**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


**Washington,
      DC 20549**





**FORM
      10-Q**







(Mark
      One)


x QUARTERLY
      REPORT PURSUANT TO SECTION 13 OR
      15(d)


OF
      THE
      SECURITIES EXCHANGE ACT OF 1934


For
      the
      quarterly period ended: September 30, 2006


OR


 ̈ TRANSITION
      REPORT PURSUANT TO SECTION 13 OR
      15(d)


OF
      THE
      SECURITIES EXCHANGE ACT OF 1934




For
      the
      transition period from ______ to _______





Commission
      file number: **000-51794**


POINT
      CENTER MORTGAGE FUND I, LLC


(Exact
      Name of Registrant as Specified in Its Charter)




**Delaware**
            
            **16-1704525**(State
                or Other Jurisdiction of
              Incorporation
                or Organization)
            
            (I.R.S.
                Employer
              Identification
                No.)




**30900
      Rancho Viejo Road,**  **Suite
      100**


**San
      Juan Capistrano, California 92675**


(Address
      of Principal Executive Offices) (Zip Code)





Registrant’s
      Telephone Number, Including Area Code: **(949)
      661-7070**


Securities
      registered pursuant to Section 12(b) of the Act: **None**


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


**Units
      of Membership Interest**


(Title
      of
      Class)




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





Indicate
      by check mark whether the registrant is a large accelerated filer, an
      accelerated filer, or a non-accelerated filer. See definition of “accelerated
      filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check
      one):




Large
                Accelerated Filer ̈
            Accelerated
                Filer ̈
            Non-Accelerated
                Filerx




Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b
      2 of the Act). YES  ̈ NO x





The
      number of Units of Membership Interest outstanding as of September 30, 2006
      was
      1,098.93.








**POINT
      CENTER MORTGAGE FUND I, LLC**





**FORM
      10-Q**





**FOR
      THE QUARTER ENDED SEPTEMBER 30, 2006**





**INDEX**




**Page
                No.**Cautionary
                Statement About Forward-Looking Statements
            1PART
                I.
            FINANCIAL
                INFORMATIONItem 1.
            Financial
                StatementsFinancial
                Statements of Point Center Mortgage Fund I, LLC
                (unaudited)
            2Notes
                to Point Center Mortgage Fund I, LLC Financial Statements
            5Item
                2.
            Management’s
                Discussion and Analysis of Financial****Condition
                and Results
              of
                Operations
            8Item
                3.
            Quantitative
                and Qualitative Disclosures About Market Risk
            14Item
                4.
            Evaluation
                of Disclosure Controls and Procedures
            14PART II.
            OTHER
                INFORMATIONItem
                1.
            Legal
                Proceedings
            14Item
                1A.
            Risk
                Factors that May Affect Results of Operations and Financial
                Condition
            14Item
                6.
            Exhibits
            15Signature
            16





**CAUTIONARY
          STATEMENT ABOUT FORWARD-LOOKING STATEMENTS**
 
 This
          quarterly report on Form 10-Q contains forward-looking statements within
          the
          meaning of Section 27A of the Securities Act of 1993 and Section 21E of
          the
          Securities Exchange Act of 1934 that relate to future events or our future
          financial performance. In addition, other statements we may make from time
          to
          time, such as press releases, oral statements made by our officials and
          other
          reports that we file with the Securities and Exchange Commission, may also
          contain such forward-looking statements. Undue reliance should not be placed
          on
          these statements which involve known and unknown risks, uncertainties and
          other
          factors which may cause our actual results, performance or achievements
          to be
          materially different from any future results, performances or achievements
          expressed or implied by the forward-looking statements. In some cases,
          you can
          identify forward-looking statements by terminology such as “may”, “will”,
“should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”,
“predicts”, “potential”, “continue”, or the negative of such terms or other
          comparable terminology.
 
 Any
          or
          all of the forward-looking statements included in this report and in any
          other
          reports or public statements made by us may turn out to be inaccurate.
          This can
          occur as a result of incorrect assumptions or as a consequence of known
          or
          unknown risks and uncertainties. Many factors mentioned in this report
          or in
          other reports or public statements made by us, such as government regulation
          and
          the competitive environment, will be important in determining our future
          performance. Consequently, actual results may differ materially from those
          that
          might be anticipated from our forward-looking statements. You should not
          place
          undue reliance on any of these forward-looking statements because they
          are based
          on current expectations or beliefs regarding future events or circumstances,
          which involve known and unknown risks, uncertainties and other factors
          which may
          cause our actual results, performance or achievements to be materially
          different
          from any future results, performances or achievements expressed or implied
          by
          these forward-looking statements.
 
 Although
          we believe that our strategies, plans, objectives, goals, expectations
          and
          intentions reflected in, or suggested by these forward-looking statements
          are
          reasonable given current information available to us, we can give no assurance
          that any of them will be achieved.
 
 These
          forward-looking statements should be considered in light of the information
          included in this report and our other filings with the Securities and Exchange
          Commission, including, without limitation, the Risk Factors, as well as
          the
          description of trends and other factors in Management’s Discussion and Analysis
          of Financial Condition and Results of Operations, set forth in our Registration
          Statement on Form S-11, Registration No. 333-118871 and the most recent
          Prospectus relating thereto which was filed on October 16, 2006 pursuant
          to Rule
          424(b)(3) of the Securities Act of 1933, as amended. You should also read
          the
          following Management’s Discussion and Analysis of Financial Condition and
          Results of Operations in conjunction with the unaudited balance sheets
          and the
          related notes that appear elsewhere in this report.
 
 We
          assume
          no, and hereby disclaim any, obligation to update any of the foregoing
          or any
          other forward-looking statements. We nonetheless reserve the right to make
          such
          updates from time to time by press release, periodic report or other method
          of
          public disclosure without the need for specific reference to this Form
          10-Q or
          any other report filed by us. No such update shall be deemed to indicate
          that
          other statements not addressed by such update remain correct or create
          an
          obligation to provide any other updates.
 
