<PAGE>1

                                    FORM 10-K
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


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

For the fiscal year ended     December 31, 1996
                              ------------------

Commission file number             1-11060
                              ------------------

                       AMERICAN INSURED MORTGAGE INVESTORS
-----------------------------------------------------------------
               (Exact name of registrant as specified in charter)

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

11200 Rockville Pike, Rockville, Maryland           20852
-----------------------------------------  ----------------------
(Address of principal executive offices)          (Zip Code)

                                 (301) 816-2300
-----------------------------------------------------------------
              (Registrant's telephone number, including area code)

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
-----------------------------------------------------------------
                                (Title of class)

     Indicated 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 [ ]

<PAGE>2

     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 27, 1997, 10,000,000 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 $33,709,770.

<PAGE>3
                       AMERICAN INSURED MORTGAGE INVESTORS

                         1996 ANNUAL REPORT ON FORM 10-K

                                TABLE OF CONTENTS

                                     PART I
                                     ------
                                                         Page
                                                         ----
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 . . . . . . . . . . .    8
Item 7.   Management's Discussion and Analysis of
            Financial Condition and Results of
            Operations  . . . . . . . . . . . . . . . .    9
Item 8.   Financial Statements and Supplementary Data .   14
Item 9.   Changes in and Disagreements with Accountants
            on Accounting and Financial Disclosure  . .   14

                                    PART III
                                    --------
Item 10.  Directors and Executive Officers of the
            Registrant  . . . . . . . . . . . . . . . .   14
Item 11.  Executive Compensation  . . . . . . . . . . .   15
Item 12.  Security Ownership of Certain Beneficial
            Owners and Management . . . . . . . . . . .   15
Item 13.  Certain Relationships and Related
            Transactions  . . . . . . . . . . . . . . .   15

                                     PART IV
                                     -------
Item 14.  Exhibits, Financial Statement Schedules and
            Reports on Form 8-K . . . . . . . . . . . .   17

Signatures  . . . . . . . . . . . . . . . . . . . . . .   20

<PAGE>4

                                     PART I

ITEM 1.   BUSINESS

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, 4, 5
and 6 of the notes to the financial statements of the Partnership (filed in
response to Item 8 hereof), which is incorporated herein by reference. Also see
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, 1996.

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).  CRIIMI, Inc. 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., Broad, Inc. and CRIIMI MAE.
Effective September 6, 1991 and through June 30, 1995, a sub-advisory agreement
(the Sub-advisory Agreement) existed whereby CRI/AIM Management, Inc., an
affiliate of CRI, Inc., managed the Partnership's portfolio.  In connection with
the transaction in which CRIIMI MAE became a self-administered real estate
investment trust (REIT), an affiliate of CRIIMI MAE acquired the Sub-advisory
Agreement.  As a consequence of this transaction, effective June 30, 1995,
CRIIMI MAE Services Limited Partnership manages the Partnership's portfolio.
These transactions had no effect on the Partnership's financial statements.

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 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 other AIM Partnerships
and/or other entities sponsored or managed by CRIIMI MAE are attempting to
dispose of mortgages.  As a result of market conditions that could limit
dispositions, CRIIMI MAE Services Limited Partnership and its affiliates could
be faced with conflicts of interest in determining which mortgages would be
disposed of.  Both CRIIMI MAE Services Limited Partnership and CRIIMI, Inc.,
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.

<PAGE>5

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 1996.

<PAGE>6

                                     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 bid prices for the Units as reported on AMEX
and the distributions, as applicable, for each quarterly period in 1996 and 1995
were as follows:

                                                            Amount of
                                      1996                Distribution
  Quarter Ended                High          Low            Per Unit
-------------------           -------      -------        ------------
 March 31,                    $3 9/16      $3 3/16        $    0.08
 June 30,                      3 7/16       3 1/8              0.08
 September 30,                 3 7/16       3 1/8              0.07
 December 31,                  3 7/16       3 1/8              0.07
                                                          ---------
                                                          $    0.30
                                                          =========


                                                            Amount of
                                      1995                Distribution
  Quarter Ended                High          Low            Per Unit
-------------------           -------      -------         -----------
 March 31,                    $3 5/8       $3 1/4          $   0.08
 June 30,                      3 3/4        2 11/16            0.08
 September 30,                 3 9/16       3 1/4              0.08
 December 31,                  3 5/8        3 3/16             0.08
                                                          ---------
                                                           $   0.32
                                                          =========

     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.

     The Partnership's Dividend Reinvestment Plan was amended effective April
10, 1992 to exclude the amount of any special distributions from reinvestment
under the Plan.  The regular distributions will continue to be automatically
reinvested in additional Units as in the past.

<PAGE>7

                                     PART II

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

                                          Approximate Number
                                         of Unitholders as of
     Title of Class                        December 31, 1996
---------------------------             ----------------------

Depositary Units of Limited
 Partnership Interest                            8,300

<PAGE>8

                                     PART II

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

<TABLE><CAPTION>
                                                                            For the years ended December 31,
                                                       1996             1995            1994           1993            1992
                                                   ------------     ------------    ------------   ------------    ------------
<S>                                                    <C>              <C>             <C>            <C>             <C>
Income                                                 $  3,445        $   3,626       $   3,736       $  4,487        $  4,747

Net gains (loss) from
  mortgage modifications/dispositions                      (146)              --             196            762             (21)

Net earnings                                              2,758            3,041           3,280          4,528           3,867

Composition of distributions
  per Limited Partnership
  Unit(1)(2):
    Earnings                                           $   0.27          $  0.30        $   0.32       $  0.440        $   0.38
    Return of capital                                      0.03             0.02            0.81          0.205            1.44
                                                       --------         --------        --------       --------        --------
       Total                                           $   0.30         $   0.32        $   1.13       $  0.645        $   1.82
                                                       ========         ========        ========       ========        ========

