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

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

For the fiscal year ended December 31, 2001       Commission file number 1-11060


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


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

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

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

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

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

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

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

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

     Indicate by check mark if disclosure of delinquent  filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's  knowledge,  in definitive proxy or information  statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [X]

     As of February 19, 2002, 10,000,125 depositary units of limited partnership
interest were  outstanding and the aggregate  market value of such units held by
non-affiliates of the Registrant on such date was $25,469,604.

                       Documents incorporated by Reference

                                      None

<PAGE>2





                       AMERICAN INSURED MORTGAGE INVESTORS

                         2001 ANNUAL REPORT ON FORM 10-K

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                        Page
                                                                                                        ----
                                     PART I

<S>               <C>                                                                                    <C>
Item 1.           Business                                                                                3
Item 2.           Properties                                                                              4
Item 3.           Legal Proceedings                                                                       4
Item 4.           Submission of Matters to a Vote of Security Holders                                     4


                                     PART II

Item 5.           Market for Registrant's Securities and Related Security Holder Matters                  5
Item 6.           Selected Financial Data                                                                 6
Item 7.           Management's Discussion and Analysis of Financial Condition and Results of
                     Operations                                                                           7
Item 7A.          Qualitative and Quantitative Disclosures About Market Risk                             12
Item 8.           Financial Statements and Supplementary Data                                            12
Item 9.           Changes in and Disagreements with Accountants on Accounting and Financial
                     Disclosure                                                                          12

                                    PART III

Item 10.          Directors and Executive Officers of the Registrant                                     13
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
</TABLE>

<PAGE>3
                                     PART I

ITEM 1.   BUSINESS

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

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

     Information  concerning the business of American Insured Mortgage Investors
(the "Partnership") is contained in Part II, Item 7, Management's Discussion and
Analysis of Financial  Condition and Results of Operations  and in Notes 1, 5, 6
and 7 of the Notes to Financial Statements of the Partnership (filed in response
to Item 8 hereof),  all of which are incorporated by reference herein.  See also
Schedule IV-Mortgage Loans on Real Estate for the table of the Insured Mortgages
(as defined below) invested in by the Partnership as of December 31, 2001, which
is hereby incorporated by reference herein.

Employees
---------

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

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

<PAGE>4

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

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

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

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


ITEM 2.   PROPERTIES

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


ITEM 3.   LEGAL PROCEEDINGS

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


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

     No matters were submitted to the security holders to be voted on during the
fourth quarter of 2001.

<PAGE>5
                                     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")  under the
trading symbol of "AIA". The high and low trade prices for the Units as reported
on AMEX and the distributions,  as applicable, for each quarterly period in 2001
and 2000 were as follows:

                                                                  Amount of
                                      2001                      Distribution
Quarter Ended                 High              Low               Per Unit
-------------                 ----              ---               --------
March 31                   $  2.6000        $  2.2500             $  0.05
June 30                       2.7500           2.4000                0.05
September 30                  2.7000           2.3000                0.17(1)
December 31                   3.0000           2.3000                0.05
                                                                  -------
                                                                  $  0.32
                                                                  =======


                                                                  Amount of
                                      2000                      Distribution
Quarter Ended                 High              Low               Per Unit
-------------                 ----              ---               --------
March 31                   $  2.5625        $  2.2500             $  0.05
June 30                       2.6250           2.1250                0.05
September 30                  2.4375           2.1250                0.05
December 31                   2.4375           2.1875                0.05
                                                                  -------
                                                                  $  0.20
                                                                  =======

(1)  This amount includes approximately $0.12 per Unit representing net proceeds
     from the prepayment of the mortgage on Berryhill Apartments.


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


                                               Approximate Number of Unitholders
      Title of Class                                as of December 31, 2001
      --------------                                -----------------------
Depositary Units of Limited
   Partnership Interest                                    6,600



<PAGE>6


ITEM 6.   SELECTED FINANCIAL DATA
          (Dollars in thousands, except per Unit amounts)
<TABLE>
<CAPTION>
                                                             For the years ended December 31,
                                              2001          2000          1999          1998         1997
                                            --------      --------      --------      --------     --------
<S>                                         <C>           <C>           <C>           <C>          <C>
Income                                      $  2,215      $  2,279      $  2,354      $  3,191     $  3,415

Net gains from
 mortgage dispositions                           190           188            67         1,290           --

Net earnings                                   1,955         2,011         1,925         3,978        2,879

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

Distributions per Limited
  Partnership Unit (1)(2)                   $   0.32      $   0.20      $   0.36      $   1.29     $   0.29
</TABLE>

<TABLE>
<CAPTION>
                                                                         As of December 31,
                                              2001          2000          1999          1998         1997
                                            --------      --------      --------      --------     --------
<S>                                         <C>           <C>           <C>           <C>          <C>
Total assets                                $ 24,138      $ 25,857      $ 26,416      $ 28,735     $ 38,551

Partners' equity                              23,530        25,271        25,422        27,750       37,661
</TABLE>

(1)  Calculated  based upon the weighted  average number of Limited  Partnership
     Units outstanding.

(2)  Includes  distributions  due the Unitholders for the  Partnership's  fiscal
     years ended December 31, 2001,  2000,  1999, 1998, and 1997 which were paid
     subsequent  to each year end.  See Notes 8 and 9 of the Notes to  Financial
     Statements.

     The selected  income  statement  data  presented  above for the years ended
December 31, 2001,  2000 and 1999,  and the  selected  balance  sheet data as of
December 31, 2001 and 2000, are derived from, and are qualified by, reference to
the Partnership's  financial  statements,  which are included  elsewhere in this
Form 10-K. The selected  income  statement data for the years ended December 31,
1998 and 1997, and the selected balance sheet data as of December 31, 1999, 1998
and 1997 are derived from audited  financial  statements not included as part of
this Annual Report on Form 10-K.  This data should be read in  conjunction  with
the financial statements and the notes thereto.

