<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, 1997 
                              ------------------

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 March 6, 1998, 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 $33,085,515. 

<PAGE>3

                       AMERICAN INSURED MORTGAGE INVESTORS

                         1997 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  . . . . . . . . . . . . . . .    16

                                     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, 1997.

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.

Forward-Looking Statements
--------------------------
     In accordance with the Private Securities Litigation Reform Act of 1995,
the Partnership can obtain a "Safe Harbor" for forward-looking statements by
identifying those statements and by accompanying those statements with
cautionary statements which identify factors that could cause actual results to
differ from those in the forward-looking statements.  Accordingly, the following

<PAGE>5

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. 
The Partnership's actual results may differ materially from those contained in
the forward-looking statements identifed above.  Factors which may cause such a
difference to occur 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.

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 1997. 

<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 1997 and 1996
were as follows:

                                                 Amount of
                                1997           Distribution
  Quarter Ended           High        Low        Per Unit      
-------------------      -------    -------    ------------

 March 31                $3 1/2      3 1/4     $    0.07
 June 30                  3 9/16     3 1/4          0.07
 September 30             3 9/16     3 3/16         0.07
 December 31              3 7/16     3 1/8          0.08
                                               ---------
                                               $    0.29
                                               =========

                                                 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
                                               =========

     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. 

<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, 1997
---------------------------             ----------------------

Depositary Units of Limited
 Partnership Interest                            7,600 

<PAGE>8

                                     PART II

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

<TABLE><CAPTION>
                                                                   For the years ended December 31,     
                                                1997            1996            1995           1994           1993    
                                            ------------    ------------    ------------   ------------   ------------
<S>                                             <C>             <C>             <C>            <C>            <C>     
Income                                          $  3,415        $  3,445       $   3,626      $   3,736       $  4,487

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

Net earnings                                       2,879           2,758           3,041          3,280          4,528

Composition of distributions
  per Limited Partnership
  Unit(1)(2):
    Net earnings - Basic                        $   0.28        $   0.27         $  0.30       $   0.32       $  0.440
    Return of capital                               0.01            0.03            0.02           0.81          0.205
                                                --------        --------        --------       --------       --------
       Total                                    $   0.29        $   0.30        $   0.32       $   1.13       $  0.645
                                                ========        ========        ========       ========       ========

                                                                             As of December 31,          
                                                                             ------------------          
                                                  1997            1996            1995           1994           1993  
                                                --------        --------        --------       --------       --------

Total assets                                    $ 38,551        $ 38,385        $ 39,415       $ 38,161       $ 47,630


Partners' equity                                  37,661          37,590          38,493         37,241         43,749


(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, 1997, 1996, 1995, 1994 and
     1993 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, 1997, 1996 and 1995 and the balance sheet data as of December
31, 1997 and 1996, 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,
1994 and 1993 and the balance sheet data as of December 31, 1995, 1994 and 1993
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 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.

     The Partnership is currently in the process of evaluating its information
technology infrastructure for Year 2000 compliance.  The Partnership does not
expect that the cost to modify its information technology infrastructure to be
Year 2000 compliant will be material to its financial condition or results of
operations.  The Partnership does not anticipate any material disruption in its
operations as a result of any failure by the Partnership to be in compliance. 
The Partnership is currently evaluating the Year 2000 compliance status of its
service providers.  The Partnership does not expect any non Year 2000 compliance
by its service providers to cause any disruption in its operations.

     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>10 

                                     PART II

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


     As of December 31, 1997, the Partnership had invested in 15 Insured
Mortgages, with an aggregate amortized cost of approximately $34.3 million, a
face value of approximately $39.7 million and a fair value of approximately
$41.0 million, as discussed below.

     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.