 1
  **PART
          I. FINANCIAL INFORMATION**
 
 **Item
          1. Financial Statements**
  **POINT
          CENTER MORTGAGE FUND I, LLC**
 **BALANCE
          SHEET**
  **September
                    30,**
                
                **December
                    31,****2006**
                
                **2005****(Unaudited)**
                
                **(Audited)****ASSETS****CURRENT
                    ASSETS**Cash
                    in bank
                
                $
                42,160
                
                $
                25,000Accrued
                    interest receivable
                
                
                51,086
                
                
                -Investment
                    in trust deed notes receivable (Notes 2 & 3)
                
                
                3,486,190
                
                
                -**TOTAL
                    CURRENT ASSETS**
                
                
                3,579,436
                
                
                25,000**OTHER
                    ASSET**Investment
                    in trust deed notes receivable (Notes 2 & 3)
                
                
                3,447,923
                
                
                -**TOTAL
                    ASSETS**
                
                $
                7,027,359
                
                $
                25,000**LIABILITIES
                    AND MEMBER'S EQUITY****CURRENT
                    LIABILITES**Loan
                    servicing fees payable
                
                $
                6,883
                
                $
                -Management
                    fees payable
                
                
                5,836
                
                
                -**TOTAL
                    CURRENT LIABILITIES**
                
                
                12,719
                
                
                -**MEMBER'S
                    EQUITY - PER ACCOMPANYING STATEMENT**
                
                
                7,014,640
                
                
                25,000**TOTAL
                    LIABILITES AND MEMBER'S EQUITY**
                
                $
                7,027,359
                
                $
                25,000
  **THE
          ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL
          STATEMENTS**
  2
 
  **POINT
            CENTER MORTGAGE FUND I, LLC**
 **STATEMENT
            OF INCOME AND MEMBER'S EQUITY**
 **(UNAUDITED)**
  **Nine
                      Months Ended****September
                      30,****2006**
                  
                  **2005****INCOME**Interest
                      income
                  
                  $
                  99,943
                  
                  $
                  -**EXPENSE**Loan
                      servicing fees
                  
                  
                  15,440
                  
                  
                  -Management
                      fees
                  
                  
                  12,666
                  
                  
                  -Compliance
                      costs
                  
                  
                  375
                  
                  
                  -**TOTAL
                      EXPENSES**
                  
                  
                  28,481
                  
                  
                  -**NET
                      INCOME**
                  
                  
                  71,462
                  
                  
                  -**MEMBER'S
                      EQUITY**Member's
                      equity - Beginning of period
                  
                  
                  25,000
                  
                  
                  25,000Member
                      capital contributions
                  
                  
                  6,941,409
                  
                  
                  -Member
                      distributions
                  
                  
                  (59,516
                  )
                  
                  -Member
                      reinvestments
                  
                  
                  36,285
                  
                  
                  -**MEMBER'S
                      EQUITY - END OF PERIOD**
                  
                  $
                  7,014,640
                  
                  $
                  25,000
   **THE
            ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL
            STATEMENTS**
 3
 **POINT
          CENTER MORTGAGE FUND I, LLC**
 **STATEMENT
        OF CASH FLOWS**
 **(UNAUDITED)**
 **Nine
                    Months Ended****September
                    30,****2006**
                
                **2005****CASH
                    FLOWS FROM OPERATING ACTIVITIES**Net
                    income
                
                $
                71,462
                
                $
                -Non-cash
                    expenses, and revenues included in net income:Increase
                    in other current liability
                
                
                12,719
                
                
                -Increase
                    in other current asset
                
                
                (51,085
                )
                
                -**NET
                    CASH PROVIDED BY OPERATING ACTIVITIES**
                
                
                33,096
                
                
                -**CASH
                    FLOWS FROM INVESTING ACTIVITIES**Purchase
                    of trust deeds notes receivable
                
                
                (6,935,131
                )
                
                -Principal
                    collected on trust deeds notes receivable
                
                
                1,017
                
                
                -**NET
                    CASH USED IN INVESTING ACTIVITIES**
                
                
                (6,934,114
                )
                
                -**CASH
                    FLOWS FROM FINANCING ACTIVITIES**Member
                    contributions
                
                
                6,941,409
                
                
                -Member
                    distributions
                
                
                (23,231
                )
                
                -**NET
                    CASH PROVIDED BY FINANCING ACTIVITIES**
                
                
                6,918,178
                
                
                -**NET
                    INCREASE IN CASH**
                
                
                17,160
                
                
                -**CASH
                    BALANCE - BEGINNING OF PERIOD**
                
                
                25,000
                
                
                25,000**CASH
                    BALANCE - END OF PERIOD**
                
                $
                42,160
                
                $
                25,000
  **THE
          ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL
          STATEMENTS**
  4
 
 **POINT
            CENTER MORTGAGE FUND I, LLC**
 **NOTES
            TO FINANCIAL STATEMENT**
 **SEPTEMBER
            30, 2006**
 
 **NOTE
            1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**
 
 Point
            Center Mortgage Fund I, LLC (the “Company”) was formed on July 14, 2004 to raise
            funds from investors and to invest those funds in loans made by the Company
            or
            purchased from existing note holders secured in whole or in part by deeds
            of
            trust, and/or mortgages. The investors will become members of the Company.
            The
            Manager of the Company is Point Center Financial, Inc. The rights, duties
            and
            powers of the members of the Company are governed by the offering circular.
            The
            following description of the Company’s offering circular provides only selected
            information. Members should refer to the Company’s offering circular for a more
            complete description of the various provisions.
 
 The
            Company was granted approval by the Securities and Exchange Commission
            to sell
            membership interests on February 3, 2006.
 
 Investors
            may elect to receive monthly cash distributions from the Company in the
            amount
            of that Member’s share of cash available for distribution, or allow his or her
            distributions to be reinvested by purchasing additional Shares.
 
 **Concentration
            of Credit Risk** - The
            Company maintains its cash and cash equivalents in commercial checking
            and money
            market accounts. Periodically throughout the year, cash is maintained
            at the
            bank in excess of insured (FDIC) amounts of $100,000.
 
 **Interest
            Income -** Interest
            income on loans is accrued by the effective interest method. Generally,
            interest
            and payments are due monthly, on the first day of each month. Interest
            is
            generally prorated to the first day of the month following the closing
            of the
            loan escrow. Interest income due and not received as of the balance sheet
            date
            is accrued.
 