<PAGE>7

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

General
-------

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

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

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

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

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

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

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

<PAGE>8

     Most of the Insured  Mortgages held by the Partnership apply to the Section
221 program of the National  Housing Act of 1937,  as amended (the  "Section 221
program").  Under the Section 221 program, a mortgagee has the right to assign a
mortgage  ("put")  to FHA at the  expiration  of 20 years from the date of final
endorsement  if the  mortgage  is not in  default at such  time.  Any  mortgagee
electing  to assign an  FHA-insured  mortgage to FHA will  receive,  in exchange
therefor,  United  States  Department of Housing and Urban  Development  ("HUD")
debentures  having a total face value  equal to the then  outstanding  principal
balance  of the  FHA-insured  mortgage  plus  accrued  interest  to the  date of
assignment.  These  HUD  debentures  will  mature  10  years  from  the  date of
assignment and will bear interest at the "going Federal rate" at such date. This
assignment  procedure is applicable to an insured  mortgage  which had a firm or
conditional  FHA  commitment  for insurance on or before  November 30, 1983. The
Partnership  anticipates  that  each  eligible  insured  mortgage,  for  which a
prepayment has not occurred and which has not been sold, will be assigned to FHA
at  the  expiration  of 20  years  from  the  date  of  final  endorsement.  The
Partnership,  therefore,  does  not  anticipate  holding  any  eligible  insured
mortgage  beyond  the  expiration  of 20 years from  final  endorsement  of that
insured  mortgage.  The  Partnership  has  initiated  its  request  to put these
mortgages  to FHA as they become due.  Once the servicer of a mortgage has filed
an application for insurance benefits under Section 221, the Partnership will no
longer receive the monthly principal and interest on the applicable mortgage.

     The servicer of the mortgage on Fox Run Apartments filed an application for
insurance  benefits under the Section 221 program of the National Housing Act of
1937 in May 2000. In December 2000, HUD issued  assignment  proceeds in the form
of a 7.125%  debenture for this  mortgage.  The mortgage was owned 50% by AIM 84
and 50% by an affiliate of the Partnership,  American Insured Mortgage Investors
- Series 85, L.P. ("AIM 85").  The  debenture,  with a face value of $2,385,233,
was issued to AIM 85 with interest  payable  semi-annually on January 1 and July
1. The  Partnership  recognized  a gain of  approximately  $188,000 for the year
ended December 31, 2000 related to this assignment. The net proceeds and accrued
interest are included on the Balance Sheet in Due from  affiliate as of December
31, 2001. In January  2002,  the  debenture  was  liquidated  at par value.  The
Partnership  received  approximately $1.2 million for its share of the debenture
proceeds,  including  interest  of  approximately  $42,000.  A  distribution  of
approximately  $0.11  per Unit  related  to the  receipt  of these  proceeds  is
expected to be declared in March 2002.

     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 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.

     As of  December  31,  2001,  the  Partnership  had  invested  in 10 Insured
Mortgages, with an aggregate amortized cost of approximately $21 million, a face
value  of  approximately  $24  million  and a fair  value of  approximately  $24
million, as discussed below.

<PAGE>9

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

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

     Listed below is the Partnership's aggregate investment in FHA-Insured Loans
as of December 31, 2001 and 2000:
<TABLE>
<CAPTION>
                                                                            December 31,
                                                                    2001                     2000
                                                                    ----                     ----
<S>                                                            <C>                      <C>
Number of
  Acquired Insured Mortgages                                              3                        3
  Originated Insured Mortgage                                             1                        1
Amortized Cost                                                 $ 12,427,801             $ 12,597,098
Face Value                                                       14,428,107               14,694,371
Fair Value                                                       13,846,281               14,222,808
</TABLE>

     All of the  FHA-Insured  Loans were  current with respect to the payment of
principal and interest as of March 1, 2002.

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

     Listed  below is the  Partnership's  aggregate  investment  in  FHA-Insured
Certificates as of December 31, 2001 and 2000:
<TABLE>
<CAPTION>
                                                                            December 31,
                                                                    2001                     2000
                                                                    ----                     ----
<S>                                                             <C>                      <C>
Number of mortgages (1)                                                   6                        7
Amortized Cost                                                  $ 8,415,866             $  9,536,007
Face Value                                                       10,037,064               11,433,137
Fair Value                                                        9,727,346               11,258,675
</TABLE>

(1)  In September  2001, the mortgage on Berryhill  Apartments was prepaid.  The
     Partnership  received  net  proceeds  of  approximately  $1.2  million  and
     recognized a gain of approximately $190,000 for the year ended December 31,
     2001.  A  distribution  of  approximately  $0.12  per Unit  related  to the
     prepayment  of this  mortgage was  declared in  September  2001 and paid to
     Unitholders in November 2001.

     As of March 1, 2002, all of the Partnership's  FHA-Insured Certificates
were current with respect to the payment of principal and  interest,  except for
the mortgage on Westbrook  Apartments,  which is delinquent  with respect to the
February 2002 payment of principal and interest.

<PAGE>10


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

2001 versus 2000
----------------

     Net earnings  decreased slightly for 2001 as compared to 2000 primarily due
to a decrease in mortgage investment income, as discussed below.

     Mortgage investment income decreased for 2001 as compared to 2000 primarily
due to a reduction in the mortgage  base. The mortgage base decreased due to two
mortgage  dispositions with a principal  balance of approximately  $2.4 million,
representing  an approximate 9% decrease in the aggregate  principal  balance of
the total mortgage portfolio since November 2000.

     Interest  and other  income  increased  for 2001 as compared to 2000.  This
increase is  primarily  due to the timing of  temporary  investment  of mortgage
disposition proceeds prior to distribution.

     Asset  management fee to related parties  decreased for 2001 as compared to
2000 primarily due to a reduction in the mortgage base, as previously discussed.

     In  2001,  a  gain  of  approximately  $190,000  was  recognized  from  the
prepayment of the mortgage on Berryhill Apartments, as discussed above. In 2000,
a gain of approximately  $188,000 was realized on the assignment of the mortgage
on Fox Run Apartments, as previously discussed.

2000 versus 1999
----------------

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

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

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

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

<PAGE>11

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

     On October 5, 1998,  CRIIMI  MAE,  the parent of the General  Partner,  and
CRIIMI  MAE  Management,  Inc.,  an  affiliate  of CRIIMI  MAE and  provider  of
personnel  and  administrative  services  to the  Partnership,  filed  voluntary
petitions for relief under chapter 11 of title 11 of the United States Code (the
"Bankruptcy Code"). On November 22, 2000, the United States Bankruptcy Court for
the  District of Maryland,  in  Greenbelt,  Maryland  (the  "Bankruptcy  Court")
confirmed CRIIMI MAE's and CRIIMI MAE Management, Inc.'s reorganization plan. On
April 17,  2001,  CRIIMI  MAE and  CRIIMI  MAE  Management,  Inc.  emerged  from
bankruptcy.

     The  Partnership's  operating  cash  receipts,  derived  from  payments  of
principal and interest on Insured  Mortgages plus cash receipts from interest on
short-term  investments,  are the Partnership's principal sources of cash flows,
and were sufficient for the years ended December 31, 2001, 2000 and 1999 to meet
operating  requirements.  The  Partnership  anticipates  its  cash  flows  to be
sufficient to meet operating expense requirements for 2002.

