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| (Mark One) |                                                                                                     |
|------------|----------------------------------------------------------------------------------------------------------|
|       |                                                                                                     |
| þ     | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934                  |
|       |                                                                                                     |
|       | For the quarterly period ended September 30, 2011                                                        |
|       |
| OR         |
|       |                                                                                                     |
| o          | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934                 |
|       |                                                                                                     |
|       | For the transition period from______to______           |

| Nevada                                                        |   | 88-0212662                          |
|---------------------------------------------------------------|--------|-------------------------------------|
| (State or other jurisdiction ofincorporation or organization) |   | (I.R.S. EmployerIdentification No.) |
|                                                          |   |                                |
| 1059 Redondo Drive, Los Angeles, CA                           |   | 90019                               |
| (Address of principal executive offices)                      |   | (Zip Code)                          |

| Large accelerated filer o |   | Accelerated filer o |   | Non-accelerated filer o |   | Smaller reporting company þ |
|--------------------------------|--------|--------------------------|--------|------------------------------|--------|---------------------------------------|

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|                          |                                                                                                                                                                                            |   | Page   |   |
|-------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
|                          |                                                                                                                                                                                            |   |   |   |
| PART I. FINANCIAL INFORMATION |                                                                                                                                                                                            |
|                          |                                                                                                                                                                                            |
| Item 1.                       | Financial Statements:                                                                                                                                                                           |   |   | 4      |   |
|                          | Balance Sheets as of September 30, 2011(Unaudited) and December 31, 2010                                                                                                                        |   |   | 4      |   |
|                          | (Unaudited) Statements of Operations for the three and nine months, ended September 30, 2011and 2010 and for the period  from October 16, 2009 (Inception) to September 30, 2011 |   |   | 5      |   |
|                          | (Unaudited) Statements of Cash Flows for the nine months ended September 30, 2011 and 2010 and for the period from October 16, 2009 (Inception) to September 30, 2011                 |   |   | 6      |   |
|                          | Notes to Financial Statements (Unaudited)                                                                                                                                                       |   |   | 7      |   |
|                          |                                                                                                                                                                                            |   |   |   |   |
| Item 2.                       | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                                                                     |   |   | 10     |   |
|                          |                                                                                                                                                                                            |   |   |   |   |
| Item 3.                       | Quantitative and Qualitative Disclosures about Market Risk                                                                                                                                      |   |   | 12     |   |
|                          |                                                                                                                                                                                            |   |   |   |   |
| Item 4.                       | Controls and Procedures                                                                                                                                                                         |   |   | 12     |   |
|                          |                                                                                                                                                                                            |   |   |   |   |
| PART II. OTHER INFORMATION    |                                                                                                                                                                                            |
|                          |                                                                                                                                                                                            |
| Item 1.                       | Legal Proceedings                                                                                                                                                                               |   |   | 13     |   |
|                          |                                                                                                                                                                                            |   |   |   |   |
| Item 1A.                      | Risk Factors                                                                                                                                                                                    |   |   | 13     |   |
|                          |                                                                                                                                                                                            |   |   |   |   |
| Item 2.                       | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                                                     |   |   | 13     |   |
|                          |                                                                                                                                                                                            |   |   |   |   |
| Item 3.                       | Defaults Upon Senior                                                                                                                                                                            |   |   | 13     |   |
|                          |                                                                                                                                                                                            |   |   |   |   |
| Item 4.                       | [Removed and Reserved]                                                                                                                                                                          |   |   | 13     |   |
|                          |                                                                                                                                                                                            |   |   |   |   |
| Item 5.                       | Other Information                                                                                                                                                                               |   |   | 13     |   |
|                          |                                                                                                                                                                                            |   |   |   |   |
| Item 6.                       | Exhibits                                                                                                                                                                                        |   |   | 13     |   |
|                          |                                                                                                                                                                                            |   |   |   |   |
| EX-31.1                       |                                                                                                                                                                                            |   |   |   |   |
| EX-31.2                       |                                                                                                                                                                                            |   |   |   |   |
| EX-32.1                       |                                                                                                                                                                                            |   |   |   |   |
| EX-32.2                       |                                                                                                                                                                                            |   |   |   |   |

