You cannot win a band competition without instruments, and you cannot succeed in business without a bookkeeping system.

Hiring a bookkeeping service is normally the best choice for every business that isn’t large enough to have a bookkeeper on staff. Attempting a shortcut by assigning bookkeeping to an untrained employee as a side duty is a recipe for disaster. A sound bookkeeper is identifiable as conducting the work using the right processes.

Reliable bookkeeping services create a system of verification and reconciliation. This ensures data integrity. Bookkeepers accomplish this by comparing your accounting to statements and reports from financial institutions. Good bookkeepers know the effects of debits and credits, because bookkeeping challenges arise frequently. You want a bookkeeper who’s capable of sound thinking and determining solutions. Excellent bookkeepers also understand the big picture in order to coordinate with your certified professional accountant at tax time. Superior bookkeeping demands attention to details by professionals who aren’t afraid to ask questions so that transactions are accurately recorded.

A high-quality bookkeeper doesn’t need an extensive academic record in accounting. More important than formal degrees are experience and familiarity with your industry.

The best bookkeepers are also proficient with technological tools. Therefore, be sure to ask about the bookkeeping software used and confirm that it renders the reports you expect. Discuss when and how you’ll obtain needed reporting.

Mortgage insurance is a topic that often baffles home buyers.

They want to know how it works, and they wonder if they really need it.

Mortgage insurance is what buyers pay to lenders to ensure against default on their mortgages. It's there for the lenders protection.

Such insurance may be required on both conventional and Federal Housing Administration (FHA) mortgages. 

In a conventional mortgage, insurance is required on both purchases and refinances where there is less than 20% equity in a property. Credit scores also come into play, with less-risky borrowers paying lower premiums than riskier buyers.

Credit really is king with conventional mortgages: Borrowers who have demonstrated that they are able to manage their credit are rewarded with the ability to put less than 25% down on the purchase of a home.

Borrowers who put down 15%, all other things being equal, will pay a lower monthly mortgage insurance premium than will someone putting down just 5% or 10%.

Another benefit to conventional mortgage insurance is that if at some point the property is able to be appraised to a value at which there is more than 22% equity in the property, the buyer may petition the mortgage insurance company to have the mortgage insurance removed.

FHA mortgages actually have two types of mortgage insurance that are typically required: They are up-front mortgage insurance and monthly mortgage insurance.

The up-front mortgage insurance premium can be financed and rolled into the mortgage. The monthly mortgage insurance premium is, as it sounds, paid monthly and must be in place for at least five years after the mortgage is taken out, regardless of what the property value may be at a different point in time. Obtaining an FHA mortgage is a bit pricier than a conventional one for buyers, but there are several advantages. The first is that the FHA has more lax credit standards than do conventional mortgage lenders. This is a huge plus for buyers today, because unless they have near-prefect credit, they are going to pay steep credit score premiums with conventional mortgages.

The other advantage to the FHA program is that the down payment structure is vastly different than that of conventional mortgages. With FHA mortgages, buyers are often able to purchase homes with as little as 3.5% down and have a mid-600-range credit score. This, by the way, is 3.5% down whether they finance the up-front mortgage insurance or pay it at closing. If they do finance it, their effective down payment is actually less than 3.5%.

Speaking of down payments, the monthly mortgage premium on an FHA mortgage is the same whether your buyer is putting down 3.5% or 20%.

Contact your mortgage professional for more details on these programs. 

With the uncertainty of global financial markets, investing for the future has never been more important. Developing a portfolio of income properties can ensure residual income for your future and that of your children. Following are tips to maximize your investment dollar and ensure sound retirement income with minimal effort:

Make Sure the Tenants Pay the Mortgage: The rental income should be high enough to cover the monthly costs but low enough to be competitive. Closely inspect the income and weigh that against the potential expenses. Taxes, mortgage, hydro, maintenance and heating costs all take away from potential profits, so it is important to balance any potential profits against the expenses.