Investment in FHA-Insured Loans
--------------------------------
     Listed below is the Partnership's aggregate investment in FHA-Insured Loans
as of December 31, 1997 and 1996:

<TABLE>
<CAPTION>                                      December 31,         
                                          1997              1996    
                                      ------------      ------------
<S>                                   <C>               <C>         
Number of
  Acquired Insured Mortgages                     4                 4
  Originated Insured Mortgages                   2                 2
Amortized Cost                        $ 23,096,728      $ 23,262,738
Face Value                              26,077,186        26,338,828
Fair Value                              26,840,133        26,801,846

</TABLE>

     All of the FHA-Insured Loans were current with respect to the payment of
principal and interest as of March 1, 1998, except for the mortgage on
Portervillage I Apartments, which has been delinquent since January 1997.  In
May 1997, the servicer of this mortgage filed a Notice of Default and an
Election to Assign the mortgage with HUD.  The face value of this mortgage was
approximately $1.2 million at December 31, 1996.  The Partnership expects to
receive 99% of this amount plus accrued interest.

     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, 1997, 1996 and 1995, the Partnership received $61,988, $12,158 and $39,465,
respectively, from the Participations.  These amounts are included in mortgage
investment income on the accompanying statements of operations. 

<PAGE>11 

                                     PART II

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


Investment in FHA-Insured Certificates
--------------------------------------
     Listed below is the Partnership's aggregate investment in FHA-Insured
Certificates as of December 31, 1997 and 1996:

<TABLE>
<CAPTION>                                  December 31,         
                                      1997             1996    
                                  ------------     ------------
<S>                               <C>              <C>         
Number of mortgages                          9                9
Amortized Cost                    $ 11,216,144     $ 11,321,727
Face Value                          13,648,992       13,843,564
Fair Value                          14,178,168       14,105,760

</TABLE>

     All of the FHA-Insured Certificates were current with respect to the
payment of principal and interest as of March 1, 1998.

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

1997 versus 1996
----------------
     Net earnings increased for 1997 as compared to 1996 primarily due to the
loss incurred in 1996 on the mortgage modification of Creekside Village, as
discussed below.  No mortgages were disposed of or modified during 1997.  

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

     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.

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 years ended December 31, 1997,
1996 and 1995 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 

<PAGE>12 

                                     PART II

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


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
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 - 1997 versus 1996
----------------------------
     Net cash provided by operating activities decreased for 1997 as compared to
1996 primarily due to an increase in receivables and other assets due to the
delinquent mortgage on Portervillage I Apartments,  which was assigned to HUD in
May 1997.

     Net cash provided by investing activities decreased slightly for 1997 as
compared to 1996 primarily due to a reduction in the receipt of mortgage
principal from scheduled payments as a result of the normal amortization of the
mortgage base.

     Net cash used in financing activities decreased for 1997 as compared to
1996 primarily due to a decrease in the quarterly distributions in 1997 as
compared to 1996.

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 the receipt of mortgage principal from scheduled payments,
which 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.

New Accounting Standards
------------------------
     In February 1997, FASB issued SFAS No. 128 "Earnings per Share" ("FAS
128").  FAS 128 changes the requirements for the calculation and disclosure of
earnings per share.  The Partnership is required to present basic net earnings
per limited partnership unit as opposed to net earnings per limited partnership
unit.  However, the computational differences between FAS 128 and the prior
accounting standard do not impact the Partnership.  FAS 128 has been applied to
the year ended December 31, 1997, and all prior periods. 

<PAGE>13 

                                     PART II

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


     During 1997 FASB issued SFAS No. 129 "Disclosure of Information about
Capital Structure" ("FAS 129").  FAS 129 continues the existing requirements to
disclose the pertinent rights and privileges of all securities other than
ordinary common stock but expands the number of companies subject to portions of
its requirements.  The Partnership's disclosures comply with the requirements of
this statement.

     During 1997 FASB issued SFAS No. 130 "Reporting Comprehensive Income" ("FAS
130").  FAS 130 states that all items that are required to be recognized under
accounting standards as components of comprehensive income are to be reported in
a separate statement of income.  This would include net income as currently
reported by the Partnership adjusted for unrealized gains and losses related to
the Partnership's mortgages accounted for as "available for sale".  FAS 130 is
effective for years beginning on or after December 15, 1997.