 **Investment
            in Trust Deed Notes Receivable** - This
            account represents investments that are secured by trust deeds. Generally,
            loans
            require interest only payments with a balloon payment of the principal
            at
            maturity. The Company has both the intent and ability to hold trust deeds
            until
            maturity and therefore, mortgage loans are classified and accounted for
            as held
            for investment and are carried at the principal balance due (see notes
            2 &
3).
 
 5
 
 **POINT
            CENTER MORTGAGE FUND I, LLC**
 **NOTES
            TO FINANCIAL STATEMENT**
 **SEPTEMBER
            30, 2006**
 
 **NOTE
            1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**
 
 **Use
            of Estimates -** The
            preparation of financial statements in conformity with generally accepted
            accounting principles accepted in the United States of America requires
            management to make certain estimates and assumptions that affect the
            reported
            amounts of assets and liabilities and contingencies at the date of the
            financial
            statements and the reported amounts of revenues and expenses during the
            reported
            period. Actual results could differ from those estimates.
 
 **Real
            estate held for sale -** In
            the
            event a trust deed note receivable goes into default, the Manager will
            commence
            foreclosure proceedings on behalf of and for the benefit of the Company.
            If the
            collateral real estate is not acquired at a foreclosure sale by an outside
            purchaser, the real estate becomes the property of the Company. This
            real estate
            will be considered held for sale and is stated at the lower of the recorded
            investment in the loan or at the property’s estimated fair value. The Company
            had no real estate held for sale at September 30, 2006.
  **NOTE
            2 - TRUST DEED NOTE** **S
            RECEIVABLE**
  
 These
            consist of actual investments in promissory notes secured by deeds of
            trust on
            real property. These trust deeds carry various interest rates ranging
            from 9.95%
            to 13.0%, with maturity dates ranging from one to five years.
 
 The
            following is a schedule of the annual contractual maturity of the trust
            deed
            notes receivable as of September 30, 2006.
 
 Period
                      ended September 30,2007
                  
                  $
                  3,486,1902008
                  
                  
                  1,258,3242009
                  
                  
                  13,7552010
                  
                  
                  15,3012011
                  
                  
                  2,160,543$
                  6,934,113
 
 6
 
 **POINT
            CENTER MORTGAGE FUND I, LLC**
 **NOTES
            TO FINANCIAL STATEMENT**
 **SEPTEMBER
            30, 2006**
 
 **NOTE
            3 - ALLOWANCE FOR LOSSES ON TRUST DEED NOTES** **RECEIVABLE**
 
 For
            trust
            deed notes receivable, an allowance for loan loss is established based
            on
            management’s estimate of loss inherent and probable as of the balance sheet
            date. Management evaluates the adequacy of the allowance giving consideration
            to
            factors such as the value of the underlying collateral, current performance
            of
            the loans, extent and nature of delinquencies, credit characteristics
            of the
            portfolio, and the general economic environment.
 
 Using
            historical experience and taking into consideration the factors above,
            management estimates an allowance for loan loss, which is believed to
            be
            adequate for known and inherent loss in the portfolio of trust deed notes
            receivable. Provision for loss is charged to the statement of operations.
            Losses
            incurred on trust deeds are charged to the allowance.
 
 As
            of
            September 30, 2006, there are no trust deed notes receivables in delinquent
            status.
 
 Based
            on
            review of the above factors, management has determined that no specific
            allowance for losses on trust deed notes receivable is warranted at September
            30, 2006.
 
 **NOTE
            4 - RELATED PARTY TRANSACTIONS**
 
 Point
            Center Financial, Inc., a California corporation is the Manager of the
            Company,
            and has a .31% ownership interest at September 30, 2006. Organizational
            and
            offering costs have been and will continue to be paid by the Manager
            of the
            Company without a request for reimbursement. As of September 30, 2006
            the
            Manager has paid $263,376 for organization costs, and $734,257 for offering
            costs.
 
 7
 
 **POINT
            CENTER MORTGAGE FUND I, LLC**
 **NOTES
            TO FINANCIAL STATEMENT**
 **SEPTEMBER
            30, 2006**
 
 **NOTE
            4 - RELATED PARTY TRANSACTIONS (CONTINUED)**
 
 The
            Manager receives the following types of compensation from the Company
            and pays
            the following costs for the Company:
  Loan
            servicing fee - Represents servicing fees paid by the Company to service
            the
            note, to protect the Company’s interest in and enforce its rights under the
            secured note, deed of trust and any other loan document and if necessary,
            to
            manage, refinance or sell the property. The monthly servicing fee is
            0.125%
            (1.5% annually) of the outstanding principal amount of all loans being
            serviced,
            and is withheld from the monthly borrower payments. The Manager will
            receive 50%
            of any late charges, penalty interest, and prepayment premiums. As of
            September
            30, 2006, $15,440 of this fee has been incurred.
 
 Conditional
            Annual Program Management Fee - An annual fee of 1% of the aggregate
            capital
            contributions will be paid monthly to the Manager out of available cash
            flow
            from the loan portfolio. This fee will accrue, without interest, and
            be payable
            only at such times as available cash exists. The Manager has agreed to
            waive
            this fee for the period ended June 30, 2006, however starting the month
            of July
            2006 through the quarter ended September 30, 2006 $12,666 has been
            incurred.
  A
            brokerage fee of up to 3% of proceeds received upon the resale of any
            property
            acquired through foreclosure will be paid to the Manager where it substantially
            contributes to the sale. As of September 30, 2006, none of these fees
            were
            accrued or paid.
 
 The
            Manager will pay and will not be reimbursed by the Company for any general
            or
            administrative overhead expenses, such as labor, rent, supplies, etc.
            it incurs
            in connection with managing the operations of the Company.
 
 The
            Company will bear the following costs:
 
 California
            franchise tax and the California limited liability company gross receipts
            fee.
 
 Legal,
            accounting, and tax preparation fees. The Manager has agreed to bear
            these costs
            for the period ended September 30, 2006.
 
