SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

                                   FORM 10-Q
(Mark One)

  X  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
-----
     EXCHANGE ACT OF 1934.

For the quarterly period ended June 30, 1998
                               --------------
                                      OR
`
     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
-----
     EXCHANGE ACT OF 1934.

For the transition period from              to             
                               ------------    ------------
Commission file number 0-14332
                       -------

                        BALCOR PENSION INVESTORS-VI         
          -------------------------------------------------------
          (Exact name of registrant as specified in its charter)

          Illinois                                      36-3319330    
-------------------------------                     -------------------
(State or other jurisdiction of                      (I.R.S. Employer  
incorporation or organization)                      Identification No.)

2355 Waukegan Road, Suite A200
Bannockburn, Illinois                                     60015    
----------------------------------------            ------------------- 
(Address of principal executive offices)                (Zip Code)

Registrant's telephone number, including area code (847) 267-1600
                                                    -------------

Indicate by  check  mark whether  the  Registrant  (1) has  filed  all  reports
required to be filed by Section 13  or 15(d) of the Securities Exchange Act  of
1934 during  the preceding  12 months  (or  for such  shorter period  that  the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

Yes   X    No     
    -----     -----
<PAGE>
                          BALCOR PENSION INVESTORS-VI
                       (An Illinois Limited Partnership)

                                BALANCE SHEETS
                      June 30, 1998 and December 31, 1997
                                  (Unaudited)

                                    ASSETS

                                               1998            1997
                                           --------------- ---------------
Cash and cash equivalents                  $    3,498,835  $    5,290,460
Escrow deposits - restricted                      235,000         310,000
Accounts and accrued interest receivable           47,774         383,826
                                           --------------- ---------------
                                           $    3,781,609  $    5,984,286
                                           =============== ===============

                                        
                       LIABILITIES AND PARTNERS' CAPITAL

Accounts payable                           $        4,791  $       41,259
Due to affiliates                                 118,125          66,452
                                           --------------- ---------------
    Total liabilities                             122,916         107,711
                                           --------------- ---------------

Commitments and contingencies

Limited Partners' capital (1,382,562
  Interests issued and outstanding)             4,170,453       6,388,335
General Partner's deficit                        (511,760)       (511,760)
                                           --------------- ---------------
    Total partners' capital                     3,658,693       5,876,575
                                           --------------- ---------------
                                           $    3,781,609  $    5,984,286
                                           =============== ===============

The accompanying notes are an integral part of the financial statements.
<PAGE>
                          BALCOR PENSION INVESTORS-VI
                       (An Illinois Limited Partnership)

                       STATEMENTS OF INCOME AND EXPENSES
                for the six months ended June 30, 1998 and 1997
                                  (Unaudited)


                                                1998            1997
                                           --------------- ---------------
Income:
  Interest on short-term investments       $      124,206  $      841,848
                                           --------------- ---------------
      Total income                                124,206         841,848
                                           --------------- ---------------
Expenses:                                     
  Provision for potential losses on
    loan and real estate                                          256,000
  Loss (income) from operations of real                     
    estate held for sale                            5,028      (1,443,597)
  Amortization of deferred expenses                               638,712
  Other expenses                                   78,437
  Administrative                                  323,036         565,181
                                           --------------- ---------------
      Total expenses                              406,501          16,296
                                           --------------- ---------------
(Loss) income before affiliate's 
  participation in joint venture 
  and gains on disposition of real estate        (282,295)        825,552

Affiliate's participation in income of                      
  joint venture                                                  (508,653)
Gains on disposition of real estate                             6,103,542
                                           --------------- ---------------
Net (loss) income                          $     (282,295) $    6,420,441
                                           =============== ===============
Net income allocated to General
    Partner                                          None  $       76,998
                                           =============== ===============
Net (loss) income allocated to Limited 
    Partners                               $     (282,295) $    6,343,443
                                           =============== ===============
Net (loss) income per Limited Partnership
  Interest (1,382,562 issued and
  outstanding) - Basic and Diluted         $        (0.20) $         4.59
                                           =============== ===============
Distributions to General Partner                     None  $      668,239
                                           =============== ===============

