UNITED STATES
               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:  June 30, 2002

               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 June 30, 2002 and December 31, 2001

         Statements for the Periods ended June 30, 2002 and 2001:

           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

               JUNE 30, 2002 AND DECEMBER 31, 2001

                           (Unaudited)


                             ASSETS

                                                     2002            2001

CURRENT ASSETS:
  Cash and Cash Equivalents                      $   825,886     $   307,150

INVESTMENTS IN REAL ESTATE:
  Land                                             3,979,362       4,234,559
  Buildings and Equipment                          6,467,598       6,714,280
  Accumulated Depreciation                          (352,554)       (221,857)
                                                  -----------     -----------
      Net Investments in Real Estate              10,094,406      10,726,982
                                                  -----------     -----------
           Total  Assets                         $10,920,292     $11,034,132
                                                  ===========     ===========


                           LIABILITIES AND MEMBERS' EQUITY

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.           $    10,221     $    15,854
  Distributions Payable                              238,738         238,738
                                                  -----------     -----------
      Total Current Liabilities                      248,959         254,592
                                                  -----------     -----------
MEMBERS' EQUITY (DEFICIT):
  Managing Members' Equity                               508         (15,444)
  Limited Members' Equity, $1,000 Unit Value;
    24,000 Units authorized; 13,349 Units
    issued and outstanding                        10,670,825      10,794,984
                                                  -----------     -----------
      Total Members' Equity                       10,671,333      10,779,540
                                                  -----------     -----------
        Total Liabilities and Members' Equity    $10,920,292     $11,034,132
                                                  ===========     ===========

 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 JUNE 30

                           (Unaudited)


                              Three Months Ended        Six Months Ended
                             6/30/02      6/30/01     6/30/02      6/30/01

INCOME:
   Rent                    $ 268,709    $ 212,700    $ 542,748   $ 403,349
   Investment Income           1,529       57,705        2,282      95,780
                            ---------    ---------    ---------   ---------
        Total Income         270,238      270,405      545,030     499,129
                            ---------    ---------    ---------   ---------

EXPENSES:
   LLC Administration -
     Affiliates               33,369       39,537       75,350     90,038
   LLC Administration and
     Property Management -
     Unrelated Parties        23,368       24,809       30,811     35,198
   Depreciation               67,887       43,673      137,042     83,920
                            ---------    ---------    ---------  ---------
        Total Expenses       124,624      108,019      243,203    209,156
                            ---------    ---------    ---------  ---------

OPERATING INCOME             145,614      162,386      301,827    289,973

GAIN ON SALE OF REAL ESTATE   71,642            0       71,642          0
                            ---------    ---------    ---------  ---------
NET INCOME                 $ 217,256    $ 162,386    $ 373,469  $ 289,973
                            =========    =========    =========  =========

NET INCOME ALLOCATED:
   Managing Members        $  25,716    $   4,871    $  30,402  $   8,699
   Limited Members           191,540      157,515      343,067    281,274
                            ---------    ---------    ---------  ---------
                           $ 217,256    $ 162,386    $ 373,469  $ 289,973
                            =========    =========    =========  =========

NET INCOME PER LLC UNIT
 (13,349, 13,167, 13,349
 and 12,198 weighted average
 Units outstanding for the
 periods, respectively)    $   14.35    $   11.96    $   25.70  $   23.06
                            =========    =========    =========  =========


 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 JUNE 30

                           (Unaudited)

                                                       2002          2001

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net  Income                                     $   373,469   $   289,973

   Adjustments to Reconcile Net Income to Net Cash
   Provided by Operating Activities:
     Depreciation                                      137,042        83,920
     Gain on Sale of Real Estate                       (71,642)            0
     Increase in Receivables                                 0       (36,114)
     Decrease in Payable to
        AEI Fund Management, Inc.                       (5,633)     (172,372)
                                                    -----------   -----------
        Total Adjustments                               59,767      (124,566)
                                                    -----------   -----------
        Net Cash Provided By
        Operating Activities                           433,236       165,407
                                                    -----------   -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Investments in Real Estate                                0    (2,251,648)
   Proceeds from Sale of Real Estate                   567,176             0
                                                    -----------   -----------
        Net Cash Provided By (Used For)
        Investing Activities                           567,176    (2,251,648)
                                                    -----------   -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Capital Contributions from Limited Members                0     2,565,803
   Organization and Syndication Costs                        0      (384,870)
   Increase in Distributions Payable                         0        75,397
   Distributions to Members                           (481,676)     (440,129)
                                                    -----------   -----------
        Net Cash Provided By (Used For)
        Financing Activities                          (481,676)    1,816,201
                                                    -----------   -----------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS                                   518,736      (270,040)