     During 1997, FASB issued SFAS 131 "Disclosures about Segments of an
Enterprise and Related Information" ("FAS 131").  FAS 131 establishes standards
for the way that public business enterprises report information about operating
segments and related disclosures about products and services, geographical areas
and major customers.  FAS 131 is effective for years beginning on or after
December 15, 1997.

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 

<PAGE>14 

                                    PART III

ITEM 10.  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT -
               Continued

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 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), 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, 1997.


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, 1997, 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, 1997, 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 

<PAGE>15

                                    PART III

          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>16

                                     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, 1997
  and 1996                                                              23

Statements of Operations for the years
  ended December 31, 1997, 1996 and 1995                                24

Statements of Changes in Partners' Equity
  for the years ended December 31, 1997,
  1996 and 1995                                                         25

Statements of Cash Flows for the years
  ended December 31, 1997, 1996 and 1995                                26

Notes to Financial Statements                                           27

     (a)(2)    Financial Statement Schedules:

               IV - Mortgage Loans on Real Estate                       36

               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"). 

<PAGE>17 

                                     PART IV

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

     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.

     27.  Financial Data Schedule (filed herewith).

     (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, 1998                      /s/ William B. Dockser
---------------------------         ----------------------------
DATE                                William B. Dockser
                                    Chairman of the Board
                                      and Principal Executive
                                      Officer 

                                          

March 18, 1998                      /s/ H. William Willoughby
---------------------------         ----------------------------
DATE                                H. William Willoughby
                                    President and Director

                                      

March 18, 1998                      /s/ Cynthia O. Azzara
---------------------------         ----------------------------
DATE                                Cynthia O. Azzara
                                    Principal Financial and 
                                      Accounting Officer



March 18, 1998                      /s/ Garrett G. Carlson, Sr.
---------------------------         ----------------------------
DATE                                Garrett G. Carlson, Sr.
                                    Director


March 18, 1998                      /s/ Larry H. Dale
---------------------------         ----------------------------
DATE                                Larry H. Dale
                                    Director


March 18, 1998                      /s/ G. Richard Dunnells
---------------------------         ----------------------------
DATE                                G. Richard Dunnells
                                    Director


March 18, 1998                      /s/ Robert Merrick
---------------------------         ----------------------------
DATE                                Robert Merrick
                                    Director 


<PAGE>19




























                       AMERICAN INSURED MORTGAGE INVESTORS

              Financial Statements as of December 31, 1997 and 1996

            and for the Years Ended December 31, 1997, 1996 and 1995 

<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, 1997 and 1996, and the
related statements of operations, changes in partners' equity and cash flows for
the years ended December 31, 1997, 1996 and 1995. 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, 1997 and 1996, and the results of its operations and its cash flows
for the years ended December 31, 1997, 1996 and 1995, in conformity with
generally accepted accounting principles.

     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, 1997 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 13, 1998 

<PAGE>21

                       AMERICAN INSURED MORTGAGE INVESTORS

                                 BALANCE SHEETS


<TABLE><CAPTION>
                                                   December 31,    December 31,
                                                       1997            1996    
                                                   ------------    ------------
<S>                                                <C>             <C>         
ASSETS

Investment in FHA-Insured Loans, 
  at amortized cost, net of unamortized
  discount:
    Originated insured mortgages                   $ 14,184,505    $ 14,274,528
    Acquired insured mortgages                        8,912,223       8,988,210
                                                   ------------    ------------
                                                     23,096,728      23,262,738

Investment in FHA-Insured Certificates, 
  at fair value                                      14,178,168      14,105,760

Cash and cash equivalents                               878,867         656,051

Receivables and other assets                            397,201         360,640
                                                   ------------    ------------
     Total assets                                  $ 38,550,964    $ 38,385,189
                                                   ============    ============
LIABILITIES AND PARTNERS' EQUITY

Distributions payable                              $    823,903    $    720,916

Accounts payable and accrued expenses                    66,482          74,473
                                                   ------------    ------------
     Total liabilities                                  890,385         795,389
                                                   ------------    ------------
Partners' equity:
  Limited partners' equity                           39,633,683      39,737,785
  General partner's deficit                          (4,935,128)     (4,932,018)
  Unrealized gains on investment 
    in FHA-Insured Certificates                       2,962,024       2,784,033
                                                   ------------    ------------
     Total partners' equity                          37,660,579      37,589,800
                                                   ------------    ------------
     Total liabilities and partners' 
       equity                                      $ 38,550,964    $ 38,385,189
                                                   ============    ============


