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                                    FORM 10-Q/A
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                   QUARTERLY REPORT UNDER SECTION 13 or 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934


For the quarter ended                     June 30, 2004
                                          -------------

Commission file number                       1-11059
                                          -------------




              AMERICAN INSURED MORTGAGE INVESTORS - SERIES 85, L.P.
              -----------------------------------------------------
               (Exact name of registrant as specified in charter)


          California                                  13-3257662
--------------------------------        -----------------------------------
(State or other jurisdiction of         (I.R.S. Employer Identification No.)
incorporation or organization)

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

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





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

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

     As of June 30, 2004,  12,079,514  depositary  units of limited  partnership
interest were outstanding.


EXPLANATORY NOTE

This  Amendment No. 1 on Form 10-Q/A (this  "Amendment")  is being filed to
amend the Registrant's  Quarterly Report on Form 10-Q for the quarter ended June
30, 2004,  filed on August 12, 2004 (the "Original  10-Q").  This Amendment does
not otherwise  alter the disclosures set forth in the Original 10-Q and does not
reflect events  occurring  after the filing of the Original 10-Q. This Amendment
is effective for all purposes as of the date of the filing of the Original 10-Q.

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Specifically,  the Registrant is filing this Amendment No. 1 solely for the
purpose  of  including  Exhibit  Numbers  31.1,  31.2,  32.1 and 32.2 which were
erroneously omitted from the Original 10-Q due to a clerical error.


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PART II.      OTHER INFORMATION
ITEM 6.       EXHIBITS AND REPORTS ON FORM 8-K

     (a)      Exhibits
              --------

              Exhibit No.                        Purpose
              -----------

                  31.1                 Certification pursuant to the Exchange
                                       Act Rule 13a-14(a) from Barry S.
                                       Blattman, Chairman of the Board and Chief
                                       Executive Officer of the General Partner
                                       (Filed herewith).

                  31.2                 Certification pursuant to the Exchange
                                       Act Rule 13a-14(a) from Cynthia O.
                                       Azzara, Executive Vice President, Chief
                                       Financial Officer and Treasurer of the
                                       General Partner (Filed herewith).

                  32.1                 Certification pursuant to Section 906 of
                                       the Sarbanes-Oxley Act of 2002 from
                                       Barry S. Blattman, Chairman of the Board
                                       and Chief Executive Officer of the
                                       General Partner (Furnished herewith).

                  32.2                 Certification pursuant to Section 906 of
                                       the Sarbanes-Oxley Act of 2002 from
                                       Cynthia O. Azzara, Executive Vice
                                       President, Chief Financial Officer and
                                       Treasurer of the General Partner
                                       (Furnished herewith).


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                                    SIGNATURE

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

                                     AMERICAN INSURED MORTGAGE
                                     INVESTORS L.P. - SERIES 85
                                     (Registrant)

                                     By:      CRIIMI, Inc.
                                              General Partner


                                     /s/Cynthia O. Azzara
August 31, 2004                      --------------------------------
----------------                     Cynthia O. Azzara
DATE                                 Executive Vice President,
                                     Chief Financial Officer and
                                     Treasurer (Principal Accounting Officer)