[DESCRIPTION]	COVER PAGE
                  U.S. SECURITIES AND EXCHANGE COMMISSION
                       Washington, D.C. 20549

                           FORM 10-KSB
(Mark One)

		ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
			THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year beginning January 1, 1997 and ending December 31, 1997


                     Commission file number: 0-2664


                        INVESTORS FINANCE, INC.
     ( Exact name of small business issuer as specified in its charter)
                         ___________________

		Hawaii					99-0112763
	(State or other jurisdiction of			(I.R.S. Employer
	incorporation or organization)			Identification No.)

	50 South Beretania Street, Honolulu, Hawaii	96813
	(Address of principal executive offices)	(Zip Code)

               Issuer's telephone number: (808) 533-7437
                         ___________________

Securities registered under Section 12(b) of the Exchange Act:

                                None

Securities registered under Section 12(g) of the Exchange Act:

                       Common Stock, no par value
                          (Title of class)
<PAGE>
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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 [   ] No[ x ]

Check if there is no disclosure of delinquent filers in response to Item 405
of Regulation S-B contained in this form, and no disclosure will be contained,
to the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-KSB or any
amendment to this Form 10-KSB.  [ x ]

Issuer's revenues for its most recent fiscal year: $213,407

Aggregate market value of the issuer's common stock held by non-affiliates
as of December 31, 1997: $482,089

Number of shares outstanding of the issuer's common stock as of
December 31, 1997: 1,252,246.

                   DOCUMENTS INCORPORATED BY REFERENCE: None

            Transitional Small Business Disclosure Format (check one):

                            Yes [   ]  No [ X ]
<PAGE>
PART I

Item 1.	Description of Business

General

Investors Finance, Inc. (the "Company") is a Hawaii corporation engaged in the
business of mortgage brokerage and real estate, commercial, and consumer loans.
Total loan volume decreased to $307,385 on December 31, 1997 compared to
$542,931 for December 31, 1996.  Total mortgage brokerage commissions for 1997
were $149,563 compared to $187,035 for 1996.

The Company's executive offices are located at 50 South Beretania St.,
Honolulu HI 96813.  The Company's phone number is (808) 533-7437.

Development of Business

The Company was organized under the laws of the State of Hawaii on September 15,
1960.

Business

Management believes the consolidation of the business operations and focusing
on the resale of mortgage loans provides the shareholders with much lower costs
regarding legal and regulatory expenses.

Principal Products and Services

The principal services of the Company are the origination and resale of
Residential and Commercial mortgages.  The Company continues to make
"in house" loans as funds are available.

Competition

The Mortgage originating business in the State of Hawaii is very competitive.
There are a number of Competitors within the state with substantial operating
histories and financial reserves.  Management believes the Company can be
profitable by controlling expenses and operating with a low overhead.

Government Approvals and Regulations

The products and services provided by the Company are not subject to government
approval.  The Company is operating as an Industrial Loan Company and is
regulated by the State of Hawaii, Commissioner of Financial Institutions.

<PAGE>
Directors, Executive officers and Significant Employees

<TABLE>
<CAPTION>
NAME			AGE			POSITION
<S>                     <C>             <C>
Wade Richardson		56		President & Secretary, Director

Daniel Jeffers		43		Vice President & Treasurer, Director
					Data Processing Consultant

Karen Oani		43		Vice-President, Office Manager
</TABLE>

Directors and Officers received no remuneration for services during 1997 with
the exception of Ms. Oani, who received $24,260 as salary.

PART II

ITEM 1.	Market Price and Dividends on the Company's Equity
        and other Shareholder Matters.

Market Information

There has been only limited trading activity in the Company's common stock
during 1997.  The following table sets forth quotes obtained from Abel Behnke
Corporation and listed in the Pacific Business News.

<TABLE>
<CAPTION>
		Quarter Ended				Bid Price
                <S>                                     <C>
		March 31,    1997			 6.5 cents
		June 30,     1997			12.0 cents
		October 31,  1997			 6.5 cents
		December 31, 1997			 6.5 cents
</TABLE>
<PAGE>
Holders

The number of record holders of the Company's common stock as of
December 31, 1997 was approximately 1,027.

Dividends

The Company has not paid dividends with respect to its common stock, and does
not intend to pay dividends in the foreseeable future. it is the present
intention of management to utilize all available funds for the development of
the Company's business.

Item 2.	Legal Proceedings

To management's knowledge, the Company is not a party to any material pending
legal proceedings and is not aware of any material threatened legal proceedings.

Further, to the knowledge of management, no director, officer, affiliate or
record or beneficial owner of more than 5% of the common voting stock of the
Company is a party adverse to the Company or has a material adverse interest
to the Company in any proceeding.


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

No matter was submitted to a vote of the security holders during the fourth
quarter ended December 31, 1997.

Item 5.	Reports on Form 8-K.

The company has insufficient funds available for audited financials.