UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                      ------------------------------------

                                    FORM 10-K
                ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934
                      ------------------------------------

For the fiscal year ended December 31, 2000       Commission file number 1-11060

                       AMERICAN INSURED MORTGAGE INVESTORS
             (Exact name of registrant as specified in it's charter)

California                                                   13-3180848
(State or other jurisdiction of                              (I.R.S. Employer
Incorporation or organization)                               Identification No.)

                              11200 Rockville Pike
                            Rockville, Maryland 20852
                                 (301) 816-2300
               (Address, including zip code, and telephone number,
        including area code, of registrant's principal executive offices)

                      ------------------------------------

           Securities registered pursuant to Section 12(b) of the Act:

                                                        Name of each exchange on
     Title of each class                                    which registered
---------------------------                             ------------------------
Depositary Units of Limited                             American Stock Exchange
     Partnership Interest

           Securities registered pursuant to Section 12(g) of the Act:

                                      None
                         ------------------------------

     Indicate  by check mark  whether the  Registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
Registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. Yes [X] No [ ]

     Indicate by check mark if disclosure of delinquent  filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not 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-K or any amendment to this
Form 10-K. [X]

     As of February 12, 2001, 10,000,125 depositary units of limited partnership
interest were  outstanding and the aggregate  market value of such units held by
non-affiliates of the Registrant on such date was $24,470,796.

                       Documents incorporated by Reference

                                      None

<PAGE>





                       AMERICAN INSURED MORTGAGE INVESTORS

                         2000 ANNUAL REPORT ON FORM 10-K

                                TABLE OF CONTENTS


<TABLE>
<CAPTION>
                                                                PART I
                                                                                                        Page
                                                                                                        ----
<S>               <C>                                                                                    <C>
Item 1.           Business                                                                                4
Item 2.           Properties                                                                              5
Item 3.           Legal Proceedings                                                                       5
Item 4.           Submission of Matters to a Vote of Security Holders                                     5


                                                                PART II

Item 5.           Market for Registrant's Securities and Related Security Holder Matters                  6
Item 6.           Selected Financial Data                                                                 7
Item 7.           Management's Discussion and Analysis of Financial Condition and Results of
                     Operations                                                                           7
Item 7A.          Qualitative and Quantitative Disclosures About Market Risk                             11
Item 8.           Financial Statements and Supplementary Data                                            11
Item 9.           Changes in and Disagreements with Accountants on Accounting and Financial
                     Disclosure                                                                          11

                                                               PART III

Item 10.          Directors and Executive Officers of the Registrant                                     12
Item 11.          Executive Compensation                                                                 13
Item 12.          Security Ownership of Certain Beneficial Owners and Management                         13
Item 13.          Certain Relationships and Related Transactions                                         14


                                                                PART IV

Item 14.          Exhibits, Financial Statement Schedules and Reports on Form 8-K                        15

Signatures                                                                                               17
</TABLE>

<PAGE>
                                                                PART I
ITEM 1.    BUSINESS

FORWARD-LOOKING  STATEMENTS.  When used in this Annual Report on Form 10-K,  the
words  "believes,"   "anticipates,"   "expects,"   "contemplates,"  and  similar
expressions  are  intended to identify  forward-looking  statements.  Statements
looking forward in time are included in this Annual Report on Form 10-K pursuant
to the "safe harbor" provision of the Private  Securities  Litigation Reform Act
of 1995. Such statements are subject to certain risks and  uncertainties,  which
could cause actual  results to differ  materially.  Accordingly,  the  following
information contains or may contain forward-looking  statements: (1) information
included  or  incorporated  by  reference  in this  Annual  Report on Form 10-K,
including,  without  limitation,  statements  made  under  Item 7,  Management's
Discussion and Analysis of Financial  Condition and Results of  Operations,  (2)
information  included or  incorporated  by  reference  in future  filings by the
Partnership  with the  Securities  and Exchange  Commission  including,  without
limitation,  statements with respect to growth,  projected  revenues,  earnings,
returns and yields on its portfolio of mortgage  assets,  the impact of interest
rates, costs and business strategies and plans and (3) information  contained in
written  material,  releases and oral statements  issued by or on behalf of, the
Partnership,  including, without limitation,  statements with respect to growth,
projected  revenues,  earnings,  returns and yields on its portfolio of mortgage
assets, the impact of interest rates,  costs and business  strategies and plans.
Factors which may cause actual results to differ materially from those contained
in the forward-looking  statements identified above include, but are not limited
to (i) regulatory and litigation  matters,  (ii) interest rates, (iii) trends in
the economy,  (iv) prepayment of mortgages and (v) defaulted mortgages.  Readers
are cautioned not to place undue reliance on these  forward-looking  statements,
which speak only of the date hereof. The Partnership undertakes no obligation to
publicly   revise  these   forward-looking   statements  to  reflect  events  or
circumstances  occurring  after the date hereof or to reflect the  occurrence of
unanticipated events.

Development and Description of Business
---------------------------------------

     Information  concerning the business of American Insured Mortgage Investors
(the "Partnership") is contained in Part II, Item 7, Management's Discussion and
Analysis of Financial  Condition and Results of Operations  and in Notes 1, 5, 6
and 7 of the Notes to Financial Statements of the Partnership (filed in response
to Item 8 hereof),  all of which are incorporated by reference herein.  See also
Schedule IV-Mortgage Loans on Real Estate for the table of the Insured Mortgages
(as defined below) invested in by the Partnership as of December 31, 2000, which
is hereby incorporated by reference herein.

Employees
---------

     The  Partnership  has no  employees.  The  business of the  Partnership  is
managed  by  CRIIMI,  Inc.  (the  "General  Partner"),  while its  portfolio  of
mortgages is managed by AIM Acquisition Partners,  L.P. (the "Advisor") pursuant
to an advisory  agreement (the "Advisory  Agreement').  The General Partner is a
wholly owned subsidiary of CRIIMI MAE Inc. ("CRIIMI MAE").

     The general  partner of the Advisor is AIM  Acquisition  Corporation  ("AIM
Acquisition")  and the  limited  partners  include,  but are not limited to, AIM
Acquisition,  The Goldman  Sachs  Group,  L.P.,  Sun America  Investments,  Inc.
(successor to Broad, Inc.) and CRI/AIM Investment,  L.P., an affiliate of CRIIMI
MAE. AIM  Acquisition is a Delaware  corporation  that is primarily owned by Sun
America Investments, Inc. and The Goldman Sachs Group, L.P.

     Under the  Advisory  Agreement,  the Advisor  will  render  services to the
Partnership,  including but not limited to, the management of the  Partnership's
portfolio of mortgages and the disposition of the Partnership's mortgages.  Such
services  will be subject to the review and  ultimate  authority  of the General
Partner.  However, the General Partner is required to receive the consent of the
Advisor prior to taking certain significant  actions,  including but not limited
to the  disposition of mortgages,  any transaction or agreement with the General
Partner,  or its  affiliates,  or any material  change as to policies  regarding
distributions  or  reserves of the  Partnership.  The  Advisor is  permitted  to
delegate the performance of services  pursuant to a sub-advisory  agreement (the
"Sub-Advisory Agreement").  The delegation of such services will not relieve the
Advisor of its obligation to perform such services.  CRIIMI MAE Services Limited
Partnership  ("CMSLP"),  an affiliate of CRIIMI MAE,  manages the  Partnership's
portfolio,  pursuant to the Sub-Advisory Agreement. The general partner of CMSLP
is CRIIMI MAE Services, Inc., an affiliate of CRIIMI MAE.

Competition
-----------

     In disposing of mortgage investments, the Partnership competes with private
investors,  mortgage  banking  companies,  mortgage  brokers,  state  and  local
government agencies, lending institutions, trust funds, pension funds, and other
entities,  some with similar  objectives to those of the Partnership and some of
which are or may be  affiliates of the  Partnership,  its General  Partner,  the
Advisor, CMSLP or their respective  affiliates.  Some of these entities may have
substantially  greater capital  resources and experience in disposing of Federal
Housing Administration ("FHA") insured mortgages than the Partnership.

     CRIIMI MAE and its affiliates also may serve as general partners,  sponsors
or managers of real estate limited partnerships,  REITS or other entities in the
future.  The  Partnership  may attempt to dispose of mortgage  investments at or
about the same time that CRIIMI MAE, one or more of the "AIM Funds"  (defined as
the Partnership,  American  Insured  Mortgage  Investors - Series 85, L.P. ("AIM
85"),  American  Insured  Mortgage  Investors  L.P.  - Series 86 ("AIM  86") and
American Insured Mortgage  Investors L.P. - Series 88 ("AIM 88")),  and/or other
entities sponsored or managed by CRIIMI MAE or its affiliates, are attempting to
dispose  of  mortgages.  As a result  of  market  conditions  that  could  limit
dispositions, CMSLP and its affiliates could be faced with conflicts of interest
in determining  which mortgages would be disposed of. Both CMSLP and the General
Partner,  however,  are  subject to their  fiduciary  duties in  evaluating  the
appropriate action to be taken when faced with such conflicts.


ITEM 2.    PROPERTIES

     Although the  Partnership  does not own the  underlying  real  estate,  the
mortgages  underlying the  Partnership's  mortgage  investments are non-recourse
first liens on the respective multifamily residential developments.


ITEM 3.    LEGAL PROCEEDINGS

     There are no  material  legal  proceedings  to which the  Partnership  is a
party.


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

     No matters were submitted to the security holders to be voted on during the
fourth quarter of 2000.
<PAGE>
                                     PART II

ITEM 5.   MARKET FOR REGISTRANT'S SECURITIES AND RELATED SECURITY HOLDER MATTERS

Principal Market and Market Price for Units and Distributions
-------------------------------------------------------------

     The Units are traded on the American Stock Exchange ("AMEX") with a trading
symbol of "AIA". The high and low trade prices for the Units as reported on AMEX
and the distributions, as applicable, for each quarterly period in 2000 and 1999
were as follows:
<TABLE>
<CAPTION>
                                                                                             Amount of
                                                                2000                        Distribution
    Quarter Ended                                      High              Low                  Per Unit
    -------------                                      ----              ---                  --------

   <S>                                               <C>               <C>                   <C>
   March 31                                          $ 2.5625          $ 2.2500              $ 0.05
   June 30                                             2.6250            2.1250                0.05
   September 30                                        2.4375            2.1250                0.05
   December 31                                         2.4375            2.1875                0.05
                                                                                             ------

                                                                                             $ 0.20
                                                                                             ======
</TABLE>

<TABLE>
<CAPTION>
                                                                                             Amount of
                                                               1999                         Distribution
     Quarter Ended                                     High              Low                  Per Unit
     -------------                                     ----              ---                  --------

   <S>                                               <C>               <C>                   <C>    <C>
   March 31                                          $ 2.8750          $ 2.5000              $ 0.17 (1)
   June 30                                             2.7500            2.3750                0.05
   September 30                                        2.5625            2.3750                0.05
   December 31                                         2.6250            2.3750                0.09 (2)
                                                                                             ------

                                                                                             $ 0.36
                                                                                             ======
</TABLE>

(1)  This amount  includes  approximately  $0.12 per Unit due to  redemption  of
     debentures  received from the assignment of the mortgage on Portervillage I
     Apartments.  This amount was received from an affiliate of the Partnership,
     AIM  85.  The  debenture  was  issued  to AIM 85,  since  the  mortgage  on
     Portervillage  I Apartments was owned 50% by the Partnership and 50% by AIM
     85.

