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**UNITEDSTATES****SECURITIES AND EXCHANGE COMMISSION****WASHINGTON, D.C. 20549**

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**FORM 10-Q**

(Mark One)

**QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF****THE SECURITIESEXCHANGE ACT OF 1934**

For  the quarterly period ended June 30, 2005

**OR**

**TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF****THESECURITIES EXCHANGE ACT OF 1934**

 For    the transition period from _______________      to ______________

Commissions    file number 333-84730 

**LEASE EQUITY APPRECIATION FUND I, L.P.**(Exact name of registrant as specified in its charter)

| Delaware                               | 68-0492247                                          |
|----------------------------------------|-----------------------------------------------------|
| (State    of Organization)   | (I.R.S.    Employer Identification No.)   |

110    S. Poplar Street, Suite 101  Wilmington, Delaware 19801(Address    of principal executive offices) (Zip Code) 

(215) 574-1636(Registrant's telephone number, including area code) 

(Former name, former address and former fiscal year, if changed since last report.) 

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Indicate by checkmark whether the registrant (1) has filed all reports required to be filed bySection 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding12 months (or for such shorter period that the registrant was required to filesuch reports), and (2) has been subject to such filing requirements for the past90 days. Yes ****No ****

Indicate by    check mark whether the registrant is an accelerated filer (as defined in    Rule 12b-2    of the Exchange Act). Yes**** No ****

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**LEASE EQUITY APPRECIATION FUND I, L.P.**

**INDEX TO QUARTERLY REPORT****ONFORM 10-Q**

|           |                                  |    |   |                                                                                                                       | **PAGE** |
|----------------|---------------------------------------|---------|--------|----------------------------------------------------------------------------------------------------------------------------|----------|
|           |                                  |    |   |                                                                                                                       |          |
|           |                                  |    |   |                                                                                                                       |     |
| **PART I**     | **FINANCIAL INFORMATION (Unaudited)** |    |
|           |                                  |    |   |                                                                                                                       |
|           |                                  | ITEM 1. |   | Financial Statements                                                                                                       |     |
|           |                                  |    |   |                                                                                                                       |     |
|           |                                  |    |   | Consolidated    Balance Sheets – June 30, 2005 and December 31, 2004 (Audited)                                        | 3        |
|           |                                  |    |   | Consolidated    Statements of Operations     Three and Six Months Ended June 30, 2005 and 2004                             | 4        |
|           |                                  |    |   | Consolidated    Statement of Partners’ Capital and Comprehensive Income     For the Six    Months Ended June 30, 2005 | 5        |
|           |                                  |    |   | Consolidated    Statements of Cash Flows     For the Six Months Ended June 30, 2005 and 2004                               | 6        |
|           |                                  |    |   | Notes    to Consolidated Financial Statements – June 30, 2005                                                         | 7-17     |
|           |                                  |    |   |                                                                                                                       |     |
|           |                                  | ITEM 2. |   | Management’s    Discussion and Analysis of Financial Condition     and Results of Operations                          | 18-23    |
|           |                                  |    |   |                                                                                                                       |     |
|           |                                  | ITEM 3. |   | Quantitative and Qualitative Disclosures about Market Risk                                                                 | 23       |
|           |                                  |    |   |                                                                                                                       |     |
|           |                                  | ITEM 4. |   | Controls and Procedures                                                                                                    | 24       |
|           |                                  |    |   |                                                                                                                       |     |
| **PART II**    | **OTHER INFORMATION**                 |    |
|           |                                  |    |   |                                                                                                                       |     |
|           |                                  | ITEM 6. |   | Exhibits                                                                                                                   | 25       |
|           |                                  |    |   |                                                                                                                       |     |
| **SIGNATURES** |                                  | 26      |

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**PARTI. – FINANCIALINFORMATION**

**ITEM 1. –  FinancialStatements**

**LEASE EQUITY APPRECIATION FUND I, L.P.****CONSOLIDATEDBALANCE SHEETS**

|                                                                                                                 |                                            |       | **June 30,** |   |       | **December    31,** |   |
|----------------------------------------------------------------------------------------------------------------------|-------------------------------------------------|------------|--------------|--------|------------|---------------------|--------|
|                                                                                                                 |                                            |       | **2005**     |   |       | **2004**            |   |
|                                                                                                                 |                                            |       |              |   |       |                     |   |
|                                                                                                                 |                                            |       | (Unaudited)  |   |       | (Audited)           |   |
| **ASSETS**                                                                                                           |                                            |       |         |   |       |                |
| Cash                                                                                                                 | $                                               | 4,101,099  |         | $      | 2,310,880  |                |
| Restricted cash                                                                                                      |                                            | 2,416,202  |         |   | 7,642,227  |                |
| Due from lockbox                                                                                                     |                                            | 524,995    |         |   | 531,558    |                |
| Accounts receivable                                                                                                  |                                            | 141,867    |         |   | 56,837     |                |
| Direct financing leases and notes, net                                                                               |                                            | 90,082,528 |         |   | 53,150,659 |                |
| Assets         subject to operating leases, net of accumulated depreciation          of        $731,603 and $316,084 |                                            | 2,231,084  |         |   | 1,569,754  |                |
| Other assets                                                                                                         |                                            | 868,127    |         |   | 836,441    |                |
|                                                                                                                 |                                            |            |              |   |            |                     |   |
|                                                                                                                 |                                            | $          | 100,365,902  |   | $          | 66,098,356          |   |
|                                                                                                                 |                                            |            |              |   |            |                     |   |
|                                                                                                                 |                                            |       |         |   |       |                |   |
| **LIABILITIES AND PARTNERS’ CAPITAL**                                                                           |                                            |       |         |   |       |                |
| **Liabilities:**                                                                                                     |                                            |       |         |   |       |                |
|                                                                                                                 | Debt                                            | $          | 87,645,484   |   | $          | 51,461,671          |   |
|                                                                                                                 | Accounts payable and accrued expenses           |       | 551,716      |   |       | 840,118             |   |
|                                                                                                                 | Due to related parties, net                     |       | 399,064      |   |       | 955,361             |   |
|                                                                                                                 | Fair value of interest rate swap                |       | 106,877      |   |       | 52,141              |   |
|                                                                                                                 |                                            |            |              |   |            |                     |   |
|                                                                                                                 |      Total liabilities |       | 88,703,141   |   |       | 53,309,291          |   |
| **Partners’ Capital**                                                                                           |                                            | 11,662,761 |         |   | 12,789,065 |                |
|                                                                                                                 |                                            |            |              |   |            |                     |   |
|                                                                                                                 |                                            | $          | 100,365,902  |   | $          | 66,098,356          |   |
|                                                                                                                 |                                            |            |              |   |            |                     |   |

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

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**LEASE        EQUITY APPRECIATION FUND I, L.P.  CONSOLIDATED STATEMENTS OF OPERATIONS****(Unaudited)**

|                                                                                  | **Three Months Ended** |      | **Six Months Ended** |   |
|---------------------------------------------------------------------------------------|------------------------|-----------|----------------------|--------|
|                                                                                  | **June 30,**           |      | **June 30,**         |   |
|                                                                                  |                        |      |                      |   |
|                                                                                  |                   | 2005      |                 |   | 2004 |   |   | 2005 |   |   | 2004 |   |
|                                                                                  |                        |           |                 |        |  |   |  |  |   |  |  |   |
| Interest and rental income                                                            | $                      | 2,054,539 |                 | $      | 655,559 |   | $ | 3,492,262 |   | $ | 1,267,608 |   |
| Interest expense                                                                      |                   | 1,240,338 |                 |   | 392,396 |   |   | 2,073,131 |   |   | 766,612 |   |
|                                                                                  |                        |           |                 |        |  |   |  |  |   |  |  |   |
| Net interest and rental income                                                        |                   | 814,201   |                 |   | 263,163 |   |   | 1,419,131 |   |   | 500,996 |   |
| Provision for credit losses                                                           |                   | 312,785   |                 |   | 56,159 |   |   | 553,235 |   |   | 66,159 |   |
|                                                                                  |                        |           |                 |        |  |   |  |  |   |  |  |   |
|                                                                                       |                   | 501,416   |                 |   | 207,004 |   |   | 865,896 |   |   | 434,837 |   |
| Other income                                                                          |                   | 84,367    |                 |   | 20,772 |   |   | 156,741 |   |   | 94,715 |   |
|                                                                                  |                        |           |                 |        |  |   |  |  |   |  |  |   |
| Operating    income                                                                   |                   | 585,783   |                 |   | 227,776 |   |   | 1,022,637 |   |   | 529,552 |   |
|                                                                                  |                        |           |                 |        |  |   |  |  |   |  |  |   |
| Administration expense reimbursed to related party                                    |                   | 207,528   |                 |   | 61,632 |   |   | 347,787 |   |   | 278,147 |   |
| General and administrative                                                            |                   | 152,121   |                 |   | 43,789 |   |   | 257,360 |   |   | 87,785 |   |
| Management fee to related party                                                       |                   | 224,101   |                 |   | 64,952 |   |   | 378,339 |   |   | 145,292 |   |
| Depreciation                                                                          |                   | 216,166   |                 |   | 48,799 |   |   | 418,688 |   |   | 102,312 |   |
|                                                                                  |                        |           |                 |        |  |   |  |  |   |  |  |   |
|                                                                                  |                   | 799,916   |                 |   | 219,172 |   |   | 1,402,174 |   |   | 613,536 |   |
|                                                                                  |                        |           |                 |        |  |   |  |  |   |  |  |   |
| Net (loss) income                                                                     | $                      | (214,133  | )                    | $      | 8,604 |   | $ | (379,537 | ) | $ | (83,984 | ) |
|                                                                                  |                        |           |                 |        |  |   |  |  |  |  |  |  |
| Weighted    average number of limited partnership units outstanding during the period |                   | 171,746   |                 |   | 115,967 |   |   | 171,746 |   |   | 107,433 |   |
|                                                                                  |                        |           |                 |        |  |   |  |  |   |  |  |   |
| Net (loss)    income per weighted average limited partnership unit                    | $                      | (1.23     | )                    | $      | 0.07 |   | $ | (2.19 | ) | $ | (0.77 | ) |
|                                                                                  |                        |           |                 |        |  |   |  |  |   |  |  |   |

