7 ways to get repeat Airbnb guests (#6 is my favorite.)

why do banks keep failing today? is yours next?

welcome to the cashflow diary daily. Grab some coffee, consume this, and share it with a friend.

in this issue…

  • banks are an integral part of the American economy, but sometimes they fail. why?

  • did you know that over the past two decades, more than 550 banks have collapsed?

  • tier 1 capital. why you should know.

  • your guest doesn’t trust you, fix it.

  • master raising capital with this exclusive download for premium members.

free on-demand presentation:
The Key to "Unsecured" Business Credit:
How to leverage unsecured business credit; doesn’t effect personal credit! Join the free business funding training.


  • ➡️Clubhouse event, LEDA - Live Every Day in April! Join us for a month-long celebration. Join us on ➡️Clubhouse today at 4 pm; click the link of the ➡️Cashflow Diary Cartel to get in on the action!

why do banks keep failing today? is yours next?

Banks are an integral part of the American economy, but like any other institution, sometimes they can fail. Over the past two decades, more than 550 banks have collapsed. Three significant factors can push banks into risk:

  1. credit risk: Credit risk is basically the chance that a borrower might not be able to repay their loan. No one wants that, but sometimes it happens, and banks end up losing money.

  2. interest rate risk: Interest rate risk is a term used to describe the risk banks face when interest rate changes negatively impact their profitability. Banks have assets with varying interest rate profiles and liabilities to be matched. One of a bank's primary functions is to balance the interest rate profile of assets and liabilities. Fluctuations in interest rates can disrupt this balance and cause banks to experience losses.

  3. liquidity risk: Liquidity risk is the risk that a bank might not have enough cash on hand to meet its short-term financial obligations. When you deposit money in a bank, you expect to be able to withdraw it whenever you want. On the other hand, banks invest that money in long-term assets such as mortgages or loans. If too many depositors request to withdraw their funds simultaneously, the bank might not have enough liquid assets to meet those demands, which could lead to a liquidity crisis.

The collapse of Silicon Valley Bank (SVB) on the 10th of March, 2023, marked the first bank failure in the United States since 2021. SVB was the 16th largest bank in the United States as of March 2023, and the total assets lost in its failure amounted to approximately 209 billion U.S. dollars. This was the second-highest amount of assets lost in the observed period, as only the global financial crisis in 2008 resulted in a higher loss. Two days later, the New York-based Signature Bank followed SVB. The value of assets lost in its failure amounted to roughly 110.4 billion U.S. dollars, making it the third largest bank failure in U.S. banking history. Altogether, there were 563 bank failures in the United States between 2001 and 2023.

how to monitor the financial health of your financial institution

  1. You can find the institution's financial statements on their website. Just look for some indicators like profitability, capitalization, and asset quality.

  2. Find information on the institution's ratings from rating agencies like Standard & Poor's or Moody's. These ratings evaluate the institution's financial strength and creditworthiness.

  3. Be sure to look up any news articles or reports about the institution. Doing additional research may be a good idea if there are negative news or reports.

  4. You can use online resources like Bankrate or FDIC's BankFind tool. It lets you look up information about FDIC-insured institutions. You can learn about their financial data and regulatory history there, too.

  5. Feel free to speak with a friendly representative at the institution or a financial advisor who can provide insight and guidance on the institution's financial health.

did you know we have a referral program?

1 Referral — all the links — A database with all the platforms and OTAs I find promote your short-term rental business (less than 10% of these make it into my newsletter).

5 Referrals — mod: using chatGPT - masterclass on demand of how to use chatGPT / AI to build your short-term rental business (~90 minutes of video content).

10 Referrals — mod: raising private capital — masterclass on demand: how to raise capital from investors (~90 minutes of video content with ebook).

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the leading banks in the U.S.

There are four major banks in the United States: JPMorgan, Bank of America, Wells Fargo, and Citigroup; JPMorgan is actually the largest of them. It's pretty impressive because it has the highest market capitalization, total assets, investment banking revenue, and net income.

JPMorgan Chase Bank had the highest tier 1 capital of the 15 largest banks in the United States as of September 2022. Tier 1 capital measures a bank's financial strength; it shows its core capital, including equity capital and disclosed reserves. JPMorgan Chase’s tier 1 capital reached 264 billion U.S. dollars during that period. The bank also had the highest tier 1 capital ratio in the United States.

what is tier 1 capital ratio?

Have you heard of the tier 1 capital ratio? It's a metric that measures how strong a bank's finances are and how well it can handle losses. To calculate this ratio, we divide the bank's tier 1 capital (aka the core capital of common equity, retained earnings, and other stuff that's not debt) by its risk-weighted assets.