The accompanying notes are an integral part of the financial statements.
<PAGE>
                          BALCOR PENSION INVESTORS-VI
                       (An Illinois Limited Partnership)

                       STATEMENTS OF INCOME AND EXPENSES
                for the six months ended June 30, 1998 and 1997
                                  (Unaudited)
                                  (Continued)


                                                1998            1997
                                           --------------- ---------------
Settlement distribution to Limited
  Partners                                           None  $      124,075
                                           =============== ===============
Distributions to Limited Partners          $    1,935,587  $   82,055,055
                                           =============== ===============
Distributions per Limited Partnership
  Interest                                 $         1.40  $        59.35
                                           =============== ===============

The accompanying notes are an integral part of the financial statements.
<PAGE>
                          BALCOR PENSION INVESTORS-VI
                       (An Illinois Limited Partnership)

                       STATEMENTS OF INCOME AND EXPENSES
                 for the quarters ended June 30, 1998 and 1997
                                  (Unaudited)


                                                1998            1997
                                           --------------- ---------------
Income:
  Interest on short-term investments       $       49,828  $      325,836
                                           --------------- ---------------
      Total income                                 49,828         325,836
                                           --------------- ---------------
                                              
Expenses:                                     
 Loss (income) from operations of                           
    real estate held for sale                         664        (314,744)
  Amortization of deferred expenses                               293,427
  Administrative                                  142,689         199,662
                                           --------------- ---------------
      Total expenses                              143,353         178,345
                                           --------------- ---------------
(Loss) income before affiliate's 
  participation in joint venture 
  and gain on disposition of real estate          (93,525)        147,491

Affiliate's participation in income of                      
  joint venture                                                  (448,996)
Gain on disposition of real estate                                406,195
                                           --------------- ---------------
Net (loss) income                          $      (93,525) $      104,690
                                           =============== ===============
Net income allocated to General
    Partner                                          None  $       76,998
                                           =============== ===============
Net (loss) income allocated to Limited 
  Partners                                 $      (93,525) $       27,692
                                           =============== ===============
Net (loss) income per Limited Partnership
  Interest (1,382,562 issued and
  outstanding) - Basic and Diluted         $        (0.06) $         0.02
                                           =============== ===============
Distribution to General Partner                      None  $      361,003
                                           =============== ===============
Distribution to Limited Partners           $    1,935,587  $   43,343,319
                                           =============== ===============
Distribution per Limited Partnership
  Interest                                 $         1.40  $        31.35
                                           =============== ===============

The accompanying notes are an integral part of the financial statements.
<PAGE>
                          BALCOR PENSION INVESTORS-VI
                       (An Illinois Limited Partnership)

                           STATEMENTS OF CASH FLOWS
                for the six months ended June 30, 1998 and 1997
                                  (Unaudited)


                                                 1998            1997
                                           --------------- ---------------
Operating activities:
  Net (loss) income                        $     (282,295) $    6,420,441
  Adjustments to reconcile net (loss)
   income to net cash provided by 
    operating activities:                     
      Provision for potential losses on
        real estate                                               256,000
      Payment of deferred expenses                               (219,847)
      Amortization of deferred expenses                           638,712
      Affiliate's participation in income
        of joint venture                                          508,653
      Gains on disposition of real estate                      (6,103,542)
      Net change in:
        Accounts and accrued interest 
          receivable                              336,052         994,685
        Prepaid expenses                                           95,079
        Accounts payable                          (36,468)       (366,038)
        Due to affiliates                          51,673           2,376
        Accrued liabilities                                      (310,181)
        Security deposits                                        (256,363)
                                           --------------- ---------------
  Net cash provided by operating
   activities                                      68,962       1,659,975
                                           --------------- ---------------
Investing activities:
  Distribution from joint venture -
    affiliate                                                     206,499
  Improvements to properties                                     (428,213)
  Proceeds from dispositions of real
    estate                                                     58,195,000
  Costs incurred in connection with
    dispositions of real estate                                (1,533,585)
  Release (funding) of escrow 
    deposits - restricted                          75,000        (560,000)
                                           --------------- ---------------
  Net cash provided by investing
    activities                                     75,000      55,879,701
                                           --------------- ---------------