 Annual
            bond fee for the California Financial Lender License.
 
 8
 
 **POINT
            CENTER MORTGAGE FUND I, LLC**
 **NOTES
            TO FINANCIAL STATEMENT**
 **SEPTEMBER
            30, 2006**
 
 **NOTE
            5 - INCOME TAXES**
 
 The
            Company is a limited liability company for federal and state income tax
            purposes. Under the laws pertaining to income taxation of limited liability
            companies, no income tax is paid by the Company as an entity. Each individual
            member reports on their income tax returns their distributive share of
            the
            Company’s income, gains, losses, deductions and credits, whether or not any
            actual distribution is made to such member during a taxable year.
 
 9


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





The
      following is a financial review and analysis of our financial condition and
      results of operations for the nine-months ended September 30, 2006. This
      discussion should be read in conjunction with our financial statements and
      accompanying notes and other detailed information appearing elsewhere in this
      Form 10-Q and in our the most recent Prospectus filed pursuant to Rule 424(b)(3)
      of the Securities Act of 1933, as amended, which relates to our Registration
      Statement on Form S-11, Registration No. 333-118871.





**Overview
      of Point Center Mortgage Fund I, LLC**





We
      were
      formed on July 14, 2004 and we commenced our business operations during June
      2006. On February 3, 2006, our Registration Statement as filed with the
      Securities and Exchange Commission became effective for the initial public
      offering of up to $500,000,000 of units of membership interest initially priced
      at $1,000 per unit with a minimum subscription of 25 units ($25,000). After
      our
      initial loan was funded, our Manager, Point Center Financial, Inc., sets a
      daily
      unit price for sales of additional units by adjusting the net book value of
      our
      assets to reflect the income and expenses accruing with respect to the loans
      we
      have funded. The adjusted net book value, divided by the number of units
      outstanding shall determine the daily unit price. Our Manager owns computer
      software designed to perform this function. On September 30, 2006, the daily
      unit price was $1,003.37.





Our
      business is managed by Point Center Financial, Inc., a private California
      corporation which is a mortgage broker licensed in the State of California
      and
      which also performs mortgage banking services. Our Manager manages and controls
      our affairs and has responsibility and final authority in almost all matters
      affecting our business. We do not have any employees and we do not have an
      independent board of directors. Our Manager’s duties include dealings with
      members, accounting, tax and legal matters, communications and filings with
      regulatory agencies and all other needed management and operational
      duties.





As
      our
      only Manager, Point Center Financial, Inc., has complete authority and
      responsibility for:





· evaluating and choosing our real estate loans investments;





· deciding
      what agreements we will enter into and whether we will enter into joint ventures
      with other companies to invest
      in
      real estate loans;





· originating, servicing and managing our real estate loans; and





· managing
      all our other operations.





**General**





Assuming
      the sale of substantially all of the units being offered by us, we anticipate
      investing approximately 80% of our assets in secured first mortgages and 20%
      in
      second mortgage loans. Our second mortgage investments are riskier because
      our
      rights will be subject to the rights of the first mortgage lender.





Most
      of
      our loans will have terms of 1 to 7 years. We currently anticipate investing
      approximately 25% of our assets in construction loans and approximately 25%
      of
      our assets in unimproved land loans. In addition, we expect to invest
      approximately 20% of our assets in commercial property loans, 20% in acquisition
      and development loans and 10% in residential property loans.





We
      anticipate that approximately 90% of our loans will provide for payments of
      interest only with a “balloon payment” of principal payable in full at the end
      of the term. We also anticipate investing approximately 10% of our assets in
      bridge loans which provide interim financing (generally up to twelve months)
      to
      enable borrowers to qualify for permanent refinancing. The “balloon payment”
loans and bridge loans in which we invest are riskier because they are
      non-investment grade loans made to borrowers whose ability to make repayment
      depends on their ability to refinance the loan or develop the property so they
      can refinance. We will review the appraisal of the value of the property and
      will generally invest in loans of up to 75% of that value and, in circumstances
      where borrowers
      are willing to pay a premium interest rate of 5% or more above market rate,
      our
      bridge loans may provide for interest to accrue and be payable together with
      the
      principal amount at maturity. However, there is no specific criteria that is
      used in evaluating the creditworthiness of balloon loan borrowers. Under
      circumstances where our Manager deems appropriate, we may acquire loans of
      the
      character described above, that are in default, are non-performing or are
      delinquent.





10


California,
      as well as many other real estate markets around the country, has continued
      to
      enjoy a steady rise in property values, and with the current interest rates
      being low, investments in real estate by both property owners and as mortgage
      lenders are very attractive. As interest rates rise our industry will be in
      competition with institutional lenders, because the margin between institutional
      cost of funds and our cost of funds will lessen. We act as an interim lender
      with maturities of from 1 to 7 years and the majority of our loans will have
      fixed rates of interest. Therefore, even in the event of a rise in institutional
      interest rates, we anticipate that our borrowers will still be able refinance
      or
      sell their property in a timely manner to facilitate the repayment of our loans.
      We also expect that the residential market will be most affected by a rise
      in
      interest rates and, since we are primarily commercial lenders, we will be less
      affected. In the early 1990’s when California experienced a dramatic drop in
      real estate values, we saw that most of the problems in our industry were with
      the junior loans. Since we will primarily make 1 st position
      loans with substantial equity requirements, in the event of a drop in real
      estate values, we believe that our loan-to-value ratios will be sufficient
      to
      minimize the number of problem loans we might experience.





**Twelve
      Month Plan of Operation**





During
      the next 12 months, assuming the continued sale of units to non-affiliates
      in
      our offering, we plan to invest in real estate loans where our collateral is
      real property located throughout the United States. Upon the sale of these
      units, our Manager will select real estate loans for us, and also will assist
      us
      by obtaining, processing and managing these loans for us. The number of loans
      in
      which we invest will depend upon the gross proceeds raised in this Offering.
      To
      sufficiently diversify our loan portfolio, our Manager anticipates that we
      need
      to raise between $30 million and $100 million from investors. If we sell the
      maximum number of units, we anticipate investing in a combination of several
      hundred real estate loans. We believe that we will have an adequate number
      of
      opportunities to invest in real estate loans nationwide.





