieu of cash, by the owner-occupant of a property. Such labor creates improvements that increase the market value of the property, and thus the owner-occupant's equity. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.