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

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

Cash Flow - 2001 versus 2000
----------------------------

     Net cash  provided by operating  activities in 2001 as compared to 2000 did
not change significantly.

     Net cash provided by investing activities increased for 2001 as compared to
2000,  due  to the  increase  in  proceeds  received  from  the  disposition  of
mortgages, as previously discussed.

     Net cash used in  financing  activities  increased  for 2001 as compared to
2000 due to an increase in distributions paid to partners.

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

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

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

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

<PAGE>12

ITEM 7A.  QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK

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

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

                                                                                                                    Fair
                                     2002       2003       2004       2005       2006     Thereafter    Total       Value
                                     ----       ----       ----       ----       ----     ----------    -----       -----
<S>                                  <C>        <C>        <C>        <C>        <C>        <C>         <C>         <C>
Insured Mortgages
(in millions)                        $3.5       $3.3       $3.8       $4.3       $3.8       $17.2       $35.9       $23.6

Average Interest Rate                 7.74%      7.74%      7.66%      7.51%      7.49%       7.53%       7.61%        --
</TABLE>


ITEM 8.   FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

     The information required by this Item is set forth in this Annual Report on
Form 10-K commencing on page 21.


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

     None.

<PAGE>13
                                    PART III

ITEM 10.  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

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

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

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

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

     The  following  table  sets  forth  information  concerning  the  executive
officers  and  directors  of CRIIMI  MAE,  the sole  shareholder  of the General
Partner, as of February 19, 2002:
<TABLE>
<CAPTION>

Name                                        Age                  Position
----                                        ---                  --------
<S>                                         <C>                  <C>
William B. Dockser                          64                   Chairman of the Board

H. William Willoughby                       55                   President, Secretary and Director

David B. Iannarone                          41                   Executive Vice President

Cynthia O. Azzara                           42                   Senior Vice President,
                                                                   Chief Financial Officer and
                                                                   Treasurer

Brian L. Hanson                             40                   Senior Vice President

John R. Cooper                              54                   Director

Alan M. Jacobs                              53                   Director

Robert J. Merrick                           56                   Director

Robert E. Woods                             54                   Director
</TABLE>

<PAGE>14

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

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

     David B.  Iannarone has served as Executive  Vice  President of the General
Partner  since  December  2000.  Mr.  Iannarone  has  served as  Executive  Vice
President  of CRIIMI MAE since  December  2000;  as Senior  Vice  President  and
General  Counsel of CRIIMI MAE from March  1998 to  December  2000;  and as Vice
President and General Counsel of CRIIMI MAE from July 1996 to March 1998.

     Cynthia  O.  Azzara has served as Chief  Financial  Officer of the  General
Partner since 1994. Ms. Azzara has served as Chief  Financial  Officer of CRIIMI
MAE since 1994. She has also served as Senior Vice President of CRIIMI MAE since
1995 and Treasurer of CRIIMI MAE since 1997.

     Brian L. Hanson has served as Senior Vice President of the General  Partner
since March 1998.  Mr. Hanson has served as Senior Vice  President of CRIIMI MAE
since March 1998;  and as Group Vice  President of CRIIMI MAE from March 1996 to
March 1998.

     John R. Cooper has served as Director  of the General  Partner  since April
2001.  Mr.  Cooper has served as Director  of CRIIMI MAE since  April 2001.  Mr.
Cooper is Senior Vice President, Finance, of PG&E National Energy Group, Inc. He
has been with  PG&E  National  Energy  Group,  Inc.  and its  predecessor,  U.S.
Generating Company, since its inception in 1989.

     Alan M. Jacobs has served as Director  of the General  Partner  since April
2001.  Mr.  Jacobs  has  served as  Director  of CRIIMI  MAE since  April  2001;
President of AMJ Advisors LLC, since  September  1999;  and founding  member and
Senior  Partner  of Ernst  and  Young  LLP's  restructuring  and  reorganization
practice  through  September  1999.  Mr.  Jacobs is the Plan  Administrator  and
Litigation Trust Trustee for T&W Financial  Corporation,  the Chapter 11 Trustee
for Apponline.com,  Inc., the Chapter 11 Trustee for Sharp International  Corp.,
the Chapter 7 Trustee for Edison  Brothers  Stores,  Inc.  and was  formerly the
co-chairman  and  co-chief   executive  officer  of  West  Coast   Entertainment
Corporation.  Mr. Jacobs serves as a director of The Singer Sewing Company.  Mr.
Jacobs was an executive officer of West Coast  Entertainment  Corporation at the
time such  corporation  filed a petition  under the federal  bankruptcy  laws in
March 2000.

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

     Robert E. Woods has served as Director of the General  Partner  since 1998.
Mr. Woods has served as Director of CRIIMI MAE since 1998; Managing Director and
head of loan syndications for the Americas at Societe  Generale,  New York since
1997; Managing Director, head of Real Estate Capital Markets and Mortgage-Backed
Securities division, Citicorp from 1991 to 1997.




<PAGE>15

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

     (f)  Involvement in certain legal proceedings.

          None.

     (g)  Promoters and control persons.

          Not applicable.

     (h)  Section 16 (a) Beneficial Ownership Reporting Compliance -Based solely
          on its review of Forms 3 and 4 and amendments thereto furnished to the
          Partnership,   and  written  representations  from  certain  reporting
          persons  that no  Form  5's  were  required  for  those  persons,  the
          Partnership believes that all reporting persons have filed on a timely
          basis Forms 3, 4, and 5 as required in the fiscal year ended  December
          31, 2001.


ITEM 11.  EXECUTIVE COMPENSATION

     The  Partnership  does not  have any  directors  or  officers.  None of the
directors  or officers  of the General  Partner  receive  compensation  from the
Partnership,  and the General  Partner does not receive  reimbursement  from the
Partnership for any portion of their  salaries.  Other  information  required by
Item 11 is hereby  incorporated  by  reference  herein to Note 8 of the Notes to
Financial Statements of the Partnership.


ITEM 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
          MANAGEMENT

(a)  The following table sets forth certain information regarding the beneficial
     ownership of Units as of February  19,  2002,  by holders of more than five
     percent (5%) of the Partnership's Units.