Take Surplus Income and Pay Down the Mortgage: This investment strategy offers a plan for residual income. By paying down the mortgage you can reduce the time it takes to pay the mortgage and speed up your retirement date. Surplus income can come from a variety of sources.  

Create a Reserve Fund for Unexpected Expenses: Part of your monthly income should be set aside to deal with large or unexpected expenses. Planning ahead for big-ticket items will save money down the road.

Know Your Comfort Level: Because this is part of your retirement consideration, your level of commitment needs to be measured. If you are planning to travel extensively or want a leisurely retirement existence, then a property management company may need to be part of your monthly expenses. Such companies can offer piece of mind with your retirement investment income.

Today's buyers love vibrant accent walls, usually in contrast to earth-toned neutrals. However, be careful not to be too bold and too personalized with your color choice. A fresh coat of neutral paint is often a cost-effective solution and an accent wall can make a space look bigger, feel warmer and more up to date.

Kitchens and bathrooms sell houses, so it makes sense to spend the majority of your renovation dollars to upgrade these spaces. In the bathroom, new fixtures, a soft color for the walls and sconce lighting will make a world of difference. Add fluffy white towels, flowers and candles, and you have a spa that buyers will love.

In the bathroom, they love glass and stone finishes with brushed nickel faucets and floating vanities. And don't forget the open floor plans that blend kitchen, dining room and family room into a single open space. Seducing today's buyers is almost a necessity in today's real estate market. But how far should you go to cater to buyers' wants?

It depends. Unless you're selling a luxury property, you don't have to buy a professional-grade stove. However, you may want to consider trading your outdated avocado green or harvest gold appliances for stainless steel and buying an inexpensive island on casters to make the kitchen feel more modern. Changing out old, dated cabinet hardware for new knobs and handles is also simple yet effective. 

Carpeting is out and exotic woods and travertine floors are in. However, your buyers will likely be as impressed with less-expensive flooring options.

Business owners can get customers to fall in love with their company - and boost their bottom line - by going the extra mile, creating a connection and giving clients a reason to return.

Many successful entrepreneurs and companies have adopted the strategy.

Take award-winning Laguna Beach interior designer Rejoy Geehan. She treats her clients like royalty from beginning to end.

From arriving to a first meeting with a small housewarming gift to following up with a thank-you card, Geehan turns a business transaction into a warm relationship.

PR titan Cerrell Associates, whose founder Joe Cerrell worked closely with former President John Fitzgerald Kennedy, draws on that connection to boost business.

Connecting a story or a heart-filled past with your present business is a sure way to create loyalty.

Getting customers to fall in love with your business or products is also about the simple things.

Netflix understands this golden rule. The company rose to the top and stayed there (at least until recently) because of the simple principle of making their service easy to use.

Netflix has a superb website, easy-to-find contact information, and a local call center so customers reach real people and not some poorly staffed overseas office.

From a small-business owner to a midsize or big business, creating loyalty is all about making your customer fall in love with your company and brand in some way. 

First-time home buyers have plenty of obstacles to overcome. There is an intricate maze of details that need to be carefully navigated. Following are five obstacles that first-time buyers have to overcome when looking to buy a home:

Down Payment: Saving enough for the down payment may not be sufficient. Closing costs must also be considered. Closing costs are additional fees such as the lawyer's fees, escrow charges, appraisal fees, financing fees and utility adjustments. A good rule of thumb is 2% of the purchase price will cover the closing costs. So for a $200,000 home with a 5% down payment, you would require $14,000 to cover both the down payment and closing costs.

Mortgage Preapproval: Many first-time home buyers overlook the preapproval process. This mistake can cost you your dream home. Visit a mortgage professional to see what kind of mortgage you qualify for and closely examine the actual cost of the money you must borrow to purchase a home.

Use a Real Estate Agent: Some home buyers think they can go it alone. Buying a home is a complex process, and buyer representatives have the knowledge and know-how to make your home-buying experience a happy one.