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

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**LEASEEQUITY APPRECIATION FUND I, L.P.CONSOLIDATED STATEMENT OF PARTNERS’ CAPITAL****ANDCOMPREHENSIVE INCOME (LOSS)********FORTHE SIX MONTHS ENDED JUNE 30, 2005(Unaudited)**

|                                       | **General**  |    |                          |          | **Accumulated**   |       |               |     |              |      |
|--------------------------------------------|-------------------|---------|-------------------------------|---------------|-------------------|------------|--------------------|----------|-------------------|-----------|
|                                       | **Partner**       |    | **Limited    Partners ** |          | **Other**         |       | **Partners’** |     | **Comprehensive** |      |
|                                       |                   |    |                               |          | **Comprehensive** |       | **Capital**        |     | **Loss**          |      |
|                                       | **Amount**        |    | **Units**                     |          |              | **Amount** |               | **Loss** |              | **Total** |   | **Total** |   |
|                                       |                   |    |                               |          |                   |            |               |          |              |           |  |   |  |  |   |
| Balance, January 1, 2005                   | $                 | (20,021 | )                             | 171,746       |              | $          | 12,861,227         |     | $                 | (52,141   | ) | $ | 12,789,065 |   | $ | — |   |
| Cash distributions                         |              | (6,920  | )                             | —  |              |       | (685,111           | )        |              | —   |   |   | (692,031 | ) |   | — |   |
| Net loss                                   |              | (3,795  | )                             |          |              |       | (375,742           | )        |              | —   |   |   | (379,537 | ) |   | (379,537 | ) |
| Unrealized    loss onhedging    derivative |              | — |                          | —       |              |       | —            |     |              | (54,736   | ) |   | (54,736 | ) |   | (54,736 | ) |
|                                       |                   |         |                          |               |              |            |                    |     |                   |           |   |  |  |   |  |  |   |
| Balance, June 30, 2005                     | $                 | (30,736 | )                             | 171,746       |              | $          | 11,800,374         |     | $                 | (106,877  | ) | $ | 11,662,761 |   | $ | (434,273 | ) |
|                                       |                   |         |                          |               |              |            |                    |     |                   |           |   |  |  |   |  |  |   |

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

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**LEASE        EQUITY APPRECIATION FUND I, L.P.  CONSOLIDATED STATEMENT OF CASH FLOWS****(Unaudited)**

|                                                                        | **Six         Months Ended****June         30,** |        |
|-----------------------------------------------------------------------------|--------------------------------------------------|-------------|
|                                                                        |                                                  |             |   |  |  |   |
|                                                                        |                                             | **2005**    |   |   | **2004** |   |
|                                                                        |                                                  |             |   |  |  |   |
| **Cash flows from operating activities:**                                   |                                             |        |   |   |   |   |
| Net loss                                                                    | $                                                | (379,537    | ) | $ | (83,984 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: |                                             |        |   |   |   |   |
| Loss (gain) on sale of equipment and lease dispositions, net                |                                             | 5,405       |   |   | (54,319 | ) |
| Depreciation                                                                |                                             | 418,688     |   |   | 102,312 |   |
| Amortization of deferred financing costs                                    |                                             | 82,624      |   |   | 25,768 |   |
| Provision for credit losses                                                 |                                             | 553,235     |   |   | 40,000 |   |
| (Increase) decrease in accounts receivable                                  |                                             | (85,030     | ) |   | 48,489 |   |
| (Increase) decrease in other assets                                         |                                             | (104,443    | ) |   | 10,681 |   |
| Decrease in accounts payable and accrued expenses                           |                                             | (288,402    | ) |   | (114,062 | ) |
| Decrease in due from lockbox                                                |                                             | 6,563       |   |   | 136,597 |   |
| Decrease in amounts due to related parties, net                             |                                             | (556,297    | ) |   | (287,398 | ) |
|                                                                        |                                                  |             |   |  |  |   |
| Net cash used in operating activities                                       |                                             | (347,194    | ) |   | (175,916 | ) |
|                                                                        |                                                  |             |   |  |  |   |
| **Cash flows from investing activities:**                                   |                                             |        |   |   |   |   |
| Acquisition of equipment under operating leases                             |                                             | (1,080,018  | ) |   | — |   |
| Investment in direct financing leases and notes                             |                                             | (51,406,742 | ) |   | (16,417,170 | ) |
| Proceeds from direct financing leases and notes, net of earned income       |                                             | 13,480,286  |   |   | 4,033,507 |   |
| Security deposits received, net                                             |                                             | 435,947     |   |   | 79,762 |   |
|                                                                        |                                                  |             |   |  |  |   |
| Net cash used in investing activities                                       |                                             | (38,570,527 | ) |   | (12,303,901 | ) |
|                                                                        |                                                  |             |   |  |  |   |
| **Cash flows from financing activities:**                                   |                                             |        |   |   |   |   |
| Decrease (increase) in restricted cash                                      |                                             | 5,226,025   |   |   | (124,188 | ) |
| Increase in deferred financing costs                                        |                                             | (9,867      | ) |   | (33,611 | ) |
| Increase in subscription deposits                                           |                                             | —     |   |   | 456,000 |   |
| Proceeds from debt                                                          |                                             | 71,506,185  |   |   | 13,628,583 |   |
| Repayment of debt                                                           |                                             | (35,322,372 | ) |   | (3,218,145 | ) |
| Limited partners’ capital contribution                                 |                                             | —     |   |   | 2,831,287 |   |
| Partners’ distributions paid                                           |                                             | (692,031    | ) |   | (417,580 | ) |
| Payment of offering costs incurred for the sale of partnership units        |                                             | —     |   |   | (366,027 | ) |
|                                                                        |                                                  |             |   |  |  |   |
| Net cash provided by financing activities                                   |                                             | 40,707,940  |   |   | 12,756,319 |   |
|                                                                        |                                                  |             |   |  |  |   |
| Increase in cash                                                            |                                             | 1,790,219   |   |   | 276,502 |   |
| Cash, beginning of period                                                   |                                             | 2,310,880   |   |   | 1,030,394 |   |
|                                                                        |                                                  |             |   |  |  |   |
| Cash, end of period                                                         | $                                                | 4,101,099   |   | $ | 1,306,896 |   |
|                                                                        |                                                  |             |   |  |  |   |

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

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**LEASE EQUITY APPRECIATION FUND I, L.P.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS****June30, 2005(Unaudited)**

**NOTE 1 –****ORGANIZATIONAND NATURE OF BUSINESS**

Lease Equity Appreciation Fund I, L.P. (“Fund”), a Delaware limited partnership, was formed on January 31, 2002 by LEAF Financial Corporation, a Delaware corporation (“General Partner”). The General Partner is a wholly owned subsidiary of Resource Leasing, Inc., which is a wholly owned subsidiary of Resource America, Inc. Resource America, Inc. is a publicly traded company (Nasdaq: REXI) operating in the real estate, financial services and equipment financing sectors.  As of August 15, 2004, the date our offering period terminated, we had raised $17,060,772 through the sale of 171,746 limited partner units. 