CASH AND CASH EQUIVALENTS, beginning of period         307,150     1,889,397
                                                    -----------   -----------
CASH AND CASH EQUIVALENTS, end of period           $   825,886   $ 1,619,357
                                                    ===========   ===========


 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 JUNE 30

                           (Unaudited)

                                                                   Limited
                                                                    Member
                              Managing     Limited                  Units
                              Members      Members      Total     Outstanding


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 & Syndication Costs  0      (384,870)    (384,870)

  Distributions               (13,204)     (426,925)    (440,129)

  Net Income                    8,699       281,274      289,973
                              --------   -----------  -----------  ----------
BALANCE, June 30, 2001       $(10,955)  $10,940,145  $10,929,190   13,349.32
                              ========   ===========  ===========  ==========


BALANCE, December 31, 2001   $(15,444)  $10,794,984  $10,779,540   13,349.32

  Distributions               (14,450)     (467,226)    (481,676)

  Net Income                   30,402       343,067      373,469
                              --------   -----------  -----------  ----------
BALANCE, June 30, 2002       $    508   $10,670,825  $10,671,333   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

                          JUNE 30, 2002

                           (Unaudited)

(1)  The  condensed  statements included herein have been  prepared
     by  the  Company,  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 Company 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
     Company's latest annual report on Form 10-KSB.

(2)  Organization -

     AEI  Income  & Growth Fund 23 LLC (the Company),  a  Limited
     Liability Company, was formed on October 14, 1998 to acquire
     and  lease commercial properties to operating tenants.   The
     Company'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 Company.

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

     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.

     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.


                 AEI INCOME & GROWTH FUND 23 LLC

                  NOTES TO FINANCIAL STATEMENTS

                          JUNE 30, 2002
                           (Continued)

(2)  Organization - (Continued)

     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 Company or
     withdrawal  by a Managing Member, the Managing Members  will
     contribute to the Company 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.

(3)  Investments in Real Estate -

     On March 30, 2001, the Company 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 Company.


                 AEI INCOME & GROWTH FUND 23 LLC

                  NOTES TO FINANCIAL STATEMENTS

                          JUNE 30, 2002
                           (Continued)

(3)  Investments in Real Estate - (Continued)

     On June 30, 2000, the Company 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  Company  entered  into  a
     Development  Financing  Agreement under  which  the  Company
     advanced  funds  to RI for the construction  of  a  Razzoo's
     restaurant  on  the  site.  Initially, the  Company  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  Company'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
     Company.

     On  August 28, 2001, the Company 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 Company.

     On March 8, 2001, the Company 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 Company entered into a Development Financing
     Agreement under which the Company advanced funds to KRG  for
     the  construction  of a Johnny Carino's  restaurant  on  the
     site.   The  Company 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 Company's share  of
     the total acquisition costs, including the cost of the land,
     was  $501,880.  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 Company.

     On February 2, 2001, the Company 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 Company entered into a Development
     Financing  Agreement under which the Company advanced  funds
     to  KRG for the construction of a Johnny Carino's restaurant
     on  the  site.  The Company charged interest on the advances
     at  a  rate  of  10.5%.   On November  2,  2001,  after  the
     development  was completed, the Lease Agreement was  amended
     to   require  annual  rental  payments  of  $116,525.    The
     Company's  share  of the total acquisition costs,  including
     the  cost  of  the  land,  was  $1,105,231.   The  remaining
     interest in the property is owned by AEI Net Lease Income  &
     Growth  Fund  XIX Limited Partnership, an affiliate  of  the
     Company.


                 AEI INCOME & GROWTH FUND 23 LLC

                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)

(3)  Investments in Real Estate - (Continued)

     In  May,  2002, the Company sold its interest in the  Johnny
     Carino's  restaurant  in  Austin,  Texas,  in  two  separate
     transactions,  to  unrelated  third  parties.   The  Company
     received total net sale proceeds of $567,176, which resulted
     in  a  net  gain  of  $71,642.  The total cost  and  related
     accumulated depreciation of the interests sold was  $501,879
     and $6,345, respectively.  The net sale proceeds will either
     be  reinvested in additional property or distributed to  the
     members in the future.

