“Gary, I’ve heard the term sweat equity before. What is it?”
***ANSWER:
Sweat equity is the increase in equity (value – loans = equity) you get from improving a home. So if you buy a fixer upper for $350,000 and the value goes to $400,000 after you fix it, you’ve gained $50,000 in sweat equity.
For more information about fixer uppers, click here