Know the Difference Between What You Need and What You Want: It is fine to dream big, but the home-buying process can be very frustrating when you have a $200,000 budget and $500,000 taste. It is essential to the buying process to identify what your home must have and what you would like it to have.

Believe in Yourself: It seems that when you are buying your first home, everyone has an opinion about the purchase. This can be confusing because unsolicited advice clouds your decision. Believe in your ability to assimilate the facts, look at the property and decide what to buy.

Qualifying commercial tenants can be a difficult process. Dealing with businesses that may have no history or individual business owners who may not have experience running a business can make it difficult to select tenants. Following are three questions a landlord needs to consider before leasing a commercial space to a tenant:

1.    Is the business owner serious about moving or expanding his or her business? Both established and new business owners have their own motivations for selecting a space to lease. Does the lease offer options for future expansion of the space? As the landlord, you want to ensure that the tenant is committed to the space for the term of the lease and perhaps even beyond.

2.    Is the business owner financially capable of supporting the lease? A thorough inspection of the prospective tenant's financial information is essential.

3.    Does the tenant meet the qualifying criteria? Every landlord will have slightly different criteria. He or she may consider only non-competing businesses within a retail plaza, or he or she may want to lease to businesses that will require minimal changes to the structure of the space. Regardless, the landlord needs to clearly identify and stick to his or her qualifying criteria.  

The difficult process of qualifying commercial tenants can be simplified if you know what questions to ask before negotiating a lease with a potential tenant.

After weeks of parties, baking, extravagant dinners and holiday-themed cocktails, many people wake up in January to find they've added a few extra pounds.

According to several studies from the last 10 years, the average adult gains at least one pound during the holiday season. A study by The New England Journal of Medicine indicates most people don't ever shed that weight.

Following are some tips and tricks to help you sensibly shed the holiday weight:

Trade Sugary Juice and Soda for Water: Drinking water will help your body flush out toxins and can stop you from overeating. If you overindulged in seasonal cocktails, try eliminating all alcoholic beverages in January.

Eliminate Starch and Sugar From Your Diet: This can help kickstart your weight loss. Refined sugars and starches - like those found in candy and white bread - can add to waistline bulge.

Eat Small Meals: Christmas meals usually involve long, sit-down meals with several courses. Try eating five small meals instead of three large ones, with no snacking in between. Aim to include protein, whole grains, and fruits or vegetables in each meal.

Snack Responsibly: Have a container of washed and cut vegetables and fruit in the fridge so that an easy and healthy snack is always available.

Eliminate Processed Foods: Highly processed items such as potato chips, some granola bars and frozen meals are often high in sugar and sodium.

On Jan. 1, many people pledge resolutions of titanic proportions. By the time February rolls around, though, about 75% of those people will have given up.

People fail on resolutions because big goals aren't realistic. So instead of making big goals, make smaller, more realistic goals that are not only doable but also rewarding. For example:

Play More: Get involved in a fun recreational activity like a cooking class. Try out a new hobby or rekindle an old one. That way you'll be carving out more time for yourself and doing something relaxing. Stepping away from what you normally do most of the day also makes you a more creative thinker.

Get Social: Find out what's going on locally. Go to local events like fairs and markets. This is a great way to meet the people in your community and strike up new friendships.  

Work on Your Body: Instead of making a big plunge into working out, start by making a commitment to doing something active for 20 minutes each day. Even 20 minutes of stretching a day can make a big difference toward a leaner, healthier you.

Start Saving: Saving can be hard in tough economic times, but you can start off on the right foot by tossing all your daily change into a bowl. For an extra boost, start putting all your $1 bills in a savings jar. You'll be less inclined to break a big bill and will quickly save up to go on a special trip, pay off a bill or save for a rainy day.

With interest rates at historic lows, and incredible bargains available in our local market, more and more of my clients are investing their money in real estate. Watch this short video and find out how almost anyone can get started today with very little down!

Then contact me at 224-321-0699 of dave@MidwestPremierRealty.com for a FREE consultation and to get a list of investment properties currently available in your area.