The Fund seeks to acquire a diversified portfolio of equipment to finance to end users throughout the United States. The Fund also seeks to acquire existing portfolios of equipment subject to existing financings from other equipment finance companies.  The primary objective of the Fund is to generate regular cash distributions to its partners from its equipment finance portfolio over the life of the Fund. 

As of June 30, 2005 and December 31, 2004, in addition to its 1% General Partner interest, the General Partner also held a 5% limited partner interest in the Fund. The Fund will terminate on December 31, 2027, or earlier, if a dissolution event occurs, as defined in the Limited Partnership Agreement (the “Partnership Agreement”). 

**NOTE 2 –****SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**Basis of Presentation**

****The consolidated financial statements include the accounts of the Fund and its wholly-owned subsidiary, LEAF Fund I, LLC.  All intercompany accounts and transactions have been eliminated in consolidation. 

**Reclassifications**

****Certain reclassifications have been made to the June 30, 2004 consolidated financial statements to conform to the June 30, 2005 presentation. 

**Classification**

 	Management believes that, consistent with the financial statement presentation of other equipment finance companies, it is more appropriate to present the Fund’s consolidated balance sheet on a non-classified basis, which does not segregate assets and liabilities into current and non-current categories. 

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**LEASE EQUITY APPRECIATION FUND I, L.P.****NOTES TO CONSOLIDATED FINANCIAL STATEMENTS********– (Continued)June 30, 2005(Unaudited)**

**NOTE 2****– SUMMARYOF SIGNIFICANT ACCOUNTING POLICIES –****(Continued)**

**Use of Estimates**

Preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the estimated unguaranteed residual values of leased equipment, the allowance for possible losses and impairment of long-lived assets. Actual results could differ from those estimates. 

Unguaranteed residual value represents the estimated amount to be received at lease termination from lease extensions or ultimate disposition of the leased equipment. The estimates of residual values are based upon the General Partner’s history with regard to the realization of residuals, available industry data and the general partner’s senior management’s experience with respect to comparable equipment.  The estimated residual values are recorded as a component of investments in leases on a net present value basis. Residual values are reviewed periodically to determine if the current estimate of the equipment’s fair market value appears to be below its recorded estimate. If required, residual values are adjusted downward to reflect adjusted estimates of fair market values. In accordance with U.S. GAAP, upward adjustments to residual values are not permitted.

The Fund’s allowance for possible losses is primarily based on factors which include the General Partner’s historical loss experience, an analysis of contractual delinquencies, economic conditions and trends, industry statistics and equipment finance portfolio characteristics. The Fund’s policy is to charge off to the allowance those financings which are in default and for which management has determined the probability of collection to be remote.

The Fund reviews its long-lived assets for impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable.  If it is determined that estimated undiscounted future cash flows derived from long-lived assets will not be sufficient to recover their carrying amounts, an impairment charge will be recorded if the carrying amount of the asset exceeds their estimated fair values. 

**Concentration of Credit Risk**

Financial instruments which potentially subject the Fund to concentrations of credit risk consist of excess cash. The Fund deposits its excess cash in high-quality financial institutions. As of June 30, 2005, the Fund had deposits at three banks totaling $4,147,827, of which $3,847,827 was over the insurance limit of the Federal Deposit Insurance Corporation. No losses have been experienced on such deposits. 

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**LEASE EQUITY APPRECIATION FUND I, L.P.****NOTES TO CONSOLIDATED FINANCIAL STATEMENTS********– (Continued)June 30, 2005(Unaudited)**

**NOTE 2****– SUMMARYOF SIGNIFICANT ACCOUNTING POLICIES –****(Continued)**

**Revenue Recognition**

The Fund’s investment in financing assets consists of direct financing leases, notes and operating leases.  Leases are recorded in accordance with Statement of Financial Accounting Standards No. 13, “Accounting for Leases,” and its various amendments and interpretations. 

*Direct Financing Leases.*Certain of the Fund’s lease transactions are accounted for as direct financing leases (as distinguished from operating leases). Such leases transfer substantially all benefits and risks of equipment ownership to the customer. The Fund’s investment in direct financing leases and notes consists of the sum of the total future minimum lease payments receivable and the estimated unguaranteed residual value of leased equipment, less unearned finance income.  Unearned finance income, which is recognized as revenue over the term of the financing by the effective interest method, represents the excess of the total future minimum contracted payments plus the estimated unguaranteed residual value expected to be realized at the end of the lease term over the cost of the related equipment.  The Fund generally discontinues the recognition of revenue for direct financing leases for which payments are more than 90 days past due.

*Operating Leases.*Leasesnot meeting any of the criteria to be classified as direct financing leases aredeemed to be operating leases. Under the accounting for operating leases, thecost of the leased equipment, including acquisition fees associated with leaseplacements, is recorded as an asset and depreciated on a straight-line basisover the equipment’s estimated useful life, generally up to seven years.Rental income consists primarily of monthly periodic rentals due under the termsof the leases. The Fund recognizes rental income on a straight line basis. Generally,during the lease terms of existing operating leases, the Fund will not recoverall of the undepreciated cost and related expenses of its rental equipment and,therefore, it is prepared to remarket the equipment in future years. The Fund’spolicy is to review, on a quarterly basis, the expected economic life of itsrental equipment in order to determine the recoverability of its undepreciatedcost. In accordance with U.S. GAAP, the Fund writes down its rental equipmentto its estimated net realizable value when it is probable that its carrying amountexceeds such value and the excess can be reasonably estimated; gains are onlyrecognized upon actual sale of the rental equipment. There were no write-downsof equipment during the six month periods ended June 30, 2005 and 2004. 

 	Fees from delinquent payments are recognized when received and are included in other income. 

**Income Taxes**

Federal and state income tax laws provide that the income or losses of the Fund are reportable by the Partners on their individual income tax returns. Accordingly, no provision for such taxes has been made in the accompanying financial statements. 

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**LEASE EQUITY APPRECIATION FUND I, L.P.****NOTES TOCONSOLIDATED FINANCIAL STATEMENTS –********(Continued)****June      30, 2005   (Unaudited)**

**NOTE 2****– SUMMARYOF SIGNIFICANT ACCOUNTING POLICIES –****(Continued)**

**Supplemental Disclosure of Cash Flow Information**

During the six months ended June 30, 2005 and 2004, the Fund paid interest of $1,908,441 and $745,933, respectively. 

**Recently Issued Accounting Pronouncements**

The Fund accounts for its derivative instruments and hedging activities in accordance with Statement of Financial Accounting Standard 149 (“SFAS 149”), “Amendment of Statement 133 on Derivative Instruments and Hedging Activities.”  SFAS 149 clarifies and amends SFAS No. 133 (“SFAS 133”), “Accounting for Derivative Financial Instruments and Hedging Activities” for implementation issues raised by constituents and includes the conclusions reached by the FASB on certain FASB Staff Implementation Issues.

**Transfers of Financial Assets**

 	In connection with establishing its revolving line of credit with WestLB AG, the Fund formed a bankruptcy remote special purpose entity (LEAF Fund I LLC) through which the financing is arranged. Under SFAS No. 140, “Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities,” the Fund’s transfers of assets to the special purpose entity do not qualify for sales accounting treatment due to certain call provisions that the Fund maintains. Accordingly, assets and related debt of the special purpose entity are included in the Fund’s consolidated balance sheets.  The Fund’s leases and restricted cash are assigned as collateral for these borrowings and there is no further recourse to the general credit of the Fund. Collateral in excess of these borrowings represents the Fund’s maximum loss exposure. 

**Fair Value of Financial Instruments**

 	For cash, receivables and payables, the carrying amounts approximate fair values because of the short maturity of these instruments. The carrying value of debt approximates fair market value since interest rates approximate current market rates. The interest rate swap discussed in Note 8 is recorded at fair value in the accompanying consolidated balance sheet.

**NOTE 3****– RESTRICTEDCASH**

 	Restricted Cash as of June 30, 2005 and December 31, 2004 includes cash being held in reserve by the Fund’s lenders. 

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**LEASE EQUITY APPRECIATION FUND I, L.P.****NOTESTO CONSOLIDATED FINANCIAL STATEMENTS********– (Continued)June30, 2005(Unaudited)**

**NOTE 4 – DUEFROM LOCKBOX**

 	Customer payments are deposited into a lockbox shared with our General Partner and other partnerships serviced by our General Partner. The lockbox is in the name of U.S. Bank NA as trustee under an inter-creditor agreement amongst our General Partner, the other partnerships and their respective lenders. Amounts recorded as due from lockbox on the accompanying Consolidated Balance Sheet, represent customer payments received by the lockbox, applied to the respective customer’s accounts, but not transferred to our bank account. 

