----

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| þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES |
|--------|--------------------------------------------------------------------|

|  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES |
|--------|---------------------------------------------------------------------|

|                                                          |                                |
|---------------------------------------------------------------|-------------------------------------|
| Nevada                                                        | 95-6799846                          |
| (State or Other Jurisdiction ofIncorporation or Organization) | (I.R.S. EmployerIdentification No.) |

|                                                                                                  |                                                   |
|-------------------------------------------------------------------------------------------------------|--------------------------------------------------------|
| Large accelerated filer    ̈                                                  | Accelerated filer   ̈               |
| Non-accelerated filer   ̈  (Do not check if a smaller reporting company) | Smaller reporting company   þ |

|                         |                             |
|------------------------------|----------------------------------|
| Common Stock, $.01 par value | 1,057,628                        |
| (Class)                      | (Outstanding at August 15, 2011) |

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|                          |                                                                                                                   |                                                                         |
|-------------------------------|------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------|
| PART I. FINANCIAL INFORMATION | PAGE                                                                                                                   |
|                          |                                                                                                                   |                                                                         |
| Item 1.                  | Financial Statements                                                                                                   |                                                                         |
|                          | Consolidated Balance Sheets as of June 30, 2011 (unaudited) and December 31, 2010                                      |             3    |
|                          | Consolidated Statements of Operations for the  three and six months ended June 30, 2011 and 2010 (unaudited) |             4    |
|                          | Consolidated Statement of Shareholders’ Equity for the six months ended June 30, 2011 (unaudited)                |             5    |
|                          | Consolidated Statements of Cash Flows for the six months ended June 30, 2011 and 2010 (unaudited)                      |             6    |
|                          | Notes to Financial Statements                                                                                          |             7-8  |
| Item 2.                  | Management’s Discussion and Analysis of Financial Condition and Results of Operations                            |             8-9  |
| Item 3.                  | Controls and Procedures                                                                                                |             9-10 |
|                          |                                                                                                                   |
| PART II. OTHER INFORMATION    |                                                                                                                   |
|                          |                                                                                                                   |                                                                         |
| Item 6.                  | Exhibits                                                                                                               |             11   |
| SIGNATURES                    |             12                                             |

----

| ITEM  1. | FINANCIAL STATEMENTS |
|---------------|----------------------|

|                                                                                          |   |          |      |   |              |   |
|-----------------------------------------------------------------------------------------------|--------|---------------|-----------|--------|-------------------|--------|
|                                                                                          |   | June 30, 2011 |      |   | December 31, 2010 |   |
| Assets                                                                                        |   |          |      |   |              |   |
| Real estate land holdings, at cost                                                            |   | $             | 4,783,673 |   |              | $      | 3,832,399 |   |
| Notes receivable and accrued interest - affiliates                                            |   |          | 2,921,773 |   |              |   | 2,688,459 |   |
| Cash and cash equivalents                                                                     |   |          | 24        |   |              |   | 151 |   |
| Other Assets                                                                                  |   |          | 106,636   |   |              |   | - |   |
| Federal income tax receivable                                                                 |   |          | -         |   |              |   | 636 |   |
| Deferred tax asset                                                                            |   |          | 1,696     |   |              |   | 1,696 |   |
| Total assets                                                                                  |   | $             | 7,813,802 |   |              | $      | 6,523,341 |   |
|                                                                                          |   |          |      |   |              |   |   |   |
|                                                                                          |   |          |      |   |              |   |   |   |
|                                                                                          |   |          |      |   |              |   |   |   |
| Liabilities and Shareholders' Equity                                                          |   |          |      |   |              |   |   |   |
| Notes payable and accrued interest - affiliates                                               |   | $             | 6,338,143 |   |              | $      | 5,535,275 |   |
| Notes payable - bank                                                                          |   |          | 500,000   |   |              |   | - |   |
| Accounts payable - other                                                                      |   |          | 60,182    |   |              |   | 52,566 |   |
| Accounts payable - affiliates                                                                 |   |          | 179,012   |   |              |   | 54,560 |   |
| Total liabilities                                                                             |   |          | 7,077,337 |   |              |   | 5,642,401 |   |
|                                                                                          |   |          |      |   |              |   |   |   |
| Shareholders' equity                                                                          |   |          |      |   |              |   |   |   |
| Common stock, $0.01 par value; 40,000,000 shares authorized; 1,057,628 issued and outstanding |   |          | 10,576    |   |              |   | 10,576 |   |
| Preferred stock, $0.01 par value; 4,960,000 shares authorized; none issued or outstanding     |   |          | -         |   |              |   | - |   |
| Paid in capital                                                                               |   |          | 1,376,682 |   |              |   | 1,376,682 |   |
| Retained earnings (deficit)                                                                   |   |          | (650,793  | )      |              |   | (506,318 | ) |
|                                                                                          |   |          |      |   |              |   |   |   |
| Total shareholders' equity                                                                    |   |          | 736,465   |   |              |   | 880,940 |   |
|                                                                                          |   |          |      |   |              |   |   |   |
| Total liabilities and shareholders' equity                                                    |   | $             | 7,813,802 |   |              | $      | 6,523,341 |   |
|                                                                                          |   |          |      |   |              |   |   |   |
|                                                                                          |   |          |      |   |              |   |   |   |
| The accompanying notes are an integral part of these financial statements.                    |   |

