Trust This Newsletter

Climate risks and text messaging clarity

👋 Happy Friday! Today is National Public Sleeping 😴 Day, so … I guess … we should go sit in a mall and take a nap?

❗️Situation Awareness: In case you haven’t heard, Aspire Legal Solutions has reactivated its estate planning practice area after a decade hiatus.

1 big thing: Climate Risk Could Wipe Out $1.5 Trillion in Home Values

a photorealistic image of homes on the right under flood waters while homes on the right are on fie with a “for sale” sign acting as a border between the two sidess

Recent analyses underscore a pressing concern for real estate professionals: climate change is poised to significantly impact property values across the United States. A study by First Street Foundation projects a potential decline of approximately $1.47 trillion in U.S. home values by 2055 due to escalating climate risks.

Driving Factors:

Rising Insurance Costs: As extreme weather events become more frequent, insurance premiums are projected to rise by nearly 30% over the next three decades. This increase may discourage buyers from high-risk areas, resulting in decreased demand and lower property values.

Shifting Buyer Preferences: Homebuyers are increasingly taking climate risks into account when making purchasing decisions, often steering clear of regions susceptible to natural disasters. This trend is evident in areas such as Fresno County, California, and parts of New Jersey, where rising insurance costs and declining populations are noticeable.

Implications for Real Estate Professionals:

Property Valuations: The anticipated devaluation of properties in high-risk areas necessitates reevaluating current appraisal practices.

Client Advisory: Professionals must proactively inform clients about potential climate-related risks and the long-term implications for property investments.

Market Adaptation: To remain relevant in the market, it will be crucial to stay abreast of emerging trends and integrate climate risk assessments into business strategies.

Strategic Recommendations:

Risk Assessment Integration: Incorporate comprehensive climate risk evaluations into property assessments to provide clients with informed guidance.

Investment in Resilience: Advocate for and invest in resilient infrastructure and sustainable building practices to mitigate potential climate impacts.

Client Education: Develop resources to educate clients on the importance of considering climate risks in their real estate decisions.

Acknowledging and addressing these emerging challenges can help real estate professionals better navigate the evolving landscape and safeguard their clients’ investments.

2. 11th Circuit Clarifies Text Marketing Rules

Illustration of the scales of justice with a mobile phone on the left scale and nothing on the right scale with “consent marketing” on a blackboard and houses and a gavel present nearbyy

Anyone who uses texting as a marketing channel should be aware that, in a significant legal development, the U.S. Court of Appeals for the Eleventh Circuit has vacated the Federal Communications Commission’s (FCC) “One-to-One” consent rule under the Telephone Consumer Protection Act (TCPA). This decision, delivered on January 24, 2025, came just before the rule was set to take effect on January 27, 2025.

Background: The TCPA, enacted in 1991, was designed to protect consumers from unsolicited telemarketing calls and messages. Over the years, the FCC has implemented various rules to strengthen these protections. In December 2023, the FCC introduced the “One-to-One” consent rule, aiming to close the “lead generator loophole.” This rule mandated that businesses obtain prior express written consent from consumers for each individual seller and prohibited the use of a single consent form to authorize communications from multiple entities.

Legal Challenge: The Insurance Marketing Coalition Limited (IMC) challenged the FCC’s rule, arguing that it exceeded the agency’s statutory authority and conflicted with the TCPA’s definition of “prior express consent.” The Eleventh Circuit agreed, stating that the FCC’s rule imposed restrictions that were inconsistent with the ordinary meaning of the term.

Implications for Real Estate Professionals and Entrepreneurs: This ruling clarifies the rules for REALTORS® and business owners who use texting as a marketing tool. The vacatur of the “One-to-One” consent rule means that businesses are not required to obtain separate consents for each seller when contacting consumers.

However, it’s essential to note that the general requirements of the TCPA still apply.

Businesses must continue to secure prior express written consent before sending automated marketing texts or making robocalls to consumers.

Non-compliance can lead to significant legal and financial repercussions.

Best Practices Moving Forward:

Review Consent Procedures: Ensure that your current methods for obtaining consumer consent are compliant with the TCPA’s standards.

Stay Informed: Regulatory landscapes can shift. Consult with legal counsel or compliance experts regularly to stay updated on any changes that may affect your marketing strategies.