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

     AEI  Fund  Management, Inc. performs the administrative  and
     operating  functions for the Company.  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

        The 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 our
managers, must be evaluated in the context of a number of factors
that   may   affect  our  financial  condition  and  results   of
operations, including the following:

    Market and economic conditions which affect the value
    of the properties we own 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 members;

    resolution by our managers of conflicts with which they
    may be confronted;

    the success of our managers 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 Company operate.


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

Critical Accounting Policies

        The  preparation  of  the Company's financial  statements
requires  management to make estimates and assumptions  that  may
affect the reported amounts of assets, liabilities, revenues  and
expenses,  and  related  disclosure  of  contingent  assets   and
liabilities. Management evaluates these estimates on  an  ongoing
basis,  including  those related to the carrying  value  of  real
estate  and  the  allocation  by AEI  Fund  Management,  Inc.  of
expenses to the Company as opposed to other funds they manage.

        The Company purchases properties and records them in  the
financial statements at the lower of cost or estimated realizable
value.   The  Company  initially records the properties  at  cost
(including  capitalized acquisition expenses).   The  Company  is
required   to  periodically  evaluate  the  carrying   value   of
properties  to  determine  whether  their  realizable  value  has
declined.   For  properties the Company will  hold  and  operate,
management   determines  whether  impairment  has   occurred   by
comparing the property's probability-weighted cash flows  to  its
current carrying value.  For properties held for sale, management
determines  whether  impairment has  occurred  by  comparing  the
property's estimated fair value less cost to sell to its  current
carrying  value.   If  the carrying value  is  greater  than  the
realizable  value, an impairment loss is recorded to  reduce  the
carrying value of the property to its realizable value.  A change
in  these assumptions or analysis could cause material changes in
the carrying value of the properties.

       AEI Fund Management Inc. allocates expenses to each of the
funds  they manage primarily on the basis of the number of  hours
devoted  by  their employees to each fund's affairs.   They  also
allocate  some  expenses at the end of each month  that  are  not
directly related to a fund's operations based upon the number  of
investors  in the fund and the fund's capitalization relative  to
other  funds they manage.  The Company reimburses these  expenses
subject  to  detailed  limitations  contained  in  the  Operating
Agreement.

Results of Operations

        For  the  six  months ended June 30,  2002,  the  Company
recognized  rental income of $542,748 and $403,349, respectively.
During the same periods, the Company earned investment income  of
$2,282   and  $95,780,  respectively.   In  2002,  rental  income
increased mainly as a result of additional rent received from the
five  property acquisitions completed in 2001.  The  increase  in
rental  income  was partially offset by a decrease in  investment
income due to the Partnership receiving less interest income from
construction  advances  and having less money  invested,  due  to
property acquisitions, during 2002 at lower money market interest
rates.

        During  the six months ended June 30, 2002 and 2001,  the
Company paid LLC administration expenses to affiliated parties of
$75,350 and $90,038, respectively.  These administration expenses
include  costs associated with the management of the  properties,
processing    distributions,    reporting    requirements     and
correspondence to the Limited Members.  During the same  periods,
the  Company incurred LLC administration and property  management
expenses   from  unrelated  parties  of  $30,811   and   $35,198,
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.

        As  of  June  30,  2002,  the Company's  annualized  cash
distribution  rate  was  7.0%,  based  on  the  Adjusted  Capital
Contribution.  Pursuant to the Operating Agreement, distributions
of Net Cash Flow were allocated 97% to the Limited Members and 3%
to the Managing Members.


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


        Inflation  has  had  a  minimal  effect  on  income  from
operations.   Leases  may contain rent increases,  based  on  the
increase  in  the  Consumer Price Index over a specified  period,
which  will result in an increase in rental income over the  term
of  the  leases.   In addition, leases may contain  rent  clauses
which  entitle the Company to receive additional rent  in  future
years if gross receipts for the property exceed certain specified
amounts.   Increases  in sales volumes of  the  tenants,  due  to
inflation  and  real sales growth, may result in an  increase  in
rental  income over the term of the leases.  Inflation  also  may
cause the real estate to appreciate in value.  However, inflation
and  changing prices may have an adverse impact on the  operating
margins  of  the  properties' tenants, which could  impair  their
ability  to  pay rent and subsequently reduce the Net  Cash  Flow
available for distributions.

Liquidity and Capital Resources

        During  the six months ended June 30, 2002, the Company's
cash  balances  increased $518,736 as a result of cash  generated
from  the  sale  of  property,  which  was  partially  offset  by
distributions  made  in excess of cash generated  from  operating
activities.  Net cash provided by operating activities  increased
from  $165,407  in 2001 to $433,236 in 2002 as  a  result  of  an
increase  in income and a decrease in LLC administration expenses
in  2002 and net timing differences in the collection of payments
from the lessees and the payment of expenses.