----

| FIRST EQUITY PROPERTIES, INC.                   |   |
|-------------------------------------------------|--------|
| STATEMENTS OF OPERATIONS                        |   |
| (unaudited)                                     |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   | For the three months ended June 30, |   |   | For the six months ended June 30, |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   | 2011 |   |   | 2010 |   |   | 2011 |   |   | 2010 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                 |   | $ | 60,024 |   |   | $ | 60,024 |   |   | $ | 119,388 |   |   | $ | 119,388 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating Expenses                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| General and administrative                      |   |   | 41,008 |   |   |   | 30,457 |   |   |   | 74,951 |   |   |   | 58,230 |   |
| Legal and professional fees                     |   |   | 15,639 |   |   |   | 750 |   |   |   | 33,255 |   |   |   | 12,386 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total operating  expenses             |   |   | 56,647 |   |   |   | 31,207 |   |   |   | 108,206 |   |   |   | 70,616 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) before interest expense and taxes |   |   | 3,377 |   |   |   | 28,817 |   |   |   | 11,182 |   |   |   | 48,772 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense)                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                |   |   | (81,004 | ) |   |   | (17,511 | ) |   |   | (155,021 | ) |   |   | (34,830 | ) |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) before income taxes               |   |   | (77,627 | ) |   |   | 11,306 |   |   |   | (143,839 | ) |   |   | 13,942 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income tax (expense) benefit                    |   |   | (10,568 | ) |   |   | (1,696 | ) |   |   | (636 | ) |   |   | (2,091 | ) |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income applicable to common shareholders    |   | $ | (88,195 | ) |   | $ | 9,610 |   |   | $ | (144,476 | ) |   | $ | 11,851 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings (loss) per share                       |   | $ | (0.08 | ) |   | $ | 0.01 |   |   | $ | (0.14 | ) |   | $ | 0.01 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding             |   |   | 1,057,628 |   |   |   | 1,057,628 |   |   |   | 1,057,628 |   |   |   | 1,057,628 |   |