(2)  This amount includes approximately $0.04 per Unit representing net proceeds
     from the prepayment of the mortgage on Lakeside Apartments.

     There are no material legal restrictions upon the Partnership's  present or
future ability to make  distributions  in accordance  with the provisions of the
partnership agreement.


                                               Approximate Number of Unitholders
Title of Class                                      as of December 31, 2000
--------------                                      -----------------------
Depositary Units of Limited
   Partnership Interest                                     7,000
<PAGE>

ITEM 6.    SELECTED FINANCIAL DATA
           (Dollars in thousands, except per Unit amounts)

<TABLE>
<CAPTION>
                                                              For the years ended December 31,
                                               2000          1999          1998          1997         1996
                                               ----          ----          ----          ----         ----

<S>                                         <C>           <C>           <C>           <C>          <C>
Income                                      $  2,279      $  2,354      $  3,191      $  3,415     $  3,445

Net gains (losses) from
 mortgage dispositions                           188            67         1,290            --         (146)

Net earnings                                   2,011         1,925         3,978         2,879        2,758

Net earnings per Limited
  Partnership Unit - Basic (1)              $   0.20      $   0.19      $   0.39      $   0.28     $   0.27

Distributions per Limited
  Partnership Unit (1)(2)                   $   0.20      $   0.36      $   1.29      $   0.29     $   0.30


                                                                     As of December 31,
                                               2000          1999          1998          1997         1996
                                               ----          ----          ----          ----         ----

Total assets                                $ 25,857      $ 26,416      $ 28,735      $ 38,551     $ 38,385

Partners' equity                              25,271        25,422        27,750        37,661       37,590
</TABLE>

(1)  Calculated  based upon the weighted  average number of Limited  Partnership
     Units outstanding.
(2)  Includes  distributions  due the Unitholders for the  Partnership's  fiscal
     years ended December 31, 2000,  1999,  1998, 1997, and 1996 which were paid
     subsequent  to each year end.  See Notes 7 and 8 of the Notes to  Financial
     Statements.

     The selected  income data presented  above for the years ended December 31,
2000, 1999 and 1998 and the balance sheet data as of December 31, 2000 and 1999,
are derived from and are qualified by reference to the  Partnership's  financial
statements  which have been included  elsewhere in this Form 10-K.  The selected
income data for the years ended December 31, 1997 and 1996 and the balance sheet
data as of December 31, 1998,  1997 and 1996 are derived from audited  financial
statements  not  included  in  this  Form  10-K.  This  data  should  be read in
conjunction with the Financial Statements and the Notes thereto.


ITEM 7.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
           AND RESULTS OF OPERATIONS

General
-------

     The  following  discussion  and analysis  contains  statements  that may be
considered  forward  looking.  These  statements  contain  a number of risks and
uncertainties  as  discussed  herein  and in Item 1 of this Form 10-K that could
cause actual results to differ materially.

     The American  Insured  Mortgage  Investors (the  "Partnership")  was formed
under the Uniform Limited Partnership Act in the State of California on July 12,
1983.  During the period  from March 1, 1984 (the  initial  closing  date of the
Partnership's  public  offering)  through  December 31, 1984,  the  Partnership,
pursuant  to its  public  offering  of  10,000,000  depositary  units of limited
partnership  interest  ("Units"),  raised  a  total  of  $200,000,000  in  gross
proceeds.  In addition,  the initial limited partner  contributed  $2,500 to the
capital  of the  Partnership  and  received  125  Units of  limited  partnership
interest in exchange therefor.

     CRIIMI,  Inc. (the "General Partner") holds a partnership  interest of 2.9%
and is a wholly  owned  subsidiary  of  CRIIMI  MAE  Inc.  ("CRIIMI  MAE").  AIM
Acquisition  Partners,  L.P.  (the  "Advisor")  serves  as  the  advisor  to the
Partnership pursuant to an advisory agreement (the "Advisory Agreement").

     The general  partner of the Advisor is AIM  Acquisition  Corporation  ("AIM
Acquisition")  and the  limited  partners  include,  but are not limited to, AIM
Acquisition,  The Goldman  Sachs  Group,  L.P.,  Sun America  Investments,  Inc.
(successor to Broad, Inc.) and CRI/AIM Investment,  L.P., an affiliate of CRIIMI
MAE. AIM  Acquisition is a Delaware  corporation  that is primarily owned by Sun
America Investments, Inc. and The Goldman Sachs Group, L.P.

     Under the  Advisory  Agreement,  the Advisor  will  render  services to the
Partnership,  including but not limited to, the management of the  Partnership's
portfolio of mortgages and the disposition of the Partnership's mortgages.  Such
services  will be subject to the review and  ultimate  authority  of the General
Partner.  However, the General Partner is required to receive the consent of the
Advisor prior to taking certain significant  actions,  including but not limited
to the  disposition of mortgages,  any transaction or agreement with the General
Partner,  or its  affiliates,  or any material  change as to policies  regarding
distributions  or  reserves of the  Partnership.  The  Advisor is  permitted  to
delegate the performance of services  pursuant to a sub-advisory  agreement (the
"Sub-Advisory Agreement").  The delegation of such services will not relieve the
Advisor of its obligation to perform such services.  CRIIMI MAE Services Limited
Partnership  ("CMSLP"),  an affiliate of CRIIMI MAE,  manages the  Partnership's
portfolio,  pursuant to the Sub-Advisory Agreement. The general partner of CMSLP
is CRIIMI MAE Services, Inc., an affiliate of CRIIMI MAE.


Mortgage Investments
--------------------

     Prior  to  the  expiration  of the  Partnership's  reinvestment  period  in
November  1988,  the  Partnership  was engaged in the  business  of  originating
mortgage loans  ("Originated  Insured  Mortgages") and acquiring  mortgage loans
("Acquired  Insured  Mortgages" and, together with Originated Insured Mortgages,
referred to herein as "Insured Mortgages").  In accordance with the terms of the
partnership  agreement,  the Partnership is no longer authorized to originate or
acquire Insured Mortgages and, consequently,  its primary objective is to manage
its  portfolio of mortgage  investments,  all of which are insured (as discussed
below) under  Section  221(d)(4)  or Section 231 of the National  Housing Act of
1937, as amended (the "National  Housing Act"). The Partnership is a liquidating
partnership  and as it  continues  to liquidate  its  mortgage  investments  and
investors  receive  distributions  of  return  of  capital  and  taxable  gains,
investors  should  expect a reduction in earnings and  distributions  due to the
decreasing mortgage base. The partnership  agreement states that the Partnership
will  terminate on December 31, 2008,  unless  previously  terminated  under the
provisions of the partnership agreement.

     As of  December  31,  2000,  the  Partnership  had  invested  in 11 Insured
Mortgages, with an aggregate amortized cost of approximately $22 million, a face
value  of  approximately  $26  million  and a fair  value of  approximately  $25
million, as discussed below.

Investment in Insured Mortgages
-------------------------------

     The Partnership's  investment in Insured Mortgages  consists of FHA-insured
mortgage loans ("FHA-Insured Loans") and participation certificates evidencing a
100% undivided  beneficial interest in government insured multifamily  mortgages
issued or sold  pursuant  to Federal  Housing  Administration  ("FHA")  programs
("FHA-Insured   Certificates").   The  mortgages   underlying  the   FHA-Insured
Certificates and FHA-Insured  Loans are non-recourse  first liens on multifamily
residential developments.

     The  following is a discussion of the types of the  Partnership's  mortgage
investments, along with the risks related to each type of investment:

Investment in FHA-Insured Loans
-------------------------------

     Listed below is the Partnership's aggregate investment in FHA-Insured Loans
as of December 31, 2000 and 1999:

<TABLE>
<CAPTION>
                                                                            December 31,
                                                                    2000                    1999
                                                                    ----                    ----
<S>                                                            <C>                      <C>
Number of
  Acquired Insured Mortgages                                              3                        3
  Originated Insured Mortgage                                             1                        1
Amortized Cost                                                 $ 12,597,098             $ 12,751,028
Face Value                                                       14,694,371               14,941,299
Fair Value                                                       14,222,808               14,215,731
</TABLE>

     All of the  FHA-Insured  Loans were  current with respect to the payment of
principal and interest as of February 16, 2001.

     In addition to base  interest  payments  received from  Originated  Insured
Mortgages,  the  Partnership  is  entitled  to  additional  interest  based on a
percentage of the net cash flow from the underlying  development  and of the net
proceeds  from the  refinancing,  sale or other  disposition  of the  underlying
development (referred to as  "Participations").  During the years ended December
31,  2000,  1999  and  1998,  the  Partnership  received  $0,  $0  and  $52,526,
respectively,  from the  Participations.  These amounts, if any, are included in
mortgage  investment  income  on  the  accompanying  statements  of  income  and
comprehensive income.

Investment in FHA-Insured Certificates
--------------------------------------

     Listed  below is the  Partnership's  aggregate  investment  in  FHA-Insured
Certificates as of December 31, 2000 and 1999:

<TABLE>
<CAPTION>
                                                                            December 31,
                                                                    2000                     1999
                                                                    ----                     ----
<S>                                                             <C>                     <C>
Number of mortgages (1)                                                   7                        8
Amortized Cost                                                  $ 9,536,007             $ 10,655,445
Face Value                                                       11,433,137               12,835,126
Fair Value                                                       11,258,675               12,468,348
</TABLE>

(1)  In December  2000, HUD issued  assignment  proceeds in the form of a 7.125%
     debenture for the mortgage on Fox Run  Apartments.  This mortgage was owned
     50% by AIM 84 and 50% by an affiliate of the Partnership,  American Insured
     Investors - Series 85, L.P. (AIM 85). The  debenture,  with a face value of
     $2,385,233  and a fair value of  $2,361,381,  was issued to AIM 85 and will
     earn  interest  semi-annually  on  January  1 and July 1.  The  Partnership
     expects to receive  net  proceeds  of  approximately  $1.2  million and has
     recognized a gain of approximately $188,000 for the year ended December 31,
     2000.  The net  proceeds  and accrued  interest are included on the Balance
     Sheet in Due from  affiliate.  In general,  AIM 85 will hold the  debenture
     until its  maturity  date of June 1, 2010 or when called,  whichever  comes
     first. A  distribution  will be declared at that time. The servicer of this
     mortgage filed an application for insurance  benefits under the Section 221
     program of the National Housing Act of 1937 in May 2000.

     All of the  FHA-Insured  Certificates  were  current  with  respect  to the
payment of principal and interest as of February 16, 2001.

Results of Operations
---------------------
2000 versus 1999
----------------

     Net earnings  increased  for 2000 as compared to 1999  primarily  due to an
increase in gains on mortgage  dispositions.  In 2000,  a gain of  approximately
$188,000 was realized on the  assignment of the mortgage on Fox Run  Apartments,
as discussed above. In 1999, a gain of approximately $67,000 was recognized from
the prepayment of the mortgage on Lakeside Apartments.

     Mortgage  investment income decreased slightly for 2000 as compared to 1999
primarily due to the normal amortization of the mortgage base. In addition,  the
mortgage base decreased due to one mortgage  disposition in November 1999 with a
principal balance of approximately $382,000. This represents an approximate 1.4%
decrease in the  aggregate  principal  balance of the total  mortgage  portfolio
since October 1999.