**NOTE 5 –****INVESTMENTIN DIRECT FINANCING LEASES AND NOTES**

The Fund’s direct financing leases are for initial lease terms ranging from 12 to 85 months. The interest rates on notes receivable range from 7% to 21%. As of June 30, 2005 and December 31, 2004, 23% and 14% of leased equipment, respectively, was located in California. 

|                    |   | **June 30,** |   |   | **December    31,** |   |
|-------------------------|--------|--------------|--------|--------|---------------------|--------|
|                    |   | **2005**     |   |   | **2004**            |   |
|                    |        |              |   |        |                     |   |
|                    |   |         |   |   | (Audited)           |   |
| Direct financing leases | $      | 84,715,488   |   | $      | 51,340,412          |   |
| Notes receivable        |   | 5,367,040    |   |   | 1,810,247           |   |
|                    |        |              |   |        |                     |   |
|                    | $      | 90,082,528   |   | $      | 53,150,659          |   |
|                    |        |              |   |        |                     |   |

The components of the net investment in direct financing leases as of June 30, 2005 and December 31, 2004 are as follows: 

|                                       |   | **June 30,** |   |   | **December    31,** |   |
|--------------------------------------------|--------|--------------|--------|--------|---------------------|--------|
|                                       |   | **2005**     |   |   | **2004**            |   |
|                                       |        |              |   |        |                     |   |
|                                       |   |         |   |   | (Audited)           |   |
| Total future minimum lease payments        | $      | 96,996,248   |   | $      | 58,892,148          |   |
| Unearned rental income                     |   | (11,839,357  | )      |   | (7,401,200          | )      |
| Residuals, net of unearned residual income |   | 715,246      |   |   | 401,166             |   |
| Security deposits                          |   | (855,074     | )      |   | (431,702            | )      |
|                                       |        |              |   |        |                     |   |
|                                       |   | 85,017,063   |   |   | 51,460,412          |   |
| Allowance for possible losses              |   | (301,575     | )      |   | (120,000            | )      |
|                                       |        |              |   |        |                     |   |
|                                       | $      | 84,715,488   |   | $      | 51,340,412          |   |
|                                       |        |              |   |        |                     |   |

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**LEASE EQUITY APPRECIATION FUND I, L.P.****NOTES TOCONSOLIDATED FINANCIAL STATEMENTS********– (Continued)June30, 2005(Unaudited)**

**NOTE 5 –****INVESTMENTIN DIRECT FINANCING LEASES AND NOTES –********(Continued)**

The following is a summary of the Fund’s allowance for possible losses for the periods indicated:

|                                               |   | **For    the Six Months Ended    June 30,** |   |
|----------------------------------------------------|--------|---------------------------------------------|--------|
|                                               |        |                                             |        |  |  |   |
|                                               |   | **2005**                                    |   |   | **2004** |   |
|                                               |        |                                             |   |  |  |   |
| Allowance for possible losses, beginning of period | $      | 120,000                                     |   | $ | 5,000 |   |
| Provision for credit losses                        |   | 553,235                                     |   |   | 40,000 |   |
| Net write-offs                                     |   | (371,660                                    | )      |   | – |   |
|                                               |        |                                             |   |  |  |   |
| Allowance for possible losses, end of period       | $      | 301,575                                     |   | $ | 45,000 |   |
|                                               |        |                                             |   |  |  |   |

The future minimum lease payments and related rental payments expected to be received on non-cancelable direct financing leases, notes and operating leases at June 30, 2005 are as follows: 

| **   Periods Ending**             |   |   | **Direct**              |   |   |      |   |   |                    |   |   |        |   |
|--------------------------------------------------|--------|--------|-------------------------|--------|--------|-----------|--------|--------|-------------------------|--------|--------|-------------|--------|
|       **June 30,** |   |   | **Financing    Leases** |   |   | **Notes** |   |   | **Operating    Leases** |   |   | **Total**   |   |
|                                                  |   |        |                         |   |        |           |   |        |                         |   |        |             |   |
|    2006                           |   | $      | 33,500,517              |   | $      | 1,426,158 |   | $      | 948,490                 |   | $      | 35,875,165  |   |
|    2007                           |   |   | 27,369,423              |   |   | 1,258,681 |   |   | 654,328                 |   |   | 29,282,432  |   |
|    2008                           |   |   | 19,227,132              |   |   | 997,634   |   |   | 315,551                 |   |   | 20,540,317  |   |
|    2009                           |   |   | 11,530,366              |   |   | 671,079   |   |   | 144,337                 |   |   | 12,345,782  |   |
|    2010                           |   |   | 3,844,814               |   |   | 490,775   |   |   | 85,347                  |   |   | 4,420,936   |   |
|    Thereafter                     |   |   | 1,523,996               |   |   | 522,713   |   |   | –                 |   |   | 2,046,709   |   |
|                                             |   |        |                         |   |        |           |   |        |                         |   |        |             |   |
|                                             |   | $      | 96,996,248              |   | $      | 5,367,040 |   | $      | 2,148,053               |   | $      | 104,511,341 |   |
|                                             |   |        |                         |   |        |           |   |        |                         |   |        |             |   |

**NOTE 6********– OTHERASSETS**

 	As of June 30, 2005 and December 31, 2004, other assets include $721,739 and $794,416, respectively, of unamortized deferred financing costs which are being amortized over the terms of the related debt.

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**LEASE EQUITY APPRECIATION FUND I, L.P.****NOTES TOCONSOLIDATED FINANCIAL STATEMENTS****–****(Continued)June 30, 2005(Unaudited)**

**NOTE 7–****DEBT**

The table below summarizes the Fund’s debt at June 30, 2005 and December 31, 2004 as follows:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |     |   | **June 30,** |     |   | **December    31,** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|--------|--------------|----------|--------|---------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | **2005** |   |         | **2004** |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |     |        |              |     |        |                     |   |
| Sovereign       Bank, revolving warehouse line of credit, with an aggregate borrowing       limit of $10 million       collateralized by specific finance receivables       and related equipment.       Interest on this facility is calculated       at LIBOR plus 2.5% per annum (5.84% at June 30, 2005). Interest       and principal are       due monthly.       The line expires in August 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |     | $      | 2,413,770    |     | $      | 3,436,872           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |     |   |         |     |   |                |   |
| WestLB       AG, New York Branch       revolving line of credit, with an aggregate       borrowing limit       of $75       million collateralized by specific lease       receivables and related equipment, with a 1% credit reserve of the       outstanding line of credit. Interest on this facility is calculated at LIBOR       plus 1.10% per       annum. To       mitigate fluctuations in interest rates       the Fund has entered into a interest rate swap agreements. The interest       rate swap agreements terminate January 20, 2012. The interest rate       swap agreements fix the interest rate on this facility to a weighted average       of 5.17%. Interest and       principal are due as payments are received       under the financings. The       line of credit is renewable for one year       periods on December 30, 2005, 2006 and 2007. |     |   | 65,914,461   |     |   | 23,258,244          |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |     |   |         |     |   |                |   |
| National       City Commercial Capital       Corporation f/k/a Information Leasing       Corporation, collateralized       by specified lease receivables, generally       equal to the sum       of the       receivables, discounted to present value       at 5.79%, less a credit reserve of 8% after security deposit. The loan       is repayable as payments are made under the leases or equipment financing       transactions collateralizing       the loan, with a final maturity date       of June 10, 2010                                                                                                                                                                                                                                                                                                                                                     |     |   | 8,874,593    |     |   | 12,017,788          |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |     |   |         |     |   |                |   |
| OFC       Capital, a division of OFC Servicing Corporation, collateralized by       specific lease receivables equal to 93% of the aggregate payments due       under the related equipment       lease or equipment finance transaction,       discounted at an interest rate of 6.9%, funded subject to a credit       reserve of 3% of       the loan       amount. The loan is repayable as payments       are made under the       leases or equipment financing transactions collateralizing       the loan,       with a final maturity date of February       15, 2009                                                                                                                                                                                                                                                                                                |     |   | 10,442,660   |     |   | 12,748,767          |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |     |        |              |     |        |                     |   |
| Total outstanding debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |     | $      | 87,645,484   |     | $      | 51,461,671          |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |     |        |              |     |        |                     |   |

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**LEASE EQUITY APPRECIATION FUND I, L.P.****NOTESTO CONSOLIDATED FINANCIAL STATEMENTS –********(Continued)June 30, 2005(Unaudited)**

**NOTE 7–****DEBT********– (Continued)**

 	The debt maturity for each of the succeeding twelve month periods ending June 30 and thereafter, is as follows:

| 2006       | $      | 34,040,512 |   |
|------------|--------|------------|--------|
| 2007       |   | 22,490,887 |   |
| 2008       |   | 16,297,190 |   |
| 2009       |   | 10,057,002 |   |
| 2010       |   | 3,980,731  |   |
| Thereafter |   | 779,162    |   |
|       |        |            |   |
|       | $      | 87,645,484 |   |
|       |        |            |   |

**NOTE 8****– DERIVATIVEINSTRUMENTS**

****The majority of the Fund’s assets and liabilities are financial contracts with fixed and variable rates. Any mismatch between the repricing and maturity characteristics of the Fund’s assets and liabilities exposes us to interest rate risk when interest rates fluctuate. For example, the Fund’s assets are structured on a fixed-rate basis, but since funds borrowed through warehouse facilities are obtained on a floating-rate basis, the Fund is exposed to a certain degree of risk if interest rates rise which in turn will increase the Fund’s borrowing costs. In addition, when the Fund originates assets, it bases its pricing in part on the spread it expects to achieve between the interest rate it charges its customers and the effective interest cost the Fund will pay when it funds those loans. Increases in interest rates that increase the Fund’s permanent funding costs between the time the assets are originated and the time they are funded could narrow, eliminate or even reverse this spread.