<TABLE>
<CAPTION>
                                                             Number of         Percent of
          Name                        Address                  Units             Class
          ----                        -------                  -----             -----
<S>                             <C>                          <C>                 <C>
Financial and Investment        417 St. Joseph Street
Management Group, Ltd.          P.O. Box 40                  2,019,012           20.19%
                                Suttins Bay, MI 49682
</TABLE>

NOTE: Financial and Investment Management Group, Ltd. is a registered investment
advisor,  managing individual client accounts.  All shares represented above are
held in accounts  owned by the  clients of  Financial  &  Investment  Management
Group, Ltd.

<PAGE>16

(b)  The following table sets forth certain information regarding the beneficial
     ownership  of the  Partnership's  Units  as of  February  19,  2002 by each
     director  of the  General  Partner,  each  named  executive  officer of the
     General  Partner,  and by affiliates of the  Partnership.  Unless otherwise
     indicated,  each  Unitholder  has sole  voting  and  investment  power with
     respect to the Units beneficially owned.

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

*    Less than 1%

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


ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

(a)  Transactions with management and others.

     Note 8 of the Notes to Financial  Statements of the Partnership  contains a
     discussion of the amounts,  fees and other  compensation paid or accrued by
     the  Partnership  to the directors  and  executive  officers of the General
     Partner  and their  affiliates,  and is hereby  incorporated  by  reference
     herein.

(b)  Certain business relationships.

     Other than as set forth in Item 11 of this Annual Report on Form 10-K which
     is hereby incorporated by reference herein, the Partnership has no business
     relationship  with  entities  of which the current  General  Partner of the
     Partnership are officers, directors or equity owners.

(c)  Indebtedness of management.

     None.

(d)  Transactions with promoters.

     Not applicable.

<PAGE>17
                                     PART IV

ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K
<TABLE>
<CAPTION>

     (a)(1) Financial Statements:                                                                                  Page
Description                                                                                                       Number
-----------                                                                                                       ------
<S>                                                                                                                 <C>
Balance Sheets as of December 31, 2001 and 2000...........................................................          23

Statements of Income and Comprehensive Income for the years
     ended December 31, 2001, 2000 and 1999...............................................................          24

Statements of Changes in Partners' Equity for the years
     ended December 31, 2001, 2000 and 1999...............................................................          25

Statements of Cash Flows for the years ended December 31, 2001, 2000 and 1999.............................          26

Notes to Financial Statements.............................................................................          27

     (a)(2) Financial Statement Schedules:

         IV - Mortgage Loans on Real Estate...............................................................          36
</TABLE>

          All other schedules have been omitted because they are not applicable,
          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.

<PAGE>18

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

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

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

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

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

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

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

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

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

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

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

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

<PAGE>19

    99.0  Letter to  Securities  and Exchange  Commission  from the  Partnership
          dated March 20,  2002  regarding  the  representations  received  from
          Arthur  Andersen LLP in performing  the audit of the December 31, 2001
          financial statements(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>20
                                   SIGNATURES

     KNOW ALL  PERSONS  BY THESE  PRESENTS,  that each  person  whose  signature
appears  below  constitutes  and  appoints  William B.  Dockser  and H.  William
Willoughby, jointly and severally, his attorney-in-fact,  each with the power of
substitution  for him in any and all capacities,  to sign any amendments to this
Annual Report on Form 10-K and to file the same with exhibits  thereto and other
documents in connection therewith,  with the Securities and Exchange Commission,
hereby  ratifying and  confirming  all that each said  attorney-in-fact,  or his
substitute or substitutes, may do or cause to be done by virtue hereof.

     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 12, 2002                                       /s/ William B. Dockser
--------------                                       ---------------------------
DATE                                                 William B. Dockser
                                                     Chairman of the Board

March 12, 2002                                       /s/ H. William Willoughby
--------------                                       ---------------------------
DATE                                                 H. William Willoughby
                                                     President, Secretary and
                                                     Director

March 14, 2002                                       /s/ Cynthia O. Azzara
--------------                                       ---------------------------
DATE                                                 Cynthia O. Azzara
                                                     Senior Vice President,
                                                     Chief Financial Officer and
                                                     Treasurer

March 12, 2002                                       /s/ John R. Cooper
--------------                                       ---------------------------
DATE                                                 John R. Cooper
                                                     Director

March 12, 2002                                       /s/ Alan M. Jacobs
--------------                                       ---------------------------
DATE                                                 Alan M. Jacobs
                                                     Director

March 14, 2002                                       /s/ Robert J. Merrick
--------------                                       ---------------------------
DATE                                                 Robert J. Merrick
                                                     Director

March 11, 2002                                       /s/ Robert E. Woods
--------------                                       ---------------------------
DATE                                                 Robert E. Woods
                                                     Director
<PAGE>21














                       AMERICAN INSURED MORTGAGE INVESTORS



                              Financial Statements

                        as of December 31, 2001 and 2000

                             and for the Years Ended

                        December 31, 2001, 2000, and 1999










<PAGE>22

                    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, 2001 and 2000, and the
related  statements  of income and  comprehensive  income,  changes in partners'
equity and cash flows for the years  ended  December  31,  2001,  2000 and 1999.
These  financial   statements  and  the  schedule  referred  to  below  are  the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial statements and the schedule based on our audits.

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

     In our opinion,  the financial statements referred to above present fairly,
in all  material  respects,  the  financial  position of the  Partnership  as of
December 31, 2001 and 2000, and the results of its operations and its cash flows
for the years  ended  December  31,  2001,  2000 and 1999,  in  conformity  with
accounting principles generally accepted in the United States.

     Our  audits  were made for the  purpose  of forming an opinion on the basic
financial statements taken as a whole. Schedule IV-Mortgage Loans on Real Estate
as of  December  31,  2001 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.



/s/Arthur Andersen LLP
Vienna, Virginia
March 4, 2002

<PAGE>23

                       AMERICAN INSURED MORTGAGE INVESTORS

                                 BALANCE SHEETS


<TABLE>
<CAPTION>
                                                             December 31,     December 31,
                                                                2001             2000
                                                            -------------    -------------
                             ASSETS

<S>                                                         <C>              <C>
Investment in FHA-Insured Loans, at amortized cost,
  net of unamortized discount:
    Originated insured mortgages                            $  4,806,675     $  4,874,050
    Acquired insured mortgages                                 7,621,126        7,723,048
                                                            ------------     ------------

                                                              12,427,801       12,597,098

Investment in FHA-Insured Certificates,
  at fair value                                                9,727,346       11,258,675

Cash and cash equivalents                                        534,890          567,491

Receivables and other assets                                     212,451          203,781

Due from affiliate                                             1,235,104        1,230,180
                                                            ------------     ------------

      Total assets                                          $ 24,137,592     $ 25,857,225
                                                            ============     ============