We
      believe that our expectations with respect to raising $500,000,000 in proceeds
      from the offering are reasonable based upon our Manager’s history of raising
      private capital, originating loans and its recent investments in company
      infra-structure, including but not limited to staffing, technology, printing
      equipment, and marketing. We anticipate that our increased marketing through
      this public offering will result in substantial opportunities for prospective
      investors to purchase our units. Currently, our Manager’s capital for making
      loans through the 4 investment programs that it manages is limited to investors
      who are residents of the State of California under private intra-state
      securities offerings. None of our Manager’s investors have been solicited
      through third party underwriters or dealers. Because our Manager has experienced
      substantial success with its existing marketing program for the solicitation
      of
      investors, we believe that we can duplicate this success in California and
      in
      other states through our public offering.





We
      do not
      anticipate hiring any employees, acquiring any fixed assets like office
      equipment or furniture, or incurring material office expenses during the next
      12
      months because we will be utilizing our Manager’s personnel and office
      equipment. We will pay our Manager a flat, annual management fee of up to 1%
      of
      our aggregate capital contributions and a loan administration fee of 1.5% of
      the
      loan balance of our portfolio.





We
      may
      also establish a line of credit for future use and may enter into financing
      arrangements with institutional lenders to expand our portfolio of real estate
      loans.





Most
      of
      our assets will be fixed and adjustable rate secured real estate loans. We
      will
      not engage in hedging transactions or acquire derivative instruments in an
      effort to mitigate risks of interest rate changes. While we believe such hedging
      transactions are not necessary in light of the short-term nature of our
      investments, failure to engage in hedging transactions may expose us to losses
      if there are significant changes in prevailing interest rates.





Our
      future operating results will depend upon our ability to promptly identify
      and
      invest in mortgage loans which generate interest income. To the extent that
      we
      are unable to identify and make such investments or are delayed in making such
      investments,


our
      operating results will suffer. In addition, defaults by borrowers or unexpected
      expenses would adversely effect our income and reduce the funds we have
      available to distribute to our members.





Our
      sole
      business, making loans secured by real estate, is particularly vulnerable to
      changes in macroeconomic conditions. Any significant decline in economic
      activity, particularly in the geographical markets in which we concentrate
      our
      loans, could result in a decline in real estate values and a decline in the
      demand for real estate development loans. In addition, a general decline in
      the
      economy could result in an increase in loan defaults.





Any
      such
      measures could reduce our cash flow and the funds we have available to
      distribute. In order to stay fully invested during a period of declining demand
      for real estate loans, we may be required to make loans on terms less favorable
      to us or to make loans involving greater risk to us. Declines in economic
      activity are often accompanied by a decline in prevailing interest rates.
      Although our lending rates are not directly tied to the Federal Reserve Board’s
      discount rate, a sustained and widespread decline in interest rates will impact
      the interest we are able to earn on our loans. In the case of our loans that
      do
      not have prepayment penalties, declining interest rates may also cause our
      borrowers to prepay their loans and we may not be able to reinvest the amounts
      prepaid in loans generating a comparable yield. Moreover, any significant
      decline in economic activity could adversely impact the ability of our borrowers
      to complete their projects and obtain take out financing. This in turn could
      increase the level of defaults we may experience.





11


Our
      operating results will be affected primarily by: (i) the amount of capital
      we
      have to invest in mortgage loans, (ii) the level of real estate lending activity
      in the markets we service, (iii) our ability to identify and work with suitable
      borrowers, (iv) the interest rates we are able to charge on our loans, and
      (v)
      the level of foreclosures and related loan losses which we may experience.
      These
      funds, subject to a 3% working capital reserve, will constitute the bulk of
      the
      funds we have available for investment in mortgage loans. While we may borrow
      up
      to 60% of the value of our loan portfolio to make additional loans, we do not
      have any current commitment or arrangement in place to obtain such
      borrowing.





The
      lower
      interest rates would diminish the interest rates we can charge on our loans.
      In
      addition, our operating results would be adversely affected by loans that go
      into default and become non-performing assets. A weakening economy or a wrong
      credit decision by our Manager may result in non-performing assets. If the
      economy weakens and our borrowers who develop and sell real estate projects
      are
      unable to complete their projects or obtain takeout financing or are otherwise
      adversely impacted, we may experience an increase in loan defaults which may
      reduce the amount of funds we have for distribution to our members. Such
      conditions may also require us to restructure loans in order to enhance their
      collectibility.





We
      will
      generally be using appraisals prepared on an as-if developed basis in connection
      construction, development and bridge loans, and we hope to retain sufficient
      cushion in the underlying equity position to protect the value of our loan
      in
      the event of a default. Nevertheless, no assurances can be given that a marked
      increase in loan defaults accompanied by a rapid decline in real estate values
      will not have a material adverse effect upon our financial condition and
      operating results.





Historically,
      our Manager has focused its operations on California and certain Western states.
      Because our Manager has a significant degree of knowledge with respect to the
      real estate markets in such states, it is likely most of our loans will be
      concentrated in such states. Such geographical concentration creates greater
      risk that any downturn in such local real estate markets could have a
      significant adverse effect upon our results of operations.





**Results
      of Operations**





*Total
      Revenue* *.* Revenues
      for the nine months ended September 30, 2006 was $99,943.04 from interest income
      on our real estate loans. While there has been a general increase in interest
      rates in the U.S., such increases have not yet affected our operating results
      and it is not clear when, if ever, higher interest rates might impact our
      revenues.





*Total
      Expenses* *.* For the
      nine months ended September 30, 2006, total expenses were approximately
      $28,480.93.





*Distributions
      to Members* .  As
      of
      September 30, 2006, we have made distributions of $59,516.09, including
      $36,284.77 of reinvested distributions, which would otherwise have been paid
      to
      our reinvesting members. Through September 30, 2006, members have realized
      an
      internal rate of return on their investments of approximately 6.748%. However,
      as of September 30, 2006 the blended gross portfolio yield on our loans is
      11.54%, with a currently estimated net yield to our members of
      9.04%.





