SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C.  20549

                           FORM 10-QSB

           Quarterly Report Under Section 13 or 15(d)
             of The Securities Exchange Act of 1934

           For the Quarter Ended:  September 30, 2001

               Commission file number:  000-30449


                   AEI INCOME & GROWTH FUND 23 LLC
(Exact Name of Small Business Issuer as Specified in its Charter)


      State of Delaware                    41-1922579
(State or other Jurisdiction of         (I.R.S. Employer
Incorporation or Organization)        Identification No.)


  1300 Minnesota World Trade Center, St. Paul, Minnesota 55101
            (Address of Principal Executive Offices)

                          (651) 227-7333
                   (Issuer's telephone number)


                         Not Applicable
 (Former name, former address and former fiscal year, if changed
                       since last report)

Check  whether  the issuer (1) 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

         Transitional Small Business Disclosure Format:

                        Yes        No  [X]




                 AEI INCOME & GROWTH FUND 23 LLC


                              INDEX




PART I.Financial Information

Item 1. Balance Sheet as of September 30, 2001 and December 31, 2000

         Statements for the Periods ended September 30, 2001 and 2000:

           Income

           Cash Flows

           Changes in Members' Equity

        Notes to Financial Statements

Item 2.Management's Discussion and Analysis

PART II.Other Information

Item 1. Legal Proceedings

Item 2. Changes in Securities

Item 3. Defaults Upon Senior Securities

Item 4. Submission of Matters to a Vote of Security Holders

Item 5. Other Information

Item 6. Exhibits and Reports on Form 8-K

<PAGE>
                 AEI INCOME & GROWTH FUND 23 LLC

                          BALANCE SHEET

            SEPTEMBER 30, 2001 AND DECEMBER 31, 2000

                           (Unaudited)


                             ASSETS

                                                 2001           2000

CURRENT ASSETS:
  Cash and Cash Equivalents                  $   321,527    $ 1,889,397
  Receivables                                     73,457         35,941
                                              -----------    -----------
      Total Current Assets                       394,984      1,925,338
                                              -----------    -----------
INVESTMENTS IN REAL ESTATE:
  Land                                         4,213,495      3,137,986
  Buildings and Equipment                      5,994,940      3,873,362
  Construction in Progress                       646,153        319,420
  Accumulated Depreciation                      (155,078)       (17,427)
                                              -----------    -----------
      Net Investments in Real Estate          10,699,510      7,313,341
                                              -----------    -----------
           Total  Assets                     $11,094,494    $ 9,238,679
                                              ===========    ===========


                         LIABILITIES AND MEMBERS' EQUITY

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.       $         0    $   180,215
  Distributions Payable                          238,738        160,051
  Unearned Rent                                    4,414              0
                                              -----------    -----------
      Total Current Liabilities                  243,152        340,266
                                              -----------    -----------
MEMBERS' EQUITY (DEFICIT):
  Managing Members' Equity                       (13,290)        (6,450)
  Limited Members' Equity, $1,000 Unit Value;
    24,000 Units authorized; 13,349 and 10,784
    Units issued and outstanding in 2001 and
    2000, respectively                        10,864,632      8,904,863
                                              -----------    -----------
      Total Members' Equity                   10,851,342      8,898,413
                                              -----------    -----------
       Total Liabilities and Members' Equity $11,094,494    $ 9,238,679
                                              ===========    ===========


 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
                 AEI INCOME & GROWTH FUND 23 LLC

                       STATEMENT OF INCOME

               FOR THE PERIODS ENDED SEPTEMBER 30

                           (Unaudited)


                               Three Months Ended        Nine Months Ended
                             9/30/01      9/30/00      9/30/01       9/30/00

INCOME:
   Rent                     $ 233,603    $  79,213    $ 636,952    $ 128,306
   Investment Income           32,445       47,473      128,225      126,567
                             ---------    ---------    ---------    ---------
        Total Income          266,048      126,686      765,177      254,873
                             ---------    ---------    ---------    ---------

EXPENSES:
   LLC Administration -
     Affiliates                44,169       40,327      134,207      112,084
   LLC Administration and
     Property Management -
     Unrelated Parties          5,158        1,707       40,356        7,982
   Depreciation                53,731        4,082      137,651        4,082
                             ---------    ---------    ---------    ---------
        Total Expenses        103,058       46,116      312,214      124,148
                             ---------    ---------    ---------    ---------

NET INCOME                  $ 162,990    $  80,570    $ 452,963    $ 130,725
                             =========    =========    =========    =========

NET INCOME ALLOCATED:
   Managing Members         $   4,890    $   2,417    $  13,589    $   3,922
   Limited Members            158,100       78,153      439,374      126,803
                             ---------    ---------    ---------    ---------
                            $ 162,990    $  80,570    $ 452,963    $ 130,725
                             =========    =========    =========    =========

