In this captivating episode of the “Passive Investing from Left Field” podcast host, Jim Pfeifer, sits down with Cliff Minsley, the visionary co-founder of Ten Federal. Minsley shares his remarkable journey transitioning from multifamily to self-storage, embracing technology, and implementing innovative strategies that have shaped his successful investment approach. With nearly two decades of experience in real estate and over $700 million in development and acquisitions, Minsley offers invaluable insights for investors navigating the ever-evolving real estate landscape.
Minsley’s story begins with his deep-rooted passion for business and real estate, sparked by his family’s enthusiasm for the industry. After joining forces with his brother and a mentor, Minsley played a crucial role in growing their firm from a humble living room operation to the 11th largest multifamily developer in the country. However, the 2008 financial crisis presented significant challenges, prompting Minsley and his brother to chart a new course and establish Ten Federal in 2010.
Initially focused on multifamily investments, Ten Federal quickly recognized the untapped potential in the self-storage sector. Minsley shares his keen observations of the fragmented and unsophisticated nature of the self-storage industry, which presented a golden opportunity for consolidation and the implementation of cutting-edge technology. By leveraging their expertise and innovative mindset, Ten Federal set out to revolutionize the self-storage landscape.
One of the most compelling aspects of Ten Federal’s approach is their unwavering commitment to automation and technology. Minsley delves into the transformative power of eliminating on-site managers and streamlining operations through proprietary technologies. From kiosks and QR codes to video walkthroughs and drone inspections, Ten Federal’s tech-driven solutions aim to deliver a frictionless experience for customers while significantly reducing operating expenses.
Minsley’s insights extend beyond the realm of technology, as he discusses the importance of diversification and risk management in real estate investing. Ten Federal’s fourth fund employs a unique debt strategy; Minsley explains how a no-debt approach provides investors with greater flexibility and downside protection in the face of economic uncertainty. By carefully considering market conditions and maintaining a conservative approach, Ten Federal positions itself to capitalize on opportunities while minimizing risk.
Throughout the episode, Minsley emphasizes the significance of understanding market trends, listening to customers, and constantly iterating to improve the user experience. By conducting surveys, analyzing customer feedback, and staying attuned to technological advancements, Ten Federal remains at the forefront of the self-storage industry. Minsley’s vision extends beyond mere cost savings, as he aims to create value through strategic acquisitions, efficient operations, and the relentless pursuit of improvement.
For limited partner investors considering self-storage investments, Minsley offers valuable guidance on evaluating funds and operators. He highlights the importance of assessing track records, understanding the investment model, and aligning with operators who have a proven ability to navigate market challenges. By focusing on operators who target undervalued assets and deploy innovative strategies, investors can potentially achieve attractive returns while mitigating risk.
As the conversation draws to a close, Minsley leaves listeners with a wealth of knowledge and a renewed sense of excitement for the possibilities that lie ahead in the self-storage sector. His journey from multifamily to self-storage, coupled with his unwavering commitment to technology and innovation, serves as an inspiration for investors and operators alike. With Ten Federal at the forefront of this transformative movement, the future of real estate investing looks brighter than ever.
This episode of the “Passive Investing from Left Field” podcast offers a captivating glimpse into the world of self-storage investing and the power of embracing technology and innovation. Cliff Minsley’s insights, born from his remarkable journey and extensive experience, provide listeners with actionable strategies and a fresh perspective on navigating the real estate market. Whether you’re a seasoned investor or just starting, this episode is a must-listen for anyone seeking to stay ahead of the curve in the ever-evolving landscape of real estate.
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