                                                                                  As of December 31,
                                                                                  ------------------
                                                         1996             1995            1994           1993            1992
                                                       --------         --------        --------       --------        --------

Total assets                                           $ 38,385         $ 39,415        $ 38,161       $ 47,630        $ 46,971


Partners' equity                                         37,590           38,493          37,241         43,749          45,864


(1)  Calculated based upon the weighted average number of Limited Partnership Units outstanding.
(2)  Includes distributions due the Unitholders for the Partnership's fiscal quarters ended December 31, 1996, 1995, 1994, 1993 and
     1992 which were paid subsequent to each year end.  See Notes 4 and 7 of the Notes to Financial Statements contained in Item 8.
     "Financial Statements and Supplementary Data."
</TABLE>

     The selected statements of operations data presented above for the years
ended December 31, 1996, 1995 and 1994 and the balance sheet data as of December
31, 1996 and 1995, 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 statements of operations data for the years ended December 31,
1993 and 1992 and the balance sheet data as of December 31, 1994, 1993 and 1992
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.

<PAGE>9

                                     PART II

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

General
-------
     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%.
CRIIMI, Inc. is a wholly owned subsidiary of CRIIMI MAE Inc. (CRIIMI MAE).
Prior to June 30, 1995, CRIIMI MAE was managed by an advisor whose general
partner is C.R.I., Inc. (CRI).  However, effective June 30, 1995, CRIIMI MAE
became a self-administered real estate investment trust (REIT) and, as a result,
the advisor no longer advises 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., Broad, Inc. and 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 which effect the management and policies of
the Partnership.

     Effective September 6, 1991 and through June 30, 1995, a sub-advisory
agreement(the Sub-advisory Agreement) existed whereby CRI/AIM Management, Inc.,
an affiliate of CRI, Inc. managed the Partnership's portfolio.  In connection
with the transaction in which CRIIMI MAE became a self-administered REIT, an
affiliate of CRIIMI MAE acquired the Sub-advisory Agreement.  As a consequence
of this transaction, effective June 30, 1995, CRIIMI MAE Services Limited
Partnership, an affiliate of CRIIMI MAE, manages the Partnership's portfolio.
These transactions had no effect on the Partnership's financial statements.

     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.

     The Partnership's investment in Insured Mortgages consists of 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) and FHA-insured
mortgage loans (FHA-Insured Loans).  The mortgages underlying the FHA-Insured
Certificates and FHA-Insured Loans are non-recourse first liens on multifamily
residential developments.

<PAGE>10

                                     PART II

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


Investment in FHA-Insured Loans
--------------------------------
     Listed below is the Partnership's aggregate investment in FHA-Insured Loans
as of December 31, 1996 and 1995:

<TABLE>
<CAPTION>                                   December 31,
                                         1996          1995
                                     ------------  ------------
<S>                                  <C>           <C>
Number of
  Acquired Insured Mortgages                    4             4
  Originated Insured Mortgages                  2             2
Amortized Cost                       $ 23,262,738  $ 23,589,611
Face Value                             26,338,828    26,573,553
Fair Value                             26,801,846    27,625,663

</TABLE>

     All of the FHA-Insured Loans were current with respect to the payment of
principal and interest as of March 1, 1997.  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, 1996, 1995 and 1994, the Partnership
received $12,158, $39,465 and $13,010, respectively, from the Participations.
These amounts are included in mortgage investment income on the accompanying
statements of operations.

Investment in FHA-Insured Certificates
--------------------------------------
     Listed below is the Partnership's aggregate investment in FHA-Insured
Certificates as of December 31, 1996 and 1995:

<TABLE>
<CAPTION>                                   December 31,
                                         1996          1995
                                     ------------  ------------
<S>                                  <C>           <C>
Number of mortgages                             9             9
Amortized Cost                       $ 11,321,727  $ 11,418,898
Face Value                             13,843,564    14,023,399
Fair Value                             14,105,760    14,774,772

</TABLE>

     All of the FHA-Insured Certificates were current with respect to the
payment of principal and interest as of March 1, 1997.

Results of Operations
---------------------

1996 versus 1995
----------------
     Net earnings decreased for 1996 as compared to 1995 primarily due to the
mortgage modification of Creekside Village, as discussed below.  No mortgages
were disposed of or modified during 1995.  Partially offsetting the reduction in

<PAGE>11

                                     PART II

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


income was a decrease in general and administrative expenses, as discussed
below.

     Interest and other income did not significantly change for 1996 as compared
to 1995.

     Asset management fees remained unchanged for 1996 as compared to 1995.

     General and administrative expenses decreased for 1996 as compared to 1995.
The decrease is primarily due to a reduction in investor relations expenses
resulting from a decrease in the number of registered unitholders.

     In May 1996, the mortgage note on Creekside Village was amended to reduce
the mortgage interest rate from 11.5% (with no lockout provision) to 7.75%,
(which includes a lockout provision and prepayment penalty).  In connection with
this modification, the Partnership recognized a loss of $146,464 on the
accompanying statements of operations for the year ended December 31, 1996,
primarily representing the unamortized balance of acquisition and closing costs
paid in connection with the origination of this mortgage.

1995 versus 1994
----------------
     Net earnings decreased for 1995 as compared to 1994 primarily due to the
gain recognized on the disposition of the mortgage on Hidden Oaks Apartments
during 1994.  No mortgages were disposed of during 1995.  Also contributing to
the decrease in net earnings was the reduction in mortgage investment income as
a result of this disposition.

     Interest and other income decreased for 1995 as compared to 1994.  During
1994, interest and other income included interest income from the short-term
investment of disposition proceeds received during February 1994 prior to the
distribution to Unitholders in May 1994.

     Asset management fees decreased for 1995 as compared to 1994 as a result of
the reduction in the mortgage base.

