While there is a certain elan that comes with investing internationally, the buying and selling of assets that results in a profit will always be in style.  For a consortium of international investors who plowed billions in failed Mexican real estate projects,Chicago real estate investing the losses, coming in large sizes, will never be fashionable.

 But for those befitting from the surging real estate market in Chicago, however, there has been much to admire about the investments that have sensibly remained within the borders of the United States in the area of "The Second City."

Amy Guthries recently wrote in The Wall Street Journal about how investors from around the globe, including such well know firms as Pacific Management Investment Co. and BlueBay Asset Management, are looking at losses from "...more than $1 billion in foreign capital via overseas bond sales..."  In her Journal piece, "Mexico Housing Bust Bruises Investors, Buyers," Guthries notes that, "Scores of new homes in far-flung communities sit empty, while banks have canceled credit lines to some of the country's biggest companies."

By contrast, the Illinois Association of Realtors reported that sales were up 27.% in April in Chicago, with prices climbing by 21.8%, reaching a two-year high.

"Being at the ground level, it does not surprise me how well the Chicago real estate market is doing," noted Jerry Cohen, President and Founder of EquityBuild, a real estate financing firm.  "The market in the Chicago area is very strong, particularly for turnkey properties.  These are houses that have been fixed up, rented out and come with professional management that are proving to be ideal for individual investors looking to profit from passive real estate holdings."

Cohen also observed that while the institutional investors in Mexico are looking at massive losses that could be in the billions, those in the Chicago area are booking solid gains.  "From our operations, we are averaging 17% from flipping properties.  As the economy improves, those returns should, too."

It is not just the buyers of properties who are do well in Chicago, remarked Shaun Cohen, President of Equity Finance, the funding arm of EquityBuild.  "For those financing real estate deals with private mortgage notes, the returns are about 12%.  This figure comes from both those funding a single deal with a mortgage, or investing in pool of capital with others to underwrite a number of property deals so as to have more diversity in the portfolio."

Over the last two centuries, gains from real estate have created about 90% of the world's millionaires.  During The Great Recession as stock and bond markets plunged, rents actually rose in the United States.  Historically, rental income in the United States will rise about 5% annually.