NET INCOME PER
  LIMITED MEMBERSHIP UNIT
   (13,349, 6,735, 12,582,
   and 5,198 weighted average
   Units outstanding for the
   periods, respectively)   $   11.84    $   11.60    $   34.92    $   24.39
                             =========    =========    =========    =========



 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>

                 AEI INCOME & GROWTH FUND 23 LLC

                     STATEMENT OF CASH FLOWS

               FOR THE PERIODS ENDED SEPTEMBER 30

                           (Unaudited)

                                                        2001         2000

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net  Income                                     $   452,963   $   130,725

   Adjustments to Reconcile Net Income to Net Cash
   Provided by Operating Activities:
     Depreciation                                      137,651         4,082
     Increase in Receivables                           (37,516)     (132,247)
     Increase (Decrease) in Payable to
        AEI Fund Management, Inc.                     (180,215)       85,298
     Increase in Unearned Rent                           4,414             0
                                                    -----------   -----------
        Total Adjustments                              (75,666)      (42,867)
                                                    -----------   -----------
        Net Cash Provided By
        Operating Activities                           377,297        87,858
                                                    -----------   -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
      Investments in Real Estate                    (3,523,820)   (5,710,834)
                                                    -----------   -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Capital Contributions from Limited Members        2,565,803     4,919,429
   Organization and Syndication Costs                 (384,870)     (737,901)
   Increase in Distributions Payable                    78,687        79,603
   Distributions to Members                           (680,967)     (281,091)
                                                    -----------   -----------
        Net Cash Provided By
        Financing Activities                         1,578,653     3,980,040
                                                    -----------   -----------
NET DECREASE IN CASH
    AND CASH EQUIVALENTS                            (1,567,870)   (1,642,936)

CASH AND CASH EQUIVALENTS, beginning of period       1,889,397     2,583,998
                                                    -----------   -----------
CASH AND CASH EQUIVALENTS, end of period           $   321,527   $   941,062
                                                    ===========   ===========


 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
                 AEI INCOME & GROWTH FUND 23 LLC

             STATEMENT OF CHANGES IN MEMBERS' EQUITY

               FOR THE PERIODS ENDED SEPTEMBER 30

                           (Unaudited)


                                                                     Limited
                                                                      Member
                                Managing    Limited                   Units
                                Members     Members       Total    Outstanding


BALANCE, December 31, 1999    $   (633)  $ 2,471,685  $ 2,471,052    2,993.82

  Capital Contributions              0     4,919,429    4,919,429    4,919.43

  Organization & Syndication Costs   0      (737,901)    (737,901)

  Distributions                 (8,433)     (272,658)    (281,091)

  Net Income                     3,922       126,803      130,725
                                --------  -----------  -----------  ----------
BALANCE, September 30, 2000   $ (5,144)  $ 6,507,358  $ 6,502,214    7,913.25
                                ========  ===========  ===========  ==========


BALANCE, December 31, 2000    $ (6,450)  $ 8,904,863  $ 8,898,413   10,783.52

  Capital Contributions              0     2,565,803    2,565,803    2,565.80

  Organization and
    Syndication Costs                0      (384,870)    (384,870)

  Distributions                (20,429)     (660,538)    (680,967)

  Net Income                    13,589       439,374      452,963
                               --------   -----------  -----------  ----------
BALANCE, September 30, 2001   $(13,290)  $10,864,632  $10,851,342   13,349.32
                               ========   ===========  ===========  ==========


 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
                 AEI INCOME & GROWTH FUND 23 LLC

                  NOTES TO FINANCIAL STATEMENTS

                       SEPTEMBER 30, 2001

                           (Unaudited)

(1)  The  condensed  statements included herein have been  prepared
     by   the  LLC,  without  audit,  pursuant  to  the  rules  and
     regulations  of  the Securities and Exchange  Commission,  and
     reflect   all  adjustments  which  are,  in  the  opinion   of
     management,  necessary to a fair statement of the  results  of
     operations for the interim period, on a basis consistent  with
     the  annual audited statements.  The adjustments made to these
     condensed   statements  consist  only  of   normal   recurring
     adjustments.   Certain information, accounting  policies,  and
     footnote    disclosures   normally   included   in   financial
     statements  prepared  in  accordance with  generally  accepted
     accounting principles have been condensed or omitted  pursuant
     to  such rules and regulations, although the LLC believes that
     the   disclosures   are  adequate  to  make  the   information
     presented   not  misleading.   It  is  suggested  that   these
     condensed  financial  statements be read in  conjunction  with
     the  financial  statements  and  the  summary  of  significant
     accounting  policies and notes thereto included in  the  LLC's
     latest annual report on Form 10-KSB.