     General and administrative expenses decreased for 1995 as compared to 1994
due a reduction in investor services expenses and annual and quarterly reporting
expenses resulting from a reduction of the number of Unitholders.  In addition,
there was a decrease in non-recurring expenses incurred in 1994.

Liquidity and Capital Resources
-------------------------------
     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, were sufficient for the year ended December 31, 1996 to
meet operating requirements.

     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 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

<PAGE>12

                                     PART II

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


flow attributable to the delinquency or default of Insured Mortgages and (4)
changes 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 - 1996 versus 1995
----------------------------
     Net cash provided by operating activities decreased for 1996 as compared to
1995 primarily due to a reduction in mortgage investment income, as discussed
above.

     Net cash provided by investing activities increased for 1996 as compared to
1995 primarily due to receipt of mortgage principal from scheduled payments
increased as a result of the modification of the mortgage on Creekside Village,
as discussed above, and due to the normal amortization of the mortgage base.

     Net cash used in financing activities decreased for 1996 as compared to
1995 primarily due to the decrease in the third quarter 1996 distribution as a
result of the modification of the mortgage on Creekside Village, as discussed
above.

Cash flow - 1995 versus 1994
----------------------------
     Net cash provided by operating activities decreased for 1995 as compared to
1994 primarily due to a reduction in mortgage investment income and interest and
other income, as discussed above.  Also contributing to the decrease was a
reduction in receivables and other assets in 1994 in connection with the receipt
of accrued but unpaid interest related to the mortgage on Creekside Village.

     Net cash provided by investing activities decreased for 1995 as compared to
1994 as a result to the receipt in February 1994 of net proceeds of
approximately $8.1 million from the prepayment of the mortgage on Hidden Oaks
Apartments.

     Net cash used in financing activities decreased for 1995 as compared to
1994 primarily due to the first and second quarter 1994 special distributions
paid to the Unitholders, resulting from the prepayment of the mortgage on Hidden
Oaks Apartments and from the proceeds received in 1993 from the sale of the
defaulted mortgages on Chapelgate Apartments and Cumberland Village.

<PAGE>13

                                     PART II

ITEM 8.   FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

     The information required by this item is contained on pages 21 through 39.

ITEM 9.   CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
               ACCOUNTING AND FINANCIAL DISCLOSURES
     None.

                                    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. (the General
Partner) holds a Partnership interest of 2.9%.  The affairs of the Partnership
are generally managed by the General Partner, which is wholly owned by CRIIMI
MAE, a company whose shares are listed on the New York Stock Exchange.  Prior to
June 30, 1995, CRIIMI MAE was managed by an advisor whose general partner was
CRI, Inc.  However, effective June 30, 1995, CRIIMI MAE became a self-
administered REIT and, as a result, such advisor no longer advises CRIIMI MAE.

     AIM Acquisition Partner L.P., (The Advisor) serves as the advisor to the
Partnership.  AIM Acquisition is the general partner of the Advisor and the
limited partners include, but are not limited to, AIM Acquisition, The Goldman
Sachs Group, L.P., Broad, Inc. and 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
which affect the management and policies of the Partnership.  Effective
September 6, 1991 and through June 30, 1995, a sub-advisory agreement (the Sub-
advisory Agreement) existed whereby CRI/AIM Management, Inc., an affiliate of
CRI, managed the Partnership's portfolio.  In connection with the transaction in
which CRIIMI MAE became a self-administered REIT, an affiliate of CRIIMI MAE
acquired the Sub-advisory Agreement.  As a consequence of this transaction,
effective June 30, 1995, CRIIMI MAE Services Limited Partnership, an affiliate
of CRIIMI MAE, manages the Partnership's portfolio.  These transactions had no
effect on the Partnership's financial statements.

     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.

     (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)  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 5s 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, 1996.

<PAGE>14

                                    PART III

ITEM 11.  EXECUTIVE COMPENSATION

     The information required by Item 11 is incorporated herein by reference to
Note 4 of the notes to the financial statements of the Partnership.

ITEM 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
          MANAGEMENT

     As of December 31, 1996, no person was known by the Partnership to be the
beneficial owner of more than five percent (5%) of the outstanding Units of the
Partnership.

     As of December 31, 1996, neither the officers and directors, as a group, of
the General Partner nor any individual director of the General Partner, are
known to own more than 1% of the outstanding Units of the Partnership.

ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

     (a)  Transactions with management and others.

          Note 4 of the notes to the Partnership's financial statements of this
          report 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
          incorporated herein by reference.

     (b)  Certain business relationships.

          Other than as set forth in Item 11 of this report which is
          incorporated herein by reference, 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>15

                                     PART IV

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

     (a)(1)    Financial Statements:

                                                                       Page
Description                                                           Number
-----------                                                       --------------

Balance Sheets as of December 31, 1996
  and 1995                                                            23

Statements of Operations for the years
  ended December 31, 1996, 1995 and 1994                              24

Statements of Changes in Partners' Equity
  for the years ended December 31, 1996,
  1995 and 1994                                                       25

Statements of Cash Flows for the years
  ended December 31, 1996, 1995 and 1994                              26

Notes to Financial Statements                                         27

     (a)(2)    Financial Statement Schedules:

               IV - Mortgage Loans on Real Estate

               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:

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

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

       4.(c)   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.

      10.(b)   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").

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

<PAGE>16

                                     PART IV

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

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

         (e)   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.

         (f)   Reinvestment Plan, incorporated by reference to the Prospectus
               contained in the Registration Statement.

         (l)   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.

         (m)   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.

         (n)   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.

         (o)   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.

       27.     Financial Data Schedule (filed herewith).

       28.     Pages A-1 - A-4 of the Partnership Agreement of Registrant,
               incorporated by reference to Exhibit 28 to the Partnership's
               Annual Report on Form 10-K for the year ended December 31, 1990.

