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ThyssenKrupp, fine German steel maker, and one of the best producers of high quality artillery barrels in history, is about to announce the location of huge, new U.S. production facility (for things other than artillery barrels). At an estimated construction cost of almost $3 billion, the giant project will provide almost 30,000 construction jobs to a community in either Louisiana or new manufacturing powerhouse Alabama. After the facility is complete, it will employ about 2,900 workers on a full time basis. 

Why should you care, other than the fact it indicates development of sorely needed manufacturing capacity in the U.S.? What if you live in New Hampshire or Oregon and are thousands of miles away? It would be a pretty long commute, even in the nicest ride. You should take note because such developments point to the need for quality information, and how such information can make you money.

There are countless examples of depressed communities being saved by economic development. In every case, a little knowledge by investors created a massive profit opportunity. The old axiom “Knowledge is power” is true, but “Knowledge is profit” is just as accurate. It’s all based upon good, timely information. In the case of the ThyssenKrupp plant it’s probably not too late for astute real estate investors to purchase properties and make a handsome profit, even though some profit opportunity has already been lost due to the speculation created by publicity surrounding the deal.

There are many places to gain such information in an attempt to ferret out potentially profitable real estate investment opportunities. One of the best is local county websites. They will almost always have listing of funds that have been appropriated for future projects. It’s one of the advantages of the environmentally conscious society in which we live. Yes, it makes projects 50% more expensive, but it also gives investors a lengthy warning of future projects. Years before any major road expansions or other construction projects are undertaken, an EIS, or environmental impact statement must be prepared. This requires study, and in the case of projects using any public money, financial appropriations for such studies.

This is important, because years before a road is put through or expanded or other value altering construction projects are undertaken, the funds will be appropriated. In many cases, these projects are fairly quiet at this stage and few in the public will have any inkling this will be occurring. This gives you, as an investor, an opportunity due to knowledge of impending projects. These often build value in a property and profit for the investor.

Another successful technique that works in growing communities, especially those with fairly flat topologies, is to purchase properties in a direct line with a major thoroughfare, but a mile or miles away from it. This is long term investment strategy, but an effective one. In time, the community will grow and the road will be extended, or if it exists now, it will be expanded. When that occurs, the property you purchased will experience strong appreciation. You should be prepared to wait some years before this occurs. However, I’ve personally seen properties that were purchased for far less than $50,000 be sold for over $5 million in 20 – 30 years using this strategy. Sadly they weren’t mine, but I haven’t been investing for that long yet. Not a short term investment, but a great retirement.

As with anything, there is risk associated with this strategy. You could be wrong, the area could suffer economic collapse, there could be a zoning change, or other legal action and you could be sitting on some land that makes a great tumbleweed farm or gopher park. There is risk with every investment though. That’s why the quality of your information and the thoroughness of your research is so vitally important. Some time spent now can pay huge dividends later. That information, combined with other factors the land possesses, is a formula for large real estate investment profits. The same is true for other investments. Good quality, actionable information is the one thing that can separate losers from great investments.