(2)  Organization -

     AEI  Income  &  Growth  Fund 23 LLC  (the  LLC),  a  Limited
     Liability Company, was formed on October 14, 1998 to acquire
     and  lease commercial properties to operating tenants.   The
     LLC's  operations  are managed by AEI Fund  Management  XXI,
     Inc.  (AFM),  the Managing Member.  Robert P.  Johnson,  the
     President and sole shareholder of AFM, serves as the Special
     Managing   Member  and  an  affiliate  of  AFM,   AEI   Fund
     Management, Inc., performs the administrative and  operating
     functions for the LLC.

     The  terms of the offering call for a subscription price  of
     $1,000 per Limited Membership Unit, payable on acceptance of
     the  offer.   Under  the  terms of the Operating  Agreement,
     24,000   Limited   Membership  Units   are   available   for
     subscription  which,  if fully subscribed,  will  result  in
     contributed  Limited Members' capital of  $24,000,000.   The
     LLC  commenced operations on September 30, 1999 when minimum
     subscriptions of 1,500 Limited Membership Units ($1,500,000)
     were  accepted.  The offering terminated March 22, 2001 when
     the  extended  offering period expired.   The  LLC  received
     subscriptions   for  13,349.321  Limited  Membership   Units
     ($13,349,321).   The LLC shall continue until  December  31,
     2048,  unless dissolved, terminated and liquidated prior  to
     that date.

     Under  the  terms  of the Operating Agreement,  the  Limited
     Members   and   Managing   Members  contributed   funds   of
     $13,349,321  and  $1,000, respectively.  During  operations,
     any  Net  Cash Flow, as defined, which the Managing  Members
     determine  to  distribute will be  distributed  97%  to  the
     Limited   Members   and   3%  to   the   Managing   Members.
     Distributions to Limited Members will be made  pro  rata  by
     Units.



                 AEI INCOME & GROWTH FUND 23 LLC

                  NOTES TO FINANCIAL STATEMENTS

                       SEPTEMBER 30, 2001
                           (Continued)

(2)  Organization - (Continued)

     Any  Net  Proceeds  of Sale, as defined, from  the  sale  or
     financing of properties which the Managing Members determine
     to distribute will, after provisions for debts and reserves,
     be  paid  in  the following manner: (i) first,  99%  to  the
     Limited  Members  and 1% to the Managing Members  until  the
     Limited  Members  receive  an amount  equal  to:  (a)  their
     Adjusted Capital Contribution plus (b) an amount equal to 7%
     of their Adjusted Capital Contribution per annum, cumulative
     but not compounded, to the extent not previously distributed
     from  Net  Cash  Flow; (ii) any remaining  balance  will  be
     distributed  90%  to  the Limited Members  and  10%  to  the
     Managing Members.  Distributions to the Limited Members will
     be made pro rata by Units.

     For  tax  purposes,  profits  from  operations,  other  than
     profits  attributable  to  the  sale,  exchange,  financing,
     refinancing  or  other  disposition  of  property,  will  be
     allocated  first  in the same ratio in  which,  and  to  the
     extent, Net Cash Flow is distributed to the Members for such
     year.  Any additional profits will be allocated in the  same
     ratio  as  the  last dollar of Net Cash Flow is distributed.
     Net  losses  from operations will be allocated  99%  to  the
     Limited Members and 1% to the Managing Members.

     For  tax purposes, profits arising from the sale, financing,
     or  other  disposition  of property  will  be  allocated  in
     accordance  with  the Operating Agreement  as  follows:  (i)
     first,  to  those  Members with deficit  balances  in  their
     capital  accounts  in an amount equal to  the  sum  of  such
     deficit  balances; (ii) second, 99% to the  Limited  Members
     and  1%  to the Managing Members until the aggregate balance
     in  the Limited Members' capital accounts equals the sum  of
     the Limited Members' Adjusted Capital Contributions plus  an
     amount  equal  to 7% of their Adjusted Capital Contributions
     per  annum, cumulative but not compounded, to the extent not
     previously  allocated;  (iii)  third,  the  balance  of  any
     remaining  gain  will then be allocated 90% to  the  Limited
     Members  and  10% to the Managing Members.  Losses  will  be
     allocated 98% to the Limited Members and 2% to the  Managing
     Members.

     The  Managing Members are not required to currently  fund  a
     deficit  capital balance.  Upon liquidation of  the  LLC  or
     withdrawal  by a Managing Member, the Managing Members  will
     contribute to the LLC an amount equal to the lesser  of  the
     deficit balances in their capital accounts or 1.01%  of  the
     total capital contributions of the Limited Members over  the
     amount previously contributed by the Managing Members.