       28.(a)  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.

       28.(b)  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.

       28.(c)  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.

       28.(d)  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.

<PAGE>17

                                     PART IV

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

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

          All other items are not applicable.

<PAGE>18

                                   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


March 18, 1997                       /s/ William B. Dockser
---------------------------         ----------------------------
DATE                                William B. Dockser
                                    Chairman of the Board
                                      and Principal Executive
                                      Officer



March 18, 1997                      /s/ H. William Willoughby
---------------------------         ----------------------------
DATE                                H. William Willoughby
                                    President and Director



March 18, 1997                      /s/ Cynthia O. Azzara
---------------------------         ----------------------------
DATE                                Cynthia O. Azzara
                                    Principal Financial and
                                      Accounting Officer



March 18, 1997                      /s/ Garrett G. Carlson, Sr.
---------------------------         ----------------------------
DATE                                Garrett G. Carlson, Sr.
                                    Director


March 18, 1997                      /s/ Larry H. Dale
---------------------------         ----------------------------
DATE                                Larry H. Dale
                                    Director


March 18, 1996                      /s/ G. Richard Dunnells
---------------------------         ----------------------------
DATE                                G. Richard Dunnells
                                    Director


March 18, 1997                      /s/ Robert F. Tardio
---------------------------         ----------------------------
DATE                                Robert F. Tardio
                                    Director

<PAGE>19




























                       AMERICAN INSURED MORTGAGE INVESTORS

              Financial Statements as of December 31, 1996 and 1995

            and for the Years Ended December 31, 1996, 1995 and 1994

<PAGE>20

                    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, 1996 and 1995, and the
related statements of operations, changes in partners' equity and cash flows for
the years ended December 31, 1996, 1995 and 1994. 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 schedule based on our audits.

     We conducted our audits in accordance with generally accepted auditing
standards.  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, 1996 and 1995, and the results of its operations and its cash flows
for the years ended December 31, 1996, 1995 and 1994, in conformity with
generally accepted accounting principles.

     As explained in Note 2 of the notes to the financial statements, effective
January 1, 1994, the Partnership changed its method of accounting for its
investment in insured mortgages.

     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, 1996 and for the year then ended 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
Washington, DC
March 18, 1997

<PAGE>21

                       AMERICAN INSURED MORTGAGE INVESTORS

                                 BALANCE SHEETS


<TABLE><CAPTION>
                                                  December 31,     December 31,
                                                      1996             1995
                                                  ------------     ------------
<S>                                               <C>              <C>
ASSETS

Investment in FHA-Insured Loans,
  at amortized cost, net of unamortized
  discount:
    Originated insured mortgages                  $ 14,274,528     $ 14,533,066
    Acquired insured mortgages                       8,988,210        9,056,545
                                                  ------------     ------------
                                                    23,262,738       23,589,611

Investment in FHA-Insured Certificates,
  at fair value                                     14,105,760       14,774,772

Cash and cash equivalents                              656,051          673,733

Receivables and other assets                           360,640          377,323
                                                  ------------     ------------
     Total assets                                 $ 38,385,189     $ 39,415,439
                                                  ============     ============
LIABILITIES AND PARTNERS' EQUITY

Distributions payable                             $    720,916     $    823,903

Accounts payable and accrued expenses                   74,473           98,292
                                                  ------------     ------------
     Total liabilities                                 795,389          922,195
                                                  ------------     ------------
Partners' equity:
  Limited partners' equity                          39,737,785       40,059,771
  General partner's deficit                         (4,932,018)      (4,922,401)
  Unrealized gains on investment
    in FHA-Insured Certificates                      2,784,033        3,355,874
                                                  ------------     ------------
     Total partners' equity                         37,589,800       38,493,244
                                                  ------------     ------------
     Total liabilities and partners'
       equity                                     $ 38,385,189     $ 39,415,439
                                                  ============     ============


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

</TABLE>

<PAGE>22

                                           AMERICAN INSURED MORTGAGE INVESTORS

                                                STATEMENTS OF OPERATIONS

<TABLE><CAPTION>
                                                                      For the years ended December 31,
                                                                   1996              1995             1994
                                                               ------------      ------------     ------------
<S>                                                            <C>               <C>              <C>
Income:
  Mortgage investment income                                   $  3,413,739      $  3,589,374     $  3,639,376
  Interest and other income                                          31,263            37,115           96,513
                                                               ------------      ------------     ------------
                                                                  3,445,002         3,626,489        3,735,889
                                                               ------------      ------------     ------------
Expenses:
  Asset management fee to related parties                           343,092           343,092          355,880
  General and administrative                                        197,413           242,209          295,360
                                                               ------------      ------------     ------------
                                                                    540,505           585,301          651,240
                                                               ------------      ------------     ------------
Earnings before mortgage modification/disposition                 2,904,497         3,041,188        3,084,649

(Loss) gain on mortgage modification/disposition                   (146,464)               --          195,820
                                                               ------------      ------------     ------------
     Net earnings                                              $  2,758,033      $  3,041,188     $  3,280,469
                                                               ============      ============     ============
Net earnings allocated to:
  Limited partners - 97.1%                                     $  2,678,050      $  2,952,994     $  3,185,335
  General partner -  2.9%                                            79,983            88,194           95,134
                                                               ------------      ------------     ------------
                                                               $  2,758,033      $  3,041,188     $  3,280,469
                                                               ============      ============     ============
Net earnings per Unit of limited
  partnership interest                                         $        .27      $        .30     $        .32
                                                               ============      ============     ============

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

<PAGE>23

                                   AMERICAN INSURED MORTGAGE INVESTORS


                                STATEMENTS OF CHANGES IN PARTNERS' EQUITY
                         For the years ended December 31, 1996, 1995 and 1994