     Interest and other income  decreased for 2000 as compared to 1999 primarily
due to the timing of temporary investment of mortgage disposition proceeds prior
to distribution.

     General and administrative expenses decreased  for 2000 as compared to 1999
primarily due to a decrease in temporary employment costs.

1999 versus 1998
----------------

     Net  earnings  decreased  for 1999 as compared to 1998  primarily  due to a
reduction  in  mortgage  investment  income and a decrease  in gains on mortgage
dispositions, as discussed below.

     Mortgage  investment income decreased for 1999 as compared 1998,  primarily
due to the  disposition of the mortgages on  Portervillage I Apartments in March
1998,  Waters Edge  Apartments  in  September  1998 and Lakeside  Apartments  in
November 1999.

     Interest and other income decreased for 1999 as compared to 1998, primarily
due to the timing of temporary investment of mortgage disposition proceeds prior
to distributions.

     Asset  management  fees to related  parties  decreased for 1999 as compared
1998, due to the reduction in the mortgage base.

     General and  administrative  expenses  increased for 1999 as compared 1998,
primarily  due to increased  temporary  employment  costs and an increase in the
cost structure of certain expenses.

     Gains on mortgage  dispositions  decreased  for 1999 as compared  1998.  In
1999, a gain of approximately  $67,000 was recognized from the prepayment of the
mortgage on Lakeside  Apartments.  In 1998, a gain of approximately $1.1 million
was recognized  from the  prepayment of the mortgage on Waters Edge  Apartments.
Also  in  1998,  a gain  of  approximately  $200,000  was  recognized  from  the
assignment  of the  mortgage  on  Portervillage  I  Apartments.  The  assignment
proceeds  were issued in the form of a 9.5%  debenture.  This mortgage was owned
50% by the  Partnership  and 50% by an  affiliate of the  Partnership,  American
Insured Mortgage  Investors - Series 85, L.P. ("AIM 85"). The debenture,  with a
face value of $2,296,098, was issued to AIM 85 and earned interest semi-annually
on January 1 and July 1. In January 1999, the debenture was redeemed and the net
proceeds of  approximately  $1.1 million were  received and  distributed  by the
Partnership.


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

     On October 5, 1998,  CRIIMI  MAE,  the parent of the General  Partner,  and
CRIIMI  MAE  Management,  Inc.,  an  affiliate  of CRIIMI  MAE and  provider  of
personnel  and  administrative  services  to the  Partnership,  filed  voluntary
petitions for relief under chapter 11 of title 11 of the United States Code (the
"Bankruptcy  Code").  Such  bankruptcy  filings could result in certain  adverse
effects to the Partnership.  For example, as a debtor-in-possession,  CRIIMI MAE
will not be permitted to provide any available capital to the General Partner or
to the general partner of CMSLP, the Partnership's sub-advisor, without approval
from the Bankruptcy Court. Even though this restriction or potential loss of the
availability of a potential  capital resource could adversely affect the General
Partner  and the  Partnership,  CRIIMI MAE has not  historically  represented  a
significant  source of capital for the General Partner or the Partnership.  Such
bankruptcy filings could also result in the potential need to replace CRIIMI MAE
Management,  Inc. as a provider of personnel and administrative  services to the
Partnership.

     On November 22, 2000, the United States  Bankruptcy  Court for the District
of Maryland,  in Greenbelt,  Maryland (the "Bankruptcy  Court") confirmed CRIIMI
MAE's  and  CRIIMI  MAE   Management,   Inc.'s  Third   Amended  Joint  Plan  of
Reorganization  (as  amended  and  supplemented  by  praecipes  filed  with  the
Bankruptcy  Court on July 13, 14 and 21, and  November  22,  2000,  the "Plan").
CRIIMI MAE is working to complete the debt documentation, evidencing the secured
financings to be provided by (1) the unsecured creditors,  and (2) Merrill Lynch
Mortgage Capital, Inc. and German American Capital Corporation (collectively the
"New Debt  Documents").  On March 9, 2001,  the  Bankruptcy  Court  approved  an
extension of the date by which the Plan must be effective to April 13, 2001. The
Official  Committee of Unsecured  Creditors had previously filed its own plan of
reorganization and proposed disclosure  statement,  but has asked the Bankruptcy
Court, subject to completion of mutually acceptable debt documentation, to defer
consideration  of its plan and proposed  disclosure  statement.  There can be no
assurance  at this time that  CRIIMI MAE will be able to  complete  the New Debt
Documents and effectuate the Plan by April 13, 2001.


     The  Partnership's  operating  cash  receipts,  derived  from  payments  of
principal and interest on Insured  Mortgages plus cash receipts from interest on
short-term  investments,  are the Partnership's principal sources of cash flows,
and were sufficient for the years ended December 31, 2000, 1999 and 1998 to meet
operating  requirements.  The  Partnership  anticipates  its  cash  flows  to be
sufficient to meet operating expense requirements for 2001.

     The basis for paying  distributions  to  Unitholders  is net proceeds  from
mortgage  dispositions,  if any, and cash flow from  operations,  which includes
regular  interest  income and principal from Insured  Mortgages after paying all
expenses of the Partnership.  Although  Insured  Mortgages yield a fixed monthly
mortgage payment once purchased,  the cash distributions paid to the Unitholders
will vary during each period due to (1) the fluctuating yields in the short-term
money  market  where the  monthly  mortgage  payment  receipts  are  temporarily
invested prior to the payment of quarterly  distributions,  (2) the reduction in
the asset base resulting  from monthly  mortgage  payments  received or mortgage
dispositions, (3) variations in the cash flow attributable to the delinquency or
default  of  Insured  Mortgages  and  professional  fees and  foreclosure  costs
incurred in connection  with those Insured  Mortgages and (4)  variations in the
Partnership's operating expenses.

     Since the  Partnership  is obligated to distribute the Proceeds of Mortgage
Prepayments,  Sales and  Insurance  of  Insured  Mortgages  (as  defined  in the
partnership  agreement)  to its  Unitholders,  the  size  of  the  Partnership's
portfolio  will continue to decrease.  The magnitude of the decrease will depend
upon the size of the Insured Mortgages,  which are prepaid, sold or assigned for
insurance proceeds.

Cash Flow - 2000 versus 1999
----------------------------

     Net cash provided by operating activities decreased for 2000 as compared to
1999,  primarily  due to an  increase  in the  change  in  due  from  affiliate,
receivables and other assets.  This change is primarily due to the timing of the
receipt of interest on debentures received from affiliate.

     Net cash provided by investing activities decreased for 2000 as compared to
1999, due to the decrease in proceeds from mortgage  dispositions and a decrease
in debenture proceeds received from affiliate.

     Net cash used in  financing  activities  decreased  for 2000 as compared to
1999  due to a  decrease  in  distributions  paid to  partners  as a  result  of
decreases discussed above.

Cash Flow - 1999 versus 1998
----------------------------

     Net cash provided by operating activities decreased for 1999 as compared to
1998 primarily due to a reduction in mortgage investment income.

     Net cash provided by investing activities decreased for 1999 as compared to
1998, due to the decrease in proceeds from mortgage dispositions.

     Net cash used in  financing  activities  decreased  for 1999 as compared to
1998  due to a  decrease  in  distributions  paid to  partners  as a  result  of
decreases discussed above.


ITEM 7A.    QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK

     The Partnership's  principal market risk is exposure to changes in interest
rates in the U.S.  Treasury  market,  which  coupled with the related  spread to
treasury investors required for the Partnership's Insured Mortgages,  will cause
fluctuations in the market value of the Partnership's assets.

     The  table  below  provides  information  about the  Partnership's  Insured
Mortgages,  all of which were entered into for purposes other than trading.  The
table  presents  anticipated  principal  and interest  cash flows based upon the
assumptions  used in  determining  the fair  value of these  securities  and the
related weighted average interest rates by expected maturity.

<TABLE>
<CAPTION>
                                                                                                     Fair
                        2001       2002       2003       2004       2005    Thereafter    Total      Value
                        ----       ----       ----       ----       ----    ----------    -----      -----
<S>                  <C>        <C>        <C>        <C>        <C>          <C>        <C>        <C>
Insured Mortgages
(in millions)        $  3.7     $  3.7     $  3.6     $  4.1     $  4.5       $ 21.6     $ 41.2     $ 25.5

Average Interest        7.48%      7.48%      7.48%      7.48%      7.48%        7.53%      7.52%       --
Rate
</TABLE>

ITEM 8.    FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

     The information required by this Item is set forth in this Annual Report on
Form 10-K commencing on page 18.


ITEM 9.    CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
              AND FINANCIAL DISCLOSURE

     None.

<PAGE>
                                                               PART III

ITEM 10.    DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

(a), (b), (c) and (e)

     The Partnership has no officers or directors.  CRIIMI, Inc. holds a general
partnership  interest of 2.9%. The affairs of the Partnership are managed by the
General Partner, which is wholly owned by CRIIMI MAE, a corporation whose shares
are listed on the New York Stock Exchange.

     The  general  partner of the  Advisor is AIM  Acquisition  and the  limited
partners  include,  but are not limited to, AIM  Acquisition,  The Goldman Sachs
Group,  L.P.,  Sun America  Investments,  Inc.  (successor  to Broad,  Inc.) and
CRI/AIM  Investment,  L.P., an affiliate of CRIIMI MAE. Pursuant to the terms of
certain amendments to the partnership agreement, the General Partner is required
to  receive  the  consent of the  Advisor  prior to taking  certain  significant
actions,  including  but  not  limited  to the  disposition  of  mortgages,  any
transaction or agreement with the General  Partner,  or its  affiliates,  or any
material  change as to  policies  regarding  distributions  or  reserves  of the
Partnership.  CMSLP,  an  affiliate  of CRIIMI MAE,  manages  the  Partnership's
portfolio,  pursuant to the Sub-Advisory Agreement. The general partner of CMSLP
is CRIIMI MAE Services, Inc., an affiliate of CRIIMI MAE.

     The General  Partner is also the general  partner of AIM 85, AIM 86 and AIM
88, limited  partnerships  with  investment  objectives  similar to those of the
Partnership.

     The  following  table  sets  forth  information  concerning  the  executive
officers  and  directors  of CRIIMI  MAE,  the sole  shareholder  of the General
Partner, as of February 20, 2001:

<TABLE>
<CAPTION>
Name                                        Age                  Position
----                                        ---                  --------

<S>                                         <C>                  <C>
William B. Dockser                          63                   Chairman of the Board

H. William Willoughby                       54                   President, Secretary and Director

David B. Iannarone                          40                   Executive Vice President

Cynthia O. Azzara                           41                   Senior Vice President,
                                                                   Chief Financial Officer and
                                                                   Treasurer

Brian L. Hanson                             39                   Senior Vice President

Garrett G. Carlson, Sr.                     63                   Director

G. Richard Dunnells                         63                   Director

Robert Merrick                              55                   Director

Robert E. Woods                             53                   Director
</TABLE>


     William B.  Dockser  has  served as  Chairman  of the Board of the  General
Partner  since 1991.  Mr.  Dockser has been  Chairman of the Board of CRIIMI MAE
since 1989. Mr. Dockser is also the founder of C.R.I., Inc. ("CRI"),  serving as
its Chairman of the Board since 1974.