To manage interest rate risk, the Fund employs a hedging strategy using derivative financial instruments such as interest rate swaps which are designated as cash flow hedges. The Fund does not use derivative financial instruments for trading or speculative purposes. The Fund manages the credit risk of possible counterparty default in these derivative transactions by dealing exclusively with counterparties with investment grade ratings.

 	Before entering into a derivative transaction for hedging purposes, the Fund determines that a high degree of initial effectiveness exists between the change in the value of the hedged item and the change in the value of the derivative from a movement in interest rates. High effectiveness means that the change in the value of the derivative will be effectively offset by the change in the value of the hedged asset or liability. The Fund measures the effectiveness of each hedge throughout the hedge period. Any hedge ineffectiveness, as defined by Statement of Financial Accounting Standards (“SFAS”) No. 133/138/149 is recognized in the income statement.

 	There can be no assurance that the Fund’s hedging strategies or techniques will be effective, that profitability will not be adversely affected during any period of change in interest rates or that the costs of hedging will exceed the benefits. 

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**LEASE EQUITYAPPRECIATION FUND I, L.P.****NOTESTO CONSOLIDATED FINANCIAL STATEMENTS –********(Continued)June 30, 2005(Unaudited)**

**NOTE 8 –****DERIVATIVEINSTRUMENTS –********(Continued)**

 	At June 30, 2005 and December 31, 2004 the Fund had an unrealized loss of $106,877 and an unrealized loss of $52,141, respectively, which is included in accumulated other comprehensive loss. The Fund recognized no gain or loss during the three months ended June 30, 2005 for hedge ineffectiveness. Assuming market rates remain constant with the rates of June 30, 2005, $106,877 in accumulated other comprehensive income is expected to be recognized in earnings over the next 12 months. 

**NOTE 9 –****TRANSACTIONSWITH AFFILIATES**

The General Partner receives an acquisition fee for assisting the Fund in acquiring equipment and portfolios of equipment subject to existing equipment leases. This fee is equal to 2% of the purchase price paid for the equipment and portfolios of equipment subject to existing equipment financing. 

The General Partner receives a subordinated annual asset management fee of 3% of gross rental payments for operating leases, as defined in the Partnership Agreement, or 2% of gross rental payments for full payout leases, as defined in the Partnership Agreement. During the Fund's five-year investment period, the management fee will be subordinated to the payment of a cumulative annual distribution to the Fund's limited partners equal to 8% of their capital contributions, as adjusted by distributions deemed to be a return of capital. 

The General Partner and its affiliate, Anthem Securities, Inc. (“Anthem Securities”), an indirect subsidiary of Resource America, Inc. at the time, received an organization and offering expense allowance of 3% of the offering proceeds and an underwriting fee of 2% of the offering proceeds raised. These charges were recorded by the Fund as offering costs incurred for the sale of limited partnership units on the Statement of Partners’ Capital. 

 	Anthem Securities, Inc. received underwriting fees of 2% of the offering proceeds for obtaining and managing the group of selling broker-dealers who sold units during the offering period.

The General    Partner receives a subordinated commission equal to one-half of a competitive    commission, to a maximum of 3% of the contract sales price, for arranging    the sale of the Fund's equipment after the expiration of a lease. This commission    is subordinated to the payment of a cumulative 8% annual return to the Limited    partners on their capital contributions, as adjusted by distributions deemed    to be a return of capital. No commissions were paid during the six months    ended June 30, 2005 and 2004. 

The General    Partner receives a commission equal to the lesser of a competitive rate or    2% of gross rental payments derived from any re-lease of equipment if the    re-lease is not with the original lessee or its affiliates. No re-lease commissions  were paid during the six months ended June 30, 2005 and 2004. 

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**LEASE EQUITY APPRECIATION FUND I, L.P.****NOTES TOCONSOLIDATED FINANCIAL STATEMENTS********– (Continued)June 30, 2005(Unaudited)**

**NOTE 9****– TRANSACTIONSWITH AFFILIATES****– (Continued)**

The General Partner and its parent company are reimbursed by the Fund for certain costs of services and materials used by or for the Fund except those items covered by the above-mentioned fees. 

The following is a summary of fees and costs of services and materials charged by the General Partner or its affiliates during the three and six months ended June 30, 2005 and 2004: 

|                               | **Three         Months Ended         June    30,** |    | **Six         Months Ended         June    30,** |     |
|------------------------------------|----------------------------------------------------|---------|--------------------------------------------------|----------|
|                                    |                                                    |
|                               | **2005**                                           |    |                                             | **2004** |   | **2005** |   |   | **2004** |
|                                    |                                                    |         |                                                  |          |  |  |  |
| Organization and offering expenses | $                                                  | – |                                             | $        | 54,319 |   | $ | – |   | $ | 85,845 |   |
| Underwriting fees                  |                                               | – |                                             |     | 179,256 |   |   | – |   |   | 284,108 |   |
| Acquisition fees                   |                                               | 158,433 |                                             |     | 221,887 |   |   | 1,049,736 |   |   | 327,936 |   |
| Asset management fees              |                                               | 224,101 |                                             |     | 64,952 |   |   | 378,339 |   |   | 145,292 |   |
| Reimbursable expenses              |                                               | 207,528 |                                             |     | 61,632 |   |   | 347,787 |   |   | 278,147 |   |

Due to related parties, net as of June 30, 2005 and December 31, 2004 represents net monies due to the General Partner for management fees, reimbursed expenses and other advances not yet paid. 

**NOTE 10****– ALLOCATIONOF PARTNERSHIP INCOME, LOSS AND CASH DISTRIBUTIONS**

Cash distributions, if any, are made monthly as follows: 99% to the limited partners and 1% to the General Partner until the limited partners have received an amount equal to their unpaid cumulative return (8% of their adjusted capital contribution) and thereafter, to investment and reinvestment in investments or, if the General Partner elects not to invest or reinvest such distributable cash, 99% to the limited partners and 1% to the General Partner. 

Net income for any fiscal period during the reinvestment period (the period commencing March 3, 2003 and ending August 15, 2009) is allocated 99% to the limited partners and 1% to the General Partner. Income during the liquidation period, as defined in the Partnership Agreements, will be allocated first to the Partners in proportion to and to the extent of the deficit balances, if any, in their respective capital accounts. Thereafter, net income will be allocated 99% to the limited partners and 1% to the General Partner. 

**NOTE 11 –********COMPREHENSIVEINCOME (LOSS)**

 	Comprehensive income (loss) includes net income and all other changes in the equity of a business during a period from non-owner sources.  These changes, other than net income (loss), are referred to as “other comprehensive income (loss)” and for the Fund, only include changes in the fair value of unrealized hedging gains and losses. Comprehensive loss for the six month period ended June 30, 2004, only includes net loss. 

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**LEASE EQUITY APPRECIATION FUND I, L.P.****NOTES TOCONSOLIDATED FINANCIAL STATEMENTS –********(Continued)June 30, 2005(Unaudited)**

**NOTE 12********– NETLOSS PER LIMITED PARTNERSHIP UNIT**

Net loss per limited partnership unit is computed by dividing net loss allocated to the Fund’s limited partners by the weighted average number of limited partnership units outstanding during the period. The weighted average number of limited partnership units outstanding during the period is computed based on the number of limited partnership units issued during the period weighted for the days outstanding during the period. Basic loss per limited partnership unit equals dilutive net loss per limited partnership unit because there are no potential dilutive units.