                   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,         
                                                          1997              1996            1995    
                                                      ------------      ------------    ------------
<S>                                                   <C>               <C>             <C>         
Income:
  Mortgage investment income                          $  3,376,465      $  3,413,739    $  3,589,374
  Interest and other income                                 38,282            31,263          37,115
                                                      ------------      ------------    ------------
                                                         3,414,747         3,445,002       3,626,489
                                                      ------------      ------------    ------------
Expenses:
  Asset management fee to related parties                  343,092           343,092         343,092
  General and administrative                               192,218           197,413         242,209
                                                      ------------      ------------    ------------
                                                           535,310           540,505         585,301
                                                      ------------      ------------    ------------
Earnings before mortgage modification                    2,879,437         2,904,497       3,041,188

Loss on mortgage modification                                   --          (146,464)             --
                                                      ------------      ------------    ------------
     Net earnings                                     $  2,879,437      $  2,758,033    $  3,041,188
                                                      ============      ============    ============
Net earnings allocated to:
  Limited partners - 97.1%                            $  2,795,933      $  2,678,050    $  2,952,994
  General partner -  2.9%                                   83,504            79,983          88,194
                                                      ------------      ------------    ------------
                                                      $  2,879,437      $  2,758,033    $  3,041,188
                                                      ============      ============    ============
Net earnings per limited 
  partnership Unit - Basic                            $        .28      $        .27    $        .30
                                                      ============      ============    ============

                                             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, 1997, 1996 and 1995

<TABLE><CAPTION>

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

Balance, January 1, 1995                         (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

  Net earnings                                       83,504         2,795,933              --        2,879,437

  Distributions paid or accrued of
    $0.29 per Unit, including
    return of capital of $0.01 per
    Unit                                            (86,614)       (2,900,035)             --       (2,986,649)

  Unrealized gains
    on investment in FHA-insured
    certificates                                         --                --         177,991          177,991
                                               ------------      ------------    ------------    -------------

Balance, December 31, 1997                     $ (4,935,128)     $ 39,633,683    $  2,962,024    $  37,660,579
                                               ============      ============    ============    =============

Limited Partnership Units 
  outstanding - basic, as of 
  December 31, 1997, 1996 
  and 1995                                                          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,     
                                                                            1997            1996             1995    
                                                                        ------------    ------------     ------------
<S>                                                                     <C>             <C>              <C>         
Cash flows from operating activities:                                               
  Net earnings                                                          $  2,879,437    $  2,758,033     $  3,041,188
  Adjustments to reconcile net earnings to net cash
    provided by operating activities:
    Loss on mortgage modification                                                 --         146,464               --
    Changes in assets and liabilities:
      (Increase) decrease in receivables and other assets                    (36,561)         16,683           (2,676)
      (Decrease) increase in accounts payable and
        accrued expenses                                                      (7,991)        (23,819)           1,809
                                                                        ------------     -----------     ------------
        Net cash provided by operating activities                          2,834,885       2,897,361        3,040,321
                                                                        ------------   -------------     ------------
Cash flows from investing activities:
  Receipt of mortgage principal from scheduled payments                      271,593         277,580          206,038
                                                                        ------------    ------------     ------------
Cash flows from financing activities:
  Distributions paid to partners                                          (2,883,662)     (3,192,623)      (3,295,612)
                                                                        ------------    ------------     ------------
Net increase (decrease) in cash and cash equivalents                         222,816         (17,682)         (49,253)

Cash and cash equivalents, beginning of year                                 656,051         673,733          722,986
                                                                        ------------    ------------     ------------
Cash and cash equivalents, end of year                                  $    878,867    $    656,051     $    673,733
                                                                        ============    ============     ============


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

</TABLE>

<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.