                LIABILITIES AND PARTNERS' EQUITY

Distributions payable                                       $    514,940     $    514,940

Accounts payable and accrued expenses                             92,319           71,763
                                                            ------------     ------------

      Total liabilities                                          607,259          586,703
                                                            ------------     ------------

Partners' equity:
  Limited partners' equity, 10,000,125 Units authorized,
    issued and outstanding                                    27,515,891       28,817,932
  General partner's deficit                                   (5,297,038)      (5,258,151)
  Accumulated other comprehensive income                       1,311,480        1,710,741
                                                            ------------     ------------

      Total partners' equity                                  23,530,333       25,270,522
                                                            ------------     ------------

      Total liabilities and partners' equity                $ 24,137,592     $ 25,857,225
                                                            ============     ============
</TABLE>

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


<PAGE>24

               AMERICAN INSURED MORTGAGE INVESTORS

          STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

<TABLE>
<CAPTION>
                                                                           For the years ended December 31,
                                                                      2001               2000              1999
                                                                   ----------         ----------        ----------
<S>                                                                <C>                <C>               <C>
Income:
  Mortgage investment income                                       $2,110,712         $2,264,907        $2,325,545
  Interest and other income                                           104,224             13,933            28,431
                                                                   ----------         ----------        ----------

                                                                    2,214,936          2,278,840         2,353,976
                                                                   ----------         ----------        ----------

Expenses:
  Asset management fee to related parties                             224,202            237,264           240,997
  General and administrative                                          226,255            219,282           255,145
                                                                   ----------         ----------        ----------

                                                                      450,457            456,546           496,142
                                                                   ----------         ----------        ----------

Earnings before mortgage dispositions                               1,764,479          1,822,294         1,857,834

Gains on mortgage dispositions                                        190,206            188,455            67,150
                                                                   ----------         ----------        ----------

     Net earnings                                                  $1,954,685         $2,010,749        $1,924,984
                                                                   ==========         ==========        ==========

Other comprehensive loss                                             (399,261)          (102,162)         (545,617)
                                                                   ----------         ----------        ----------
Comprehensive income                                               $1,555,424         $1,908,587        $1,379,367
                                                                   ==========         ==========        ==========


Net earnings allocated to:
  Limited partners - 97.1%                                         $1,897,999         $1,952,437        $1,869,159
  General partner -   2.9%                                             56,686             58,312            55,825
                                                                   ----------         ----------        ----------

                                                                   $1,954,685         $2,010,749        $1,924,984
                                                                   ==========         ==========        ==========

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

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

<PAGE>25

              AMERICAN INSURED MORTGAGE INVESTORS

           STATEMENTS OF CHANGES IN PARTNERS' EQUITY

     For the years ended December 31, 2001, 2000, and 1999

<TABLE>
<CAPTION>
                                                                                                  Accumulated
                                                                                                     Other            Total
                                                                General           Limited        Comprehensive       Partners'
                                                                Partner           Partners           Income           Equity
                                                              ------------      -----------       -----------       -----------
<S>                                                           <C>               <C>               <C>               <C>
Balance, January 1, 1999                                      $(5,205,036)      $30,596,406       $ 2,358,520       $27,749,890

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

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

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

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

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

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

Net Earnings                                                       56,686         1,897,999                 -         1,954,685

  Adjustment to unrealized gains on
     investments in insured mortgages                                   -                 -          (399,261)         (399,261)
  Distributions paid or accrued of $0.32 per Unit,
     including return of capital of $0.13 per Unit                (95,573)       (3,200,040)                -        (3,295,613)
                                                              -----------       -----------       -----------       -----------

Balance, December 31, 2001                                    $(5,297,038)      $27,515,891       $ 1,311,480       $23,530,333
                                                              ===========       ===========       ===========       ===========

Limited Partnership Units outstanding - Basic, as of
  December 31, 2001, 2000, and 1999                                              10,000,125
                                                                                 ==========
</TABLE>

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

<PAGE>26

                AMERICAN INSURED MORTGAGE INVESTORS

                     STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                                               For the years ended December 31,
                                                                                              2001           2000           1999
                                                                                           ----------     ----------     -----------
<S>                                                                                        <C>            <C>            <C>
Cash flows from operating activities:
   Net earnings                                                                            $1,954,685     $2,010,749     $1,924,984
   Adjustments to reconcile net earnings to net cash provided by
      operating activities:
      Gains on mortgage dispositions                                                         (190,206)      (188,455)       (67,150)
      Changes in assets and liabilities:
         (Increase) decrease in due from affiliate, receivables and other assets               (1,667)       (50,797)        65,834
         Increase in accounts payable and accrued expenses                                     20,556          4,573          9,130
                                                                                           ----------     ----------     ----------

            Net cash provided by operating activities                                       1,783,368      1,776,070      1,932,798
                                                                                           ----------     ----------     ----------

Cash flows from investing activities:
   Proceeds from disposition of mortgages                                                   1,184,199              -        383,582
   Debenture proceeds received from affiliate                                                       -              -      1,148,049
   Receipt of mortgage principal from scheduled payments                                      295,445        280,200        267,690
                                                                                           ----------     ----------     ----------

            Net cash provided by investing activities                                       1,479,644        280,200      1,799,321
                                                                                           ----------     ----------     ----------

Cash flows from financing activities:
   Distributions paid to partners                                                          (3,295,613)    (2,471,709)    (3,707,564)
                                                                                           ----------     ----------     ----------

Net (decrease) increase in cash and cash equivalents                                          (32,601)      (415,439)        24,555

Cash and cash equivalents, beginning of year                                                  567,491        982,930        958,375
                                                                                           ----------     ----------     ----------

Cash and cash equivalents, end of year                                                     $  534,890     $  567,491     $  982,930
                                                                                           ==========     ==========     ==========


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

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


<PAGE>27

                       AMERICAN INSURED MORTGAGE INVESTORS

                          NOTES TO FINANCIAL STATEMENTS


1.   ORGANIZATION

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

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

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

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

     On October 5, 1998,  CRIIMI  MAE,  the parent of the General  Partner,  and
CRIIMI  MAE  Management,  Inc.,  an  affiliate  of CRIIMI  MAE and  provider  of
personnel  and  administrative  services  to the  Partnership,  filed  voluntary
petitions for relief under chapter 11 of title 11 of the United States Code (the
"Bankruptcy Code"). On November 22, 2000, the United States Bankruptcy Court for
the  District of Maryland,  in  Greenbelt,  Maryland  (the  "Bankruptcy  Court")
confirmed CRIIMI MAE's and CRIIMI MAE Management, Inc.'s reorganization plan. On
April 17,  2001,  CRIIMI  MAE and  CRIIMI  MAE  Management,  Inc.  emerged  from
bankruptcy.