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**ITEM 2. – Management’s Discussion and Analysis of Financial Condition and Results of Operations.**

***Forward-Looking Statements***

**When used in this Form 10-Q, the words “believes” “anticipates,” “expects” and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties more particularly described in Item 1, under the caption “Risks Inherent In Our Business,” in our annual report on Form 10-K for 2004. These risks and uncertainties could cause actual results to differ materially.  Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly release the results of any revisions to forward-looking statements which we may make to reflect events or circumstances after the date of this Form 10-Q or to reflect the occurrence of unanticipated events.**

**Overview**

We are a Delaware    limited partnership formed on January 31, 2002. On June 30, 2004, our General    Partner, LEAF Asset Management, Inc., merged into its parent, LEAF Financial    Corporation. Consequently, our General Partner is a wholly owned subsidiary    of Resource Leasing, Inc., a wholly owned subsidiary of Resource America,    Inc. a publicly-traded company (Nasdaq: REXI) operating in the real estate,    financial services and equipment financing sectors. 

As of August 15, 2004, the date our offering period terminated, we had raised $17,060,772 through the sale of 171,746 limited partner units. 

 	We acquire equipment that is financed for third parties.  We may also acquire portfolios of equipment subject to existing leases and notes from other equipment lessors. Our principal objective is to generate regular cash distributions to our limited partners.  The equipment we finance is principally for general business and industrial use and we focus on the small  to mid sized business market, generally businesses with 500 or fewer employees, $1 billion or less in total assets or $100 million or less in total annual sales. We specialize in financing business essential equipment within a price range of $20,000 to $2 million.  The equipment we finance includes computers, copiers, furniture, heating, ventilation and air conditioning equipment, industrial equipment, medical equipment and telecommunications equipment. 

Our leases consist    of both direct financing and operating leases which are recorded in accordance    with generally accepted accounting principles in the United States of America.    Under the direct financing method of accounting for leases, interest income    (the excess of the aggregate future rentals and estimated unguaranteed residuals    upon expiration of the lease over the related equipment cost) is recognized    over the life of the lease using the effective interest method. Under the    operating method of accounting for leases, the cost of the leased equipment,    including    acquisition fees associated with lease placements, is recorded as an asset    and depreciated on a straight-line basis over its estimated useful life.    Rental income on operating leases consists primarily of monthly periodic    rentals due under the terms of the leases. Generally, during the lease terms    of existing operating leases, we will not recover all of the undepreciated cost and related expenses of our rental equipment and, therefore, we are prepared    to remarket the equipment in future years. When a scheduled payment due is    90 days or more delinquent, the financing is classified as being on non-accrual    and we do not recognize interest or rental income on that financing until    the financing becomes less than 90 days delinquent. 

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We commenced operations on March 3, 2003. As of June 30, 2005, our portfolio contained 2,409 equipment leases with 2,243 individual end users in 50 states.  No individual end user or single piece of equipment accounted for more than 3% of our portfolio based on original cost of the equipment. As of June 30, 2005, we had net investment of $2,231,084 in equipment under operating leases and a net investment of $90,082,528 in direct financing leases and notes for a total investment in lease assets of $92,313,612. Our average original equipment cost per equipment finance transaction was $48,977. As of June 30, 2005, the weighted average initial term of a lease was 47 months. 

The following schedules detail the types, net investment (before allocating the allowance for possible losses) and percentage of the various types of equipment leased by us under operating leases, direct financing leases and notes as of June 30, 2005 and December 31, 2004 (dollars in thousands): 

**Direct Financing Leases and Notes**

|                  |           | **June    30, 2005** |           |   |   |   | **December****31,         2004** |                 |
|-----------------------|----------------|----------------------|----------------|--------|--------|--------|----------------------------------|----------------------|
|                  |           |                      |                |        |        |   |                             |                 |   |  |  |  |  |   |
| **Type of Equipment** |           | **Net**              |           |   |   |   | **Type of Equipment**            |                 | **Net** |   |   |   |
| **Investment**        | **Percentage** | **Investment**       | **Percentage** |
|                       |           |                      |                |   |        |   |                             |                      |   |  |  |   |  |   |
| Industrial Equipment  |           | $                    | 26,915         |   | 29.9   | %      |                             | Medical Equipment    |   | $ | 13,656 |   | 25.6 | % |
| Medical Equipment     |           |                 | 20,333         |   | 22.5   |   |                             | Industrial Equipment |   |   | 11,184 |   | 21.0 |   |
| Office Equipment      |           |                 | 11,582         |   | 12.8   |   |                             | Computers            |   |   | 8,289 |   | 15.6 |   |
| Computers             |           |                 | 9,963          |   | 11.0   |   |                             | Software             |   |   | 4,705 |   | 8.8 |   |
| Software              |           |                 | 5,347          |   | 5.9    |   |                             | Office Equipment     |   |   | 4,305 |   | 8.1 |   |
| Garment Care          |           |                 | 4,438          |   | 4.9    |   |                             | Garment Care         |   |   | 3,916 |   | 7.4 |   |
| Restaurant Equipment  |           |                 | 3,793          |   | 4.2    |   |                             | Communications       |   |   | 2,612 |   | 4.9 |   |
| Building systems      |           |                 | 3,639          |   | 4.0    |   |                             | Building systems     |   |   | 2,260 |   | 4.2 |   |
| Communications        |           |                 | 3,028          |   | 3.3    |   |                             | Restaurant Equipment |   |   | 1,892 |   | 3.6 |   |
| Agriculture           |           |                 | 1,346          |   | 1.5    |   |                             | Agriculture          |   |   | 452 |   | 0.8 |   |
|                  |           |                      |                |   |        |   |                             |                 |   |  |  |   |  |   |
|                  |           | $                    | 90,384         |   | 100.0  | %      |                             |                 |   | $ | 53,271 |   | 100.0 | % |
|                  |           |                      |                |   |        |   |                             |                 |   |  |  |   |  |   |

**OperatingLeases**

|                  |           | **June         30,****2005** |           |   |   |   | **December****31,         2004** |                  |
|-----------------------|----------------|------------------------------|----------------|--------|--------|--------|----------------------------------|-----------------------|
|                  |           |                              |                |        |        |   |                             |                  |   |  |  |  |  |   |
| **Type of Equipment** |           |                         | **Net**        |   |   |   |                             | **Type of Equipment** |   |   | **Net** |   |   |   |
| **Investment**        | **Percentage** | **Investment**               | **Percentage** |
|                       |           |                              |                |   |        |   |                             |                       |   |  |  |   |  |   |
| Computers             |           | $                            | 736            |   | 32.9   | %      |                             | Computers             |   | $ | 762 |   | 48.5 | % |
| Office Equipment      |           |                         | 555            |   | 24.9   |   |                             | Office Equipment      |   |   | 473 |   | 30.1 |   |
| Industrial Equipment  |           |                         | 413            |   | 18.5   |   |                             | Communications        |   |   | 272 |   | 17.3 |   |
| Communications        |           |                         | 371            |   | 16.7   |   |                             | Software              |   |   | 36 |   | 2.3 |   |
| Medical Equipment     |           |                         | 124            |   | 5.6    |   |                             | Industrial Equipment  |   |   | 15 |   | 1.0 |   |
| Software              |           |                         | 30             |   | 1.3    |   |                             | Medical Equipment     |   |   | 9 |   | 0.6 |   |
| Restaurant Equipment  |           |                         | 2              |   | 0.1    |   |                             | Restaurant Equipment  |   |   | 3 |   | 0.2 |   |
|                  |           |                              |                |   |        |   |                             |                  |   |  |  |   |  |   |
|                  |           | $                            | 2,231          |   | 100.0  | %      |                             |                  |   | $ | 1,570 |   | 100.0 | % |
|                  |           |                              |                |   |        |   |                             |                  |   |  |  |   |  |   |

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 	The following schedules provide information about the types of businesses we finance. The business type is grouped by standard industrial classification as of June 30, 2005 and December 31, 2004 (dollars in thousands): 