                 AEI INCOME & GROWTH FUND 23 LLC

                  NOTES TO FINANCIAL STATEMENTS

                       SEPTEMBER 30, 2001
                           (Continued)

(3)  Investments in Real Estate -

     On  February 25, 2000, the LLC purchased a parcel of land in
     Kettering,  Ohio  for  $459,500.   The  land  is  leased  to
     Tumbleweed,  Inc.  (TWI)  under a  Lease  Agreement  with  a
     primary  term  of  15  years and annual rental  payments  of
     $39,058.   Effective  June 23, 2000,  the  annual  rent  was
     increased  to $45,376.  Simultaneously with the purchase  of
     the  land,  the  LLC  entered into a  Development  Financing
     Agreement under which the LLC advanced funds to TWI for  the
     construction  of  a  Tumbleweed  restaurant  on  the   site.
     Initially,  the LLC charged interest on the  advances  at  a
     rate  of  8.5%.  Effective June 23, 2000, the interest  rate
     was  increased  to 9.875%.  On August 23,  2000,  after  the
     development  was completed, the Lease Agreement was  amended
     to  require  annual  rental  payments  of  $120,821.   Total
     acquisition  costs, including the cost  of  the  land,  were
     $1,216,111.

     On  April  18, 2000, the LLC purchased a parcel of  land  in
     Victoria,  Texas for $409,500.  The land is leased  to  Kona
     Restaurant Group, Inc. (KRG) under a Lease Agreement with  a
     primary  term  of  17  years and annual rental  payments  of
     $42,998.  Simultaneously with the purchase of the land,  the
     LLC  entered  into a Development Financing  Agreement  under
     which the LLC advanced funds to KRG for the construction  of
     a  Johnny Carino's restaurant on the site.  The LLC  charged
     interest on the advances at a rate of 10.5%.  On December 7,
     2000,   after  the  development  was  completed,  the  Lease
     Agreement  was amended to require annual rental payments  of
     $175,613.   Total acquisition costs, including the  cost  of
     the land, were $1,662,598.

     On April 19, 2000, the LLC purchased a parcel of land in San
     Antonio,  Texas  for  $1,558,000.  The  land  is  leased  to
     Razzoo's,  Inc. (RI) under a Lease Agreement with a  primary
     term  of  15  years and annual rental payments of  $132,430.
     Simultaneously  with  the purchase  of  the  land,  the  LLC
     entered  into a Development Financing Agreement under  which
     the  LLC  advanced  funds to RI for the  construction  of  a
     Razzoo's restaurant on the site.  Initially, the LLC charged
     interest  on  the  advances at a rate  of  8.5%.   Effective
     September  15,  2000,  the interest rate  was  increased  to
     9.75%.   On  December  19, 2000, after the  development  was
     completed, the Lease Agreement was amended to require annual
     rental  payments  of  $338,837.   Total  acquisition  costs,
     including the cost of the land, were $3,434,725.

     On  March  30, 2001, the LLC purchased a 30% interest  in  a
     Children's  World  daycare center in New  Albany,  Ohio  for
     $465,163.   The  property is leased to  ARAMARK  Educational
     Resources, Inc. under a Lease Agreement with a primary  term
     of  15  years  and annual rental payments of  $44,345.   The
     remaining  interests in the property were purchased  by  AEI
     Net  Lease  Income & Growth Fund XX Limited Partnership  and
     AEI Fund Management, XVII, Inc., affiliates of the LLC.



                 AEI INCOME & GROWTH FUND 23 LLC

                  NOTES TO FINANCIAL STATEMENTS

                       SEPTEMBER 30, 2001
                           (Continued)

(3)  Investments in Real Estate - (Continued)

     On  June  30,  2000, the LLC purchased a 44% interest  in  a
     parcel  of  land in Alpharetta, Georgia for  $707,520.   The
     land  is  leased  to  Razzoo's,  Inc.  (RI)  under  a  Lease
     Agreement with a primary term of 15 years and annual  rental
     payments  of  $60,139.   Effective November  26,  2000,  the
     annual  rent was increased to $68,983.  Simultaneously  with
     the purchase of the land, the LLC entered into a Development
     Financing Agreement under which the LLC advanced funds to RI
     for  the construction of a Razzoo's restaurant on the  site.
     Initially,  the LLC charged interest on the  advances  at  a
     rate  of 8.5%.  Effective November 26, 2000 and January  31,
     2001,  the  interest rate was increased to 9.75% and  15.0%,
     respectively.   On July 11, 2001, after the development  was
     completed, the Lease Agreement was amended to require annual
     rental  payments of $162,681.  The LLC's share of the  total
     acquisition  costs,  including the cost  of  the  land,  was
     $1,648,036.   The  remaining interests in the  property  are
     owned  by  AEI  Net Lease Income & Growth Fund  XIX  Limited
     Partnership, AEI Real Estate Fund XVIII Limited  Partnership
     and   AEI   Private  Net  Lease  Millennium   Fund   Limited
     Partnership, affiliates of the LLC.

     On  August 28, 2001, the LLC purchased a 60% interest in  an
     Arby's  restaurant in Coon Rapids, Minnesota  for  $915,095.
     The property is leased to Franchise Associates, Inc. under a
     Lease  Agreement with a primary term of 20 years and  annual
     rental  payments of $81,951.  The remaining interest in  the
     property  was purchased by AEI Private Net Lease  Millennium
     Fund Limited Partnership, an affiliate of the LLC.