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 

<PAGE>26 

                       AMERICAN INSURED MORTGAGE INVESTORS

                          NOTES TO FINANCIAL STATEMENTS

2.   SIGNIFICANT ACCOUNTING POLICIES - Continued

     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, 1997, the weighted average remaining term of the
     Partnership's investments in FHA-Insured Certificates is approximately 24
     years.  However, the Partnership Agreement states that the Partnership will
     terminate in approximately 11 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
     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, 1997, 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.  

          As of December 31, 1997, 1996 and 1995, Investment in FHA-Insured
     Loans, are 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 

<PAGE>27 

                       AMERICAN INSURED MORTGAGE INVESTORS

                          NOTES TO FINANCIAL STATEMENTS

2.   SIGNIFICANT ACCOUNTING POLICIES - Continued

     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.

     New Accounting Standards
     ------------------------
          In February 1997, FASB issued SFAS No. 128 "Earnings per Share" ("FAS
     128").  FAS 128 changes the requirements for the calculation and disclosure
     of earnings per share.  The Partnership is required to present basic net
     earnings per limited partnership unit as opposed to net earnings per
     limited partnership unit.  However, the computational differences between
     FAS 128 and the prior accounting standard do not impact the Partnership. 
     FAS 128 has been applied to the year ended December 31, 1997, and all prior
     periods.

          During 1997 FASB issued SFAS No. 129 "Disclosure of Information about
     Capital Structure" ("FAS 129").  FAS 129 continues the existing
     requirements to disclose the pertinent rights and privileges of all
     securities other than ordinary common stock but expands the number of
     companies subject to portions of its requirements.  The Partnership's
     disclosures comply with the requirements of this statement.

          During 1997 FASB issued SFAS No. 130 "Reporting Comprehensive Income"
     ("FAS 130").  FAS 130 states that all items that are required to be
     recognized under accounting standards as components of comprehensive income
     are to be reported in a separate statement of income.  This would include
     net income as currently reported by the Partnership adjusted for unrealized
     gains and losses related to the Partnership's mortgages accounted for as
     "available for sale".  FAS 130 is effective for years beginning on or after
     December 15, 1997.

          During 1997, FASB issued SFAS 131 "Disclosures about Segments of an
     Enterprise and Related Information" ("FAS 131").  FAS 131 establishes
     standards for the way that public business enterprises report information
     about operating segments and related disclosures about products and
     services, geographical areas and major customers.  FAS 131 is effective for
     years beginning on or after December 15, 1997.

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>28 

                       AMERICAN INSURED MORTGAGE INVESTORS

                          NOTES TO FINANCIAL STATEMENTS


3.   FAIR VALUE OF FINANCIAL INSTRUMENTS - Continued

<TABLE><CAPTION>
                                                 As of December 31, 1997          As of December 31, 1996
                                                 Amortized          Fair          Amortized         Fair    
                                                   Cost             Value            Cost           Value   
                                               ------------      ------------   ------------    ------------
<S>                                            <C>               <C>            <C>             <C>         

Investment in FHA-Insured
  Certificates                                 $ 11,216,144      $ 14,178,168   $ 11,321,727    $ 14,105,760
                                               ============      ============   ------------    ------------
Investment in FHA-Insured
  Loans:
  Originated Insured Mortgages                 $ 14,184,505      $ 14,969,834   $ 14,274,528    $ 14,936,979
  Acquired Insured Mortgage                       8,912,223        11,870,299      8,988,210      11,864,867
                                               ------------      ------------   ------------    ------------
                                               $ 23,096,728        26,840,133   $ 23,262,738    $ 26,801,846
                                               ============      ============   ============    ============

Cash and cash equivalents                      $    878,867      $    878,867   $    656,051    $    656,051

Accrued interest receivable                    $    361,525      $    361,525   $    277,289    $    277,289

</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, 1997, 1996 and 1995 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, 1997, 1996 and 1995, earned or received compensation or
payments for services from the Partnership as follows: 

<PAGE>29 

                       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                    1997          1996          1995  
-----------------                   ----------------------------          --------      --------      --------
<S>                                 <C>                                   <C>           <C>           <C>     
CRIIMI, Inc.                        General Partner/Distribution          $  86,614    $  89,600     $  95,572