The accompanying notes are an integral part of the financial statements.
<PAGE>
                          BALCOR PENSION INVESTORS-VI
                       (An Illinois Limited Partnership)

                           STATEMENTS OF CASH FLOWS
                for the six months ended June 30, 1998 and 1997
                                  (Unaudited)
                                  (Continued)


                                                 1998            1997
                                           --------------- ---------------
Financing activities:
  Distributions to Limited Partners            (1,935,587)    (82,179,130)
  Deemed distribution to Limited Partners                         (43,900)
  Distributions to General Partner                               (668,239)
  Contribution by General Partner                                 230,427
  Distributions to joint venture
    partner - affiliate                                        (3,469,210)
                                           --------------- ---------------
  Net cash used in financing activities        (1,935,587)    (86,130,052)
                                           --------------- ---------------

Net change in cash and cash equivalents        (1,791,625)    (28,590,376)
Cash and cash equivalents at beginning 
  of period                                     5,290,460      57,942,543
                                           --------------- ---------------
Cash and cash equivalents at end of
  period                                   $    3,498,835  $   29,352,167
                                           =============== ===============

The accompanying notes are an integral part of the financial statements.
<PAGE>
                          BALCOR PENSION INVESTORS-VI
                       (An Illinois Limited Partnership)

                         NOTES TO FINANCIAL STATEMENTS

1. Accounting Policies:

(a) The loss allocation between the Limited Partners and the General Partner
has been adjusted for financial statement purposes in order that the capital
account balances more accurately reflect their remaining economic interests as
provided for in the Partnership Agreement.

(b) A reclassification has been made to the previously reported 1997 financial
statements in order to provide comparability with the 1998 statements. This
reclassification has not changed the 1997 results.

(c) In the opinion of management, all adjustments necessary for a fair
presentation have been made to the accompanying statements for the six months
and quarter ended June 30, 1998, and all such adjustments are of a normal and
recurring nature.

2. Partnership Termination:

The Partnership Agreement provides for the dissolution of the Partnership upon
the occurrence of certain events, including the disposition of all interests in
real estate. During 1997, the Partnership sold its five remaining properties.
The Partnership has retained a portion of the cash from the property sales to
satisfy obligations of the Partnership as well as to establish a reserve for
contingencies. The timing of the termination of the Partnership and final
distribution of cash will depend upon the nature and extent of liabilities and
contingencies which exist or may arise. Such contingencies may include legal
and other fees and costs stemming from litigation involving the Partnership
including, but not limited to, the lawsuit discussed in Note 4 of Notes to
Financial Statements. Due to this litigation, the Partnership will not be
dissolved and reserves will be held by the Partnership until the conclusion of
all contingencies. There can be no assurances as to the time frame for
conclusion of these contingencies.

3. Transactions with Affiliates:

Fees and expenses paid and payable by the Partnership to affiliates for the six
months and quarter ended June 30, 1998 are:

                                               
                                           Paid
                                   -------------------------
                                     Six Months     Quarter    Payable
                                    ------------   ---------  ---------

   Reimbursement of expenses to
     the General Partner, at cost   $ 41,968       $21,124    $118,125
<PAGE>
4. Contingency:

The Partnership is currently involved in a lawsuit whereby the Partnership, the
General Partner and certain third parties have been named as defendants seeking
damages relating to tender offers to purchase interests in the Partnership and
nine affiliated partnerships initiated by the third party defendants in 1996.
The defendants continue to vigorously contest this action. The action has been
dismissed with prejudice and plaintiffs have filed an appeal. It is not
determinable at this time whether or not an unfavorable decision in this action
would have a material adverse impact on the financial position of the
Partnership. The Partnership believes it has meritorious defenses to contest
the claims.