*Investments
      in Mortgage Loans* *.* As of
      September 30, 2006, we had investments in thirteen (13) mortgage loans secured
      by real estate totaling $6,934,113.47 with a weighted average contractual
      interest rate of 11.54%. These mortgage loans have contractual maturities
      ranging from 10/1/2006 through 9/1/2011.





Investments
      in mortgage loans as of September 30, 2006 are as follows:








**Loan
                Type**
            
            **Number
                of Loans**
            
            **Balance**
            
            **Weighted
                Average****Interest
                Rate**
            
            **Portfolio****Percentage**
            
            **Weighted
                Loan-****to-Value********Acquisition
                and Development
            
            
            0
            
            $
            0
            
            
            0
            %
            
            0
            %
            
            0
            %Bridge
            
            
            0
            
            
            0
            
            
            0
            %
            
            0
            %
            
            0
            %Residential
            
            
            1
            
            
            339,858
            
            
            12.0
            %
            
            4.90
            %
            
            56.51
            %Commercial
            
            
            4
            
            
            2,719,665
            
            
            10.87
            %
            
            39.22
            %
            
            47.96
            %Construction
            
            
            3
            
            
            1,455,811
            
            
            11.50
            %
            
            21.00
            %
            
            54.86
            %Land
            
            
            5
            
            
            2,418,779
            
            
            12.25
            %
            
            34.88
            %
            
            50.03
            %Totals:
            
            
            11
            
            $
            6,934,113
            
            
            11.54
            %
            
            100.00
            %
            
            50.39
            %





12


*
            Loan-to-Value
                ratios are based on appraisals obtained at the time of loan origination
                and may not reflect subsequent changes in value estimates. Such
                appraisals, which may be commissioned by the borrower, are generally
                dated
                no greater than 12 months prior to the date of loan origination. The
                appraisals may be for the current estimate of the “as-if developed” value
                of the property, which approximates the post-construction value of
                the
                collateralized property assuming that such property is developed.
“As-if
                developed” values on raw land loans or acquisition and development loans
                often dramatically exceed the immediate sales value and may include
                anticipated zoning changes, selection by a purchaser against multiple
                alternatives, and successful development by the purchaser; upon which
                development is dependent on availability of financing. As most of
                the
                appraisals will be prepared on an “as-if developed” basis, if a loan goes
                into default prior to any development of a project, the market value
                of
                the property may be substantially less than the appraised value.
                As a
                result, there may be less security than anticipated at the time the
                loan
                was originally made. If there is less security and a default occurs,
                the
                Company may not recover the full amount of the loan.




The
      following is a schedule of investments in mortgage loans by lien position.
      Up to
      20% of our loans are currently expected to be secured by second deeds of trust
      based upon the total offering of $500 million. From time to time, until the
      offering is complete, the percentage of second mortgages we invest in may exceed
      20%.




**Loan
                Type**
            
            ******September
                30, 2006**
            
            **Portfolio
                Percentage**First
                mortgages
            
            $
            6,934,113
            
            
            100.00
            %Second
                mortgages
            
            
            0
            
            
            0.00
            %Portfolio
                Total:
            
            $
            6,934,113
            
            
            100.00
            %





The
      following is a schedule of contractual maturities of investments in mortgage
      loans as of September 30, 2006:





$2007
            
            $
            3,486,1902008
            
            $
            1,258,3242009
            
            $
            13,7552010
            
            $
            15,3012011
            
            $
            2,160,543Total:
            
            $
            6,934,113




13


The
      following is a schedule by geographic location of investments in mortgage loans
      as of September 30, 2006:




**State**
            
            **September
                30, 2006**
              ******Balance**
            
            **Portfolio**
              **Percentage**Arizona
            
            $
            339,858
            
            
            4.90
            %California
            
            
            1,894,848
            
            
            27.33
            %Georgia
            
            
            627,484
            
            
            9.05
            %New
                York
            
            
            1,113,829
            
            
            16.06
            %Tennessee
            
            
            501,929
            
            
            7.24
            %Texas
            
            
            954,450
            
            
            13.76
            %Utah
            
            
            752,258
            
            
            10.85
            %Virginia
            
            
            749,457
            
            
            10.81
            %Total:
            
            $
            6,934,113
            
            
            100.00
            %




We
      have
      six mortgage loan products consisting of bridge, commercial, construction,
      acquisition and development, land, and residential loans. The effective interest
      rates on all product categories range from 9.95% to 13.0%. Revenue by product
      will fluctuate based upon relative balances during the period.




Our
      Manager has evaluated the collectibility of the loans in our portfolio in light
      of the types and dollar amounts of loans in the portfolio, adverse situations
      that may affect the borrower’s ability to repay, prevailing economic conditions
      and the underlying collateral securing the loan. We do not currently have any
      non-performing loans. No allowances for loan losses were deemed necessary as
      of
      September 30, 2006.





Decisions
      regarding an allowance for loan losses require management’s judgment. As a
      result, there is an inherent risk that such judgment will prove incorrect.
      In
      such event, actual losses may exceed (or be less than) the amount of any
      allowance. To the extent that we experience losses greater than the amount
      of
      the allowance, we may incur a charge to earnings that will adversely affect
      our
      operating results and the amount of any cash available for distribution.





Our
      Manager often grants extensions on loans pursuant to the terms of the original
      loan agreements, which permit extensions by mutual consent. Such extensions
      are
      generally provided on loans where the original term was 12 months or less
      and where a borrower requires additional time to complete a construction project
      or negotiate take out financing. However, our Manager only grants extensions
      when a borrower is in full compliance with the terms of the loan, including,
      but
      not limited to the borrower’s obligation to make interest payments on the loan.
      As of September 30, 2006, we did not have any investments in loans which have
      been extended.





**Related
      Party Transactions** **





From
      time
      to time we may acquire or sell investments in real estate loans from/to our
      Manager or other related parties pursuant to the terms of our Operating
      Agreement provided the price does not exceed the original cost. No gain or
      loss
      is recorded on these transactions, as it is not our intent to make a profit
      on
      the purchase or sale of such investments. The purpose is generally to diversify
      our portfolio by syndicating loans, thereby providing us with additional capital
      to make additional loans.