     H. William  Willoughby has served as President and Secretary of the General
Partner since 1991.  Mr.  Willoughby has been President of CRIIMI MAE since 1990
and a Director and Secretary of CRIIMI MAE since 1989. Mr. Willoughby has been a
director of CRI since 1974,  Secretary of CRI from 1974 to 1990 and President of
CRI since 1990.

     David B.  Iannarone has served as Executive  Vice  President of the General
Partner  since  December  2000.  Mr.  Iannarone  has  served as  Executive  Vice
President of CRIIMI MAE since  December 2000; as Senior Vice President of CRIIMI
MAE from March 1998 to December  2000;  and  General  Counsel of CRIIMI MAE from
July 1996 to  December  2000.  He served as  Counsel-Securities  and Finance for
Federal Deposit Insurance  Corporation/Resolution Trust Corporation from 1991 to
July 1996.

     Cynthia  O.  Azzara has served as Chief  Financial  Officer of the  General
Partner since 1994. Ms. Azzara has served as Chief  Financial  Officer of CRIIMI
MAE since 1994. She has also served as Senior Vice President of CRIIMI MAE since
1995 and Treasurer of CRIIMI MAE since 1997,  and in the  Accounting and Finance
Departments of CRI from 1985 to June 1995.

     Brian L. Hanson has served as Senior Vice President of the General  Partner
since March 1998.  Mr. Hanson has served as Senior Vice  President of CRIIMI MAE
since March 1998;  Group Vice  President  of CRIIMI MAE from March 1996 to March
1998; and Chief Operating  Officer,  Director of Asset  Operations and Portfolio
Director of JCF Partners from 1991 to March 1996.

     Garrett G. Carlson, Sr. has served as Director of the General Partner since
1989. Mr. Carlson has served as Director of CRIIMI MAE since 1989;  President of
Can-American  Realty Corp.  and Canadian  Financial  Corp.  since 1979 and 1974,
respectively; President of Garrett Real Estate Development since 1982; President
of the Satellite  Broadcasting  Corporation since 1996; Chairman of the Board of
SCA  Realty  Holdings  Inc.  from 1985 to 1995;  and Vice  Chairman  of  Shelter
Development Corporation Ltd. from 1983 to 1995.

     G.  Richard  Dunnells has served as Director of the General  Partner  since
1991.  Mr.  Dunnells  has served as Director  of CRIIMI MAE since  1991;  Hiring
Partner of the law firm of Holland & Knight since January 1995;  and Chairman of
the  Washington,  D.C.  law firm of Dunnells & Duvall from 1989 to 1993;  Senior
Partner of such law firm from 1973 to 1993.

     Robert J. Merrick has served as Director of the General Partner since 1997.
Mr.  Merrick  has served as  Director  of CRIIMI MAE since  1997;  Chief  Credit
Officer and Director of MCG Capital  Corporation since February 1998;  Executive
Vice President from 1985 and Chief Credit Officer of Signet Banking  Corporation
through 1997, also served as Chairman of the Credit Policy  Committee and member
of the Asset and Liability Committee and Management Committee.

     Robert E. Woods has served as Director of the General  Partner  since 1998.
Mr. Woods has served as Director of CRIIMI MAE since 1998; Managing Director and
head of loan syndications for the Americas at Societe  Generale,  New York since
1997; Managing Director, head of Real Estate Capital Markets and Mortgage-backed
Securities   division,   Citicorp   from  1991  to  1997,   Head  of  Citicorp's
syndications, private placements, money markets and asset-backed businesses from
1985 to 1990.

     (d)  There  is no  family  relationship  between  any of the  officers  and
          directors of the General Partner.

     (f)  Involvement in certain legal proceedings.

                  None.

     (g)  Promoters and control persons.

                  Not applicable.

     (h)  Section 16 (a) Beneficial Ownership Reporting Compliance -Based solely
          on its review of Forms 3 and 4 and amendments thereto furnished to the
          Partnership,   and  written  representations  from  certain  reporting
          persons  that no  Form  5's  were  required  for  those  persons,  the
          Partnership believes that all reporting persons have filed on a timely
          basis Forms 3, 4, and 5 as required in the fiscal year ended  December
          31, 2000.


ITEM 11.    EXECUTIVE COMPENSATION

     The  Partnership  does not  have any  directors  or  officers.  None of the
directors  or officers  of the General  Partner  receive  compensation  from the
Partnership,  and the General  Partner does not receive  reimbursement  from the
Partnership for any portion of their  salaries.  Other  information  required by
Item 11 is hereby  incorporated  by  reference  herein to Note 7 of the Notes to
Financial Statements of the Partnership.


ITEM 12.    SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
              MANAGEMENT

(a)  The following table sets forth certain information regarding the beneficial
     ownership of Units as of February  16,  2001,  by holders of more than five
     percent (5%) of the Partnership's Units.

<TABLE>
<CAPTION>
                                                             Number of            Percent of
        Name                           Address                 Units                Class
        ----                           -------                 -----                -----
<S>                             <C>                          <C>                    <C>
Financial and Investment        417 St. Joseph Street
Management Group, Ltd.          P.O. Box 40                  1,715,762              17.16%
                                Suttins Bay, MI 49682
</TABLE>

(b)  The following table sets forth certain information regarding the beneficial
     ownership  of the  Partnership's  Units  as of  February  16,  2001 by each
     director  of the  General  Partner,  each  named  executive  officer of the
     General  Partner,  and by affiliates of the  Partnership.  Unless otherwise
     indicated,  each  Unitholder  has sole  voting  and  investment  power with
     respect to the Units beneficially owned.

                              Amount and Nature
                                  of Units                   Percentage of Units
Name                          Beneficially Owned                 Outstanding
----                          ------------------                 -----------
William B. Dockser                  5,000                             *
CRIIMI MAE                         12,045                             *

*    Less than 1%

(c)  There are no arrangements known to the Partnership,  the operation of which
     may  at  any  subsequent  date  result  in  a  change  in  control  of  the
     Partnership.


ITEM 13.    CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

(a)  Transactions with management and others.

     Note 7 of the Notes to Financial  Statements of the Partnership  contains a
     discussion of the amounts,  fees and other  compensation paid or accrued by
     the  Partnership  to the directors  and  executive  officers of the General
     Partner  and their  affiliates,  and is hereby  incorporated  by  reference
     herein.

(b)  Certain business relationships.

     Other  than  as set  forth  in  Item  11 of this  report  which  is  hereby
     incorporated  by  reference   herein,   the  Partnership  has  no  business
     relationship  with entities of which the General Partner of the Partnership
     are officers, directors or equity owners.

(c)  Indebtedness of management.

     None.

(d)  Transactions with promoters.

     Not applicable.

<PAGE>

                                     PART IV

ITEM 14.    EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K

         (a)(1)   Financial Statements:
<TABLE>
<CAPTION>
                                                                                                        Page
Description                                                                                            Number

<S>                                                                                                      <C>
Balance Sheets as of December 31, 2000 and 1999.......................................                   20

Statements of Income and Comprehensive Income for the years
     ended December 31, 2000, 1999 and 1998...........................................                   21

Statements of Changes in Partners' Equity for the years
     ended December 31, 2000, 1999 and 1998...........................................                   22

Statements of Cash Flows for the years ended December 31, 2000, 1999 and 1998.........                   23

Notes to Financial Statements.........................................................                   24

         (a)(2)   Financial Statement Schedules:

         IV - Mortgage Loans on Real Estate...........................................                   30
</TABLE>

         All other schedules have  been omitted  because they are  inapplicable,
         not  required,  or  the  information  is  included  in   the  Financial
         Statements or Notes thereto.

         (a)(3) Exhibits:

         4.0   Amended and  Restated  Certificates  of Limited  Partnership  are
               incorporated  by reference  to Exhibit  4(a) to the  Registration
               Statement  on Form S-11 (No.  33-6747)  dated June 25, 1986 (such
               Registration  Statement, as amended, is referred to herein as the
               "Registration Statement").

         4.1   Agreement of Limited  Partnership,  incorporated  by reference to
               Exhibit 3 to the Registration Statement.

         4.2   Form of Depository Receipt,  incorporated by reference to Exhibit
               4(b) to the Registration Statement.

         4.3   Amendment  to the  Amended  and  Restated  Agreement  of  Limited
               Partnership   of  the   Partnership   dated  February  12,  1990,
               incorporated  by reference  to Exhibit 4(c) to the  Partnership's
               Annual Report on Form 10-K for the year ended December 31, 1989.

         4.4   Amendments  to  Partnership  Agreement  dated  August  16,  1991,
               incorporated  by reference to Exhibit 28(c) to the  Partnership's
               Annual Report on Form 10-K for the year ended December 31, 1991.

         10.0  Origination and Acquisition  Services Agreement,  dated September
               1,  1983,  between  the  Partnership  and  IFI,  incorporated  by
               reference to Exhibit 10(b) to the registration  statement on Form
               S-11 (No.  2-85476)  dated  November 30, 1983 (such  registration
               statement,  as amended,  is  referred  to herein as the  "Initial
               Registration Statement").

         10.1  Management Services  Agreement,  dated November 30, 1983, between
               the  Partnership  and IFI,  incorporated  by reference to Exhibit
               10(c) to the Initial Registration Statement.

         10.2  Disposition Services Agreement,  dated November 30, 1983, between
               the  Partnership  and IFI,  incorporated  by reference to Exhibit
               10(d) to the Initial Registration Statement.

         10.3  Agreement,  dated  November 30, 1983,  among the former  managing
               general  partner,   the  former  associate  general  partner  and
               Integrated,  incorporated  by reference  to Exhibit  10(e) to the
               Initial Registration Statement.

         10.4  Reinvestment  Plan,  incorporated  by reference to the Prospectus
               contained in the Registration Statement.

         10.5  Mortgage Note dated March 26, 1986 between Mastic  Associates and
               IFI,   incorporated   by  reference  to  Exhibit   10(l)  to  the
               Partnership's  Annual  Report  on Form  10-K for the  year  ended
               December 31, 1986.

         10.6  Mortgage dated March 26, 1986 between Mastic  Associates and IFI,
               incorporated  by reference to Exhibit 10(m) to the  Partnership's
               Annual Report on Form 10-K for the year ended December 31, 1986.

         10.7  Mortgagor/Mortgagee Agreement dated March 26, 1986 between Mastic
               Associates and IFI, incorporated by reference to Exhibit 10(n) to
               the  Partnership's  Annual Report on Form 10-K for the year ended
               December 31, 1986.

         10.8  Lease  Agreement  dated as of December  10, 1984 between NHP Land
               Associates,   as  Landlord  and  Mastic  Associates,  as  Tenant,
               incorporated  by reference to Exhibit 10(o) to the  Partnership's
               Annual Report on Form 10-K for the year ended December 31, 1986.

         10.9  Purchase  Agreement  among AIM  Acquisition,  the former managing
               general partner,  the former corporate  general partner,  IFI and
               Integrated  dated as of December 1, 1990,  as amended  January 9,
               1991,   incorporated   by  reference  to  Exhibit  28(a)  to  the
               Partnership's  Annual  Report  on Form  10-K for the  year  ended
               December 31, 1990.