     On  March  8,  2001, the LLC purchased a 22% interest  in  a
     parcel  of land in Austin, Texas for $249,040.  The land  is
     leased  to Kona Restaurant Group, Inc. (KRG) under  a  Lease
     Agreement with a primary term of 17 years and annual  rental
     payments  of  $26,149.  Simultaneously with the purchase  of
     the  land,  the  LLC  entered into a  Development  Financing
     Agreement under which the LLC advanced funds to KRG for  the
     construction  of a Johnny Carino's restaurant on  the  site.
     The LLC charged interest on the advances at a rate of 10.5%.
     On  September 26, 2001, after the development was completed,
     the  Lease  Agreement was amended to require  annual  rental
     payments   of  $52,968.   The  LLC's  share  of  the   total
     acquisition  costs,  including the cost  of  the  land,  was
     $501,381.  The remaining interests in the property are owned
     by  AEI  Real Estate Fund 85-A Limited Partnership, AEI  Net
     Lease  Income & Growth Fund XX Limited Partnership, and  AEI
     Income & Growth Fund XXI Limited Partnership, affiliates  of
     the LLC.

     On  February 2, 2001, the LLC purchased a 48% interest in  a
     parcel of land in San Antonio, Texas for $370,560.  The land
     is leased to Kona Restaurant Group, Inc. (KRG) under a Lease
     Agreement with a primary term of 17 years and annual  rental
     payments  of  $38,909.  Simultaneously with the purchase  of
     the  land,  the  LLC  entered into a  Development  Financing
     Agreement under which the LLC will advance funds to KRG  for
     the  construction  of a Johnny Carino's  restaurant  on  the
     site.   Through  September 30, 2001, the  LLC  had  advanced
     $646,153  for  the  construction of  the  property  and  was
     charging  interest on the advances at a rate of 10.5%.   The
     LLC's share of the total purchase price, including the  cost
     of  the  land, will be approximately $1,110,000.  After  the
     construction  is  complete,  the  Lease  Agreement  will  be
     amended  to  require annual rental payments of approximately
     $116,500.  The remaining interest in the property  is  owned
     by   AEI   Net  Lease  Income  &  Growth  Fund  XIX  Limited
     Partnership, an affiliate of the LLC.




                 AEI INCOME & GROWTH FUND 23 LLC

                  NOTES TO FINANCIAL STATEMENTS

                       SEPTEMBER 30, 2001
                           (Continued)

(4)  Payable to AEI Fund Management, Inc. -

     AEI  Fund  Management, Inc. performs the administrative  and
     operating  functions for the LLC.  The payable to  AEI  Fund
     Management  represents the balance due for  those  services.
     This balance is non-interest bearing and unsecured and is to
     be paid in the normal course of business.


ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS

Results of Operations

       For the nine months ended September 30, 2001 and 2000, the
LLC   recognized   rental  income  of  $636,952   and   $128,306,
respectively.   During the same periods, the LLC earned  $128,225
and   $126,567,   respectively,   in   investment   income   from
subscription  proceeds which were invested in a short-term  money
market  account  and from development advances.  This  investment
income  constituted 17% and 50%, respectively, of  total  income.
The  percentage of total income represented by investment  income
declines as subscription proceeds are invested in properties.

        During the nine months ended September 30, 2001 and 2000,
the LLC paid LLC administration expenses to affiliated parties of
$134,207   and   $112,084,  respectively.   These  administration
expenses  include initial start-up costs and expenses  associated
with  the management of the properties, processing distributions,
reporting requirements and correspondence to the Limited Members.
During the same periods, the LLC incurred LLC administration  and
property  management expenses from unrelated parties  of  $40,356
and   $7,982,  respectively.   These  expenses  represent  direct
payments  to  third  parties for legal and  filing  fees,  direct
administrative costs, outside audit and accounting costs,  taxes,
insurance, and other property costs.

        The  LLC  distributes all of its net  income  during  the
offering  and  acquisition  phases,  and  if  net  income   after
deductions  for  depreciation  is  not  sufficient  to  fund  the
distributions, the LLC may distribute other available  cash  that
constitutes capital for accounting purposes.

       As of September 30, 2001, the LLC's cash distribution rate
was  7.0%  on  an  annualized basis.  Pursuant to  the  Operating
Agreement, distributions of Net Cash Flow were allocated  97%  to
the Limited Members and 3% to the Managing Members.

       Since the LLC has only recently purchased its real estate,
inflation  has  had a minimal effect on income  from  operations.
The Leases contain cost of living increases which will result  in
an  increase  in  rental  income over the  term  of  the  Leases.
Inflation  also may cause the LLC's real estate to appreciate  in
value.   However, inflation and changing prices may also have  an
adverse  impact  on  the  operating margins  of  the  properties'
tenants  which  could  impair  their  ability  to  pay  rent  and
subsequently  reduce  the  LLC's  Net  Cash  Flow  available  for
distributions.

ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS  (Continued)

Liquidity and Capital Resources

        The  LLC's primary sources of cash are proceeds from  the
sale of Units, investment income, rental income and proceeds from
the sale of property.  Its primary uses of cash are investment in
real  properties, payment of expenses involved  in  the  sale  of
Units, the organization of the LLC, the management of properties,
the administration of the LLC, and the payment of distributions.

        The Operating Agreement requires that no more than 15% of
the  proceeds  from  the  sale of Units be  applied  to  expenses
involved  in the sale of Units (including Commissions)  and  that
such expenses, together with acquisition expenses, not exceed 20%
of   the  proceeds  from  the  sale  of  Units.   To  the  extent
organization and offering expenses actually incurred  exceed  15%
of proceeds, they are borne by the Managing Members.

        Before the acquisition of all such properties, cash  flow
from  operating activities is not significant.  Net income, after
adjustment for depreciation, is lower during the first few  years
of  operations as administrative expenses remain high and a large
amount of the LLC's assets remain invested on a short-term  basis
in  lower-yielding cash equivalents.  Net income will become  the
largest component of cash flow from operating activities and  the
largest  component  of  cash flow after  the  completion  of  the
acquisition phase.

        The  Operating Agreement requires that all proceeds  from
the  sale  of  Units be invested or committed  to  investment  in
properties  by  the  later of two years after  the  date  of  the
Prospectus or six months after termination of the offer and  sale
of Units.  While the LLC is purchasing properties, cash flow from
investing  activities (investment in real property)  will  remain
negative  and  will constitute the principal  use  of  the  LLC's
available  cash  flow.  Until capital is invested in  properties,
the LLC will remain extremely liquid.

        On  February 25, 2000, the LLC purchased a parcel of land
in   Kettering,  Ohio  for  $459,500.   The  land  is  leased  to
Tumbleweed,  Inc. (TWI) under a Lease Agreement  with  a  primary
term   of  15  years  and  annual  rental  payments  of  $39,058.
Effective  June  23,  2000,  the annual  rent  was  increased  to
$45,376.  Simultaneously with the purchase of the land,  the  LLC
entered  into a Development Financing Agreement under  which  the
LLC  advanced  funds to TWI for the construction of a  Tumbleweed
restaurant  on the site.  Initially, the LLC charged interest  on
the  advances  at a rate of 8.5%.  Effective June 23,  2000,  the
interest rate was increased to 9.875%.  On August 23, 2000, after
the development was completed, the Lease Agreement was amended to
require  annual  rental payments of $120,821.  Total  acquisition
costs, including the cost of the land, were $1,216,111.

        On April 18, 2000, the LLC purchased a parcel of land  in
Victoria,  Texas  for  $409,500.  The  land  is  leased  to  Kona
Restaurant  Group,  Inc.  (KRG) under a Lease  Agreement  with  a
primary  term of 17 years and annual rental payments of  $42,998.
Simultaneously  with the purchase of the land,  the  LLC  entered
into  a  Development  Financing Agreement  under  which  the  LLC
advanced  funds to KRG for the construction of a Johnny  Carino's
restaurant on the site.  The LLC charged interest on the advances
at  a  rate of 10.5%.  On December 7, 2000, after the development
was  completed, the Lease Agreement was amended to require annual
rental  payments of $175,613.  Total acquisition costs, including
the cost of the land, were $1,662,598.

ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS  (Continued)

        On April 19, 2000, the LLC purchased a parcel of land  in
San  Antonio,  Texas  for $1,558,000.   The  land  is  leased  to
Razzoo's,  Inc. (RI) under a Lease Agreement with a primary  term
of   15   years   and   annual  rental  payments   of   $132,430.
Simultaneously  with the purchase of the land,  the  LLC  entered
into  a  Development  Financing Agreement  under  which  the  LLC
advanced   funds  to  RI  for  the  construction  of  a  Razzoo's
restaurant  on the site.  Initially, the LLC charged interest  on
the  advances at a rate of 8.5%.  Effective September  15,  2000,
the  interest rate was increased to 9.75%.  On December 19, 2000,
after  the  development was completed, the  Lease  Agreement  was
amended  to  require annual rental payments of  $338,837.   Total
acquisition  costs,  including  the  cost  of  the   land,   were
$3,434,725.

        On March 30, 2001, the LLC purchased a 30% interest in  a
Children's World daycare center in New Albany, Ohio for $465,163.
The  property  is  leased to ARAMARK Educational Resources,  Inc.
under  a  Lease  Agreement with a primary term of  15  years  and
annual  rental payments of $44,345.  The remaining  interests  in
the property were purchased by AEI Net Lease Income & Growth Fund
XX  Limited  Partnership  and AEI Fund  Management,  XVII,  Inc.,
affiliates of the LLC.