*Transactions
      with the Manage* *r.* We pay a
      loan servicing fee to our Manager who services the loans we make, to protect
      our
      interest in and enforce its rights under the loans, deeds of trust and any
      other
      loan documents and if necessary, to manage, refinance or sell the real property
      that secures our loans. The monthly servicing fee is 0.125% (1.5% annually)
      of
      the outstanding principal amount of all loans being serviced, and is withheld
      from the monthly borrower payments. For the nine months ended September 30,
      2006, we recorded fees to our Manager of $15,440.





Our
      Manager will receive 50% of any late charges, penalty interest and prepayment
      premiums on our loans. As of September 30, 2006, none of these fees were accrued
      or paid.





We
      will
      also pay our Manager a conditional annual program management fee of 1% of the
      aggregate annual capital contributions we receive from the sale of units in
      our
      public offering. This fee will be paid monthly to the Manager out of available
      cash flow from our loan portfolio. This fee will accrue, without interest,
      and
      be payable only at such times as available cash exists. Until July 1, 2006,
      our
      Manager agreed to waive this fee. Management fees of $6,830 were paid to our
      Manager as of September 30, 2006 and management fees of $5,836 had been accrued
      as of that date.





14


In
      addition, our Manager will receive a brokerage fee of up to 3% of proceeds
      received upon the resale of any property acquired through loan foreclosures
      where our Manager substantially contributes to the sale. As of September 30,
      2006, none of these fees were accrued or paid.





*Transactions
      with Other Program* *and Other Related Parties* .
      As of
      September 30, 2006, ten (10) of the thirteen (13) loans in our portfolio
      represent purchases of undivided interests in loans where our Manager also
      invested directly; invested funds from other programs controlled or managed
      by
      our Manager; and/or invested funds from other private parties under a permitted
      fractional note offering for California residents or entities where their
      primary place of business is California. The remaining three (3) loans were
      invested in solely by us.




**Capital
      and Liquidity**





Other
      than an approximately 3% working capital reserve, we will use most of our
      available funds to invest in real estate loans. Liquidity is the ability to
      meet
      potential cash requirements, including lending commitments and general operating
      expenses.





Net
      income generated from our loans is paid out to our members unless they have
      elected to reinvest their distributions in additional units. Our Manager will
      pay and will not be reimbursed for all of our general or administrative overhead
      expenses, such as labor, rent, supplies, etc., in connection with managing
      our
      operations. Therefore, we do not anticipate hiring any employees, acquiring
      fixed assets such as office equipment or furniture, or incurring material office
      expenses during the next twelve months.





Because
      we will distribute most or all of our net income, our sources of liquidity
      include: proceeds from the continuing sale of units in our public offering,
      repayments of outstanding loans, distribution reinvestments by our members,
      portfolio leveraging, and arrangements with third parties to participate in
      our
      loans.





We
      rely
      primarily upon repayment of outstanding loans and raising new capital to provide
      capital for investment in new loans. Any significant level of defaults on
      outstanding loans could reduce the funds we have available for investment in
      new
      loans. Resulting foreclosure proceedings may not generate full repayment of
      our
      loans and may result in significant delays in the return of invested funds.
      This
      would diminish our capital resources and would impair our ability to invest
      in
      new loans. Additionally, if there is a downturn in the economies in which we
      invest in real estate, the level of rents we can charge to lease our properties
      can diminish our capital resources and would diminish our ability to invest
      in
      new properties or service any related debt.





**Off-Balance
      Sheet Transactions**





We
      do not
      currently have any interest in any special purpose entities, which are not
      reflected on our balance sheet nor do we have any commitments or obligations,
      which are not reflected on our balance sheet. We do not have any interest in
      derivative contracts.





**Critical
      Accounting Policies**





***Interest
      Income*** *.* Interest
      income on loans is accrued by the effective interest method. Generally, interest
      and payments are due monthly, on the first day of each month. Interest is
      generally prorated to the first day of the month following the closing of the
      loan escrow. We do not recognize interest income from loans once they are
      determined to be impaired.





A
      loan is
      impaired when, based on current information and events, it is probable that
      we
      will be unable to collect all amounts due according to the contractual terms
      of
      the loan agreement or when the loan has been foreclosed upon and we become
      the
      owner of the property which secured the loan.





***Investments
      in Mortgage Loans*** .
      Investments in mortgage loans are secured by trust deeds and mortgages.
      Generally, all of our mortgage loans require interest only payments with a
      balloon payment of the principal at maturity. We have both the intent and
      ability to hold mortgage loans until maturity and, therefore, mortgage loans
      are
      classified and accounted for as held for investment and are carried at amortized
      cost. Loan to value ratios are based on appraisals obtained at the time of
      loan
      origination and may not reflect subsequent changes in value estimates. The
      appraisals may be for the current estimate of the “as-if developed” value of the
      property, which approximates the post-construction value of the collateralized
      property assuming that such property is developed. As-if developed values on
      raw
      land loans or acquisition and development loans often dramatically exceed the
      immediate sales value and may include anticipated zoning changes and timely
      successful development by the purchaser. As most of the appraisals will be
      prepared on an as-if developed basis, if a loan goes into default prior to
      any
      development of a project, the market value of the property may be substantially
      less than the appraised value. As a result, there may be less security than
      anticipated at the time the loan was originally made. If there is less security
      and a default occurs, we may not recover the full amount of the
      loan.





15


***Real
      Estate Held for Sale*** .
      Real
      estate held for sale includes real estate acquired through foreclosure and
      is
      carried at the lower of cost or the property’s estimated fair value, less
      estimated costs to sell. We seek to sell properties acquired through foreclosure
      as quickly as circumstances permit. The carrying values of real estate held
      for
      sale are assessed on a regular basis from updated appraisals, comparable sales
      values or purchase offers.