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| Item 1.   | Financial Statements |
|--------------------------|----------------------|

|                                                                                                                   |   | September 30, |        |   | December 31, |   |
|------------------------------------------------------------------------------------------------------------------------|--------|---------------|-------------|--------|--------------|--------|
|                                                                                                                   |   | 2011          |        |   | 2010         |   |
|                                                                                                                   |   | (Unaudited)   |        |   | (Restated)   |   |
| ASSETS                                                                                                                 |   |          |        |   |         |   |
| Current Assets                                                                                                         |   |          |        |   |         |   |
| Total current assets                                                                                                   |   | $             | -           |   |         | $      | - |   |
| Total Assets                                                                                                           |   | $             | -           |   |         | $      | - |   |
|                                                                                                                   |   |          |        |   |         |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                                                                         |   |          |        |   |         |   |   |   |
| Current Liabilities:                                                                                                   |   |          |        |   |         |   |   |   |
| Accounts Payable                                                                                                       |   | $             | 25,598      |   |         | $      | 25,598 |   |
| Bank Overdraft                                                                                                         |   |          | -           |   |         |   | 311 |   |
| Loans payable                                                                                                          |   |          | 95,363      |   |         |   | 75,247 |   |
| Accrued Liabilities                                                                                                    |   |          | 254,714     |   |         |   | 237,150 |   |
| Total Liabilities                                                                                                      |   |          | 375,675     |   |         |   | 338,306 |   |
|                                                                                                                   |   |          |        |   |         |   |   |   |
| Commitments and Contingencies                                                                                          |   |          |        |   |         |   |   |   |
|                                                                                                                   |   |          |        |   |         |   |   |   |
| Stockholders' Equity (Deficit)                                                                                         |   |          |        |   |         |   |   |   |
| Common Stock-$.001 par value, 75,000,000 shares authorized; 52,518,999 shares issued and 52,514,749 shares outstanding |   |          | 52,519      |   |         |   | 52,519 |   |
| Paid-in Capital                                                                                                        |   |          | 25,441,453  |   |         |   | 25,439,953 |   |
| Retained deficit- Prior to Development Stage                                                                           |   |          | (25,689,281 | )      |         |   | (25,689,281 | ) |
| Deficit accumulated during the development stage                                                                       |   |          | (166,083    | )      |         |   | (127,214 | ) |
| Less Treasury Stock 4,250 shares, at cost                                                                              |   |          | (14,283     | )      |         |   | (14,283 | ) |
| Total Stockholders' Equity (Deficit)                                                                                   |   |          | (375,675    | )      |         |   | (338,306 | ) |
| Total Liabilities and Stockholders' Equity (Deficit)                                                                   |   | $             | -           |   |         | $      | - |   |

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|                                     |   | Three Months Ended |       |   | Nine Months Ended |    |       | Inception to  |   |
|------------------------------------------|--------|--------------------|------------|--------|-------------------|---------|------------|---------------|--------|
|                                     |   | September 30,      |       |   | September 30,     |    |       | September 30, |   |   | September 30, |   |   | September 30, |   |
|                                     |   | 2011               |       |   | 2010              |    |       | 2011          |   |   | 2010 |   |   | 2011 |   |
|                                     |   |               |       |   |              |    |       |          |   |   |   |   |   |   |   |
| Revenue                                  |   | $                  | -          |   |              | $       | -          |          |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                     |   |               |       |   |              |    |       |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating costs:                         |   |               |       |   |              |    |       |          |   |   |   |   |   |   |   |   |   |   |   |   |
| General and administrative               |   |               | 17,500     |   |              |    | 5,159      |          |   |   | 20,089 |   |   |   | 48,114 |   |   |   | 120,632 |   |
|                                     |   |               |       |   |              |    |       |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income (loss)                  |   |               | (17,500)   |   |              |    | (5,159     | )             |   |   | (20,089 | ) |   |   | (48,114 | ) |   |   | (120,632 | ) |
|                                     |   |               |       |   |              |    |       |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Other expense:                           |   |               |       |   |              |    |       |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                                 |   |               | (6,260     | )      |              |    | (5,498     | )             |   |   | (18,780 | ) |   |   | (10,805 | ) |   |   | (45,451 | ) |
|                                     |   |               |       |   |              |    |       |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss before income taxes                 |   |               | (23,760    | )      |              |    | (10,657    | )             |   |   | (38,869 | ) |   |   | (58,919 | ) |   |   | (166,083 | ) |
|                                     |   |               |       |   |              |    |       |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Income taxes                             |   |               | -          |   |              |    | -          |          |   |   | - |   |   |   | - |   |   |   | - |   |
|                                     |   |               |       |   |              |    |       |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                 |   |               | (23,760    | )      |              |    | (10,657    | )             |   |   | (38,869 | ) |   |   | (58,919 | ) |   |   | (166,083 | ) |
|                                     |   |               |       |   |              |    |       |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Per share information: Basic and Diluted |   |               |       |   |              |    |       |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss per share                       |   | $                  | (0.00      | )      |              | $       | (0.00      | )             |   | $ | (0.00 | ) |   | $ | (0.00 | ) |   |   |   |   |
| Weighted average shares outstanding      |   | $                  | 52,514,749 |   |              | $  | 52,514,749 |          |   | $ | 52,514,749 |   |   | $ | 52,514,749 |   |   |   |   |   |