        On  June 30, 2000, the LLC purchased a 44% interest in  a
parcel of land in Alpharetta, Georgia for $707,520.  The land  is
leased  to  Razzoo's, Inc. (RI) under a Lease  Agreement  with  a
primary  term of 15 years and annual rental payments of  $60,139.
Effective  November 26, 2000, the annual rent  was  increased  to
$68,983.  Simultaneously with the purchase of the land,  the  LLC
entered  into a Development Financing Agreement under  which  the
LLC  advanced  funds  to RI for the construction  of  a  Razzoo's
restaurant  on the site.  Initially, the LLC charged interest  on
the  advances at a rate of 8.5%.  Effective November 26, 2000 and
January  31, 2001, the interest rate was increased to  9.75%  and
15.0%, respectively.  On July 11, 2001, after the development was
completed,  the  Lease Agreement was amended  to  require  annual
rental  payments  of  $162,681.  The LLC's  share  of  the  total
acquisition   costs,  including  the  cost  of  the   land,   was
$1,648,036.  The remaining interests in the property are owned by
AEI  Net Lease Income & Growth Fund XIX Limited Partnership,  AEI
Real  Estate  Fund XVIII Limited Partnership and AEI Private  Net
Lease Millennium Fund Limited Partnership, affiliates of the LLC.

       On August 28, 2001, the LLC purchased a 60% interest in an
Arby's  restaurant in Coon Rapids, Minnesota for  $915,095.   The
property  is leased to Franchise Associates, Inc. under  a  Lease
Agreement  with  a  primary term of 20 years  and  annual  rental
payments of $81,951.  The remaining interest in the property  was
purchased  by  AEI  Private  Net Lease  Millennium  Fund  Limited
Partnership, an affiliate of the LLC.

        On  March 8, 2001, the LLC purchased a 22% interest in  a
parcel of land in Austin, Texas for $249,040.  The land is leased
to Kona Restaurant Group, Inc. (KRG) under a Lease Agreement with
a primary term of 17 years and annual rental payments of $26,149.
Simultaneously  with the purchase of the land,  the  LLC  entered
into  a  Development  Financing Agreement  under  which  the  LLC
advanced  funds to KRG for the construction of a Johnny  Carino's
restaurant on the site.  The LLC charged interest on the advances
at a rate of 10.5%.  On September 26, 2001, after the development
was  completed, the Lease Agreement was amended to require annual
rental  payments  of  $52,968.  The  LLC's  share  of  the  total
acquisition costs, including the cost of the land, was  $501,381.
The  remaining interests in the property are owned  by  AEI  Real
Estate  Fund  85-A Limited Partnership, AEI Net  Lease  Income  &
Growth Fund XX Limited Partnership, and AEI Income & Growth  Fund
XXI Limited Partnership, affiliates of the LLC.

ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS  (Continued)

       On February 2, 2001, the LLC purchased a 48% interest in a
parcel  of land in San Antonio, Texas for $370,560.  The land  is
leased  to  Kona  Restaurant Group,  Inc.  (KRG)  under  a  Lease
Agreement  with  a  primary term of 17 years  and  annual  rental
payments  of  $38,909.  Simultaneously with the purchase  of  the
land,  the  LLC  entered into a Development  Financing  Agreement
under   which  the  LLC  will  advance  funds  to  KRG  for   the
construction  of  a  Johnny  Carino's  restaurant  on  the  site.
Through September 30, 2001, the LLC had advanced $646,153 for the
construction  of  the property and was charging interest  on  the
advances  at  a  rate  of 10.5%.  The LLC's share  of  the  total
purchase  price,  including  the  cost  of  the  land,  will   be
approximately  $1,110,000.  After the construction  is  complete,
the  Lease  Agreement  will be amended to require  annual  rental
payments  of  approximately $116,500.  The remaining interest  in
the  property is owned by AEI Net Lease Income & Growth Fund  XIX
Limited Partnership, an affiliate of the LLC.

        During the offering of Units, the LLC's primary source of
cash flow is from the sale of Limited Membership Units.  The  LLC
commenced its offering of Limited Membership Units to the  public
through a registration statement which became effective March 23,
1999.   From  March 23, 1999 to September 30, 1999,  the  minimum
number of Limited Membership Units (1,500) needed to form the LLC
were  sold.   On  September 30, 1999, a total of 1,868.616  Units
($1,868,616)  were  transferred  into  the  LLC.   The   offering
terminated  March  22,  2001 when the  extended  offering  period
expired.   The LLC received subscriptions for 13,349.321  Limited
Membership Units ($13,349,321).  From subscription proceeds,  the
LLC  paid organization and syndication costs (which constitute  a
reduction of capital) of $2,002,125.

        After  completion  of the acquisition  phase,  the  LLC's
primary  use of cash flow is distribution and redemption payments
to Members.  The LLC declares its regular quarterly distributions
before  the end of each quarter and pays the distribution in  the
first  week  after the end of each quarter.  The LLC attempts  to
maintain a stable distribution rate from quarter to quarter.