5. Other Expense:

During 1998, the Partnership paid $78,437 in settlement of claims presented by
the purchaser of the Hammond Aire Plaza Shopping Center for certain tenant
improvements, leasing, survey and escrow costs pursuant to the sale agreement.
The property was sold in 1997. 
<PAGE>
                          BALCOR PENSION INVESTORS-VI
                       (An Illinois Limited Partnership)

                     MANAGEMENT'S DISCUSSION AND ANALYSIS

Balcor Pension Investors - VI (the "Partnership") is a limited partnership
formed in 1984 to invest in first mortgage loans and, to a lesser extent,
wrap-around loans and junior mortgage loans. The Partnership raised
$345,640,500 through the sale of Limited Partnership Interests and utilized
these proceeds to fund thirty-one loans, and subsequently acquired thirteen
properties and three investments in joint ventures-affiliates through
foreclosure. As of June 30, 1998, the Partnership has no loans or real estate
in its portfolio.

Inasmuch as the management's discussion and analysis below relates primarily to
the time period since the end of the last fiscal year, investors are encouraged
to review the financial statements and the management's discussion and analysis
contained in the annual report for 1997 for a more complete understanding of
the Partnership's financial position.

Operations
----------

Summary of Operations
---------------------

Administrative and other expenses were higher than interest income earned on
short-term investments during the six months and quarter ended June 30, 1998.
This was the primary reason the Partnership recognized a net loss for the six
months and quarter ended June 30, 1998. During the six months ended June 30,
1997, the Partnership recognized a gain on the sale of the Park Central Office
Building, which was the primary reason the Partnership recognized net income
for the six months ended June 30, 1997. Due primarily to income from
operations of real estate held for sale and interest on short-term investments
being higher than amortization of deferred expenses and administrative
expenses, the Partnership recognized net income during the quarter ended June
30, 1997. Further discussion of the Partnership's operations is summarized
below. 

1998 Compared to 1997
---------------------

Unless otherwise noted discussions of fluctuations between 1998 and 1997 refer
to both the six months and quarters ended June 30, 1998 and 1997.

Income from operations of real estate held for sale represented the net
operations of the properties acquired by the Partnership through foreclosure.
During 1997, the Partnership sold its five remaining properties which were
generating income from operations prior to their sales. During 1998, the
Partnership paid additional expenditures related to one of the properties sold
in 1997. As a result, the Partnership recognized a loss from operations of real
estate held for sale during 1998 as compared to income during 1997.
<PAGE>
Higher average cash balances were available for investment during 1997
primarily due to the proceeds received by the Partnership in connection with
the 1997 and 1996 property sales prior to distribution to Partners in 1997. As
a result, interest income on short-term investments decreased in 1998 as
compared to 1997.

Provisions were charged to income when the General Partner believed an
impairment had occurred to the value of its properties or in a borrower's
ability to repay a loan or in the value of the collateral property.
Determinations of fair value were made periodically on the basis of performance
under the terms of the loan agreement and assessments of property operations.
Determinations of fair value represented estimations based on many variables
which affected the value of real estate, including economic and demographic
conditions. During the six months ended June 30, 1997, the Partnership
recognized a provision of $256,000 to provide for a decline in the estimate of
the fair value of the Hammond Aire Plaza Shopping Center. In addition, the
Partnership wrote off previously established allowances of $388,809 and
$2,120,000 related to the Flamingo Pines and Hammond Aire Plaza Shopping
Centers, respectively. 

In connection with the sale of the Park Central Office Building in 1997, the
Partnership wrote-off the remaining unamortized leasing commissions related to
the property. In addition, the Partnership sold its remaining properties in
1997. As a result, amortization expense ceased during 1997.

During 1998, the Partnership paid $78,437 in settlement of claims presented by
the purchaser of the Hammond Aire Plaza Shopping Center for certain tenant
improvements, leasing, survey and escrow costs pursuant to the sale agreement.
The property was sold in 1997. This amount was recognized as other expense for
financial statement purposes during 1998.
 
During February 1997, the General Partner made a payment relating to the
settlement of certain litigation to original investors who previously sold
their Interests in the Partnership. This payment was recorded as an
administrative expense. In addition, the Partnership incurred legal fees
related to this settlement. The Partnership also incurred increased legal,
printing and postage costs in connection with its responses to tender offers
during the first quarter of 1997. As a result, administrative expenses
decreased during 1998 as compared to 1997. A decrease in portfolio management,
accounting and bank fees during 1998 also contributed to this decrease. 