<PAGE>28

                       AMERICAN INSURED MORTGAGE INVESTORS

                          NOTES TO FINANCIAL STATEMENTS

2.   SIGNIFICANT ACCOUNTING POLICIES

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

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

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

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

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

     As of  December  31,  2001,  the  weighted  average  remaining  term of the
Partnership's investments in FHA-Insured Certificates is approximately 21 years.
However, the partnership agreement states that the Partnership will terminate in
approximately 7 years, on December 31, 2008, unless previously  terminated under
the provisions of the partnership  agreement.  As the Partnership is anticipated
to terminate  prior to the weighted  average  remaining term of its  FHA-Insured
Certificates, the Partnership does not have the ability or intent, at this time,
to hold  these  investments  to  maturity.  Consequently,  the  General  Partner
believes that the Partnership's  FHA-Insured  Certificates should be included in
the  available  for  sale  category.   Although  the  Partnership's  FHA-Insured
Certificates  are  classified  as  available  for sale for  financial  statement
purposes,  the General Partner does not intend to voluntarily  sell these assets
other than those  which may be sold as a result of a default or those  which are
eligible  to be put to FHA at the  expiration  of 20 years  from the date of the
final endorsement under Section 221 program of the National Housing Act of 1937,
as discussed below.

     In connection with this  classification,  as of December 31, 2001 and 2000,
all of the Partnership's investments in FHA-Insured Certificates are recorded at
fair  value,  with the net  unrealized  gains and  losses  on these  investments
reported as other comprehensive  income and as a separate component of partners'
equity.  Subsequent  increases  or  decreases  in the fair value of  FHA-Insured
Certificates  classified  as  available  for sale will be included as a separate
component  of  partners'  equity.  Realized  gains  and  losses  on  FHA-Insured
Certificates  classified  as available  for sale will continue to be reported in
earnings.

     Most of the Insured  Mortgages held by the Partnership apply to the Section
221 program of the National  Housing Act of 1937,  as amended (the  "Section 221
program").  Under the Section 221 program a mortgagee  has the right to assign a
mortgage  ("put")  to FHA at the  expiration  of 20 years from the date of final
endorsement  if the  mortgage  is not in  default at such  time.  Any  mortgagee
electing  to assign a  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

<PAGE>29

FHA-insured mortgage plus accrued interest to the date of assignment.  These HUD
debentures  will  mature  10 years  from the date of  assignment  and will  bear
interest at the "going Federal rate" at such date. This assignment  procedure is
applicable to an insured mortgage which had a firm or conditional FHA commitment
for insurance on or before November 30, 1983. The Partnership  anticipates  that
each  eligible  insured  mortgage,  for which a prepayment  has not occurred and
which has not been sold,  will be assigned to FHA at the  expiration of 20 years
from  the  date of  final  endorsement.  The  Partnership,  therefore,  does not
anticipate  holding any eligible  insured  mortgage  beyond the expiration of 20
years from final  endorsement  of that insured  mortgage.  The  Partnership  has
initiated its request to put these mortgages to FHA as they become due. Once the
servicer of a mortgage has filed an  application  for insurance  benefits  under
Section 221, the  Partnership  will no longer receive the monthly  principal and
interest on the applicable mortgage.

     As of  December  31,  2001 and 2000,  Investment  in  FHA-Insured  Loans is
recorded at amortized cost.

     The amortized cost of FHA-Insured  Certificates  and  FHA-Insured  Loans is
adjusted  for  amortization  of  discounts to  maturity.  Such  amortization  is
included in mortgage investment income.

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

     Losses on  dispositions  of mortgage  investments  are  recognized  when it
becomes  probable 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.

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

     From time to time, the Partnership  assigns defaulted loans to HUD in order
to  collect  the amount of  delinquent  principal  and  interest.  In  addition,
mortgages are assigned to HUD under the Section 221 program, as discussed above.
HUD  determines  if the claim  will be  settled  in cash or by the  issuance  of
debentures.  Debentures are obligations of the mortgage  insurance funds and are
unconditionally  guaranteed by the United States. The term of the debentures are
usually  more than 9 years and the rate is set based  upon the rate in effect at
the  commitment  date to provide  insurance  or at the final  endorsement  date,
whichever is greater.  The  Partnership  classifies its portion of investment in
FHA debenture as available for sale debt  securities  with changes in fair value
recorded  as an  adjustment  to  equity  and  other  comprehensive  income.  The
Partnership's  investment  in FHA  debenture is included on the balance sheet in
Due from affiliate, as discussed in Note 7.

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

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

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

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

<PAGE>30

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

     No cash  payments  were made for  interest  expense  during the years ended
December  31,  2001,  2000 and 1999.  Since  the  statements  of cash  flows are
intended to reflect only cash receipt and cash payment activity,  the statements
of cash flows do not reflect operating  activities that affect recognized assets
and liabilities while not resulting in cash receipts or cash payments.


3.   FAIR VALUE OF FINANCIAL INSTRUMENTS

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

<TABLE>
<CAPTION>
                                            As of December 31, 2001           As of December 31, 2000
                                         -----------------------------     ----------------------------
                                         Amortized Cost    Fair Value      Amortized Cost    Fair Value
                                         --------------   ------------     --------------   -----------
<S>                                       <C>             <C>               <C>             <C>
Investment in FHA-Insured
   Loans:
   Originated Insured Mortgage            $  4,806,675    $  4,520,916      $  4,874,050    $ 4,551,832
   Acquired Insured Mortgages                7,621,126       9,325,365         7,723,048      9,670,976
                                          ------------    ------------      ------------    -----------

                                          $ 12,427,801    $ 13,846,281      $ 12,597,098    $14,222,808
                                          ============    ============      ============    ===========

Investment in FHA-Insured
   Certificates                           $  8,415,866    $  9,727,346      $  9,536,007    $11,258,675
                                          ============    ============      ============    ===========

FHA Debenture due from affiliate          $  1,192,617    $  1,192,617      $  1,192,617    $ 1,180,690

Cash and cash equivalents                 $    534,890    $    534,890      $    567,491    $   567,491
</TABLE>


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

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

     The fair value of the FHA-Insured  Certificates  and  FHA-Insured  Loans is
priced  internally.  The Partnership  used a discounted cash flow methodology to
estimate the fair value;  the cash flows were  discounted  using a discount rate
that, in the Partnership's  view, was commensurate with the market's  perception
of risk and value.  The  Partnership  used a variety of sources to determine its
discount rate including: (i) institutionally-available  research reports,

<PAGE>31

and (ii)  communications  with  dealers  and active  insured  mortgage  security
investors  regarding the valuation of comparable  securities.  The fair value of
the FHA Debenture is based upon the prices of other  comparable  securities that
trade in the market.  The fair value is equal to its face value upon  redemption
of the debenture.