<TABLE><CAPTION>


                                                                              Unrealized
                                                                               Gains on
                                                                              Investment
                                            General            Limited        in Insured
                                            Partner            Partners        Mortgages           Total
                                          ------------       ------------     ------------      -------------
<S>                                       <C>                <C>              <C>               <C>

Balance, January 1, 1994                  $ (4,672,666)      $ 48,421,623     $         --      $  43,748,957

  Net earnings                                  95,134          3,185,335               --          3,280,469

  Distributions paid or accrued of
    $1.13 per Unit, including
    return of capital of $0.81
    per Unit                                  (337,491)       (11,300,141)              --        (11,637,632)

  Unrealized gains
    on investment in FHA-insured
    certificates                                    --                 --        1,848,753          1,848,753
                                          ------------       ------------      -----------      -------------
Balance, December 31, 1994                  (4,915,023)        40,306,817        1,848,753         37,240,547

  Net earnings                                  88,194          2,952,994               --          3,041,188

  Distributions paid or accrued of
    $0.32 per Unit, including
    return of capital of $0.02 per
    Unit                                       (95,572)        (3,200,040)              --         (3,295,612)

  Unrealized gains
    on investment in FHA-insured
    certificates                                    --                 --        1,507,121          1,507,121
                                          ------------       ------------     ------------      -------------
Balance, December 31, 1995                  (4,922,401)        40,059,771        3,355,874         38,493,244

  Net earnings                                  79,983          2,678,050               --          2,758,033

  Distributions paid or accrued of
    $0.30 per Unit, including
    return of capital of $0.03 per
    Unit                                       (89,600)        (3,000,036)              --         (3,089,636)

  Reduction in unrealized gains
    on investment in FHA-insured
    certificates                                    --                 --         (571,841)          (571,841)
                                          ------------       ------------     ------------      -------------
Balance, December 31, 1996                $ (4,932,018)      $ 39,737,785     $  2,784,033      $  37,589,800
                                          ============       ============     ============      =============
Limited Partnership Units
  outstanding - December 31,
  1996, 1995 and 1994                                           10,000,125
                                                             =============

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

<PAGE>24

                                           AMERICAN INSURED MORTGAGE INVESTORS

                                                STATEMENTS OF CASH FLOWS

<TABLE><CAPTION>
                                                                              For the years ended December 31,
                                                                          1996            1995          1994
                                                                      ------------    ------------  ------------
<S>                                                                   <C>             <C>           <C>
Cash flows from operating activities:
  Net earnings                                                        $  2,758,033    $  3,041,188  $  3,280,469
  Adjustments to reconcile net earnings to net cash
    provided by operating activities:
    Loss (gain) on mortgage modification/disposition                       146,464              --      (195,820)
    Changes in assets and liabilities:
      Decrease (increase) in receivables and other assets                   16,683          (2,676)      134,779
      (Decrease) increase in accounts payable and
        accrued expenses                                                   (23,819)          1,809        25,671
                                                                      ------------    ------------  ------------
        Net cash provided by operating activities                        2,897,361       3,040,321     3,245,099
                                                                      ------------    ------------  ------------
Cash flows from investing activities:
  Proceeds from disposition of insured mortgages                                --              --     8,137,327
  Receipt of mortgage principal from scheduled payments                    277,580         206,038       186,145
                                                                      ------------    ------------  ------------
        Net cash provided by investing activities                          277,580         206,038     8,323,472
                                                                      ------------    ------------  ------------
Cash flows from financing activities:
  Distributions paid to partners                                        (3,192,623)     (3,295,612)  (14,624,281)
                                                                      ------------    ------------  ------------
Net decrease in cash and cash equivalents                                  (17,682)        (49,253)   (3,055,710)

Cash and cash equivalents, beginning of year                               673,733         722,986     3,778,696
                                                                      ------------    ------------  ------------
Cash and cash equivalents, end of year                                $    656,051    $    673,733  $    722,986
                                                                      ============    ============  ============

</TABLE>






















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

<PAGE>25

                       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%.
CRIIMI, Inc. is a wholly owned subsidiary of CRIIMI MAE Inc. (CRIIMI MAE).
Prior to June 30, 1995, CRIIMI MAE was managed by an advisor whose general
partner is CRI, Inc. (CRI).  However, effective June 30, 1995, CRIIMI MAE became
a self-administered real estate investment trust (REIT) and, as a result, the
advisor no longer advises 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., Broad, Inc. and 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 which affect the management and policies of
the Partnership.

     Effective September 6, 1991 and through June 30, 1995, a sub-advisory
agreement (the Sub-advisory Agreement) existed whereby CRI/AIM Management, Inc.,
an affiliate of CRI, Inc., managed the Partnership's portfolio.  In connection
with the transaction in which CRIIMI MAE became a self-administered REIT, an
affiliate of CRIIMI MAE acquired the Sub-advisory Agreement.  As a consequence
of this transaction, effective June 30, 1995, CRIIMI MAE Services Limited
Partnership, an affiliate of CRIIMI MAE, manages the Partnership's portfolio.
These transactions had no effect on the Partnership's financial statements.

     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.

<PAGE>26

                       AMERICAN INSURED MORTGAGE INVESTORS

                          NOTES TO FINANCIAL STATEMENTS

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
     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) and FHA-insured mortgage loans (FHA-Insured Loans).  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.

          Prior to January 1, 1994, the Partnership accounted for its investment
     in Insured Mortgages at amortized cost in accordance with Statement of
     Financial Accounting Standards No. 65 "Accounting for Certain Mortgage
     Banking Activities" (SFAS 65) since it had the ability and intent to hold
     these assets for the foreseeable future.  The difference between the cost
     and the unpaid principal balance at the time of purchase is carried as a
     discount or premium and amortized over the remaining contractual life of
     the mortgage using the effective interest method.  The effective interest
     method provides a constant yield of income over the term of the mortgage.
     Mortgage investment income is comprised of amortization of the discount
     plus the stated mortgage interest payments received or accrued less
     amortization of the premium.