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

CRIIMI MAE                          Affiliate of General Partner/            36,226       39,974        16,862
  Management, Inc. (2)                Expense Reimbursement

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

</TABLE>

     (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 0.28% of Total
Invested Assets from the Advisor's Asset Management Fee.  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, $101,112 and $50,566 for the
years ended December 31, 1997, and 1996 and for the six months ended December
31, 1995, respectively.  CRI/AIM Management, Inc., which acted as the Sub-
advisor through June 30, 1995, earned a fee equal to $50,556 for the six months
ended June 30, 1995.

     (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.  This is included in general and
administrative expenses.

5.   INVESTMENT IN FHA-INSURED LOANS

     Listed below is the Partnership's aggregate investment in FHA-Insured Loans
as of December 31, 1997 and 1996: 

<PAGE>30 

                       AMERICAN INSURED MORTGAGE INVESTORS

                          NOTES TO FINANCIAL STATEMENTS

5.   INVESTMENT IN FHA-INSURED LOANS - Continued


<TABLE>
<CAPTION>                                                                                         December 31,         
                                          1997              1996    
                                      ------------      ------------
<S>                                   <C>               <C>         
Number of
  Acquired Insured Mortgages                     4                 4
  Originated Insured Mortgages                   2                 2
Amortized Cost                        $ 23,096,728      $ 23,262,738
Face Value                              26,077,186        26,338,828
Fair Value                              26,840,133        26,801,846

</TABLE>



     All of the FHA-Insured Loans were current with respect to the payment of
principal and interest as of March 1, 1998, except for the mortgage on
Portervillage I Apartments, which has been delinquent since January 1997.  In
May 1997, the servicer of this mortgage filed a Notice of Default and an
Election to Assign the mortgage with HUD.  The face value of this mortgage was
approximately $1.2 million at December 31, 1996.  The Partnership expects to
receive 99% of this amount plus accrued interest.

     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, 1997, 1996 and 1995, the Partnership received $61,988, $12,158 and $39,465,
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, 1997 and 1996:

<TABLE>
<CAPTION>                                    December 31,         
                                         1997            1996    
                                     ------------    ------------
<S>                                  <C>             <C>         
Number of mortgages                             9               9
Amortized Cost                       $ 11,216,144    $ 11,321,727
Face Value                             13,648,992      13,843,564
Fair Value                             14,178,168      14,105,760

</TABLE>

     All of the FHA-Insured Certificates were current with respect to the
payment of principal and interest as of March 1, 1998.

7.   DISTRIBUTIONS TO UNITHOLDERS

     The distributions paid or accrued to Unitholders on a per Unit basis for
the years ended December 31, 1997, 1996 and 1995  are as follows: 

<PAGE>31 

                       AMERICAN INSURED MORTGAGE INVESTORS

                          NOTES TO FINANCIAL STATEMENTS

7.   DISTRIBUTIONS TO UNITHOLDERS - Continued

Quarter Ended            1997         1996         1995  
-------------          --------     --------     --------

March 31               $   0.07     $   0.08     $   0.08
June 30                    0.07         0.08         0.08
September 30               0.07         0.07         0.08
December 31                0.08         0.07         0.08
                       --------     --------     --------
                       $   0.29     $   0.30     $   0.32
                       ========     ========     ========

     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 (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>32

                       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, 1997, 1996 and 1995:

     (In Thousands, Except Per Unit Data)

<TABLE><CAPTION>
                                                                  1997          
                                                             Quarter ended      
                                        March 31       June 30      September 30    December 31
                                       ----------    ----------     ------------    -----------
<S>                                    <C>           <C>            <C>             <C>        
Income                                 $      901    $      840     $        836    $       838
Net earnings                                  758           701              708            712
Net earnings per Limited
  Partnership Unit - Basic             $     0.07    $     0.07     $       0.07    $      0.07

</TABLE>

<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 - Basic             $     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 - Basic             $     0.07    $     0.08     $       0.07    $      0.08