Maintain Clear Records: Document all consents received from consumers meticulously. This documentation can be crucial in defending against potential legal challenges.

While the recent court decision offers some relief, it’s imperative for real estate and entrepreneurial professionals to remain vigilant. Adhering to established telemarketing laws and regulations safeguards your business from legal risks and fosters trust and credibility with your clientele.

image of joe seagle with chin in hand and the words: “Agreement for deed vs deed & mortgage” to his right

This week, on an “Ask Joe Anything” episode of the Trust This podcast, I explain the differences between agreements for deeds and mortgages, plus when and why one may be better to use than the other.

Listen in or watch on your favorite streaming platform.

3. Catch up fast

an illustration of a giant chainsaw cutting into a generic government-looking building

The recently-shuttered CFPB drops suit against Rocket Homes that had alleged illegal kickbacks to real estate agents and brokers in exchange for steering buyers to the mortgage company. The Detroit News

CFPB dismisses lawsuit against Vanderbilt Mortgage and Finance, a Berkshire Hathaway company, that had alleged the lender made loans to consumers who couldn’t afford them so they would buy homes from Berkshire Hatthaway’s Clayton Homes division. Reuters

CFPB drops suit against Capital One accused of cheating consumers out of $2 billion for confusing savings accounts. NBC News

CFPB drops suit against an illegal tip-based payday lender that advertised 0% interest while charging 400%. NCLC and Payments Dive

Trump scraps Biden-era fair housing law. Politico

White House releases plan to lay off half of HUD’s employees. ABC News

Cuts to Section 8 vouchers and FHA loans are looming. Bloomberg (gift link) and Bigger Pockets

Shelters, crisis hotlines, and veteran housing groups fearful that $3.6 billion in allocated funds won’t arrive in time amid HUD cuts. Bloomberg (gift link)

U.S. unemployment claims rise to 242,000 this week, the highest in three months. CBS News

How to prepare for your digital afterlife. New York Times (gift link)

4. Closing Thought: Entrepreneurs are not risk takers

close up photo of a beagle looking at the camera while lying on a dog bed

Rufous turned 15 yesterday. You can tell he’s very excited about it.

A common myth about entrepreneurs is that they are wild risk-takers, fearlessly plunging into the unknown with little regard for potential pitfalls. Garrett Gunderson challenges this misconception with his “Sacred Cow” principle, asserting that true entrepreneurs are not reckless gamblers but skilled risk managers. Rather than embracing uncertainty blindly, successful entrepreneurs anticipate risks and take deliberate steps to minimize them. Their success is built not on blind courage but on careful strategy, education, and preparation.

Understanding and Minimizing Risk

Entrepreneurs do not take unnecessary risks—they identify, assess, and mitigate them before making a move. This mindset differentiates a successful entrepreneur from a reckless speculator. Before launching a business or making a major investment, entrepreneurs conduct market research, analyze financials, and create contingency plans. They evaluate potential challenges and plan accordingly, ensuring that they are not caught off guard by foreseeable problems.

The Role of Education and Growth

One of the most powerful tools for risk mitigation is education. Entrepreneurs continuously invest in learning—whether through formal education, mentorship, or hands-on experience. Understanding financial statements, market trends, tax strategies, and legal structures allows them to make informed decisions rather than relying on luck. Continuous growth and adaptation keep them ahead of changing economic landscapes, allowing them to adjust before potential threats become real problems.

The Power of Legal and Financial Safeguards

Entrepreneurs also rely on strong financial and legal protections to minimize risk. Proper business structuring, contracts, and asset protection strategies shield them from liabilities that could otherwise destroy their ventures.

Insurance plays a crucial role as well, ensuring that unexpected disasters do not derail their progress. Whether it is business liability insurance, disability insurance, key person insurance, or professional liability coverage, these tools provide a safety net that allows entrepreneurs to take calculated actions with confidence.

The Entrepreneurial Mindset

True entrepreneurship is about strategic thinking, not reckless gambling. The most successful business owners understand that risk cannot be avoided entirely, but it can be managed, minimized, and mitigated. By embracing education, leveraging legal and financial tools, and planning ahead, entrepreneurs maximize their chances of long-term success. They do not bet on luck—they stack the odds in their favor.