***Allowance
      for Losses on Trust Deed Notes Receivable*** .
      For
      trust deed notes receivable, an allowance for loan losses is established based
      our estimate of losses inherent and probable as of the balance sheet date.
      We
      evaluate the adequacy of the allowance giving consideration to factors such
      as
      the value of the underlying collateral, current performance of the loans, extent
      and nature of delinquencies, credit characteristics of the portfolio, and the
      general economic environment. Using historical experience and taking into
      consideration the factors above, we estimate an allowance for loan losses,
      which
      is believed to be adequate for known and inherent losses in the portfolio of
      trust deed notes receivable. Provision for losses is charged to the statement
      of
      operations. Losses incurred on trust deeds are charged to the
      allowance.





***Use
      of Estimates*** .
      The
      preparation of financial statements in conformity with generally accepted
      accounting principles accepted in the United States of America requires us
      to
      make certain estimates and assumptions that affect the reported amounts of
      assets and liabilities and contingencies at the date of the financial statements
      and the reported amounts of revenues and expenses during the reported period.
      Actual results could differ from those estimates.





***Related
      Party Transactions*** .
      Our
      Manager has borne the costs of our organizational and offering fees, which
      included legal expenses, printing costs, selling expenses, and the filing fees
      paid to the Securities Exchange Commission and the various states. Our Manager
      realizes the following types of compensation and cost:





·  Loan
      brokerage commissions and loan origination fees;





·  Real
      estate commissions paid to our Manager upon resale of any property acquired
      through foreclosure; and





·  Loan
      servicing fees paid to our Manager to service the loan portfolio, to protect
      our
      interest in and enforce their rights under  the
      secured notes, deeds of trust and any other loan document and if necessary,
      to
      manage, refinance or sell the property.





We
      will
      bear the following costs:





·  Annual
      tax preparation fee;





·  Accounting
      and auditing fees;


·  Legal
      fees; and





·  Other
      reports required by agencies governing our business activities.





**Item
      3. Quantitative and Qualitative Disclosures About Market
      Risk**





Since
      we
      propose to make investments in mortgage loans and make distributions from
      interest income to our members, we will be exposed to market risk related
      primarily to changes in interest rates. We will not have any assets or
      liabilities denominated in foreign currencies nor does it own any options,
      futures or other derivative instruments.





After
      we
      commence operations, most of our assets will consist of mortgage loans. All
      of
      the mortgage loans are expected to be held for investment purposes until their
      maturity date. None of the mortgage loans will have prepayment penalties. We
      anticipate that up to 3% of our assets will be held as cash
      reserves.





16


**Item
      4. Evaluation of Disclosure Controls and Procedures**





**Conclusion
      Regarding the Effectiveness of Disclosure Controls and
      Procedures**





No
      matter
      how well a control system is conceived and operated, it can provide only
      reasonable, not absolute, assurance that the objectives of the control system
      are met. In addition, the design of a control system must reflect the fact
      that
      there are resource constraints and the benefits of controls must be considered
      relative to costs. Therefore, no cost-effective control systems and no
      evaluation of controls can provide absolute assurance that all control issues
      and instances of misstatements due to error or fraud, if any, within our company
      have been detected.





**Evaluation
      of Disclosure Controls and Procedures**





Our
      Manager’s chief executive officer and chief financial officer, with the
      assistance of other employees, evaluated the effectiveness of our disclosure
      controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under
      the
      Securities Exchange Act of 1934, as amended (the “Exchange Act”) as of the end
      of the period covered by this report (the “Evaluation Date”). Based on that
      evaluation, our Manager’s chief executive officer and chief financial officer
      concluded that, as of the Evaluation Date, our disclosure controls and
      procedures were effective to ensure that information required to be disclosed
      in
      our reports under the Exchange Act, is recorded, processed, summarized and
      reported within the time periods specified in the Securities Exchange
      Commission’s rules and forms, and that such information is accumulated and
      communicated to management, including our chief executive officer and chief
      financial officer, as appropriate to allow timely decisions regarding required
      disclosure.





**Changes
      in Internal Controls**





There
      have been no significant changes in our internal control over financial
      reporting during the nine months ended September 30, 2006 that have materially
      affected, or are reasonably likely to materially affect, our internal control
      over financial reporting.


17


**PART
      II. OTHER INFORMATION**





**Item
      1. Legal proceedings**





None.





**Item
      1A. Risk Factors that May Affect Results of Operations and Financial
      Condition**





There
      has
      not been any material change in the risk factors disclosures contained in our
      most recent Prospectus filed with the SEC on October 16, 2006 pursuant to Rule
      424(b)(3) of the Securities Act of 1933, as amended, which relates to our
      Registration Statement on Form S-11, Registration No. 333-118871. Other events
      that we do not currently anticipate or that we currently deem immaterial also
      may affect our results of operations and financial condition.





**Item
      6. Exhibits**




**Exhibit**
              **No.**
            
            **Description**31.1
            
            Section
                302 Certificate of Dan J. Harkey, the Chief Executive Officer of
                Point
                Center Financial, Inc., which is the Manager of Point Center Mortgage
                Fund
                I, LLC.31.2
            
            Section
                302 Certificate of M. Gwen Melanson, the Chief Financial Officer
                of Point
                Center Financial, Inc., which is the Manager of Point Center Mortgage
                Fund
                I, LLC.3
                32
            
            Section
                906 Certificate of the Chief Executive Officer and the Chief Financial
                Officer of Point Center Financial, Inc., which is the Manager of
                Point
                Center Mortgage Fund I,
                LLC.*







*
            These
                certifications are being furnished solely to accompany this report
                pursuant to 18 U.S.C. Section 1350, and are not being filed for purposes
                of Section 18 of the Securities Exchange Act of 1934, as amended,
                and are
                not to be incorporated by reference into any filings of the Company,
                whether made before or after the date hereof, regardless of any general
                incorporation language in such
                filing.




**SIGNATURE**





Pursuant
      to the requirements of Section 13 or 15(d) of the Securities Exchange Act of
      1934, the registrant has caused this report to be signed on its behalf by the
      undersigned, thereunto duly authorized.


**POINT
                CENTER MORTGAGE FUND I, LLC**By:
            Point
                Center Financial, Inc.,
              Its
                  sole managerDate:
                November 14, 2006
            
            By:/s/
                M. Gwen MelansonM.
                Gwen MelansonChief
                Financial Officer




18