How to stay competitive flipping in Denver

[Dave Vona]

Hi, I'm trying to get started flipping homes in Denver.  I've connected with several wholesalers and begun discussion with a potential partner and contractors.  I'm finding that there are some (many?) investors that are flipping homes in Denver (and probably other markets) that are using unlicensed and uninsured contractors, some may not even be pulling necessary permits.  I'm trying to understand how does someone that is trying to use only licensed and insured contractors compete with those that are not, since the uninsured contractors are going to be much cheaper. My goal is to build a business that deals with only professionals that are licensed, insured and have a high level of integrity, but I'm not sure if I can compete with others that are flipping with much lower costs.  Thanks.

[Dave Vona]

Thanks for the replies.  The attorney I'm talking to said to use insured contractors, even if some flippers do not.  It's a liability issue.  Although I talked to an insurance agent who had a different opinion.  He said if the contractor is only doing work such as painting or drywall that me having liability insurance would suffice if the contractor doesn't have insurance.  Even if they get hurt they would have to prove that it was my fault.  I still prefer to have a business that doesn't take any shortcuts.