          In May 1993, the Financial Accounting Standards Board issued Statement
     of Financial Accounting Standards No. 115 "Accounting for Certain
     Investments in Debt and Equity Securities" (SFAS 115).  This statement
     requires that investments in debt and equity securities be classified into
     one of the following investment categories based upon the circumstances
     under which such securities might be sold:  Held to Maturity, Available for
     Sale, and Trading.  Generally, certain debt securities for which an
     enterprise has both the ability and intent to hold to maturity, should be
     accounted for using the amortized cost method and all other securities must
     be recorded at their fair values.

          As of December 31, 1996, the weighted average remaining term of the
     Partnership's investments in FHA-Insured Certificates is approximately 25
     years.  However, the Partnership Agreement states that the Partnership will
     terminate in approximately 12 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, at this time, to hold these investments to

<PAGE>27

                       AMERICAN INSURED MORTGAGE INVESTORS

                          NOTES TO FINANCIAL STATEMENTS

2.   SIGNIFICANT ACCOUNTING POLICIES - Continued

     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.

          In connection with this classification, as of December 31, 1996 and
     1995, all of the Partnership's investments in FHA-Insured Certificates are
     recorded at fair value, with the net unrealized gains on these investments
     reported 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.

          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.

     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 financial statements since they are the personal
     responsibility of the Unitholders.

     Reclassification
     ----------------
          Certain amounts in the financial statements for the year ended
     December 31, 1994 have been reclassified to conform with the 1995 and 1996
     presentation.

<PAGE>28

                       AMERICAN INSURED MORTGAGE INVESTORS

                          NOTES TO FINANCIAL STATEMENTS

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.

<PAGE>29

                       AMERICAN INSURED MORTGAGE INVESTORS

                          NOTES TO FINANCIAL STATEMENTS


3.   FAIR VALUE OF FINANCIAL INSTRUMENTS - Continued

<TABLE><CAPTION>


                                            As of December 31, 1996             As of December 31, 1995
                                             Amortized         Fair              Amortized          Fair
                                               Cost            Value                Cost            Value
                                           ------------     ------------       ------------     ------------
<S>                                        <C>              <C>                <C>              <C>

Investment in FHA-Insured
  Certificates                             $ 11,321,727     $ 14,105,760       $ 11,418,898     $ 14,774,772
                                           ============     ============       ============     ============
Investment in FHA-Insured
  Loans:
  Originated Insured Mortgages             $ 14,274,528     $ 14,936,979       $ 14,533,066     $ 15,196,453
  Acquired Insured Mortgage                   8,988,210       11,864,867          9,056,545       12,429,210
                                           ------------     ------------       ------------     ------------
                                           $ 23,262,738     $ 26,801,846       $ 23,589,611     $ 27,625,663
                                           ============     ============       ============     ============

Cash and cash equivalents                  $    656,051     $    656,051       $    673,733     $    673,733

Accrued interest receivable                $    277,289     $    277,289       $    295,018     $    295,018

</TABLE>


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

     Investment in FHA-Insured Certificates and FHA-
       Insured Loans
     ------------------------------------------------
          The fair value of the FHA-Insured Certificates and FHA-Insured Loans
     is based on quoted market prices.

     Cash and cash equivalents and accrued interest receivable
     ---------------------------------------------------------
          The carrying amount approximates fair value because of the short
     maturity of these instruments.

4.   TRANSACTIONS WITH RELATED PARTIES

     The principal officers of the General Partner for the years ended December
31, 1996, 1995 and 1994 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 and certain affiliated entities have, during the years
ended December 31, 1996, 1995 and 1994, earned or received compensation or
payments for services from the Partnership as follows:

<PAGE>30

                       AMERICAN INSURED MORTGAGE INVESTORS

                          NOTES TO FINANCIAL STATEMENTS

4.   TRANSACTIONS WITH RELATED PARTIES - Continued


<TABLE><CAPTION>

                                           COMPENSATION PAID OR ACCRUED TO RELATED PARTIES
                                           ----------------------------------------------

                                   Capacity in Which                     For the year ended December 31,
Name of Recipient                     Served/Item                     1996            1995          1994
-----------------            ----------------------------           --------        --------      --------
<S>                          <C>                                    <C>             <C>           <C>
CRIIMI, Inc.                 General Partner/Distribution           $  89,600      $  95,572     $ 337,491(3)

AIM Acquisition              Advisor/Asset Management Fee             343,092        343,092       355,880
  Partners, L.P.(1)

CRI(2)                       Affiliate of General Partner/                 --         37,365        79,972
                               Expense Reimbursement

CRIIMI MAE                   Affiliate of General Partner/             39,974         16,862            --
  Management, Inc. (2)         Expense Reimbursement


     (1)  The Advisor, pursuant to the Partnership Agreement, effective October 1, 1991, is entitled to an Asset Management Fee
equal to .95% of Total Invested Assets (as defined in the Partnership Agreement).  The sub-advisor to the Partnership (the Sub-
advisor) is entitled to a fee equal to .28% of Total Invested Assets.  CRI/AIM Management, Inc., which acted as the Sub-advisor
through June 30, 1995, earned a fee equal to $50,556, and $104,880 for the six months ended June 30, 1995 and for the year ended
December 31, 1994, respectively.  As discussed in Note 1, effective June 30, 1995, CRIIMI MAE Services Limited Partnership now
serves as the Sub-advisor.  Of the amounts paid to the Advisor, CRIIMI MAE Services Limited Partnership earned a fee equal to
$101,112 and $50,566 for the year ended December 31, 1996 and for the six months ended December 31, 1995, respectively.  No fees
were earned by CRIIMI MAE Services Limited Partnership during the year ended December 31, 1994.

