Key Takeaways

• Scaled from 20 to over 200 investors with expert fund administration
• Reduced manual administrative tasks to enable deeper investor relationships
• Completed platform transition 20 days ahead of 90-day target
• Enhanced investor trust through professional third-party oversight
• Significantly reduced costs by avoiding the need for an additional team of 4 full-time employees, redirecting resources to growth initiatives

Background

At 52TEN, a real estate investment firm specializing in mobile home parks, scaling their investor base from 20 to over 200 required more than just finding new capital. It meant overhauling their fund administration processes to ensure efficiency, scalability, and trust. Partnering with InvestNext Fund Admin enabled them to achieve this transformation while maintaining their personal touch.

A Legacy of Trust

52TEN has built their reputation on more than just returns–they’ve established themselves as trusted stewards in the mobile home park sector. Their commitment to transparency and hands-on management has made them a standout in an increasingly institutional market. This dedication to excellence made finding the right operational partners crucial as they planned for growth.

The Challenge

Outgrowing Manual Systems

Initially, 52TEN managed all fund administration internally through co-founder Jack Martin. While this approach was effective with a smaller investor base, it quickly became unsustainable as the firm grew. Manual processes led to inefficiencies, creating bottlenecks that threatened to limit their expansion potential.

“When I did it all myself, we only had 20 investors. Now we have over 200. I remember thinking ‘This is not scalable.'”

Early Solutions Fall Short

Their initial attempt at outsourcing fund administration improved processes but still fell short of meeting their growing needs. The system lacked the flexibility and integration required for truly seamless operations. As the firm scaled, the need for transparent and reliable operations became paramount. Without an expert neutral third-party administrator, the risk of errors or perceived conflicts of interest could potentially undermine investor confidence.

“[Third-party administrators] monitor 100% of our portfolio – they have a lens into our entire business enterprise. So any irregularity would stand out to them.”

The Solution

Comprehensive Platform Integration

InvestNext equipped 52TEN with a unified technology platform that streamlined their investment management operations. The system’s robust automation capabilities transformed document collection, investor reporting, and day-to-day management into seamless processes, all accessible through a single integrated platform.

Enhanced Transparency Through Expert Administration

Red Cedar’s professional fund administration services added a critical layer of oversight and expertise. Their team implemented comprehensive third-party verification across all fund activities, instilling investors with confidence in the accuracy and security of their investments.

“You can’t quantify the value of somebody who manages or works with dozens of firms like me. You’re exposed to a wider breadth of experience.”

Building Trust Through Professional Oversight

The combination of advanced technology and expert administration created a powerful trust advantage for 52TEN. Their commitment to transparent investing extends beyond basic reporting to include comprehensive succession planning and professional oversight, eliminating common investor concerns in private real estate investment.

“If there are two sponsors an investor is considering one of them has neutral party administration and one doesn’t, they’ll go with the one that does.”

Seamless Transition

The transition to the new platform proved remarkably efficient. Despite the complexity of migrating existing investor data and implementing new processes, the entire implementation was completed well ahead of schedule with no disruption to ongoing operations.

“We targeted 90 days from start to finish. And they got done start to finish in less than 90 days — probably 15-20 days ahead of pace. That transition was beautiful.”

New Standards in Investor Communication

While many firms scale back personal communication as they grow, 52TEN has made investor accessibility a cornerstone of their expansion. Their average of daily investor conversations demonstrates how technology can enhance–rather than replace–the human element of investment management.

Results

Efficiency Gains

The impact on 52TEN’s operations was both immediate and substantial.

As Jack explains, “I don’t have to go build and staff a back office that would take three or four people to run. From both staff management, a time allocation, and an expense perspective, all three of those things are favorable to me as the sponsor.”

In today’s market, building such a team costs between $300,000-$360,000 annually.  

Over three years, this amounts to $1,080,000 in costs needed to operate at scale. 

This would result in a staggering 410% ROI, even when including platform and administration expenses through InvestNext.

By partnering with InvestNext and their team instead, 52TEN put those resources toward what matters most – strengthening investor relationships and pursuing their next opportunities. 

Enhanced Investor Experience

This operational efficiency translated directly into an improved investor experience. The automation of recurring tasks in the InvestNext platform freed up time for more meaningful investor interactions, while the professional oversight provided by third-party administration gave investors greater confidence in their investments.

“That freedom of time allows me to be more attentive to our LPs. The benefit to [my investors] is better data, better timing, and better sleep.”

Scalable Growth Achieved

The most compelling evidence of success lies in the numbers. 52TEN scaled their investor base tenfold without compromising their high standards for personal service or operational excellence. This growth was driven not only by adding more investors, but by establishing a foundation capable of sustainably supporting ongoing expansion.

Looking Ahead

Building on Success

52Ten’s enhanced operational infrastructure positions them for continued growth and success. With streamlined fund administration in place, the firm can focus on strategic initiatives that deliver value to investors. The scalable foundation they have established supports current operations while enabling future expansion, all while maintaining their commitment to investor service excellence.

“You either have to just settle for less business, stop building a business, or build it to scale. And what we have with [InvestNext] allows us to build it to scale.”

Leading with Integrity

52TEN’s success stems from their unwavering commitment to investor trust. The firm’s embrace of professional oversight and transparency tools reflects not just operational excellence, but their fundamental values as an organization. This alignment of values with capabilities positions 52TEN for even greater success in their market.

Conclusion

52TEN’s experience highlights how the right combination of investment management technology and fund administration expertise can transform operational challenges into strategic advantages. By implementing InvestNext’s platform alongside Red Cedar’s professional services, they didn’t just solve immediate problems–they created new opportunities for growth while strengthening investor relationships.

“Their personalities, their attentiveness, their professionalism, and their delivery – it’s just been amazing.”