         10.10 Purchase  Agreement  among CRIIMI,  Inc.,  AIM  Acquisition,  the
               former managing  general partner,  the former  corporate  general
               partner,  IFI and  Integrated  dated as of December  13, 1990 and
               executed as of  September 6, 1991,  incorporated  by reference to
               Exhibit 28(b) to the Partnership's Annual Report on Form 10-K for
               the year ended December 31, 1990.

         10.11 Sub-Management  Agreement  by and  between  AIM  Acquisition  and
               CRI/AIM Management,  Inc. dated as of March 1, 1991, incorporated
               by reference to Exhibit 28(d) to the Partnership's  Annual Report
               on Form 10-K for the year ended December 31, 1992.


     (b)  Reports on Form 8-K filed  during the last quarter of the fiscal year:
            None


               All other items are not applicable.
<PAGE>
                                     PART IV
                                   SIGNATURES

          Pursuant to the  requirements of Section 13 or 15(d) of the Securities
     Exchange Act of 1934,  Registrant  has duly caused this Report to be signed
     on its  behalf by the  undersigned,  thereunto  duly  authorized.

                                                       AMERICAN INSURED MORTGAGE
                                                         INVESTORS (Registrant)

                                                       By:    CRIIMI, Inc.
                                                              General Partner


/s/ March 12, 2001                              /s/ William B. Dockser
------------------                              ----------------------
DATE                                            William B. Dockser
                                                Chairman of the Board


/s/ March 08, 2001                              /s/ H. William Willoughby
------------------                              -------------------------
DATE                                            H. William Willoughby
                                                President and Secretary


/s/ March 26, 2001                             /s/ Cynthia O. Azzara
------------------                             ---------------------
DATE                                           Cynthia O. Azzara
                                               Senior Vice President,
                                               Chief Financial Officer and
                                               Treasurer


/s/ March 07, 2001                             /s/ Garrett G. Carlson, Sr.
------------------                             ---------------------------
DATE                                           Garrett G. Carlson, Sr.
                                               Director


/s/ March 12, 2001                             /s/ G. Richard Dunnells
------------------                             -----------------------
DATE                                           G. Richard Dunnells
                                               Director


/s/ March 08, 2001                             /s/ Robert J. Merrick
------------------                             ---------------------
DATE                                           Robert J. Merrick
                                               Director


/s/ March 09, 2001                             /s/ Robert E. Woods
------------------                             -------------------
DATE                                           Robert E. Woods
                                               Director

<PAGE>







                       AMERICAN INSURED MORTGAGE INVESTORS



                              Financial Statements

                        as of December 31, 2000 and 1999

                             and for the Years Ended

                        December 31, 2000, 1999, and 1998



<PAGE>

                    REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS


To the Partners of American Insured Mortgage Investors:

     We have  audited  the  accompanying  balance  sheets  of  American  Insured
Mortgage Investors (the "Partnership") as of December 31, 2000 and 1999, and the
related  statements  of income and  comprehensive  income,  changes in partners'
equity and cash flows for the years  ended  December  31,  2000,  1999 and 1998.
These  financial   statements  and  the  schedule  referred  to  below  are  the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial statements and the schedule based on our audits.

     We conducted our audits in accordance  with  auditing  standards  generally
accepted in the United States.  Those standards require that we plan and perform
the audit to obtain reasonable  assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.  An
audit also includes  assessing the accounting  principles  used and  significant
estimates  made by  management,  as well as  evaluating  the  overall  financial
statement  presentation.  We believe that our audits provide a reasonable  basis
for our opinion.

     In our opinion,  the financial statements referred to above present fairly,
in all  material  respects,  the  financial  position of the  Partnership  as of
December 31, 2000 and 1999, and the results of its operations and its cash flows
for the years  ended  December  31,  2000,  1999 and 1998,  in  conformity  with
accounting principles generally accepted in the United States.

     Our  audits  were made for the  purpose  of forming an opinion on the basic
financial statements taken as a whole. Schedule IV-Mortgage Loans on Real Estate
as of  December  31,  2000 is  presented  for  purposes  of  complying  with the
Securities and Exchange Commission's rules and regulations and is not a required
part of the basic  financial  statements.  The  information in this schedule has
been  subjected  to the auditing  procedures  applied in our audits of the basic
financial  statements  and, in our  opinion,  is fairly  stated in all  material
respects in relation to the basic financial statements taken as a whole.



Arthur Andersen LLP
Vienna, Virginia
February 23, 2001

<PAGE>



                       AMERICAN INSURED MORTGAGE INVESTORS

                                 BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                    December 31,      December 31,
                                                                       2000              1999
                                                                    ------------     -------------

                                     ASSETS

<S>                                                                 <C>               <C>
Investment in FHA-Insured Loans, at amortized cost,
  net of unamortized discount:
    Originated insured mortgages                                    $  4,874,050      $  4,936,416
    Acquired insured mortgages                                         7,723,048         7,814,612
                                                                    ------------      ------------

                                                                      12,597,098        12,751,028

Investment in FHA-Insured Certificates,
  at fair value                                                       11,258,675        12,468,348

Cash and cash equivalents                                                567,491           982,930

Receivables and other assets                                             203,781           213,468

Due from affiliate                                                     1,230,180                 -
                                                                    ------------      ------------

      Total assets                                                  $ 25,857,225      $ 26,415,774
                                                                    ============      ============



                        LIABILITIES AND PARTNERS' EQUITY

Distributions payable                                               $    514,940      $    926,891

Accounts payable and accrued expenses                                     71,763            67,190
                                                                    ------------      ------------

      Total liabilities                                                  586,703           994,081
                                                                    ------------      ------------

Partners' equity:
  Limited partners' equity, 10,000,125 Units authorized,
    issued and outstanding                                            28,817,932        28,865,520
  General partner's deficit                                           (5,258,151)       (5,256,730)
  Accumulated other comprehensive income                               1,710,741         1,812,903
                                                                    ------------      ------------

      Total partners' equity                                          25,270,522        25,421,693
                                                                    ------------      ------------

      Total liabilities and partners' equity                        $ 25,857,225      $ 26,415,774
                                                                    ============      ============
</TABLE>




                   The accompanying notes are an integral part
                         of these financial statements.
<PAGE>

                       AMERICAN INSURED MORTGAGE INVESTORS

                  STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

<TABLE>
<CAPTION>
                                                             For the years ended December 31,
                                                         2000              1999              1998
                                                      -----------       -----------       -----------

<S>                                                   <C>               <C>               <C>
Income:
  Mortgage investment income                          $ 2,264,907       $ 2,325,545       $ 2,987,164
  Interest and other income                                13,933            28,431           204,152
                                                      -----------       -----------       -----------

                                                        2,278,840         2,353,976         3,191,316
                                                      -----------       -----------       -----------

Expenses:
  Asset management fee to related parties                 237,264           240,997           319,794
  General and administrative                              219,282           255,145           183,621
                                                      -----------       -----------       -----------

                                                          456,546           496,142           503,415
                                                      -----------       -----------       -----------

Earnings before mortgage dispositions                   1,822,294         1,857,834         2,687,901

Gains on mortgage dispositions                            188,455            67,150         1,290,352
                                                      -----------       -----------       -----------

     Net earnings                                     $ 2,010,749       $ 1,924,984       $ 3,978,253
                                                      ===========       ===========       ===========

Other comprehensive loss                                 (102,162)         (545,617)         (603,504)
                                                      -----------       -----------       -----------
Comprehensive income                                  $ 1,908,587       $ 1,379,367       $ 3,374,749
                                                      ===========       ===========       ===========


Net earnings allocated to:
  Limited partners - 97.1%                            $ 1,952,437       $ 1,869,159       $ 3,862,884
  General partner -   2.9%                                 58,312            55,825           115,369
                                                      -----------       -----------       -----------

                                                      $ 2,010,749       $ 1,924,984       $ 3,978,253
                                                      ===========       ===========       ===========

Net earnings per Limited Partnership Unit - Basic     $      0.20       $      0.19       $      0.39
                                                      ===========       ===========       ===========
</TABLE>
<PAGE>

                       AMERICAN INSURED MORTGAGE INVESTORS

                    STATEMENTS OF CHANGES IN PARTNERS' EQUITY

              For the years ended December 31, 2000, 1999, and 1998
<TABLE>
<CAPTION>
                                                                                         Accumulated
                                                                                            Other            Total
                                                         General          Limited       Comprehensive       Partners'
                                                         Partner          Partners          Income           Equity
                                                       ------------     ------------     ------------     ------------
<S>                                                    <C>              <C>              <C>              <C>
Balance, January 1, 1998                               $ (4,935,128)    $ 39,633,683     $  2,962,024     $ 37,660,579

Net Earnings                                                115,369        3,862,884                -        3,978,253

  Adjustment to unrealized gains on
     investments in insured mortgages                             -                -         (603,504)        (603,504)
  Distributions paid or accrued of $1.29 per Unit,
     including return of capital of $0.90 per Unit         (385,277)     (12,900,161)              -       (13,285,438)
                                                       ------------     ------------     ------------     ------------

Balance, December 31, 1998                               (5,205,036)      30,596,406        2,358,520       27,749,890

Net Earnings                                                 55,825        1,869,159                -        1,924,984

  Adjustment to unrealized gains on
     investments in insured mortgages                             -                -         (545,617)        (545,617)
  Distributions paid or accrued of $0.36 per Unit,
     including return of capital of $0.17 per Unit         (107,519)      (3,600,045)              -        (3,707,564)
                                                       ------------     ------------     ------------     ------------

Balance, December 31, 1999                               (5,256,730)      28,865,520        1,812,903       25,421,693

Net Earnings                                                 58,312        1,952,437                -        2,010,749

  Adjustment to unrealized gains on
     investments in insured mortgages                             -                -         (102,162)        (102,162)
  Distributions paid or accrued of $0.20 per Unit,
     including return of capital of $0 per Unit             (59,733)      (2,000,025)              -        (2,059,758)
                                                       ------------     ------------     ------------     ------------

Balance, December 31, 2000                             $ (5,258,151)    $ 28,817,932      $  1,710,741     $ 25,270,522
                                                       ============     ============      ============     ============

Limited Partnership Units outstanding - Basic, as of
    December 31, 2000, 1999, and 1998                                     10,000,125
                                                                          ==========
</TABLE>

                   The accompanying notes are an integral part
                         of these financial statements.
<PAGE>

                       AMERICAN INSURED MORTGAGE INVESTORS

                            STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
                                                                                             For the years ended December 31,
                                                                                           2000            1999           1998
                                                                                       ------------    ------------    ------------
<S>                                                                                    <C>             <C>             <C>
Cash flows from operating activities:
   Net earnings                                                                        $  2,010,749    $  1,924,984    $  3,978,253
   Adjustments to reconcile net earnings to net cash provided by
      operating activities:
      Gains on mortgage dispositions                                                       (188,455)        (67,150)     (1,290,352)
      Changes in assets and liabilities:
         (Increase) decrease in due from affiliate, receivables and other assets            (50,797)         65,834         117,899
         Increase (decrease) in accounts payable and accrued expenses                         4,573           9,130          (8,422)
                                                                                       ------------    ------------    ------------

            Net cash provided by operating activities                                     1,776,070       1,932,798       2,797,378
                                                                                       ------------    ------------    ------------

Cash flows from investing activities:
   Proceeds from disposition of mortgages                                                         -         383,582      10,195,241
   Debenture proceeds received from affiliate                                                     -       1,148,049              -
   Receipt of mortgage principal from scheduled payments                                    280,200         267,690         269,339
                                                                                       ------------    ------------    ------------

            Net cash provided by investing activities                                       280,200       1,799,321      10,464,580
                                                                                       ------------    ------------    ------------

Cash flows from financing activities:
   Distributions paid to partners                                                        (2,471,709)     (3,707,564)    (13,182,450)
                                                                                       ------------    ------------    ------------

Net (decrease) increase in cash and cash equivalents                                       (415,439)         24,555          79,508
                                                                                       ------------    ------------    ------------

Cash and cash equivalents, beginning of year                                                982,930         958,375         878,867
                                                                                       ------------    ------------    ------------

Cash and cash equivalents, end of year                                                 $    567,491    $    982,930    $    958,375
                                                                                       ============    ============    ============


Non cash investing activity:
   50% share of debenture received from HUD in exchange for the                        $          -    $          -    $  1,148,049
   mortgage on Portervillage I Apartments (Debenture is held by
   an affiliate, AIM 85)

   50% share of debenture received from HUD in exchange for the                           1,192,617               -               -
   mortgage on Fox Run Apartments (Debenture is held by
   an affiliate, AIM 85)
</TABLE>


                   The accompanying notes are an integral part
                         of these financial statements.