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|                                                |   | Nine Months Ended |   |   | Inception to  |    |
|-----------------------------------------------------|--------|-------------------|--------|--------|---------------|---------|
|                                                |   | September 30,     |   |   | September 30, |    |   | September 30, |   |
|                                                |   | 2011              |   |   | 2010          |    |   | 2011 |   |
| Cash flows from operating activities:               |   |              |   |   |          |    |   |   |   |
| Net cash provided by (used in) operating activities |   | $                 | 311    |   |          | $  | - |   |   | $ | (37,751 | ) |
|                                                |   |              |   |   |          |    |   |   |   |   |   |   |
| Cash flows from investing activities                |   |              | -      |   |          |    | - |   |   |   | - |   |
|                                                |   |              |   |   |          |    |   |   |   |   |   |   |
| Cash flows from financing activities                |   |              |   |   |          |    |   |   |   |   |   |   |
| Proceeds from loans payable                         |   |              | -      |   |          |    | - |   |   |   | 74,600 |   |
| Repayments of loans payable                         |   |              | -      |   |          |    | - |   |   |   | (36,849 | ) |
| Bank overdraft                                      |   |              | (311   | )      |          |    | - |   |   |   | - |   |
| Net cash provided by (used in) financing activities |   |              | (311   | )      |          |    | - |   |   |   | 37,751 |   |
|                                                |   |              |   |   |          |    |   |   |   |   |   |   |
| Net increase (decrease) in cash                     |   |              | -      |   |          |    | - |   |   |   | - |   |
| Cash beginning of period                            |   |              | -      |   |          |    | - |   |   |   | - |   |
| Cash end of period                                  |   | $                 | -      |   |          | $       | - |   |   | $ | - |   |
|                                                |   |              |   |   |          |    |   |   |   |   |   |   |
| Cash paid for interest                              |   | $                 | -      |   |          | $       | - |   |   | $ | - |   |
| Cash paid for income taxes                          |   | $                 | -      |   |          | $       | - |   |   | $ | - |   |

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|                                    |   |   |    |
|-----------------------------------------|--------|--------|---------|
| Litigation judgment                     |   | $      | 100,501 |   |
| Accrued interest on litigation judgment |   |   | 154,213 |   |
| Total accrued liabilities               |   | $      | 254,714 |   |

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| Item 2.   | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
|--------------------------|---------------------------------------------------------------------------------------------|

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| Item 3.   | Quantitative and Qualitative Disclosures about Market Risk |
|--------------------------|------------------------------------------------------------|

| Item 4.   | Controls and Procedures |
|--------------------------|-------------------------|

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| Item 1.   | Legal Proceedings |
|--------------------------|-------------------|

| Item 1A.   | Risk Factors |
|---------------------------|--------------|

| Item 2.   | Unregistered Sales of Equity Securities and Use of Proceeds |
|--------------------------|-------------------------------------------------------------|

| Item 3.   | Defaults Upon Senior Securities |
|--------------------------|---------------------------------|

| Item 4.   | [Removed and Reserved] |
|--------------------------|------------------------|

| Item 5.   | Other Information |
|--------------------------|-------------------|

| Item 6.   | Exhibits |
|--------------------------|----------|

| 31 .1   | Certification of CEO as required by Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31 .2   | Certification of CFO as required by Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
| 32      | Certification of CEO and CFO Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                   |
| 101.INS | XBRL Instance Document                                                                                                                                                                 |
| 101.SCH | XBRL Schema Document                                                                                                                                                                   |
| 101.CAL | XBRL Calculation Linkbase Document                                                                                                                                                     |
| 101.DEF | XBRL Definition Linkbase Document                                                                                                                                                      |
| 101.LAB | XBRL Label Linkbase Document                                                                                                                                                           |
| 101.PRE | XBRL Presentation Linkbase Document                                                                                                                                                    |

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|                  | SHEARSON AMERICAN REIT, Inc.(Registrant) |
|-----------------------|------------------------------------------|
|                  |                                     |
|                  |                                     |
| /s/ John D. Williams  |                                     | /s/ John D. Williams |   |
| John D. Williams      | John D. Williams                         |
| Chairman of the Board | Chief Financial Officer                  |

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