     (2)  Prior to CRIIMI MAE becoming a self-administered REIT, amounts were paid to CRI as reimbursement for expenses incurred
prior to June 30, 1995 on behalf of the General Partner and the Partnership.  As discussed in Note 1, the transaction in which
CRIIMI MAE became a self-administered REIT has no impact on the payments required to be made by the Partnership, other than that the
expense reimbursement previously paid by the Partnership to CRI in connection with the provision of services by the Sub-advisor are,
effective June 30, 1995, paid to a wholly-owned subsidiary of CRIIMI MAE, CRIIMI MAE Management, Inc.  The amounts paid to CRI
during the year ended December 31, 1995 represent reimbursement of expenses incurred prior to June 30, 1995.

     (3)  This amount includes a special distribution as discussed in Note 7.

</TABLE>

5.   INVESTMENT IN FHA-INSURED LOANS

     Listed below is the Partnership's aggregate investment in FHA-Insured Loans
as of December 31, 1996 and 1995:

<TABLE><CAPTION>                              December 31,
                                          1996           1995
                                      ------------   ------------
<S>                                   <C>            <C>
Number of
  Acquired Insured Mortgages                     4              4
  Originated Insured Mortgages                   2              2
Amortized Cost                        $ 23,262,738   $ 23,589,611
Face Value                              26,338,828     26,573,553
Fair Value                              26,801,846     27,625,663
</TABLE>

<PAGE>31

                       AMERICAN INSURED MORTGAGE INVESTORS

                          NOTES TO FINANCIAL STATEMENTS

5.   INVESTMENT IN FHA-INSURED LOANS - Continued


     All of the FHA-Insured Loans were current with respect to the payment of
principal and interest as of March 1, 1997.  In addition to base interest
payments under 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, 1996, 1995 and 1994, the Partnership
received $12,158, $39,465 and $13,010, respectively, from the Participations.
These amounts are included in mortgage investment income on the accompanying
statements of operations.

6.   INVESTMENT IN FHA-INSURED CERTIFICATES

     Listed below is the Partnership's aggregate investment in FHA-Insured
Certificates as of December 31, 1996 and 1995:

<TABLE>
<CAPTION>                                    December 31,
                                         1996          1995
                                     ------------  ------------
<S>                                  <C>           <C>
Number of mortgages                             9             9
Amortized Cost                       $ 11,321,727  $ 11,418,898
Face Value                             13,843,564    14,023,399
Fair Value                             14,105,760    14,774,772

</TABLE>

     All of the FHA-Insured Certificates were current with respect to the
payment of principal and interest as of March 1, 1997.

7.   DISTRIBUTIONS TO UNITHOLDERS

     The distributions paid or accrued to Unitholders on a per Unit basis for
the years ended December 31, 1996, 1995 and 1994  are as follows:

Quarter Ended            1996         1995         1994
-------------          --------     --------     --------

March 31,              $   0.08     $   0.08     $   0.89(1)
June 30,                   0.08         0.08         0.08
September 30,              0.07         0.08         0.08
December 31,               0.07         0.08         0.08
                       --------     --------     --------
                       $   0.30     $   0.32     $   1.13
                       ========     ========     ========

(1)  This includes a special distribution of $0.81 per Unit comprised of:  (i)
     $0.80 per Unit return of capital and capital gain from the disposition of
     the Insured mortgage on Hidden Oaks Apartments and (ii) $0.01 per Unit of
     previously accrued but undistributed interest received from the Insured
     mortgage on Creekside Village.

     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

<PAGE>32

                       AMERICAN INSURED MORTGAGE INVESTORS

                          NOTES TO FINANCIAL STATEMENTS

7.   DISTRIBUTIONS TO UNITHOLDERS - Continued

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 (4)
changes in the Partnership's operating expenses.

8.   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.

<PAGE>33

                       AMERICAN INSURED MORTGAGE INVESTORS

                          NOTES TO FINANCIAL STATEMENTS

9.   SUMMARY OF QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

     The following is a summary of unaudited quarterly results of operations for
the years ended December 31, 1996, 1995 and 1994:

     (In Thousands, Except Per Unit Data)

<TABLE><CAPTION>
                                                                1996
                                                           Quarter ended
                                        March 31      June 30     September 30    December 31
                                       ----------   ----------    ------------    -----------
<S>                                    <C>          <C>           <C>             <C>
Income                                 $      906   $      859    $        841    $       839
Net earnings                                  754          572             722            710
Loss on mortgage modification                  --         (146)             --             --
Net earnings per Limited
  Partnership Unit                           0.07         0.06            0.07           0.07

</TABLE>

<TABLE><CAPTION>
                                                               1995
                                                          Quarter ended
                                        March 31      June 30     September 30    December 31
                                       ----------   ----------    ------------    -----------
<S>                                    <C>          <C>           <C>             <C>
Income                                 $      927   $      900    $        895    $       904
Net earnings                                  758          767             749            767
Net earnings per Limited
  Partnership Unit                           0.07         0.08            0.07           0.08


</TABLE>

<TABLE><CAPTION>
                                                                1994
                                                           Quarter ended
                                        March 31      June 30     September 30    December 31
                                       ----------   ----------    ------------    -----------
<S>                                    <C>          <C>           <C>             <C>
Income                                 $      996   $      937    $        901    $       902
Gain (loss) on mortgage
  dispositions                                236           --              --            (40)
Net earnings                                1,054          779             733            714
Net earnings per Limited
  Partnership Unit                           0.10         0.08            0.07           0.07

