Glossary
Sweat equity
Ownership earned through work rather than bought with money.
Joining a business early for below-market pay in exchange for a stake, or renovating a property yourself instead of paying contractors, converts time into ownership.
It is how people without capital get equity at all. The risk is real: you can spend two years of unpaid work on a stake that ends up worth nothing.
Where this matters
Startup Equity
Acquisitions
Trade salary for ownership at a company that might become valuable
- Capital
- $0
- First income
- Years
- Risk
- Ceiling
- Uncapped
House Flipping
Real Estate
Buy undervalued property, renovate it, and sell for the difference
- Capital
- $10k+
- First income
- Months
- Risk
- Ceiling
- Seven figures