When it comes to investing in wholesale real estate, not every property is a winner. At SLG Property Deals, we work with investors across Ontario who want high-upside opportunities without the guesswork. If you’re wondering how to tell whether a wholesale deal is solid or risky, here are five clear signs you’re looking at a winner:
1. There’s Enough Room for Profit (The Numbers Make Sense)
The most important indicator of a good real estate investment deal — especially when flipping or renovating — is the spread between the purchase price, the renovation cost, and the after-repair value (ARV). This spread determines your potential profit and margin for error. If you buy too high or underestimate reno costs, the numbers can quickly spiral out of your favor. That’s why it’s crucial to do the math upfront.
A good deal typically leaves room for not just renovation expenses, but also closing costs, carrying costs, realtor commissions, and a healthy profit margin. If that gap — the spread — isn’t wide enough, you’re taking on a lot of risk for very little reward. Put simply: if the math doesn’t work, the deal doesn’t either. Emotions, gut feelings, or “potential” don’t pay the bills — numbers do.
*PRO TIP: Make a list of all your expenses before purchasing the property. Compare your expenses to your projected sales price to get an idea of the potential profit you can make off the deal.
2. It’s in a Desirable or Improving Location
Even distressed homes located in good neighborhoods can command strong resale value once properly renovated. Buyers are often willing to pay a premium to live in desirable areas, especially when the home itself is updated and move-in ready. The key advantage here is the location — a solid neighborhood can carry the property’s value, even if the home initially needs significant work. Renovating a property in a sought-after area allows you to tap into buyer demand and potentially sell faster at a higher price point.
Better yet, if the neighborhood is up-and-coming — perhaps seeing new development, improved infrastructure, or an influx of new businesses — the property’s value is likely to appreciate even more. This means you’re not only gaining value through renovations, but also riding the wave of local market growth. In short, when you combine smart renovations with a strong or improving location, the resale potential multiplies.
3. The Renovation Scope Is Manageable
Buying cheap is one thing, but if the house is falling apart, your reno costs can eat all your profits. A good wholesale deal typically needs cosmetic updates (like kitchens, flooring, paint) rather than major structural work (like foundation issues or knob-and-tube wiring).
*PRO TIP: Ask your contractor to walk the property early to confirm renovation estimates.
4. It Has Multiple Exit Strategies
Good investment properties give you options. Maybe you’ll flip it. Maybe you’ll hold it as a rental. Maybe you’ll assign the contract.
Ask yourself:
- Could I BRRRR this property?
- Would a landlord want this if I chose not to flip?
- Is the layout and zoning flexible?
The more exit strategies you have, the lower your risk.
5. It’s from a Trusted Wholesaler
At the end of the day, the source of the deal matters. If you’re buying from a wholesaler who overstates ARVs or hides renovation needs, you’re playing a dangerous game.
At SLG Property Deals, we pride ourselves on transparent numbers, accurate comps, and verified property info—so you can make confident decisions without second-guessing.
Watch the video below to learn more about how the wholesale process works:
Investing in wholesale real estate can be one of the fastest ways to grow your portfolio, but only if you’re buying the right properties. Stick to deals that pass these five tests, and you’ll be ahead of the pack.
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