----

| FIRST EQUITY PROPERTIES, INC.                              |   |
|------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY |   |
| For the six months ended Jun 30, 2011                      |   |
| (unaudited)                                                |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   | Common Stock |   |   |   |   |   | Retained |   |   |   |   |
|                                                       |   |   |   |   |   |   |   | Paid in |   |   | Earnings |   |   |   |   |
|                                                       |   | Shares |   |   | Amount |   |   | Capital |   |   | (Deficit)  |   |   | Total Equity |   |
| Balances at January 1, 2011                                |   |   | 1,057,628 |   |   | $ | 10,576 |   |   | $ | 1,376,682 |   |   | $ | (506,318 | ) |   | $ | 880,940 |   |
| Net income (loss)                                          |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (144,476 | ) |   |   | (144,476 | ) |
| Balances at June 30, 2011                                  |   |   | 1,057,628 |   |   | $ | 10,576 |   |   | $ | 1,376,682 |   |   | $ | (650,793 | ) |   | $ | 736,465 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                       FIRST EQUITY PROPERTIES, INC. |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                                                                             |   |
| (unaudited)                                                                                                                                                       |   |
|                                                                                                                                                              |   |   |   |   |   |   |
|                                                                                                                                                              |   | For the six months ended June 30, |   |
|                                                                                                                                                              |   |   |   |   |   |   |
|                                                                                                                                                              |   | 2011 |   |   | 2010 |   |
| Cash Flows from Operating Activities                                                                                                                              |   |   |   |   |   |   |
| Net Income (Loss)                                                                                                                                                 |   | $ | (144,475 | ) |   | $ | 11,851 |   |
| Adjustments to reconcile net income applicable to common shareholders to net cash provided by(used in) operating activities:                                      |   |
| (Increase) decrease in                                                                                                                                            |   |   |   |   |   |   |   |   |
| Interest receivable - affiliates                                                                                                                                  |   |   | 62,002 |   |   |   | (60,023 | ) |
| Other Assets                                                                                                                                                      |   |   | (106,636 | ) |   |   | - |   |
| Federal income tax receivable                                                                                                                                     |   |   | 636 |   |   |   | - |   |
| Increase (decrease) in                                                                                                                                            |   |   |   |   |   |   |   |   |
| Accounts payable - other                                                                                                                                          |   |   | 7,616 |   |   |   | 32,066 |   |
| Accounts payable - affiliates                                                                                                                                     |   |   | 124,452 |   |   |   | (2,493 | ) |
| Federal income taxes payable                                                                                                                                      |   |   | - |   |   |   | 1,440 |   |
|                                                                                                                                                              |   |   |   |   |   |   |   |   |
| Net cash provided by (used for) operating activities                                                                                                              |   |   | (56,405 | ) |   |   | (17,159 | ) |
|                                                                                                                                                              |   |   |   |   |   |   |   |   |
| Cash Flows from Investing Activities                                                                                                                              |   |   |   |   |   |   |   |   |
| Increase in investment in real estate                                                                                                                             |   |   | (951,274 | ) |   |   | - |   |
| Notes receivable - affiliates                                                                                                                                     |   |   | (295,316 | ) |   |   | 17,399 |   |
|                                                                                                                                                              |   |   |   |   |   |   |   |   |
| Net cash provided by (used for) investing activities                                                                                                              |   |   | (1,246,590 | ) |   |   | 17,399 |   |
|                                                                                                                                                              |   |   |   |   |   |   |   |   |
| Cash Flows from Financing Activities                                                                                                                              |   |   |   |   |   |   |   |   |
| Notes payable - affiliates                                                                                                                                        |   |   | 802,868 |   |   |   | - |   |
| Notes payable - bank                                                                                                                                              |   |   | 500,000 |   |   |   | - |   |
|                                                                                                                                                              |   |   |   |   |   |   |   |   |
| Net cash provided by (used for) financing activities                                                                                                              |   |   | 1,302,868 |   |   |   | - |   |
|                                                                                                                                                              |   |   |   |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                                                                                              |   |   | (127 | ) |   |   | 240 |   |
| Cash and cash equivalents at the beginning of period                                                                                                              |   |   | 151 |   |   |   | 82 |   |
|                                                                                                                                                              |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at the end of period                                                                                                                    |   | $ | 24 |   |   | $ | 322 |   |
|                                                                                                                                                              |   |   |   |   |   |   |   |   |
| Supplemental disclosures of cash flow information:                                                                                                                |   |   |   |   |   |   |   |   |
| Cash paid for interest                                                                                                                                            |   | $ | - |   |   | $ | - |   |
| Cash paid for income taxes                                                                                                                                        |   | $ | - |   |   | $ | - |   |
|                                                                                                                                                              |   |   |   |   |   |   |   |   |
| Non - cash items:                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Real estate development projects financed by affiliate                                                                                                            |   | $ | 802,868 |   |   | $ | - |   |
|                                                                                                                                                              |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of these financial statements.                                                                                        |   |

----

----

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|   | • | Our notes receivable and accrued interest – affiliates increased as we did not collect the interest owed us on those notes. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | • | Our notes payable and accrued interest – affiliates increased due to the addition of loans to purchase land. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------|

|   | • | Our accounts payables and accrued interest – affiliates increased due to unpaid interest expense. |
|--------|---------|---------------------------------------------------------------------------------------------------------|

| (a) | Evaluation of Disclosure Controls and Procedures. |
|-----|---------------------------------------------------|

