#597: Stop Chasing Subject-To Deals - Why Short Sales Work Better in Colorado

While most Colorado investors chase the same overpriced listings and compete on subject-to deals, Troy Miller quietly closes properties for $30K that will be worth $250K after renovation. These short sale real estate Colorado 2025 deals require skill and systems, but Troy proves you only need 5-6 deals per year to hit financial goals. The strategy isn’t new, but the opportunities are growing as more properties go underwater in today’s market. Troy Miller is the CEO of Colorado Recon (formerly ICOR), giving him a unique vantage point into what’s actually working across Colorado’s real estate market. He speaks with hundreds of active investors, sees deal flow from wholesalers and agents, and has built systems to handle the 22 hours of paperwork required for each short sale without sacrificing his lifestyle. In this episode, Troy breaks down two live short sale deals he’s working on right now. The first is a Pueblo property that was 73 months delinquent (yes, over 6 years) due to bank oversight and active-duty military protections. He shares how he navigated FHA regulations, threatened senator involvement, and is closing on a property purchased for $30K with conservative after-repair values between $250K-$280K. The second deal in Colorado Springs looked pristine on the surface but had expensive foundation and sewer issues lurking below – and how an appraisal ordered without Troy present is now creating a months-long dispute process. This isn’t a beginner strategy. Troy explains why the current wave of subject-to education concerns him and other industry leaders – improper execution could trigger federal policy changes affecting all investors. He defines the critical differences between subject-to and short sale transactions, explains Colorado’s unique 6-month foreclosure timeline, and shares why deals that are “underwater” (owing more than current value) create the best opportunities. In This Episode We Cover: Why short sales still exist and how to source them through networking instead of direct mail The exact paperwork process and 22-hour timeline to submit a complete short sale package How Troy uses virtual assistants to scale while maintaining his lifestyle (only 5-6 deals per year needed) Critical mistakes in subject-to deals that could trigger federal regulation Real numbers from two active Colorado deals: $30K purchase prices with $250K+ upside Navigating FHA regulations, Dodd-Frank protections, and bank disputes The “blue ocean strategy” – finding your niche where there’s less competition Colorado’s market remains challenging with tight inventory and high interest rates, but creative acquisition strategies like short sales offer serious investors a path to deals with healthy margins. Troy proves you don’t need to do 50 deals per year when you master one strategy and build systems around it. Watch the YouTube Video https://youtu.be/VbWq9FsTql4 Timestamps 00:00 – Welcome & Guest Introduction01:52 – Troy Miller’s Background – From Nonprofit World to Real Estate Investing05:16– – The Subject-To Problem – Why Bad Execution Could Trigger Federal Policy Changes 08:55– Subject-To Deals vs Short Sales – Critical Definitions for Colorado Investors 12:32 – Pueblo Short Sale Deal #1 – 73 Months Delinquent, FHA Complications16:32 – Active Duty Military Protection – How Dodd-Frank Changed the Game18:42– Deal Numbers Breakdown – $30K Purchase, $250K+ After Repair Value21:05– Navigating the 90-Day Deed Restriction During Government Shutdown27:32– Colorado Springs Short Sale Deal #2 – When Surface Looks Good But Isn’t29:47– The Appraisal Dispute – Bank Orders $325K Valuation, Reality Is Different36:45– Building Scalable Systems – Virtual Assistants Handle 22 Hours of Paperwork39:05– Finding Your Blue Ocean – Why Troy Only Needs 5-6 Deals Per Year39:41 – Resources for Learning Short Sales & Subject-To Strategies Links in Podcast Colorado Recon Next Event: January 24, 2025 – ColoradoRecon.com