Sweat Equity

How do you show sweat equity so it doesn't appear the borrower actually needs to come in with cash? Borrower is building on land already owned. Our loan amount is $310,000 and we show the total payoffs as $369,800 per the total construction cost breakdown and the payoff of the land loan. The borrower is going to do $39,800 in sweat equity but the CD shows it as Cash to Close. We don't know how to show it so it reflects $0 on the CD since it isn't actual cold hard cash. Any help would be GREATLY appreciated.

Adjustments - Section L

Just curious what label you would put in Section L for the sweat equity?

Our system has that specific category under adjustments. I'm not sure I would reflect it in this particular scenario simply because work you are doing yourself on your own construction wouldn't typically be in the contract with the third party, but I digress.