        Beginning in 2002, the LLC may acquire Units from Limited
Members who have tendered their Units to the LLC.  Such Units may
be  acquired at a discount.  The LLC is not obligated to purchase
in  any  year more than 2% of the number of Units outstanding  at
the  beginning  of  the  year.  In no  event  shall  the  LLC  be
obligated  to  purchase Units if, in the sole discretion  of  the
Managing  Member,  such  purchase would  impair  the  capital  or
operation of the LLC.

        Until  capital is invested in properties,  the  LLC  will
remain   extremely   liquid.   After   completion   of   property
acquisitions, the LLC will attempt to maintain a cash reserve  of
only   approximately  1%  of  subscription   proceeds.    Because
properties  are  purchased for cash and leased  under  triple-net
leases,   this   is   considered   adequate   to   satisfy   most
contingencies.

ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS  (Continued)

Cautionary Statement for Purposes of the "Safe Harbor" Provisions
of the Private Securities Litigation Reform Act of 1995

         The   foregoing  Management's  Discussion  and  Analysis
contains various "forward looking statements" within the  meaning
of   federal   securities   laws  which  represent   management's
expectations  or  beliefs  concerning  future  events,  including
statements  regarding anticipated application of  cash,  expected
returns  from rental income, growth in revenue, taxation  levels,
the  sufficiency  of  cash to meet operating expenses,  rates  of
distribution,  and  other  matters.   These,  and  other  forward
looking  statements  made by the LLC, must be  evaluated  in  the
context  of  a  number  of  factors that  may  affect  the  LLC's
financial  condition  and  results of operations,  including  the
following:


    Market  and  economic conditions which affect the  value
    of the properties the LLC owns and the cash from rental
    income such properties generate;

    the  federal  income tax consequences of rental  income,
    deductions,  gain  on  sales and other  items  and  the
    affects of these consequences for investors;

    resolution  by  the Managing Members of  conflicts  with
    which they may be confronted;

    the   success   of  the  Managing  Member  of   locating
    properties with favorable risk return characteristics;

    the effect of tenant defaults; and

    the  condition of the industries in which the tenants of
    properties owned by the LLC operate.


                   PART II - OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS

       There  are no material pending legal proceedings to  which
  the LLC is a party or of which the LLC's property is subject.

ITEM 2.CHANGES IN SECURITIES

      None.

ITEM 3.DEFAULTS UPON SENIOR SECURITIES

      None.

ITEM 4.SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

      None

ITEM 5.OTHER INFORMATION

      None.

                   PART II - OTHER INFORMATION
                           (Continued)

ITEM 6.EXHIBITS AND REPORTS ON FORM 8-K

      a. Exhibits -
                          Description

      10.1   Lease  Agreement  dated February  20,  2001  between  CNL
             Restaurant   Investors   Properties,   LLC   and    Franchise
             Associates,  Inc.  relating to the  property  at  3385  124th
             Avenue NW, Coon Rapids, Minnesota.

      10.2   Assignment of Contract for Sale and Purchase between  the
             LLC  and  AEI Fund Management, Inc. relating to the  property
             at 3385 124th Avenue NW, Coon Rapids, Minnesota.

      10.3   Assignment and Assumption of Lease dated August 27,  2001
             between  the  LLC,  AEI  Private Net  Lease  Millennium  Fund
             Limited  Partnership and CNL Restaurant Investors  Properties
             relating  to  the  property at 3385  124th  Avenue  NW,  Coon
             Rapids, Minnesota.

      10.4   First  Amendment to Net Lease Agreement  dated  September
             26,  2001 between the LLC, AEI Real Estate Fund 85-A  Limited
             Partnership,   AEI   Income  &   Growth   Fund   XX   Limited
             Partnership,   AEI   Income  &  Growth   Fund   XXI   Limited
             Partnership and Kona Restaurant Group, Inc. relating  to  the
             property at 5601 Brodie Lane, Austin, Texas.

      b.     Reports  filed on Form 8-K-    During the  quarter  ended
                                            September  30,  2001,  the
                                            LLC filed a Form 8-K, dated
                                            July  25,  2001,  reporting
                                            the acquisition of a Razzoo's
                                            restauran   in  Alpharetta,
                                            Georgia.


                           SIGNATURES

        In  accordance with the requirements of the Exchange Act,
the  Registrant has caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.


Dated:  October 23, 2001      AEI Income & Growth Fund 23 LLC
                              By:  AEI Fund Management XXI, Inc.
                              Its: Managing Member



                              By: /s/Robert P. Johnson
                                     Robert P. Johnson
                                     President
                                     (Principal Executive Officer)



                              By: /s/Mark E. Larson
                                     Mark E. Larson
                                     Chief Financial Officer
                                     (Principal Accounting Officer)