**Direct Financing Leases and Notes**

|                                    |           | **June         30,****2005** |           |   |   |   | **December****31,         2004** |                                 |
|-----------------------------------------|----------------|------------------------------|----------------|--------|--------|--------|----------------------------------|--------------------------------------|
|                                    |           |                              |                |        |        |   |                             |                                 |   |  |  |  |  |   |
| **Type of Business**                    |           | **Net**                      |           |   |   |   | **Type of Business**             |                                 | **Net** |   |   |   |
| **Investment**                          | **Percentage** | **Investment**               | **Percentage** |
|                                         |           |                              |                |   |        |   |                             |                                      |   |  |  |   |  |   |
| Services                                |           | $                            | 46,801         |   | 51.7   | %      |                             | Services                             |   | $ | 33,412 |   | 62.7 | % |
| Manufacturing                           |           |                         | 11,214         |   | 12.4   |   |                             | Manufacturing                        |   |   | 5,775 |   | 10.9 |   |
| Retail Trade                            |           |                         | 10,161         |   | 11.2   |   |                             | Retail Trade                         |   |   | 5,549 |   | 10.4 |   |
| Construction                            |           |                         | 4,958          |   | 5.5    |   |                             | Finance/Insurance/ Real       Estate |   |   | 2,506 |   | 4.7 |   |
| Transportation/Communication/    Energy |           |                         | 4,931          |   | 5.5    |   |                             | Transportation/Communication/Energy  |   |   | 1,993 |   | 3.7 |   |
| Finance/Insurance/Real Estate           |           |                         | 4,174          |   | 4.6    |   |                             | Wholesale Trade                      |   |   | 1,991 |   | 3.7 |   |
| Wholesale Trade                         |           |                         | 3,887          |   | 4.3    |   |                             | Construction                         |   |   | 1,482 |   | 2.8 |   |
| Agriculture                             |           |                         | 2,848          |   | 3.2    |   |                             | Public Administration                |   |   | 534 |   | 1.0 |   |
| Public Administration                   |           |                         | 1,353          |   | 1.5    |   |                             | Mining                               |   |   | 29 |   | 0.1 |   |
| Mining                                  |           |                         | 57             |   | 0.1    |   |                             |                                 |   |  |  |   |  |   |
|                                    |           |                              |                |   |        |   |                             |                                 |   |   |   |   |   |   |
|                                    |           | $                            | 90,384         |   | 100.0  | %      |                             |                                 |   | $ | 53,271 |   | 100.0 | % |
|                                    |           |                              |                |   |        |   |                             |                                 |   |  |  |   |  |   |

**Operating Leases**

|                                |           | **June         30,****2005** |           |   |   |   | **December****31,         2004** |                                |
|-------------------------------------|----------------|------------------------------|----------------|--------|--------|--------|----------------------------------|-------------------------------------|
|                                |           |                              |                |        |        |   |                             |                                |   |  |  |  |  |   |
| **Type of Business**                |           | **Net**                      |           |   |   |   | **Type of Business**             |                                | **Net** |   |   |   |
| **Investment**                      | **Percentage** | **Investment**               | **Percentage** |
|                                     |           |                              |                |   |        |   |                             |                                     |   |  |  |   |  |   |
| Services                            |           | $                            | 1,010          |   | 45.4   | %      |                             | Services                            |   | $ | 862 |   | 54.9 | % |
| Construction                        |           |                         | 491            |   | 22.0   |   |                             | Wholesale Trade                     |   |   | 266 |   | 16.9 |   |
| Wholesale Trade                     |           |                         | 255            |   | 11.4   |   |                             | Manufacturing                       |   |   | 175 |   | 11.1 |   |
| Manufacturing                       |           |                         | 180            |   | 8.1    |   |                             | Transportation/Communication/Energy |   |   | 104 |   | 6.7 |   |
| Transportation/Communication/Energy |           |                         | 139            |   | 6.2    |   |                             | Finance/Insurance/Real Estate       |   |   | 96 |   | 6.1 |   |
| Finance/Insurance/Real Estate       |           |                         | 118            |   | 5.3    |   |                             | Construction                        |   |   | 52 |   | 3.3 |   |
| Public Administration               |           |                         | 16             |   | 0.7    |   |                             | Mining                              |   |   | 8 |   | 0.5 |   |
| Retail Trade                        |           |                         | 14             |   | 0.6    |   |                             | Public Administration               |   |   | 4 |   | 0.3 |   |
| Mining                              |           |                         | 8              |   | 0.3    |   |                             | Retail Trade                        |   |   | 3 |   | 0.2 |   |
|                                |           |                              |                |   |        |   |                             |                                |   |  |  |   |  |   |
|                                |           | $                            | 2,231          |   | 100.0  | %      |                             |                                |   | $ | 1,570 |   | 100.0 | % |
|                                |           |                              |                |   |        |   |                             |                                |   |  |  |   |  |   |

In evaluating our allowance for possible uncollectible accounts, we consider our contractual delinquencies, economic conditions and trends, industry statistics, lease portfolio characteristics and our General Partner's prior experience with similar finance assets. As of June 30, 2005, our credit evaluation indicated the need for an allowance for possible losses of our finance assets of $301,575. 

We utilize debt facilities in addition to equity to fund the acquisitions of lease portfolios. As of June 30, 2005, our outstanding debt was $87,645,484. 

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**Results of Operations**

*Three month period ended June 30, 2005 compared to the three month period ended June 30, 2004.*

Our interest and rental income increased to $2,054,539 for the three month period ended June 30, 2005 as compared to $655,559 in the three month period ended June 30, 2004, an increase of $1,398,980 (213%). This increase is attributable to our increase in finance assets.  Total finance assets increased to $92,313,612 at June 30, 2005 as compared to $36,746,158 at June 30, 2004, an increase of $55,567,454 (151%). The proceeds from our WestLB line of credit allowed us to acquire more leases from our General Partner.  Interest expense increased to $1,240,338 for the three month period ended June 30, 2005 as compared to $392,396 for the three month period ended June 30, 2004, an increase of $847,942 (216%) due to our increase in debt incurred to acquire equipment subject to leases. Debt was $87,645,484 at June 30, 2005 as compared to $30,796,840 at June 30, 2004, an increase of $56,848,644 (185%).  As our lease portfolio grows and we incur additional debt, interest expense will increase in future periods. Our provision for credit losses increased to $312,785 for the three month period ended June 30, 2005 as compared to $56,159 for the three month period ended June 30, 2004, an increase of $256,626 (457 %). Our allowance for possible losses is primarily based on factors, which include the historical loss experience, an analysis of contractual delinquencies, economic conditions and trends, industry statistics and portfolio characteristics. Our policy is to charge off to the allowance those financings which are in default and for which management has determined the probability of collection to be remote.  Our projection of possible losses is by nature uncertain due to trends in the economy, portfolio characteristics and other factors that could effect our performance.  Total operating expenses increased to $799,916 for the three month period ended June 30, 2005 as compared to $219,172 for the three month period ended June 30, 2004, an increase of $580,744 (265%). This increase was primarily due to increases in management fees and administrative expenses paid to our General Partner as well as an increase in depreciation expense. Administrative expenses reimbursed to our General Partner increased to $207,528 for the three month period ended June 30, 2005 as compared to $61,632 for the three month period ended June 30, 2004, an increase of $145,896 (237%). This increase is attributable to our increase in lease assets.  Management fees increased to $224,101 for the three month period ended June 30, 2005 as compared to $64,952 for the three month period ended June 30, 2004, an increase of $159,149 (245%).  This increase is directly attributable to our growth in lease assets because management fees are based on percentage of customer payments received.  Depreciation expense from operating leases increased to $216,166 for the three month period ended June 30, 2005 as compared to $48,799 for the three month period ended June 30, 2004, an increase of $167,367 (343%). Depreciation expense grew due to an increase in assets subject to operating leases. 

Our net (loss) income for the three months ended June 30, 2005 and 2004 was $(214,133) and $8,604, respectively. The loss per limited partnership unit, after the loss allocated to our General Partner for the three month period ended June 30, 2005 was $(1.23) based on a weighted average number of limited partnership units outstanding of 171,746. However, income before depreciation, amortization, and increases in the allowance for credit losses for the three month period ended June 30, 2005 and 2004, was $93,072 and $105,222, respectively. 

*Six month period ended June 30, 2005 compared to the six month period ended June 30, 2004.*

Our interest andrental income increased to $3,492,262 for the six month period ended June 30,2005 as compared to $1,267,608 in the six month period ended June 30, 2004 anincrease of $2,224,654 (175%). This increase is attributable to our increasein finance assets. Total finance assets increased to $92,313,612 at June 30,2005 as compared to $36,746,158 at June 30, 2004, an increase of $55,567,454(151%).The proceeds from the sale of limited partnership units and additional linesof credit allowed us to acquire more leases from our General Partner. Interestexpense increased to $2,073,131 for the six month period ended June 30, 2005as compared to $766,612 for the six month period ended June 30, 2004, an increaseof $1,306,519 (170%) due to our increase in debt incurred to acquire equipmentsubject to leases. Debt was$87,645,484at June 30, 2005 as compared to $30,796,840 at June 30, 2004, an increase of$56,848,644 (185%). As our lease portfolio grows and we incur additional debt,interest expense will increase in future periods. Our provision for credit lossesincreased to $553,235 for the six month period ended June 30, 2005 as comparedto $66,159 for the six month period ended June 30, 2004, an increase of $487,076(736%). As our portfolio grows, our provision for credit losses will also grow.Total operating expenses increased to $1,402,174 for the six month period endedJune 30, 2005 as compared to $613,536 for the six month period ended June 30,2004, an increase of $788,638 (129%). This increase was primarily due to increasesin general and administrative expenses, management fees paid to our General Partneras well as an increase in depreciation expense. General and administrative expensesincreased to $257,360 for the six month period ended June 30, 2005 as comparedto $ 87,785, an increase of $169,575 (193%). Management fees increased to $378,339for the six month period ended June 30, 2005 as compared to $145,292 for thesix month period ended June 30, 2004, an increase of $233,047 (160%). This increaseis directly attributable to our growth in lease assets because management feesare based on a percentage of customer payments received. Depreciation expensefrom operating leases increased to $418,688 for the six month period ended June30, 2005 as compared to $102,312 for the six month period ended June 30, 2004,an increase of $316,376 (309%). Depreciation expense grew due to an increasein assets subject to operating leases. 