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| (b) | Changes in Internal Controls over Financial Reporting. |
|-----|--------------------------------------------------------|

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|                                  |                                                                                                                                                                                                                                                                                                                                                                                |
|---------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ExhibitNumber     | Description                                                                                                                                                                                                                                                                                                                                                               |
|                                  |                                                                                                                                                                                                                                                                                                                                                                                |
| 3.1                                   | Articles of Incorporation of Wespac Property Corporation as filed with and endorsed by the Secretary of State of California on December 16, 1996 (incorporation by reference is made to Exhibit 3.1 to Form 8-K of First Equity Properties, Inc. for event reported June 19, 1996).                                                                             |
|                                  |                                                                                                                                                                                                                                                                                                                                                                                |
| 3.2                                   | Articles of Incorporation of First Equity Properties, Inc. filed with and approved by the Secretary of State of Nevada on December 19, 1996 (incorporation by reference is made to Exhibit 3.2 to Form 8-K of First Equity Properties, Inc. for event reported June 19, 1996).                                                                                  |
|                                  |                                                                                                                                                                                                                                                                                                                                                                                |
| 3.3                                   | Bylaws of First Equity Properties, Inc. as adopted December 20, 1996 (incorporation by reference is made to Exhibit 3.3 to Form 8-K of First Equity Properties, Inc. for event reported June 19, 1996).                                                                                                                                                         |
|                                  |                                                                                                                                                                                                                                                                                                                                                                                |
| 3.4                                   | Agreement and Plan of Merger of Wespac Property Corporation and First Equity Properties, Inc. dated December 23, 1996 (incorporation by reference is made to Exhibit 3.4 to Form 8-K of First Equity Properties, Inc. for event reported June 19, 1996).                                                                                                        |
|                                  |                                                                                                                                                                                                                                                                                                                                                                                |
| 3.5                                   | Articles of Merger of Wespac Property Corporation into First Equity Properties, Inc. as filed with and approved with the Secretary of State in Nevada December 24, 1996 (incorporation by reference is made to Exhibit 3.5 to Form 8-K of First Equity Properties, Inc. for event reported June 19, 1996).                                                      |
|                                  |                                                                                                                                                                                                                                                                                                                                                                                |
| 3.6                                   | Certificate of Designation of Preferences and Relative Participating or Optional of Other Special Rights and Qualifications, Limitations or Restrictions thereof of the Series A 8% Cumulative Preferred Stock (incorporation by reference is made to Exhibit 3.6 to Form 10-KSB of First Equity Properties, Inc. for the fiscal year ended December 31, 1996.) |
|                                  |                                                                                                                                                                                                                                                                                                                                                                                |
| 31.1*                                 | Certification of Acting Principal Executive Officer and Chief Financial and Accounting Officer pursuant to Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934.                                                                                                                                                                                                  |
|                                  |                                                                                                                                                                                                                                                                                                                                                                                |
| 32.1*                                 | Certification Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                              |

| * | Filed herewith. |
|---|-----------------|

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|                  |   |   |                                                  |                                                 |
|-----------------------|--------|--------|-------------------------------------------------------|------------------------------------------------------|
|                  |   |   |     FIRST EQUITY PROPERTIES, INC. |
|                  |   |   |                                                  |
| Date: August 15, 2011 |   | By:    | /s/ Daniel J. Moos                                    |
|                  |   |   |                                                  | Daniel J. MoosPresident and Treasurer           |
|                  |   |   |                                                  |                                                 |
|                  |   |   |                                                  |                                                 |
|                  |   |   |     FIRST EQUITY PROPERTIES, INC. |
|                  |   |   |                                                  |
| Date: August 15, 2011 |   | By:    | /s/ Steven Shelley                                    |
|                  |   |   |                                                  | Steven ShelleyDirector, Vice President and Secretary |
|                  |   |   |                                                  |                                                 |   |
|                  |   |   |                                                  |                                                 |   |   |
|                  |   |   |                                                  |                                                 |
|                  |   |   |                                                  |                                                 |

----