The Brookhollow/Stemmons Center Office Building was owned by a joint venture
with an affiliate. As a result of the sale of this property during 1997,
affiliate's participation in income of joint venture ceased during 1997.

During 1997, the Partnership sold the Park Central and  Brookhollow/Stemmons
Office Buildings and recognized gains on the sales totaling $6,103,542.

Liquidity and Capital Resources
-------------------------------

The cash position of the Partnership decreased by approximately $1,792,000 as
<PAGE>
of June 30, 1998 when compared to December 31, 1997 primarily due to an April
1998 distribution to Limited Partners representing Mortgage Reductions from the
release of holdbacks and escrows on several of the Partnership's properties.
Operating activities generated cash of approximately $69,000 from interest
earned on short-term investments and the collection of a receivable related to
a property sold in 1997, net of the payment of administrative expenses and
expenses paid pursuant to the settlement of of claims prsented by the purchaser
of the Hammond Aire Plaze Shopping Center. Cash received from investing
activities consisted of the release of restricted escrows of $75,000 related to
the sale of the Hammond Aire Plaza Shopping Center. The Partnership used cash
to fund its financing activities which consisted of a distribution to Limited
Partners of approximately $1,936,000.
 
The Partnership Agreement provides for the dissolution of the Partnership upon
the occurrence of certain events, including the disposition of all interests in
real estate. During 1997, the Partnership sold its five remaining properties.
The Partnership has retained a portion of the cash from the property sales to
satisfy obligations of the Partnership as well as to establish a reserve for
contingencies. The timing of the termination of the Partnership and final
distribution of cash will depend upon the nature and extent of liabilities and
contingencies which exist or may arise. Such contingencies may include legal
and other fees and costs stemming from litigation involving the Partnership
including, but not limited to, the lawsuit discussed in Note 4 of Notes to
Financial Statements. Due to this litigation, The Partnership will not be
dissolved and reserves will be held by the Partnership until the conclusion of
all contingencies. There can be no assurances as to the time frame for
conclusion of these contingencies.

Pursuant to the sale agreement for the Hammond Aire Plaza Shopping Center,
$712,500 of the sales proceeds was to be retained until the later of November
1997 or the settlement of any claims presented by the purchaser. The funds were
released in March 1998 after the Partnership paid $53,437 for certain tenant
improvement costs and leasing commissions. Pursuant to the terms of the sale,
an additional $310,000 of the sale proceeds was placed in escrow at closing. In
March 1998, $50,000 of the escrow was disbursed to the Partnership and $25,000
was disbursed to the purchaser to cover certain survey and easement costs. The
remaining sale proceeds of $235,000 remain in escrow pending resolution of
certain tenant issues. The Partnership expects to receive a majority of the
sales proceeds remaining in the escrow.

In February 1997, the Partnership discontinued the repurchase of Interests from
Limited Partners. As of June 30, 1998, there were 70,711 Interests and cash of
$5,461,510 in the Early Investment Incentive Fund.

To date, Limited Partners have received cash distributions totaling $320.76 per
$250 Interest. Of this amount, $142.21 represents Cash Flow from operations and
$178.55 represents a return of Original Capital. No additional distributions
are anticipated to be made prior to the termination of the Partnership.
However, after paying final partnership expenses, any remaining cash reserves
will be distributed. Amounts allocated to the Early Investment Incentive Fund
will also be distributed at that time. 
<PAGE>
                          BALCOR PENSION INVESTORS-VI
                       (An Illinois Limited Partnership)

                          PART II - OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K
-----------------------------------------

(a) Exhibits:

(4) Form of Subscription Agreement previously filed as Exhibit 4.1 to Amendment
No. 1 to the Registrant's Registration Statement on Form S-11 dated January 14,
1985 (Registration No. 2-93840) and Form of Confirmation regarding Interests in
the Registrant set forth as Exhibit 4.2 to the Registrant's Report on Form 10-Q
for the quarter ended June 30, 1992 (Commission File No. 0-14332) are
incorporated herein by reference.