<PAGE>

                       AMERICAN INSURED MORTGAGE INVESTORS

                          NOTES TO FINANCIAL STATEMENTS


1.   ORGANIZATION

     American Insured Mortgage  Investors (the  "Partnership")  was formed under
the Uniform Limited Partnership Act in the state of California on July 12, 1983.

     CRIIMI,  Inc. (the "General Partner") holds a partnership  interest of 2.9%
and is a wholly  owned  subsidiary  of  CRIIMI  MAE  Inc.  ("CRIIMI  MAE").  AIM
Acquisition  Partners  L.P.  (the  "Advisor")  serves  as  the  advisor  to  the
Partnership.  The general partner of the Advisor is AIM Acquisition  Corporation
("AIM  Acquisition") and the limited partners  include,  but are not limited to,
AIM  Acquisition,  The Goldman  Sachs  Group,  L.P.,  Sun  America  Investments,
Inc.(successor  to Broad,  Inc.) and CRI/AIM  Investment,  L.P., an affiliate of
CRIIMI MAE. AIM Acquisition is a Delaware corporation that is primarily owned by
Sun America Investments, Inc. and The Goldman Sachs Group, L.P.

     Under the  Advisory  Agreement,  the Advisor  will  render  services to the
Partnership,  including but not limited to, the management of the  Partnership's
portfolio of mortgages and the disposition of the Partnership's mortgages.  Such
services  will be subject to the review and  ultimate  authority  of the General
Partner.  However, the General Partner is required to receive the consent of the
Advisor prior to taking certain significant  actions,  including but not limited
to the  disposition of mortgages,  any transaction or agreement with the General
Partner,  or its  affiliates,  or any material  change as to policies  regarding
distributions  or  reserves of the  Partnership.  The  Advisor is  permitted  to
delegate the performance of services  pursuant to a sub-advisory  agreement (the
"Sub-Advisory Agreement").  The delegation of such services will not relieve the
Advisor of its obligation to perform such services.  CRIIMI MAE Services Limited
Partnership  ("CMSLP"),  an affiliate of CRIIMI MAE,  manages the  Partnership's
portfolio,  pursuant to the Sub-Advisory Agreement. The general partner of CMSLP
is CRIIMI MAE Services, Inc., an affiliate of CRIIMI MAE.

     Prior  to  the  expiration  of the  Partnership's  reinvestment  period  in
November  1988,  the  Partnership  was engaged in the  business  of  originating
mortgage loans  ("Originated  Insured  Mortgages") and acquiring  mortgage loans
("Acquired  Insured  Mortgages" and, together with Originated Insured Mortgages,
referred to herein as "Insured Mortgages").  In accordance with the terms of the
partnership  agreement,  the Partnership is no longer authorized to originate or
acquire Insured Mortgages and, consequently,  its primary objective is to manage
its  portfolio of mortgage  investments,  all of which are insured under Section
221(d)(4) or Section 231 of the National Housing Act. The partnership  agreement
states  that the  Partnership  will  terminate  on  December  31,  2008,  unless
previously terminated under the provisions of the partnership agreement.

     On October 5, 1998,  CRIIMI  MAE,  the parent of the General  Partner,  and
CRIIMI  MAE  Management,  Inc.,  an  affiliate  of CRIIMI  MAE and  provider  of
personnel  and  administrative  services  to the  Partnership,  filed  voluntary
petitions for relief under chapter 11 of title 11 of the United States Code (the
"Bankruptcy  Code").  Such  bankruptcy  filings could result in certain  adverse
effects to the Partnership.  For example, as a debtor-in-possession,  CRIIMI MAE
will not be permitted to provide any available capital to the General Partner or
to the general partner of CMSLP, the Partnership's sub-advisor, without approval
from the Bankruptcy Court. Even though this restriction or potential loss of the
availability of a potential  capital resource could adversely affect the General
Partner  and the  Partnership,  CRIIMI MAE has not  historically  represented  a
significant  source of capital for the General Partner or the Partnership.  Such
bankruptcy filings could also result in the potential need to replace CRIIMI MAE
Management,  Inc. as a provider of personnel and administrative  services to the
Partnership.

     On November 22, 2000, the United States  Bankruptcy  Court for the District
of Maryland,  in Greenbelt,  Maryland (the "Bankruptcy  Court") confirmed CRIIMI
MAE's  and  CRIIMI  MAE   Management,   Inc.'s  Third   Amended  Joint  Plan  of
Reorganization  (as  amended  and  supplemented  by  praecipes  filed  with  the
Bankruptcy  Court on July 13, 14 and 21, and  November  22,  2000,  the "Plan").
CRIIMI MAE is working to complete the debt documentation, evidencing the secured
financings to be provided by (1) the unsecured creditors,  and (2) Merrill Lynch
Mortgage Capital, Inc. and German American Capital Corporation (collectively the
"New Debt  Documents").  On March 9, 2001,  the  Bankruptcy  Court  approved  an
extension of the date by which the Plan must be effective to April 13, 2001. The
Official  Committee of Unsecured  Creditors had previously filed its own plan of
reorganization and proposed disclosure  statement,  but has asked the Bankruptcy
Court, subject to completion of mutually acceptable debt documentation, to defer
consideration  of its plan and proposed  disclosure  statement.  There can be no
assurance  at this time that  CRIIMI MAE will be able to  complete  the New Debt
Documents and effectuate the Plan by April 13, 2001.



2.   SIGNIFICANT ACCOUNTING POLICIES

Method of Accounting
--------------------

     The Partnership's financial statements are prepared on the accrual basis of
accounting in accordance  with generally  accepted  accounting  principles.  The
preparation  of financial  statements  in  conformity  with  generally  accepted
accounting principles requires management to make estimates and assumptions that
affect  the  reported  amounts  of  assets  and  liabilities  at the date of the
financial  statements and the reported  amounts of revenues and expenses  during
the reporting period. Actual results could differ from those estimates.

Investment in Insured Mortgages
-------------------------------

     The   Partnership's   investment  in  Insured  Mortgages  is  comprised  of
FHA-insured mortgage loans ("FHA-Insured Loans") and participation  certificates
evidencing  a  100%  undivided   beneficial   interest  in  government   insured
multifamily mortgages issued or sold pursuant to programs of the Federal Housing
Administration  ("FHA") ("FHA-Insured  Certificates").  The mortgages underlying
the FHA-Insured  Certificates and FHA-Insured Loans are non-recourse first liens
on multifamily residential developments.

     Payment  of  principal  and  interest  on  FHA-Insured   Certificates   and
FHA-Insured  Loans is insured by the United  States  Department  of Housing  and
Urban Development ("HUD") pursuant to Title 2 of the National Housing Act.

     As of  December  31,  2000,  the  weighted  average  remaining  term of the
Partnership's investments in FHA-Insured Certificates is approximately 21 years.
However, the partnership agreement states that the Partnership will terminate in
approximately 8 years, on December 31, 2008, unless previously  terminated under
the provisions of the partnership  agreement.  As the Partnership is anticipated
to terminate  prior to the weighted  average  remaining term of its  FHA-Insured
Certificates, the Partnership does not have the ability or intent, at this time,
to hold  these  investments  to  maturity.  Consequently,  the  General  Partner
believes that the Partnership's  FHA-Insured  Certificates should be included in
the  available  for  sale  category.   Although  the  Partnership's  FHA-Insured
Certificates  are  classified  as  available  for sale for  financial  statement
purposes,  the General Partner does not intend to voluntarily  sell these assets
other than those  which may be sold as a result of a default or those  which are
eligible  to be put to FHA at the  expiration  of 20 years  from the date of the
final endorsement under section 221 program of the National Housing Act of 1937,
as discussed below.

     In connection with this  classification,  as of December 31, 2000 and 1999,
all of the Partnership's investments in FHA-Insured Certificates are recorded at
fair  value,  with the net  unrealized  gains and  losses  on these  investments
reported as other comprehensive  income and as a separate component of partners'
equity.  Subsequent  increases  or  decreases  in the fair value of  FHA-Insured
Certificates  classified  as  available  for sale will be included as a separate
component  of  partners'  equity.  Realized  gains  and  losses  on  FHA-Insured
Certificates  classified  as available  for sale will continue to be reported in
earnings. The amortized cost of the investments in this category is adjusted for
amortization of discounts to maturity. Such amortization is included in mortgage
investment income.

     Most of the Insured  Mortgages held by the Partnership apply to the Section
221 program of the National  Housing Act of 1937, as amended,  (the "Section 221
program").  Under the Section 221 program a mortgagee  has the right to assign a
mortgage  ("put")  to FHA at the  expiration  of 20 years from the date of final
endorsement  if the  mortgage  is not in  default at such  time.  Any  mortgagee
electing  to assign an  FHA-insured  mortgage to FHA will  receive,  in exchange
therefor, HUD debentures having a total face value equal to the then outstanding
principal balance of the FHA-insured  mortgage plus accrued interest to the date
of  assignment.  These HUD  debentures  will  mature  10 years  from the date of
assignment and will bear interest at the "going Federal rate" at such date. This
assignment  procedure is applicable to an insured  mortgage  which had a firm or
conditional  FHA  commitment  for insurance on or before  November 30, 1983. The
Partnership  anticipates  that  each  eligible  insured  mortgage,  for  which a
prepayment has not occurred and which has not been sold, will be assigned to FHA
at  the  expiration  of 20  years  from  the  date  of  final  endorsement.  The
Partnership,  therefore,  does  not  anticipate  holding  any  eligible  insured
mortgage  beyond  the  expiration  of 20 years from  final  endorsement  of that
insured  mortgage.  The  Partnership  has  initiated  its  request  to put these
mortgages to FHA as they become due.

     As of  December  31,  2000 and 1999,  Investment  in  FHA-Insured  Loans is
recorded at amortized cost.

     Gains from  dispositions  of mortgage  investments  are recognized upon the
receipt of cash or debentures.