Cash and cash equivalents
-------------------------

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


4.   COMPREHENSIVE INCOME

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

<TABLE>
<CAPTION>
                                                         2001             2000             1999
                                                         ----             ----             ----
<S>                                                  <C>              <C>              <C>
Reclassification adjustment for gains
   included in net income                            $ (177,352)      $ (161,707)      $  (67,656)
Unrealized holding gains (losses) arising
   during the period                                   (221,909)          59,545         (477,961)
                                                     ----------       ----------       ----------

Net adjustment to unrealized losses                  $ (399,261)      $ (102,162)      $ (545,617)
                                                     ==========       ==========       ==========
</TABLE>


5.   INVESTMENT IN FHA-INSURED LOANS

     Listed below is the Partnership's aggregate investment in FHA-Insured Loans
as of December 31, 2001 and 2000:

                                                        December 31,
                                               2001                     2000
                                               ----                     ----

Number of
  Acquired Insured Mortgages                          3                        3
  Originated Insured Mortgage                         1                        1
Amortized Cost                             $ 12,427,801             $ 12,597,098
Face Value                                   14,428,107               14,694,371
Fair Value                                   13,846,281               14,222,808

     All of the  FHA-Insured  Loans were  current with respect to the payment of
principal and interest as of March 1, 2002.


<PAGE>32

                       AMERICAN INSURED MORTGAGE INVESTORS

                          NOTES TO FINANCIAL STATEMENTS

6.   INVESTMENT IN FHA-INSURED CERTIFICATES

     Listed  below is the  Partnership's  aggregate  investment  in  FHA-Insured
Certificates as of December 31, 2001 and 2000:

                                                        December 31,
                                                2001                    2000
                                                ----                    ----

Number of mortgages (1)                               6                        7
Amortized Cost                              $ 8,415,866             $  9,536,007
Face Value                                   10,037,064               11,433,137
Fair Value                                    9,727,346               11,258,675

     (1)  In September  2001, the mortgage on Berryhill  Apartments was prepaid.
          The Partnership  received net proceeds of  approximately  $1.2 million
          and  recognized  a gain of  approximately  $190,000 for the year ended
          December 31,  2001. A  distribution  of  approximately  $0.12 per Unit
          related to the  prepayment  of this mortgage was declared in September
          2001 and paid to Unitholders in November 2001.

     As of March 1, 2002, all of the Partnership's  FHA-Insured Certificates
were current with respect to the payment of principal and  interest,  except for
the mortgage on Westbrook  Apartments,  which is delinquent  with respect to the
February 2002 payment of principal and interest.


7.   DUE FROM AFFILIATE

     The servicer of the mortgage on Fox Run Apartments filed an application for
insurance  benefits under the Section 221 program of the National Housing Act of
1937 in May 2000. In December 2000, HUD issued  assignment  proceeds in the form
of a 7.125%  debenture for this  mortgage.  The mortgage was owned 50% by AIM 84
and 50% by an affiliate of the Partnership,  American Insured Mortgage Investors
- Series 85, L.P. ("AIM 85").  The  debenture,  with a face value of $2,385,233,
was issued to AIM 85 with interest  payable  semi-annually on January 1 and July
1. The  Partnership  recognized  a gain of  approximately  $188,000 for the year
ended December 31, 2000 related to this assignment. The net proceeds and accrued
interest are included on the Balance Sheet in Due from  affiliate as of December
31, 2001. In January  2002,  the  debenture  was  liquidated  at par value.  The
Partnership received approximately $1.2 million for their share of the debenture
proceeds,  including  interest  of  approximately  $42,000.  A  distribution  of
approximately  $0.11  per Unit  related  to the  receipt  of these  proceeds  is
expected to be declared in March 2002.



<PAGE>33

                       AMERICAN INSURED MORTGAGE INVESTORS

                          NOTES TO FINANCIAL STATEMENTS

8.   TRANSACTIONS WITH RELATED PARTIES

     The principal  officers of the General Partner for the years ended December
31,  2001,  2000 and 1999 did not  receive  fees for  serving as officers of the
General  Partner,  nor are any fees  expected to be paid to the  officers in the
future.

     The General Partner, CMSLP and certain affiliated entities have, during the
years ended December 31, 2001, 2000 and 1999, earned or received compensation or
payments for services from the Partnership as follows:

                         COMPENSATION PAID OR ACCRUED TO RELATED PARTIES
<TABLE>
<CAPTION>
                                                                                  For the year ended December 31,
Name of Recipient                     Capacity in Which Served/Item               2001         2000         1999
-----------------                     -----------------------------               ----         ----         ----
<S>                                                                            <C>          <C>          <C>
CRIIMI, Inc. (1)                      General Partner/Distribution             $  95,573    $  59,733    $ 107,519

AIM Acquisition Partners, L.P.(2)     Advisor/Asset Management Fee               224,202      237,264      240,997

CRIIMI MAE Management, Inc.           Affiliate of General Partner/Expense        40,866       38,782       37,347
</TABLE>

(1)  The General Partner,  pursuant to amendments to the partnership  agreement,
     effective   September  6,  1991,   is  entitled  to  receive  2.9%  of  the
     Partnership's income, loss, capital and distributions,  including,  without
     limitation, the Partnership's adjusted cash from operations and proceeds of
     mortgage   prepayments,   sales  or  insurance  (both  as  defined  in  the
     partnership agreement).

(2)  The Advisor,  pursuant to the partnership  agreement,  effective October 1,
     1991,  is  entitled  to an  Asset  Management  Fee  equal to 0.95% of Total
     Invested  Assets  (as  defined  in the  partnership  agreement).  CMSLP  is
     entitled  to a fee  equal  to  0.28%  of  Total  Invested  Assets  from the
     Advisor's Asset  Management Fee. Of the amounts paid to the Advisor,  CMSLP
     earned a fee equal to  $66,078,  $69,924,  and  $71,024 for the years ended
     December 31, 2001,  2000 and 1999,  respectively.  The general  partner and
     limited partner of CMSLP are wholly owned subsidiaries of CRIIMI MAE.