</TABLE> 

<PAGE>33

                                     AMERICAN INSURED MORTGAGE INVESTORS
                                 SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE
                                              DECEMBER 31, 1997
<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% $   6,602,017      $   5,067,311  $       592,406
North River Place
  Chillecothe, OH                        10/21      12/01         7.5%     3,095,607          2,380,516          279,509
Portervillage I Apts.
  Porterville, CA                         8/21       5/01         7.5%     1,144,441            941,454          103,733(4)
Town Park Apts.
  Rockingham, NC                         10/22      10/02         7.5%       637,453            522,942           56,755(4)
                                                                        ------------       ------------
  Total Investment in FHA-Insured Loans - 
    Acquired Insured Mortgages                                            11,479,518          8,912,223
                                                                        ------------       ------------
Originated Insured Mortgages
----------------------------
Investment in FHA-Insured Loans
  (carried at amortized cost)(2)

Creekside Village
  Beaverton, OR                          11/25       1/01        7.75%     5,047,583          5,047,583          442,752
Waters Edge Apts.
  Columbus, OH                            1/31       5/03        8.75%     9,550,085          9,136,922          885,419(6)
                                                                        ------------       ------------
  Total Investment in FHA-Insured Loans -
    Originated Insured Mortgages                                          14,597,668         14,184,505
                                                                        ------------       ------------

  Total Investment in FHA-Insured Loans                                   26,077,186         23,096,728
                                                                        ------------       ------------
See notes to Schedule IV - Mortgage Loans on Real Estate.

</TABLE> 

<PAGE>34


                                      AMERICAN INSURED MORTGAGE INVESTORS
                                 SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE
                                              DECEMBER 31, 1997
<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%     2,069,768(4)       2,149,966          185,272(4)
Baypoint Shoreline Apts.
  Duluth, MN                              1/22      10/01         7.5%       977,925(4)       1,015,854           87,967(4)
Berryhill Apts.
  Grass Valley, CA                        1/21      11/02         7.5%     1,268,509(4)       1,317,862          115,899(4)
Brougham Estates II
  Kansas City, KS                        11/22       3/02         7.5%     2,597,377(4)       2,697,876          230,860(4)
College Green Apts.
  Wilmington, NC                          3/23       2/02         7.5%     1,395,308(4)       1,449,246          123,455(4)
Fox Run Apts.
  Dothan, AL                             10/19      11/99         7.5%     1,243,489(4)       1,292,094          116,242(4)
Kaynorth Apts.
  Lansing, MI                             4/23       9/02         7.5%     1,893,162(4)       1,966,332          167,318(4)
Lakeside Apts.
  Bennettsville, SC                       1/22       2/02         7.5%       392,461(4)         407,683           35,303(4)
Westbrook Apts.
  Kokomo, IN                             11/22       9/02         7.5%     1,810,993(4)       1,881,255          163,177(4)
                                                                        ------------       ------------
  Total Investment in FHA-Insured Certificates                            13,648,992         14,178,168
                                                                        ------------       ------------
  TOTAL INVESTMENT IN INSURED MORTGAGES                                 $ 39,726,178       $ 37,274,896
                                                                        ============       ============

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

<PAGE>35

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

(6)  This represents the base interest rate during the permanent phase of this
     insured mortgage loan.  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
     $61,988, $12,158 and $39,465 from the Participations for the years ended
     December 31, 1997, 1996 and 1995, 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>36

                       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, 1997 and 1996, is as follows:

                                       1997            1996   
                                  ------------    ------------
Beginning balance                 $ 37,368,498    $ 38,364,383

  Loss on mortgage
    modification                            --        (146,464)
  Principal receipts on
    Insured Mortgages                 (271,593)       (277,580)
  Increase (decrease) in 
    unrealized gains on 
    investment in Insured 
    Mortgages                          177,991        (571,841)
                                  ------------    ------------
Ending balance                    $ 37,274,896    $ 37,368,498
                                  ============    ============

(10) The tax basis of the Insured Mortgages was approximately $33.7 million and
     $34.1 million as of December 31, 1997 and 1996, respectively.<PAGE>