These assets are weighted based on the level of risk they pose to the bank's financial stability. It's a great way to see how secure a bank is and how well it can weather any financial storms that come its way.

Let me give you an example to help you better understand the tier 1 capital ratio. So, let's take Bank A. If Bank A has tier 1 capital of $10 billion and risk-weighted assets of $100 billion, we can calculate Bank A's tier 1 capital ratio.

We do this by dividing the tier 1 capital by the risk-weighted assets like this:

Tier 1 capital ratio = Tier 1 capital / risk-weighted assets

Tier 1 capital ratio = $10 billion / $100 billion

Tier 1 capital ratio = 10%

So, Bank A's tier 1 capital is 10% of its risk-weighted assets. When a bank has a higher tier 1 capital ratio, it means that it has a larger cushion to absorb losses and is more likely to stay financially stable.

Regulators usually require banks to maintain a minimum tier 1 capital ratio to ensure financial safety and soundness.

free on-demand presentation:
The Key to "Unsecured" Business Credit:
How to leverage unsecured business credit; doesn’t effect personal credit! Join the free business funding training.

trust has to be earned

As of April 2022, the level of trust in travel and hospitality brands in the United States varied according to brand type. Approximately 73 percent of U.S. adults trusted chain hotels, while only 33 percent of adults trusted travel agents/advisers.

One of the main reasons why guests don't use short-term rentals is a lack of trust. In today's world of online transactions, people are naturally cautious about who they do business with, especially when it comes to lodging.

As an entrepreneur offering short-term rentals, you can increase trust by developing a professional website that features attractive photos, verified customer reviews, and clear descriptions of your rental properties. You can also improve your guests' comfort by regularly communicating with them and providing quick and helpful responses to their inquiries or concerns.

Additionally, offering secure payment methods and a transparent cancellation policy can enhance guest trust, leading to more reservations and increased revenue. You should also consider:

7 ways to increase trust and get more reservations

  1. Offer a money-back guarantee: Consider offering a money-back guarantee to your guests if they are not satisfied with their stay. This shows that you stand behind your service and are confident in the experience you provide.

  2. Allow for more flexibility: Airbnb guests often appreciate flexibility regarding check-in and check-out times, cancellation policies, and other aspects of their stay. Consider offering more flexible options to build trust and accommodate your guests' needs.

  3. Share more information: Provide as much information as possible about your property, including photos, floor plans, and detailed descriptions. This can help guests feel more confident in booking with you, leading to better reviews.

  4. Go above and beyond with amenities: Consider providing extra amenities or services that exceed guests' expectations. This can include free snacks or beverages, complimentary toiletries, or even access to a local guide or concierge service.

  5. Offer personalized recommendations: Take the time to get to know your guests and offer personalized recommendations for things to do and see in the area. This can help build trust and establish a connection with your guests.

  6. Address negative reviews publicly: Respond publicly and professionally when negative reviews arise. This shows that you are committed to addressing concerns and improving the experience for future guests.

  7. Create a sense of community: Consider ways to create a sense of community among your guests, such as hosting a welcome party or providing a shared space for guests to socialize. This can help build trust and encourage guests to return for future stays.

move at the speed of instruction:

  1. Research the financial institution: Start online to gather basic information about your financial institution. This includes its history, mission statement, and recent news articles or press releases.

  2. Check the institution's ratings: Several agencies rate financial institutions based on their financial strength and stability. Standard & Poor's and Moody's are two of the most popular rating agencies. You can visit their websites at www.standardandpoors.com and www.moodys.com to view ratings for your institution.

  3. Review the institution's financial statements: Most institutions must publish financial statements on their websites. These statements include information about the institution's income, expenses, assets, and liabilities. Reviewing these statements can give you a better understanding of the institution's financial health. Look for any red flags, such as declining revenue, increasing expenses, or high debt levels.

  4. Check the institution's regulatory filings: Financial institutions must file periodic reports with regulatory agencies such as the Federal Reserve or the FDIC. These filings can provide additional insights into the institution's financial health. You can access these filings on the regulatory agency's website or through a third-party service such as Edgar Online (www.edgar-online.com).

  5. Monitor news and market trends: Keep an eye on news articles and trends that could impact your financial institution's health. This can include changes in interest rates, shifts in the stock market, or regulatory changes.

  6. Check the institution's capital ratio: The capital ratio measures a financial institution's financial strength and ability to withstand financial stress. The Tier 1 capital ratio is the most critical measure of a financial institution's capital strength. You can find information about your institution's capital ratio on their website or regulatory filings.

  7. Consider seeking professional advice: If you have concerns about your financial institution's health, consider seeking advice from a financial professional. They can help you interpret financial statements, assess risk, and make informed decisions about your financial investments.

that’s it for the moment…

J. Massey

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