        The  major  components of the Company's  cash  flow  from
investing activities are investments in real estate and  proceeds
from  the sale of real estate.  During the six months ended  June
30,  2001,  the  Company expended $2,251,648 to  invest  in  real
properties (inclusive of acquisition expenses).  During  the  six
months ended June 30, 2002, the Company generated cash flow  from
the sale of real estate of $567,176.

       On March 30, 2001, the Company 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 Company.

        On June 30, 2000, the Company 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
Company  entered  into  a Development Financing  Agreement  under
which the Company advanced funds to RI for the construction of  a
Razzoo's restaurant on the site.  Initially, the Company  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 Company'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 Company.

        On  August 28, 2001, the Company 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 Company.

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

        On March 8, 2001, the Company 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 Company entered into a Development Financing Agreement
under   which  the  Company  advanced  funds  to  KRG   for   the
construction  of a Johnny Carino's restaurant on the  site.   The
Company 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  Company's share of the total  acquisition  costs,
including  the  cost  of the land, was $501,880.   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 Company.

        On February 2, 2001, the Company 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 Company entered into a Development Financing Agreement
under   which  the  Company  advanced  funds  to  KRG   for   the
construction  of a Johnny Carino's restaurant on the  site.   The
Company charged interest on the advances at a rate of 10.5%.   On
November 2, 2001, after the development was completed, the  Lease
Agreement  was  amended  to  require annual  rental  payments  of
$116,525.   The  Company's share of the total acquisition  costs,
including  the  cost of the land, was $1,105,231.  The  remaining
interest  in  the  property is owned by AEI Net  Lease  Income  &
Growth Fund XIX Limited Partnership, an affiliate of the Company.

       In  May, 2002, the Company sold its interest in the Johnny
Carino's   restaurant   in  Austin,  Texas,   in   two   separate
transactions,  to unrelated third parties.  The Company  received
total  net  sale proceeds of $567,176, which resulted  in  a  net
gain   of  $71,642.   The  total  cost  and  related  accumulated
depreciation  of  the  interests sold was  $501,879  and  $6,345,
respectively.   The net sale proceeds will either  be  reinvested
in  additional  property or distributed to  the  members  in  the
future.

       During the offering of Units, the Company's primary source
of  cash  flow  is  from  the sale of  LLC  Units.   The  Company
commenced  its  offering of LLC Units to  the  public  through  a
registration  statement which became effective  March  23,  1999.
The offering terminated March 22, 2001 when the extended offering
period   expired.    The  Company  received   subscriptions   for
13,349.321  LLC Units ($13,349,321). From subscription  proceeds,
the  Company  paid  organization  and  syndication  costs  (which
constitute a reduction of capital) of $2,002,125.

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

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

        Beginning  in  2002, the Company may acquire  Units  from
Limited  Members  who have tendered their Units to  the  Company.
Such  Units may be acquired at a discount.  The Company will  not
be  obligated to purchase in any year any number of  Units  that,
when  aggregated  with all other transfers  of  Units  that  have
occurred since the beginning of the same calendar year (excluding
Permitted Transfers as defined in the Operating Agreement), would
exceed  2% of the total number of Units outstanding on January  1
of  such  year.   In no event shall the Company be  obligated  to
purchase Units if, in the sole discretion of the Managing Member,
such  purchase  would  impair the capital  or  operation  of  the
Company.   As of June 30, 2002, the Company has not acquired  any
Units from Limited Members.

       The continuing rent payments from the properties, together
with  cash  generated from property sales, should be adequate  to
fund  continuing distributions and meet other Company obligations
on both a short-term and long-term basis.


                   PART II - OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS

       There  are no material pending legal proceedings to  which
  the  Company  is a party or of which the Company'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.

ITEM 6.EXHIBITS AND REPORTS ON FORM 8-K

       a. Exhibits -
                                  Description

      99.1  Certification  of  Chief  Executive  Officer  of  General
            Partner pursuant to Section 906 of the Sarbanes-Oxley Act
            of 2002.

      99.2  Certification  of  Chief  Financial  Officer  of  General
            Partner pursuant to Section 906 of the Sarbanes-Oxley Act
            of 2002.

       b. Reports filed on Form 8-K - None.


                           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:  August 6, 2002        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)