Chicago 2016!

The major contenders for the 2016 Olympic bid include Rio De Janeiro, Tokyo, Madrid, and my personal favorite - Chicago. The final vote won't be for about another year and a half (Oct 2, 2009), however there is much planning that must take place before we even know for sure who the winner will be.

Holding the Olympic Games has historically proven to improve the city's economy drastically. The Games injected $7 billion to Sydney's economy, bumped Barcelona up to a tier 1 tourist destination, added 140,000 additional jobs in Vancouver, and increased Beijing's residential property values 59%.

In Chicago, about $1 billion of venues would be built to accommodate the Olympics. Experts predict that the games would bring an additional 250,000-500,000 tourists to Chicago for 5-7 years after, and would create 1/2 - 1 million square feet of additional downtown absorption due to the need for sales offices, vendor locations, support sites, etc. In other words... while the city might be crowded with tourists for a couple months, just IMAGINE the immense economic benefits our city will gain for many years thereafter.

The exciting thing is if Chicago gets the Olympics, the plan is to integrate most of the events into the city limits, rather than setting up a megaplex structure 50 miles out like many other host cities have done or plan to do. Notable locations planned for various events and support sites include:

- Lincoln Park: Tennis center, triathlon start

- United Center: Basketball

- McCormick Place: Paralympics, press center

- University of Illinois Pavilion: Boxing

- Soldier Field: Football

- Northerly Island: Beach volleyball, BMX biking

- Jackson Park: Hockey

- Washington Park: Olympic Stadium (will be built for a 70k capacity, which will be downsized after the games to a 5-10k capacity)

- South Loop along the Lake (near McCormick): Olympic Village where the athletes will live (this will be comprised of 2300 four-bedroom units, which will later be retro-fitted to mostly 2 bedrooms and sold to the public)

Check out volunteer opportunities to help promote the Chicago bid at http://www.chicago2106.org/ and keep in mind the great benefits you'll reap should the Olympics end up in our city eight years from now.

Invest Creatively

You know it's a buyer's market. You think it's a great time to invest in real estate because you know that prices are low and are bound to turn around at some point. But you don't have enough cash. Or you're not sure the rent you'd receive would cover the mortgage. But you know the appreciation over time would be worth investing now. If you're interested in investing in real estate for the long-term but aren't sure how to fund it, consider an often-overlooked asset that can be used for investing in property. Your retirement fund.

Since 1974, the IRS has permitted individuals to self-direct their Individual Retirement Accounts (IRAs). The majority of the population will open a brokerage account and buy some equity shares (stock) in a company they think will be a winner. They'll buy shares of a mutual fund or invest in the money market. Or they'll invest their 401K in a few of a handful of funds offered by their company. And the more conservative investor will choose notes and bonds. But a retirement account allows you to invest in ANYTHING that is held for investment purposes. So why limit your investments to financial securities? It is unbelievable to me that only 3-4% of existing IRAs are invested in alternative assets!

Before I go further, let me clarify to avoid any confusion. Please understand that what I am talking about is different from BORROWING from your IRA in order to purchase a home. I'm referring to actually investing your IRA funds in a piece of real estate which is to be held as an investment only. You don't borrow from the IRA and pay it back; you are directly investing the IRA funds into the property itself, rather than a stock, bond, or other similar security.

There are a number of restrictions on investing your IRA in real estate, however if you find a great opportunity, it is well worth speaking with a qualified person on whether this can be done or not. You'll need to speak with several professionals, including an attorney, CPA, financial advisor, custodian, and of course a realtor to help you find the property and deal with processing the transaction. But it can be done!

Your options span from a rental property in Malibu, a strip mall in Arizona, vacant land in Montana, pre-construction in Chicago, a fixer-upper elsewhere, or even a hog farm in Iowa. Anything goes. The basic rules require that the property must be held for investment purposes only - that is, you and/or your family cannot live in it or gain any benefit other than the cash flow (which flows back into your IRA) and appreciation it provides.

Next time you open your retirement account statement and cringe at the dwindling numbers due to today's economy, think about what other options you have as far as investing in a tangible asset that will provide long-term appreciation.

Contact me for more info.

Summer in the City

One of my absolute favorite things about Chicago is the SUMMER! North Avenue Beach is a massive party all weekend every weekend. You'd be hard-pressed to find a neighborhood that wasn't having a festival at least once. If you want entertainment but you're on a tight budget, you'll have no trouble finding free events. Music, food, dance, athletics, and culture abound in the warmer months of Chicago. I'll touch on some of my favorites:

1) May 2: Looptopia - OK, I'll be honest. I haven't actually been to it and I don't quite understand it but it sounds spectacular and is something I won't miss if I'm able to go. The best part about it is it's an overnight extravaganza in the heart of the city celebrating arts, culture, music, and everything else we all love, including staying up past our bed times. Oh and did I mention it's inspired by similar events that take place in faraway lands such as France & Spain?

2) May 31-June 1: Belmont & Sheffield Music Festival - In the heart of Lakeview you'll find a number of bands from the nationally well-known to the local. Live entertainment this year will be provided by Trippin' Billies, Sugar Wall, Why Store, School of Rock, and Underwater People.

3) July 11-Aug 16: Grant Park Music Fest - FREE CONCERTS. Throughout the summer the Chicago Park District offers a plethora of music-related events free to the public.

4) June 14-15: Old Town Arts Fair - A great time for the lover of both arts & beers! 260 artists display paintings, sculptures, photos, jewelry, crafts, and more! And a boatload of easy-going Chicagoans just out for a good time.

5) June 20-22: Taste of Randolph - Mmm, here's where you get to try out all of the delicious restaurants that call the West Loop home. Feel free to feast in front of the live entertainment provided by a lineup that is still TBA - however in the past, some notable names have included the John Butler Trio & Fountains of Wayne.

6) June 27-July 6: Taste of Chicago - Somehow this usually turns out to feel like the hottest weekend of the summer.. of course that may be due to the 1 million visitors this festival attracts through the two week duration. Come hungry and leave stuffed.

There are a LOT more festivals I haven't mentioned here for the sake of space but please Google "Chicago Festival Guide" for a complete list, and you'll notice that not one weekend this summer will be festival-free.

Let's be serious here, who doesn't like funnel cake?! Go to a festival this summer and find some for yourself.