<PAGE>34

9.   DISTRIBUTIONS TO UNITHOLDERS

     The  distributions  paid or accrued to  Unitholders on a per Unit basis for
the years ended December 31, 2001, 2000 and 1999 are as follows:

Quarter Ended                       2001              2000             1999
-------------                       ----              ----             ----
March 31                           $ 0.05            $ 0.05           $ 0.17(2)
June 30                              0.05              0.05             0.05
September 30                         0.17(1)           0.05             0.05
December 31                          0.05              0.05             0.09(3)
                                   ------            ------           ------
                                   $ 0.32            $ 0.20           $ 0.36
                                   ======            ======           ======

(1)  This amount includes approximately $0.12 per Unit representing net proceeds
     from the prepayment of the mortgage on Berryhill Apartments.

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

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

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

10.  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>35


11.  SUMMARY OF QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

     The following is a summary of unaudited quarterly results of operations for
the years ended December 31, 2001, 2000 and 1999:

         (In Thousands, Except Per Unit Data)
<TABLE>
<CAPTION>
                                                                                       2001
                                                                                  Quarter ended
                                                              March 31        June 30       September 30    December 31
                                                              --------        -------       ------------    -----------
<S>                                                           <C>             <C>             <C>             <C>
Income                                                        $   565         $   562         $   554         $   534
Net earnings                                                      451             444             637             423
Gain on mortgage dispositions                                      --              --             190              --
Net earnings per Limited Partnership Unit - Basic             $  0.04         $  0.04         $  0.06         $  0.05
</TABLE>

<TABLE>
<CAPTION>
                                                                                       2000
                                                                                  Quarter ended
                                                              March 31        June 30       September 30    December 31
                                                              -------         -------       ------------    -----------
<S>                                                           <C>             <C>             <C>             <C>
Income                                                        $   574         $   571         $   569         $   565
Net earnings                                                      453             452             456             650
Gain on mortgage dispositions                                      --              --              --             188
Net earnings per Limited Partnership Unit - Basic             $  0.04         $  0.04         $  0.04         $  0.08
</TABLE>

<TABLE>
<CAPTION>
                                                                                       1999
                                                                                  Quarter ended
                                                              March 31        June 30       September 30    December 31
                                                              --------        -------       ------------    -----------
<S>                                                           <C>             <C>             <C>             <C>
Income                                                        $   599         $   591         $   583         $   581
Net earnings                                                      460             479             455             531
Gain on mortgage dispositions                                      --              --              --              67
Net earnings per Limited Partnership Unit - Basic             $  0.04         $  0.05         $  0.04         $  0.06
</TABLE>


<PAGE>36
                       AMERICAN INSURED MORTGAGE INVESTORS
                   SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE
                                DECEMBER 31, 2001
<TABLE>
<CAPTION>
                                                                        Interest       Face              Net          AnnualPayment
                                                   Maturity    Put       Rate on      Amount of      Carrying Value   (Principal and
Development Name/Location                            Date      Date(1)  Mortgage(5)   Mortgage(3)     (3)(6)(8)(9)    Interest(5)(7)
-------------------------                            ----      ----     -----------   -----------     -----------     --------------

ORIGINATED INSURED MORTGAGES
Investment in FHA-Insured Loans (carried at amortized cost)(2)
--------------------------------------------------------------
<S>                                                  <C>                   <C>        <C>             <C>              <C>
Creekside Village, Beaverton, OR                     11/25       --        7.75%      $ 4,806,674     $ 4,806,675      $  442,754
                                                                                      -----------     -----------
Total Investment in FHA-Insured Loans -
  Originated Insured Mortgages                                                          4,806,674       4,806,675
                                                                                      -----------     -----------

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

Eastdale Apts., Montgomery, AL                        3/23     10/01       7.5%         6,149,980       4,849,286         592,406
North River Place, Chillecothe, OH                   10/21     12/01       7.5%         2,875,579       2,273,133         279,509
Town Park Apts., Rockingham, NC                      10/22     10/02       7.5%           595,874         498,707          56,755(4)
                                                                                      -----------     -----------

Total Investment in FHA-Insured Loans -
  Acquired Insured Mortgages                                                            9,621,433       7,621,126
                                                                                      -----------     -----------

    Total Investment in FHA-Insured Loans                                              14,428,107      12,427,801
                                                                                      -----------     -----------

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

Bay Pointe Apts., Lafayette, IN                       2/23     10/02       7.5%         1,930,145(4)    1,870,669         185,272(4)
Baypoint Shoreline Apts, Duluth, MN                   1/22     10/01       7.5%           909,960(4)      881,970          87,967(4)
Brougham Estates II, Kansas City, KS                 11/22      3/02       7.5%         2,429,785(4)    2,354,722         230,860(4)
College Green Apts., Wilmington, NC                   3/23      2/02       7.5%         1,307,892(4)    1,267,423         123,455(4)
Kaynorth Apts., Lansing, MI                           4/23      9/02       7.5%         1,775,422(4)    1,720,465         167,318(4)
Westbrook Apts., Kokomo, IN                          11/22      9/02       7.5%         1,683,860(4)    1,632,097         163,177(4)
                                                                                      -----------     -----------

    Total Investment in FHA-Insured Certificates                                       10,037,064       9,727,346
                                                                                      -----------     -----------

       TOTAL INVESTMENT IN INSURED MORTGAGES                                          $24,465,171     $22,155,147
                                                                                      ===========     ===========
</TABLE>

See notes to Schedule IV - Mortgage Loans on Real Estate

<PAGE>37
                       AMERICAN INSURED MORTGAGE INVESTORS

              NOTES TO SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE

                                DECEMBER 31, 2001

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

(2)  Inclusive of closing costs and acquisition fees.

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

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

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

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

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

(8)  A reconciliation of the carrying value of Insured Mortgages,  for the years
     ended December 31, 2001 and 2000, is as follows:
<TABLE>
<CAPTION>
                                                                  2001                        2000
                                                                  ----                        ----
<S>                                                         <C>                         <C>
Beginning balance                                           $23,855,773                 $25,219,376

  Gain on mortgage dispositions                                 190,206                     188,455
  Proceeds from disposition of mortgages                     (1,184,199)                 (1,181,623)(a)
  Principal receipts on Insured Mortgages                      (295,445)                   (280,200)
  Adjustment to unrealized gains on
    investment in Insured Mortgages                            (411,188)                    (90,235)
                                                            -----------                 -----------

Ending balance                                              $22,155,147                 $23,855,773
                                                            ===========                 ===========
</TABLE>

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

(9)  The tax basis of the Insured Mortgages was approximately  $19.6 million and
     $20.9 million as of December 31, 2001 and 2000, respectively.