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Our net loss forthe six months ended June 30, 2005 and 2004 was $379,537 and $83,984, respectively.The income per limited partnership unit, after the loss allocated to our GeneralPartner for the six month period ended June 30, 2005 was $2.19 based on a weightedaverage number of limited partnership units outstanding of 171,746. However,income before depreciation, amortization, and increases in the allowance forcredit losses for the six month period ended June 30, 2005 and 2004, was $303,350and $84,096, respectively. 

Partners’ distributions paid for the six month periods ended June 30, 2005 and June 30, 2004 were $692,031 and $417,580, respectively. 

**Liquidity and Capital Resources**

Our major sources of liquidity is cash generated from our financings and our bank line of credit.

Our primary cash requirements, in addition to normal operating expenses, are for debt service, investment in equipment financings and distributions to partners.  In addition to cash generated from operations, we plan to meet our cash requirements through our credit facilities. 

The following table sets forth our sources and uses of cash for the periods indicated: 

|                                      |   | **For    the Six Month Periods Ended    June 30,** |   |
|-------------------------------------------|--------|----------------------------------------------------|--------|
|                                      |        |                                                    |        |  |  |   |
|                                      |   | **2005**                                           |   |   | **2004** |   |
|                                      |        |                                                    |   |  |  |   |
| Net cash used in operating activities     | $      | (347,194                                           | )      | $ | (175,916 | ) |
| Net cash used in investing activities     |   | (38,570,527                                        | )      |   | (12,303,901 | ) |
| Net cash provided by financing activities |   | 40,707,940                                         |   |   | 12,756,319 |   |
|                                      |        |                                                    |   |  |  |   |
| Increase in cash                          | $      | 1,790,219                                          |   | $ | 276,502 |   |
|                                      |        |                                                    |   |  |  |   |

 	Our liquidity is affected by our ability to leverage our portfolio through expansion of credit facilities. Our increase in our debt to equity ratio, to seven to one at June 30, 2005 from four to one at December 31, 2004, reflects the additional borrowings under our WestLB line of credit that we entered into in December 2004. We would expect that our leverage ratio will remain in the seven to one range as we become fully invested under our lines of credit. In addition, changes in interest rates will affect the market value of our portfolio and our ability to obtain financing. In general, the market value of an equipment lease will changein inverse relationto an interest rate change where the lease has a fixed rate of return. Accordingly,in a period of rising interest rates, the market value of our equipment leaseswill decrease. A decrease in the market value of our portfolio will adverselyaffect our ability to obtain financing against our portfolio or to liquidateit.

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In addition, the terms of our credit facilities have financial covenants related to our net worth and leverage.  As of June 30, 2005, we were in compliance with all such covenants.  If we do not meet the requirements of the covenants in the future, default could occur that will have an adverse effect on our operations and could force us to liquidate our portfolio. In the event that our WestLB line of credit is not renewed in December 2005, we expect to obtain an alternative credit facility with comparable terms. 

Our liquidity could also be affected by higher than expected equipment lease defaults. Higher than expected equipment lease defaults will result in a loss of anticipated revenues. These losses may adversely affect our ability to make distributions to partners and, if the level of defaults is sufficiently large, may result in our inability to fully recover our investment in the underlying equipment. In evaluating our allowance for possible losses on uncollectible leases, we consider our contractual delinquencies, economic conditions and trends, industry statistics, lease portfolio characteristics and our General Partner's management's prior experience with similar lease assets.  At June 30, 2005, our credit evaluation indicated the need for an allowance for possible losses of $301,575. As our lease portfolio increases, we anticipate the allowance for possible losses will increase. 

 	Net cash usedin operations for the six month period ended June 30, 2005 was $347,194 as comparedto cash used by operations of $175,916 for the six month period ended June 30,2004 a decrease of $171,278 (97%). This decrease is primarily related to thepaymentof monies owed to our General Partner for purchases of lease portfolios in December2004 which were paid in January 2005.

 	Net cash flows used in investing activities for the six month period ended June 30, 2005 was $38,570,527 as compared to $12,303,901 for the six month period ended June 30, 2004, an increase of $26,266,626 (213%).  This increase is attributable to the increase in investment in leased assets of $36,069,588 which is offset by proceeds received from financings. The expansion of our credit facilities allowed us to increase its investment in equipment finance portfolios. 

Net cash provided by financing activities for the six month period ended June 30, 2005 was $40,707,940.  This was primarily due to debt proceeds of $71,506,185 used to acquire lease portfolios (reduced by repayment of debt of $35,322,372). The increase in borrowings is due to the expansion of our credit facilities in 2005. 

**ITEM 3. – Quantitativeand Qualitative Disclosures About Market Risk.**

 	At June 30, 2005, our outstanding debt totaled $87,645,484, which consists of fixed rate debt of $19,317,253 and variable rate debt of $68,328,231. Our variable rate debt consists of $65,914,461 with WestLB AG and $2,413,770 with Sovereign Bank. To mitigate interest rate risk on the WestLB AG debt we employ a hedging strategy using derivative financial instruments such as interest rate swaps, which fixes the interest rate on this facility at 5.17%. The interest rate on the Sovereign facility is calculated at LIBOR plus 2% per annum. The weighted average interest rate for this facility was 5.33% for the six months ended June 30, 2005. Holding all variables constant, if interest rates hypothetically increased or decreased by 10%, our net loss would change by approximately $19,000. 

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**ITEM 4. – Controls and Procedures.**

*Evaluation of Disclosure Controls and Procedures*

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our periodic reports under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the U.S. Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to our management, including our General Partner’s Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.  In designing and evaluating the disclosure controls and procedures, our management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

Under the supervision of our General Partner’s Chief Executive Officer and Chief Financial Officer, we have carried out an evaluation of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report.  Based upon that evaluation, our General Partner’s Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective at the reasonable assurance level.

There have been no significant changes in our internal controls over financial reporting during the three months ended June 30, 2005 that has materially affected, or are reasonably likely to materially affect, our internal control over financial reporting during our most recent fiscal year.

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**PART II – OTHER INFORMATION**

**ITEM 6. – Exhibits.**

| Exhibit No.  |   | Description |
|-------------------|--------|-------------|
|                   |   |             |
| 3.1               | (1)    |        | Amended and Restated Agreement of Limited Partnership |
| 3.2               | (2)    |        | Certificate of Limited Partnership |
| 4.1               | (2)    |        | Forms of letters sent to limited partners confirming their investment |
| 31.1              |   |        | Rule 13a-14(a)/15d-14(a) Certifications of Chief Executive Officer |
| 31.2              |   |        | Rule 13a-14(a)/15d-14(a) Certifications of Chief Financial Officer |
| 32.1              |   |        | Section 1350 Certifications of Chief Executive Officer |
| 32.2              |   |        | Section 1350 Certifications of Chief Financial Officer |
|              |   |        |   |

|        |
|--------|
| (1)    | Filed previously       as Appendix A to our Post-Effective Amendment No. 3 to our Registration       Statement on Form S-1, filed on January 24, 2004. |
|   |   |
| (2)    | Filed previously       as an Exhibit to Amendment No. 1 to our Registration Statement on Form    S-1 filed on June 7, 2002. |

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. 

|               | **LEASE    EQUITY APPRECIATION FUND I, L.P.**          |
|--------------------|--------------------------------------------------------|
|               | A Delaware    Limited Partnership                      |
|               | By: LEAF    Financial Corporation, its General Partner |
|               |                                                   |
| August    15, 2005 | /s/    Crit DeMent                                     |
|               |                                                        |
|               | CRIT    DEMENT                                         |
|               | Chairman    and Chief Executive Officer                |
|               | of the        GeneralPartner                           |
|               |                                                   |
| August    15, 2005 | /s/    Robert K. Moskovitz                             |
|               |                                                        |
|               | ROBERT    K. MOSKOVITZ                                 |
|               | Chief Financial    Officer, Treasurer                  |
|               | of the    General Partner                              |
|               |                                                   |

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