</TABLE>

<PAGE>34

                                       AMERICAN INSURED MORTGAGE INVESTORS
                                   SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE
                                              DECEMBER 31, 1996
<TABLE>
<CAPTION>
                                                                  Interest          Face             Net         Annual Payment
                                            Maturity      Put     Rate on        Amount of     Carrying Value    (Principal and
Development Name/Location                     Date      Date(1)  Mortgage(5)     Mortgage      (3)(7)(9)(10)     Interest)(5)(8)
-------------------------                   --------    ------- ------------   ------------  -----------------   ---------------
<S>                                         <C>         <C>     <C>            <C>            <C>                <C>
Acquired Insured Mortgages
--------------------------
Investment in FHA-Insured Loans
  (carried at amortized cost)(2)

Eastdale Apts.
 Montgomery, AL                                 3/23      10/01         7.5%  $   6,695,433      $   5,108,643   $       592,406
North River Place
  Chillecothe, OH                              10/21      12/01         7.5%      3,141,077          2,400,867           279,509
Portervillage I Apts.
  Porterville, CA                               8/21       5/01         7.5%      1,161,634            951,052           103,733(4)
Town Park Apts.
  Rockingham, NC                               10/22      10/02         7.5%        646,046            527,648            56,755(4)
                                                                               ------------       ------------
  Total Investment in FHA-Insured Loans -
    Acquired Insured Mortgages                                                   11,644,190          8,988,210
                                                                               ------------       ------------
Originated Insured Mortgages
----------------------------
Investment in FHA-Insured Loans
  (carried at amortized cost)(2)

Creekside Village
  Beaverton, OR                                11/25       1/01        7.75%      5,097,048          5,097,048           499,380
Waters Edge Apts.
  Columbus, OH                                  1/31       5/03        8.75%      9,597,590          9,177,480           885,419(6)
                                                                               ------------       ------------
  Total Investment in FHA-Insured Loans -
    Originated Insured Mortgages                                                 14,694,638         14,274,528
                                                                               ------------       ------------

  Total Investment in FHA-Insured Loans                                          26,338,828         23,262,738
                                                                               ------------       ------------
See notes to Schedule IV - Mortgage Loans on Real Estate.

</TABLE>

<PAGE>35

                                     AMERICAN INSURED MORTGAGE INVESTORS
                                 SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE
                                              DECEMBER 31, 1996
<TABLE>
<CAPTION>
                                                                  Interest          Face             Net         Annual Payment
                                            Maturity      Put     Rate on        Amount of     Carrying Value    (Principal and
Development Name/Location                     Date      Date(1)  Mortgage(5)     Mortgage      (3)(7)(9)(10)     Interest)(5)(8)
-------------------------                   --------    ------- ------------   ------------   ----------------   ---------------
<S>                                         <C>         <C>     <C>            <C>            <C>                <C>
Acquired Insured Mortgages
--------------------------
Investment in FHA-Insured
  Certificates
  (carried at fair value)

Bay Pointe Apts.
  Lafayette, IN                                 2/23      10/02         7.5%      2,098,622(4)       2,138,328           185,272(4)
Baypoint Shoreline Apts.
  Duluth, MN                                    1/22      10/01         7.5%        991,971(4)       1,010,772            87,967(4)
Berryhill Apts.
  Grass Valley, CA                              1/21      11/02         7.5%      1,288,451(4)       1,313,009           115,899(4)
Brougham Estates II
  Kansas City, KS                              11/22       3/02         7.5%      2,632,011(4)       2,681,681           230,860(4)
College Green Apts.
  Wilmington, NC                                3/23       2/02         7.5%      1,413,373(4)       1,440,002           123,455(4)
Fox Run Apts.
  Dothan, AL                                   10/19      11/99         7.5%      1,265,562(4)       1,289,886           116,242(4)
Kaynorth Apts.
  Lansing, MI                                   4/23       9/02         7.5%      1,917,493(4)       1,953,606           167,318(4)
Lakeside Apts.
  Bennettsville, SC                             1/22       2/02         7.5%        398,098(4)         405,643            35,303(4)
Westbrook Apts.
  Kokomo, IN                                   11/22       9/02         7.5%      1,837,983(4)       1,872,833           163,177(4)
                                                                               ------------       ------------
  Total Investment in FHA-Insured Certificates                                   13,843,564         14,105,760
                                                                               ------------       ------------
  TOTAL INVESTMENT IN INSURED MORTGAGES                                        $ 40,182,392       $ 37,368,498
                                                                               ============       ============

See notes to Schedule IV - Mortgage Loans on Real Estate
</TABLE>

<PAGE>36

                       AMERICAN INSURED MORTGAGE INVESTORS

              NOTES TO SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE

(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.

(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 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 (.10%) of the unpaid principal
     balance of the insured mortgages.

(6)  This represents the base interest rate during the permanent phase of these
     insured mortgage loans.  Additional interest, (referred to as
     Participations) measured as a percentage of surplus cash and a percentage
     of the proceeds from sale or refinancing of the development (as defined in
     the Participation Agreements), will also be due.  The Partnership received
     $12,158, $39,465 and $13,010 from the Participations for the years ended
     December 31, 1996, 1995 and 1994, respectively.

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

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

<PAGE>37

                       AMERICAN INSURED MORTGAGE INVESTORS

        NOTES TO SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE - Continued


(9)  A reconciliation of the carrying value of Insured Mortgages, for the years
     ended December 31, 1996 and 1995, is as follows:

                                       1996            1995
                                  ------------    ------------
Beginning balance                 $ 38,364,383    $ 37,063,300

  Loss on mortgage
    modification                      (146,464)             --
  Principal receipts on
    Insured Mortgages                 (277,580)       (206,038)
  (Decrease) increase in
    unrealized gains on
    investment in Insured
    Mortgages                         (571,841)      1,507,121
                                  ------------    ------------
Ending balance                    $ 37,368,498    $ 38,364,383
                                  ============    ============

(10) The tax basis of the Insured Mortgages was approximately $34.1 million and
     $34.6 million as of December 31, 1996 and 1995, respectively.