     Losses on  dispositions  of mortgage  investments  are  recognized  when it
becomes  probable that a mortgage  will be disposed of and that the  disposition
will result in a loss. In the case of Originated Insured Mortgages fully insured
by HUD, the Partnership's  maximum exposure for purposes of determining the loan
losses  would  generally  be an  assignment  fee  charged  by  HUD  representing
approximately  1% of the  unpaid  principal  balance of the  Originated  Insured
Mortgage at the date of default,  plus the  unamortized  balance of  acquisition
fees and closing costs paid in connection with the acquisition of the Originated
Insured Mortgage and the loss of 30 days accrued interest.

     Since  Acquired  Insured  Mortgages  were  purchased at a discount from the
unpaid principal balance of the mortgage,  the  Partnership's  investment in the
Acquired Insured  Mortgages is less than the amount that would be recovered from
HUD in the event of a default.  Therefore,  the Partnership  would experience no
loan losses on discounted Acquired Insured Mortgages in the case of a default.

Due from Affiliate
------------------

     From time to time, the Partnership  assigns defaulted loans to HUD in order
to  collect  the amount of  delinquent  principal  and  interest.  In  addition,
mortgages are assigned to HUD under the Section 221 program, as discussed above.
HUD  determines  if the claim  will be  settled  in cash or by the  issuance  of
debentures.  Debentures are obligations of the mortgage  insurance funds and are
unconditionally  guaranteed by the United States. The term of the debentures are
usually  more than 9 years and the rate is set based  upon the rate in effect at
the  commitment  date to provide  insurance  or at the final  endorsement  date,
whichever  is  greater.  AIM 84  classifies  its  portion of  investment  in FHA
debenture  as  available  for sale debt  securities  with  changes in fair value
recorded  as an  adjustment  to  equity  and  other  comprehensive  income.  The
Partnership's  investment  in FHA  debenture is included on the balance sheet in
Due from affiliate, as discussed in Note 5.

Cash and Cash Equivalents
-------------------------

     Cash and cash equivalents consist of time and demand deposits with original
maturities of three months or less.

Income Taxes
------------

     No provision has been made for Federal,  state or local income taxes in the
accompanying  statements of income and  comprehensive  income since they are the
responsibility of the Unitholders.

Statements of Cash Flows
------------------------

     No cash  payments  were made for  interest  expense  during the years ended
December  31,  2000,  1999 and 1998.  Since  the  statements  of cash  flows are
intended to reflect only cash receipt and cash payment activity,  the statements
of cash flows do not reflect operating  activities that affect recognized assets
and liabilities while not resulting in cash receipts or cash payments.


3.   FAIR VALUE OF FINANCIAL INSTRUMENTS

     The  following  estimated  fair  values  of  the  Partnership's   financial
instruments  are  presented in accordance  with  generally  accepted  accounting
principles which define fair value as the amount at which a financial instrument
could be exchanged in a current transaction between willing parties,  other than
in a forced or liquidation  sale. These estimated fair values,  however,  do not
represent the liquidation value or the market value of the Partnership.

<TABLE>
<CAPTION>
                                            As of December 31, 2000            As of December 31, 1999
                                         Amortized Cost     Fair Value      Amortized Cost     Fair Value
                                         --------------    ------------     --------------    ------------
<S>                                       <C>              <C>               <C>              <C>
Investment in FHA-Insured
   Loans:
   Originated Insured Mortgage            $  4,874,050     $  4,551,832      $  4,936,416     $  4,496,672
   Acquired Insured Mortgages                7,723,048        9,670,976         7,814,612        9,719,059
                                          ------------     ------------      ------------     ------------

                                          $ 12,597,098     $ 14,222,808      $ 12,751,028     $ 14,215,731
                                          ============     ============      ============     ============

Investment in FHA-Insured
   Certificates                           $  9,536,007     $ 11,258,675      $ 10,655,445     $ 12,468,348
                                          ============     ============      ============     ============

Cash and cash equivalents                 $    567,491     $    567,491      $    982,930     $    982,930

Accrued interest receivable               $    229,352     $    229,352      $    190,403     $    190,403

FHA Debenture due from affiliate          $  1,192,617     $  1,180,690      $          -     $          -
</TABLE>

The following  methods and  assumptions  were used to estimate the fair value of
each class of financial instrument:

Investment in FHA-Insured Certificates,
FHA-Insured Loans and FHA debenture due from affiliate
------------------------------------------------------

     The  fair  value  of the  FHA-Insured  Certificates,  GNMA  Mortgage-Backed
Securities and FHA-Insured  Loans is priced  internally.  The Partnership used a
discounted cash flow methodology to estimate the fair value; the cash flows were
discounted  using  a  discount  rate  that,  in  the  Partnership's   view,  was
commensurate  with the market's  perception of risk and value.  The  Partnership
used a variety  of  sources  to  determine  its  discount  rate  including:  (i)
institutionally-available research reports, (ii) a relative comparison of dealer
provided  quotes from the previous  year to those  disclosed in recent  research
reports and  incorporating  adjustments  to reflect  changes in the market,  and
(iii) communications with dealers and active insured mortgage security investors
regarding  the  valuation of  comparable  securities.  The fair value of the FHA
Debenture is based upon the prices of other comparable  securities that trade in
the market.

Cash and cash equivalents and accrued interest receivable
---------------------------------------------------------

     The carrying amount  approximates  fair value because of the short maturity
of these instruments.


4.   COMPREHENSIVE INCOME

     Comprehensive  Income  includes net  earnings as currently  reported by the
Partnership adjusted for other comprehensive  income. Other comprehensive income
for the Partnership  consists of changes in unrealized  gains and losses related
to the  Partnership's  mortgages  and  debenture  accounted for as available for
sale.  The table  below  breaks out other  comprehensive  income for the periods
presented into the following two categories:  (1) the change to unrealized gains
and losses that  relate to  mortgages  which were  disposed of during the period
with  the   resulting   realized   gain  or  loss   reflected  in  net  earnings
(reclassification adjustments) and (2) the change in the unrealized gain or loss
related to those investments that were not disposed of during the period.

<TABLE>
<CAPTION>
                                                        2000             1999             1998
                                                        ----             ----             ----

<S>                                                 <C>              <C>              <C>
Reclassification adjustment for gains
   included in net income                           $ (161,707)      $  (67,656)      $       --
Unrealized holding gains (losses) arising
   during the period                                    59,545         (477,961)        (603,504)
                                                    ----------       ----------       ----------

Net adjustment to unrealized losses                 $ (102,162)      $ (545,617)      $ (603,504)
                                                    ==========       ==========       ==========
</TABLE>


5.   INVESTMENT IN FHA-INSURED LOANS

     Listed below is the Partnership's aggregate investment in FHA-Insured Loans
as of December 31, 2000 and 1999:
<TABLE>
<CAPTION>
                                                                            December 31,
                                                                   2000                     1999
                                                                   ----                     ----
<S>                                                            <C>                      <C>
Number of
  Acquired Insured Mortgages                                              3                        3
  Originated Insured Mortgage                                             1                        1
Amortized Cost                                                 $ 12,597,098             $ 12,751,028
Face Value                                                       14,694,371               14,941,299
Fair Value                                                       14,222,808               14,215,731
</TABLE>

     All of the  FHA-Insured  Loans were  current with respect to the payment of
principal and interest as of February 16, 2001.

     In addition to base  interest  payments  received from  Originated  Insured
Mortgages,  the  Partnership  is  entitled  to  additional  interest  based on a
percentage of the net cash flow from the underlying  development  and of the net
proceeds  from the  refinancing,  sale or other  disposition  of the  underlying
development (referred to as  "Participations").  During the years ended December
31,  2000,  1999  and  1998,  the  Partnership  received  $0,  $0  and  $52,526,
respectively,  from the  Participations.  These amounts, if any, are included in
mortgage  investment  income  on  the  accompanying  statements  of  income  and
comprehensive income.


6.    INVESTMENT IN FHA-INSURED CERTIFICATES

     Listed  below is the  Partnership's  aggregate  investment  in  FHA-Insured
Certificates as of December 31, 2000 and 1999:
<TABLE>
<CAPTION>
                                                                            December 31,
                                                                    2000                     1999
                                                                    ----                     ----

<S>                                                            <C>                      <C>
Number of mortgages (1)                                                   7                        8
Amortized Cost                                                 $  9,536,007             $ 10,655,445
Face Value                                                       11,433,137               12,835,126
Fair Value                                                       11,258,675               12,468,348
</TABLE>

(1)  In December  2000, HUD issued  assignment  proceeds in the form of a 7.125%
     debenture for the mortgage on Fox Run  Apartments.  This mortgage was owned
     50% by AIM 84 and 50% by an affiliate of the Partnership,  American Insured
     Investors - Series 85, L.P. (AIM 85). The  debenture,  with a face value of
     $2,385,233  and a fair value of  $2,361,381,  was issued to AIM 85 and will
     earn  interest  semi-annually  on  January  1 and July 1.  The  Partnership
     expects to receive  net  proceeds  of  approximately  $1.2  million and has
     recognized a gain of approximately $188,000 for the year ended December 31,
     2000.  The net  proceeds  and accrued  interest are included on the Balance
     Sheet in Due from  affiliate.  In general,  AIM 85 will hold the  debenture
     until its  maturity  date of June 1, 2010 or when called,  whichever  comes
     first. A  distribution  will be declared at that time. The servicer of this
     mortgage filed an application for insurance  benefits under the Section 221
     program in May 2000.

     All of the  FHA-Insured  Certificates  were  current  with  respect  to the
payment of principal and interest as of February 16, 2001.

7.   TRANSACTIONS WITH RELATED PARTIES

     The principal  officers of the General Partner for the years ended December
31,  2000,  1999 and 1998 did not  receive  fees for  serving as officers of the
General  Partner,  nor are any fees  expected to be paid to the  officers in the
future.

     The General Partner, CMSLP and certain affiliated entities have, during the
years ended December 31, 2000, 1999 and 1998, earned or received compensation or
payments for services from the Partnership as follows:

<TABLE>
<CAPTION>
                 COMPENSATION PAID OR ACCRUED TO RELATED PARTIES
                 -----------------------------------------------
                                                                                  For the year ended December 31,
Name of Recipient                    Capacity in Which Served/Item               2000          1999           1998
-----------------                    -----------------------------               ----          ----           ----
<S>          <C>                                                             <C>           <C>            <C>
CRIIMI, Inc. (1)                     General Partner/Distribution            $   59,733    $  107,519     $  385,277

AIM Acquisition Partners, L.P.(2)    Advisor/Asset Management Fee               237,264       240,997        319,794

CRIIMI MAE Management, Inc.          Affiliate of General Partner/Expense        38,782        37,347         40,569

American Insured Mortgage            Affiliate of General Partner/
  Investors L.P. - Series 85           Reimbursement of Debenture
                                       Proceeds                               1,192,617            --      1,148,049
</TABLE>

(1)  The General Partner,  pursuant to amendments to the partnership  agreement,
     effective   September  6,  1991,   is  entitled  to  receive  2.9%  of  the
     Partnership's income, loss, capital and distributions,  including,  without
     limitation, the Partnership's adjusted cash from operations and proceeds of
     mortgage   prepayments,   sales  or  insurance  (both  as  defined  in  the
     partnership agreement).
(2)  The Advisor,  pursuant to the partnership  agreement,  effective October 1,
     1991,  is  entitled  to an  Asset  Management  Fee  equal to 0.95% of Total
     Invested  Assets  (as  defined  in the  partnership  agreement).  CMSLP  is
     entitled  to a fee  equal  to  0.28%  of  Total  Invested  Assets  from the
     Advisor's Asset  Management Fee. Of the amounts paid to the Advisor,  CMSLP
     earned a fee equal to  $69,924,  $71,024,  and  $94,245 for the years ended
     December  31, 2000,  1999 and 1998,  respectively.  The limited  partner of
     CMSLP is a wholly  owned  subsidiary  of CRIIMI  MAE Inc.  which  filed for
     protection under Chapter 11 of the U.S. Bankruptcy Code.