(10) Material Contracts:

(a) Agreement of Sale and attachment thereto relating to the sale of Perimeter
400 Center, Fulton County, Georgia, as previously filed as Exhibit (2) to the
Registrant's Current Report on Form 8-K dated December 2, 1996 is incorporated
herein by reference.

(b)(i) Agreement of Sale and attachment thereto relating to the sale of the
Park Central Office Building, DeKalb County, Georgia, as previously filed as
Exhibit (2) to the Registrant's Current Report on Form 8-K dated December 18,
1996 is incorporated herein by reference.

(b)(ii)  Letter Agreement relating to the sale of the Park Central Office
building, De Kalb County, Georgia, previously filed as Exhibit (10)(b)(ii) to
the Registrant's Annual Report on Form 10-K for the quarter ended December 31,
1996, is incorporated herein by reference.

(c)(i) Agreement of Sale and attachment thereto relating to the sale of Hammond
Aire Plaza Shopping Center, Baton Rouge, Louisiana, previously filed as Exhibit
(10)(c) to the Registrant's Annual Report on Form 10-K for the quarter ended
December 31, 1996, is incorporated herein by reference.

(c)(ii) Due Diligence Termination Notice relating to the sale of Hammond Aire
Plaza Shopping Center, Baton Rouge, Louisiana, previously filed as Exhibit
(10)(c)(ii) to the Registrant's Quarterly Report on Form 10-Q for the quarter
ended March 31, 1997, is incorporated herein by reference.

(c)(iii) Ratification and Amendment of Agreement of Sale relating to the sale
of Hammond Aire Plaza Shopping Center, Baton Rouge, Louisiana, previously filed
as Exhibit (10)(c)(iii) to the Registrant's Quarterly Report on Form 10-Q for
the quarter ended March 31, 1997, is incorporated herein by reference.

(c)(iv) Second Amendment to Agreement of Sale relating to the sale of Hammond
Aire Plaza Shopping Center, Baton Rouge, Louisiana, previously filed as Exhibit
<PAGE>
(10)(c)(iv) to the Registrant's Quarterly Report on Form 10-Q for the quarter
ended March 31, 1997 is incorporated herein by reference.

(d)(i) Agreement of Sale relating to the contract to sell Brookhollow/Stemmons
Office Building, Dallas, Texas, previously filed as Exhibit (2) to the
Registrant's Current Report on Form 8-K dated March 27, 1997, is incorporated
herein by reference.

(d)(ii) Amendment No. 1 to Agreement of Sale relating to the sale of
Brookhollow/Stemmons Center Office Building, Dallas, Texas, previously filed as
Exhibit (10)(d)(ii) to the Registrant's Quarterly Report on Form 10-Q for the
quarter ended March 31, 1997 is incorporated herein by reference.

(e)(i) Agreement of Sale and attachment thereto relating to the sale of the 420
North Wabash Office Building, Chicago, Illinois, as previously filed as Exhibit
(2)(ii) to the Registrant's Current Report on Form 8-K dated June 16, 1997, is
incorporated herein by reference.

(e)(ii) First Amendment to Agreement of Sale relating to the sale of the 420
North Wabash Office Building, Chicago, Illinois, previously filed as Exhibit
(2)(e)(ii) to the Registrant's Quarterly Report on Form 10-Q for the quarter
ended June 30, 1997 is incorporated herein by reference.

(27) Financial Data Schedule of the Registrant for the six month period ending
June 30, 1998 is attached hereto.

(b) Reports on Form 8-K: No reports were filed on Form 8-K during the quarter
ended June 30, 1998.
<PAGE>
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.


                              BALCOR PENSION INVESTORS-VI


                              By: /s/ Thomas E. Meador                       
                                  -----------------------------
                                  Thomas E. Meador
                                  President and Chief Executive Officer 
                                  (Principal Executive Officer) of Balcor 
                                  Mortgage Advisors-VI, the General Partner



                              By: /s/ Jayne A. Kosik                       
                                  -----------------------------
                                  Jayne A. Kosik
                                  Senior Managing Director and Chief Financial
                                  Officer (Principal Accounting Officer) of 
                                  Balcor Mortgage Advisors-VI, the General 
                                  Partner



Date:                  
      ---------------------------
<PAGE>