8.   DISTRIBUTIONS TO UNITHOLDERS

     The  distributions  paid or accrued to  Unitholders on a per Unit basis for
the years ended December 31, 2000, 1999 and 1998 are as follows:

Quarter Ended                        2000             1999             1998
-------------                      ------           ------           ------
March 31                           $ 0.05           $ 0.17 (1)       $ 0.07
June 30                              0.05             0.05             0.07
September 30                         0.05             0.05             1.06 (3)
December 31                          0.05             0.09 (2)         0.09
                                   ------           ------           ------

                                   $ 0.20           $ 0.36           $ 1.29
                                   ======           ======           ======

(1)  This amount  includes  approximately  $0.12 per Unit due to  redemption  of
     debentures  received from the assignment of the mortgage on Portervillage I
     Apartments.  This amount was received from an affiliate of the Partnership,
     American  Insured  Mortgage  Investors  - Series 85, L.P.  ("AIM 85").  The
     debenture  was issued to AIM 85,  since the  mortgage  on  Portervillage  I
     Apartments was owned 50% by the Partnership and 50% by AIM 85.

(2)  This amount includes approximately $0.04 per Unit representing net proceeds
     from prepayment of the mortgage on Lakeside Apartments.

(3)  This amount includes approximately $0.99 per Unit representing net proceeds
     from the prepayment of the mortgage on Water's Edge Apartments.

     The basis for paying  distributions  to  Unitholders  is net proceeds  from
mortgage  dispositions,  if any, and cash flow from  operations,  which includes
regular interest income and principal from Insured  Mortgages.  Although Insured
Mortgages  yield a fixed  monthly  mortgage  payment  once  purchased,  the cash
distributions  paid to the Unitholders will vary during each year due to (1) the
fluctuating  yields in the  short-term  money market where the monthly  mortgage
payment  receipts  are  temporarily  invested  prior to the payment of quarterly
distributions,  (2) the  reduction  in the asset  base  resulting  from  monthly
mortgage payments received or mortgage dispositions,  (3) variations in the cash
flow  attributable  to the  delinquency  or  default of  Insured  Mortgages  and
professional  fees and  foreclosure  costs  incurred  in  connection  with those
Insured Mortgages and (4) variations in the Partnership's operating expenses.

9.   PARTNERS' EQUITY

     Depositary  Units  representing  economic  rights  in  limited  partnership
interests  ("Units") were issued at a stated value of $20. A total of 10,000,000
Units were issued for an aggregate  capital  contribution  of  $200,000,000.  In
addition,  the initial limited partner  contributed $2,500 to the capital of the
Partnership and received 125 Units in exchange therefor.


10.  SUMMARY OF QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

     The following is a summary of unaudited quarterly results of operations for
the years ended December 31, 2000, 1999 and 1998:

     (In Thousands, Except Per Unit Data)
<TABLE>
<CAPTION>
                                                                              2000
                                                                          Quarter ended
                                                      March 31        June 30       September 30    December 31
                                                      --------        -------       ------------    -----------

<S>                                                  <C>             <C>             <C>             <C>
Income                                               $     574       $     571       $     569       $     565
Net earnings                                               453             452             456             650
Gain on mortgage dispositions                               --              --              --             188
Net earnings per Limited Partnership Unit - Basic    $    0.04       $    0.04       $    0.04       $    0.08





                                                                              1999
                                                                          Quarter ended
                                                      March 31        June 30       September 30    December 31
                                                      --------        -------       ------------    -----------

Income                                               $     599       $     591       $     583       $     581
Net earnings                                               460             479             455             531
Gain on mortgage dispositions                               --              --              --              67
Net earnings per Limited Partnership Unit - Basic    $    0.04       $    0.05       $    0.04       $    0.06




                                                                              1998
                                                                          Quarter ended
                                                      March 31        June 30       September 30    December 31
                                                      --------        -------       ------------    -----------

Income                                               $     887       $     837       $     803       $     664
Net earnings                                               951             698           1,763             566
Gain on mortgage dispositions                              200              --           1,090              --
Net earnings per Limited Partnership Unit - Basic    $    0.09       $    0.07       $    0.17       $    0.06
</TABLE>

<PAGE>
                       AMERICAN INSURED MORTGAGE INVESTORS
                   SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE
                                DECEMBER 31, 2000

<TABLE>
<CAPTION>
                                                                      Interest       Face               Net          AnnualPayment
                                                 Maturity    Put       Rate on     Amount of       Carrying Value   (Principal and
Development Name/Location                          Date     Date(1)   Mortgage(5)  Mortgage(3)      (3)(6)(8)(9)     Interest)(5)(7)
-------------------------                        -------    -------   ----------   ----------      ---------------   -------------

<S>                                               <C>        <C>        <C>       <C>               <C>                <C>
ORIGINATED INSURED MORTGAGES
Investment in FHA-Insured Loans
(carried at amortized cost)(2)

      Creekside Village, Beaverton, OR            11/25         --      7.75%     $ 4,874,049       $ 4,874,050        $ 442,754
                                                                                  -----------       -----------
Total Investment in FHA-Insured Loans -
  Originated Insured Mortgages                                                      4,874,049         4,874,050
                                                                                  -----------       -----------

ACQUIRED INSURED MORTGAGES
Investment in FHA-Insured Loans
(carried at amortized cost)(2)

      Eastdale Apts., Montgomery, AL               3/23      10/01      7.5%        6,275,961         4,912,894          592,406
      North River Place, Chillecothe, OH          10/21      12/01      7.5%        2,936,899         2,304,465          279,509
      Town Park Apts., Rockingham, NC             10/22      10/02      7.5%          607,462 (4)       505,689           56,755 (4)
                                                                                  -----------       -----------

Total Investment in FHA-Insured Loans -
  Acquired Insured Mortgages                                                        9,820,322         7,723,048
                                                                                  -----------       -----------

    Total Investment in FHA-Insured Loans                                          14,694,371        12,597,098
                                                                                  -----------       -----------

ACQUIRED INSURED MORTGAGES
Investment in FHA-Insured Certificates
(carried at fair value)

    Bay Pointe Apts., Lafayette, IN                2/23      10/02      7.5%        1,969,057 (4)     1,939,037        $ 185,272 (4)
    Baypoint Shoreline Apts, Duluth, MN            1/22      10/01      7.5%          928,902 (4)       914,784           87,967 (4)
    Berryhill Apts., Grass Valley, CA              1/21      11/02      7.5%        1,198,905 (4)     1,180,877          115,899 (4)
    Brougham Estates II, Kansas City, KS          11/22       3/02      7.5%        2,476,492 (4)     2,438,559          230,860 (4)
    College Green Apts., Wilmington, NC            3/23       2/02      7.5%        1,332,254 (4)     1,311,788          123,455 (4)
    Kaynorth Apts., Lansing, MI                    4/23       9/02      7.5%        1,808,236 (4)     1,780,437          167,318 (4)
    Westbrook Apts., Kokomo, IN                   11/22       9/02      7.5%        1,719,291 (4)     1,693,193          163,177 (4)
                                                                                  -----------       -----------

    Total Investment in FHA-Insured Certificates                                   11,433,137        11,258,675
                                                                                  -----------       -----------

       TOTAL INVESTMENT IN INSURED MORTGAGES                                      $26,127,508       $23,855,773
                                                                                  ===========       ===========
</TABLE>


See notes to Schedule IV - Mortgage Loans on Real Estate

<PAGE>
                       AMERICAN INSURED MORTGAGE INVESTORS

              NOTES TO SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE

                                DECEMBER 31, 2000

(1)  Under the  Section  221 program of the  National  Housing  Act of 1937,  as
     amended,  a mortgagee has the right to assign a mortgage  ("put") to FHA at
     the  expiration  of 20 years  from the  date of  final  endorsement  if the
     mortgage is not in default at such time.  Any mortgagee  electing to assign
     an  FHA-insured  mortgage to FHA will receive,  in exchange  therefor,  HUD
     debentures  having  a  total  face  value  equal  to the  then  outstanding
     principal balance of the FHA-insured  mortgage plus accrued interest to the
     date of assignment. These HUD debentures will mature 10 years from the date
     of assignment  and will bear  interest at the "going  Federal rate" at such
     date. This assignment  procedure is applicable to an insured mortgage which
     had a firm  or  conditional  FHA  commitment  for  insurance  on or  before
     November 30, 1983. The Partnership  anticipates  that each eligible insured
     mortgage,  for which a  prepayment  has not occurred and which has not been
     sold,  will be assigned to FHA at the  expiration of 20 years from the date
     of final  endorsement.  The  Partnership,  therefore,  does not  anticipate
     holding any eligible  insured  mortgage  beyond the  expiration of 20 years
     from final  endorsement  of that  insured  mortgage.  The  Partnership  has
     initiated its request to put these mortgages to FHA as they become due.

(2)  Inclusive of closing costs and acquisition fees.

(3)  Prepayment  of these  insured  mortgages  would be  based  upon the  unpaid
     principal balance at the time of prepayment.

(4)  These  amounts  represent the  Partnership's  50% interest in these insured
     mortgages.  The  remaining  50% interest  was acquired by American  Insured
     Mortgage Investors - Series 85, L.P. ("AIM 85").

(5)  In addition, the servicer of the insured mortgages (primarily  unaffiliated
     third  parties) is entitled to receive  compensation  for certain  services
     rendered  in an  amount  up to ten  basis  points  (0.10%)  of  the  unpaid
     principal balance of the insured mortgages.

(6)  The  mortgages  underlying  the  Partnership's  investment  in  FHA-Insured
     Certificates  and  FHA-Insured  Loans  are  non-recourse   first  liens  on
     multifamily residential developments.

(7)  Principal  and interest  are payable at level  amounts over the life of the
     Insured Mortgages.

(8)  A reconciliation of the carrying value of Insured Mortgages,  for the years
     ended December 31, 2000 and 1999, is as follows:
<TABLE>
<CAPTION>
                                                               2000                        1999
                                                            -----------                 -----------
<S>                                                         <C>                         <C>
Beginning balance                                           $25,219,376                 $26,349,115

  Gain on mortgage dispositions                                 188,455                      67,150
  Proceeds from disposition of mortgages                     (1,181,623)(a)                (383,582)
  Principal receipts on Insured Mortgages                      (280,200)                   (267,690)
  Adjustment to unrealized gains on
    investment in Insured Mortgages                             (90,235)                   (545,617)
                                                            -----------                 -----------

Ending balance                                              $23,855,773                 $25,219,376
                                                            ===========                 ===========
</TABLE>

     (a)  This amount  represents  non-cash proceeds of $1,192,617 (as reflected
          on the  Statements  of Cash  Flows) less  $10,994 of accrued  interest
          income.

(9)  The tax basis of the Insured Mortgages was approximately  $20.9 million and
     $22.2 million as of December 31, 2000 and 1999, respectively.