**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: June 30, 2007




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 June 30, 2007 was
      24,417.09.







**POINT
      CENTER MORTGAGE FUND I, LLC**





**FORM
      10-Q**





**FOR
      THE QUARTER ENDED JUNE 30, 2007**





**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
            
            11Item
                3.
            Quantitative
                and Qualitative Disclosures About Market Risk
            
            18Item
                4.
            Evaluation
                of Disclosure Controls and Procedures
            
            18PART II.
            OTHER
                INFORMATIONItem
                1.
            Legal
                Proceedings
            
            19Item
                1A.
            Risk
                Factors that May Affect Results of Operations and Financial
                Condition
            
            19Item
                6.
            Exhibits
            
            20Signature
            
            21








**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 related prospectus
      dated June 11, 2007, that was filed with the Securities and Exchange Commission,
      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.







**PART
      I. FINANCIAL INFORMATION**





**Item
      1. Financial Statements**




**POINT
                CENTER MORTGAGE FUND I, LLC****BALANCE
                SHEET****June
                30,**
            
            **December
                31,****2007**
            
            **2006****(Unaudited)**
            
            **(Audited)****ASSETS****CURRENT
                ASSETS**Cash
                in bank
            
            $
            145,686
            
            $
            43,743Accrued
                interest receivable
            
            
            226,423
            
            
            103,698Accrued
                late charges receivable
            
            
            3,016
            
            
            —Investment
                in trust deed notes receivable
            
            
            11,902,182
            
            
            6,281,267**TOTAL
                CURRENT ASSETS**
            
            
            12,277,307
            
            
            6,428,708**OTHER
                ASSET**Investment
                in trust deed notes receivable
            
            
            12,260,217
            
            
            5,475,090**TOTAL
                ASSETS**
            
            $
            24,537,524
            
            $
            11,903,798**LIABILITIES
                AND MEMBER'S EQUITY****CURRENT
                LIABILITES**Loan
                servicing fees payable
            
            $
            28,168
            
            $
            12,945Accrued
                expenses
            
            
            —
            
            
            17,000Taxes
                payable
            
            
            2,500
            
            
            1,700Late
                charges payable
            
            
            1,508
            
            
            —Management
                fees payable
            
            
            20,444
            
            
            9,924Professional
                fees payable
            
            
            14,000
            
            
            —**TOTAL
                CURRENT LIABILITIES**
            
            
            66,620
            
            
            41,569**MEMBER'S
                EQUITY - PER ACCOMPANYING STATEMENT**
            
            
            24,470,904
            
            
            11,862,229**TOTAL
                LIABILITES AND MEMBER'S EQUITY**
            
            $
            24,537,524
            
            $
            11,903,798




**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)****Three
                Months Ended**
            
            **Six
                Months Ended****June
                30,**
            
            **June
                30,****2007**
            
            **2006**
            
            **2007**
            
            **2006****INCOME**Interest
                income
            
            $
            646,887
            
            $
            675
            
            $
            1,102,281
            
            $
            675Late
                fee income
            
            
            2,220
            
            
            —
            
            
            3,878
            
            
            —**TOTAL
                INCOME**
            
            
            649,107
            
            
            675
            
            
            1,106,159
            
            
            675**EXPENSE**Loan
                servicing fees
            
            
            79,711
            
            
            89
            
            
            132,326
            
            
            89Management
                fees
            
            
            56,496
            
            
            —
            
            
            97,295
            
            
            —Bank
                charges
            
            
            889
            
            
            —
            
            
            1,309
            
            
            —Professional
                fees
            
            
            15,080
            
            
            —
            
            
            20,718
            
            
            —Compliance
                fees
            
            
            714
            
            
            —
            
            
            714
            
            
            —Income
                taxes
            
            
            3,478
            
            
            —
            
            
            3,478
            
            
            —**TOTAL
                EXPENSES**
            
            
            156,368
            
            
            89
            
            
            255,840
            
            
            89**NET
                INCOME**
            
            
            492,739
            
            
            586
            
            
            850,319
            
            
            586**MEMBER'S
                EQUITY**Member's
                equity - Beginning ofperiod
            
            
            11,862,229
            
            
            25,000
            
            
            11,862,229
            
            
            25,000Capital
                contributions received
            
            
            5,804,032
            
            
            1,073,259
            
            
            12,227,240
            
            
            1,073,257Capital
                liquidation distributions
            
            
            —
            
            
            —
            
            
            —
            
            
            —Distribution
                declared
            
            
            503,294
            
            
            —
            
            
            (865,238
            )
            
            —Distribution
                reinvested
            
            
            234,629
            
            
            —
            
            
            396,354
            
            
            —**MEMBER'S
                EQUITY - END OF PERIOD**
            
            $
            17,397,596
            
            $
            1,098,845
            
            $
            24,470,904
            
            $
            1,098,843




**THE
      ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL
      STATEMENTS**


3





**POINT
                CENTER MORTGAGE FUND I, LLC****STATEMENT
                OF CASH FLOWS****(UNAUDITED)****Six
                Months Ended****June
                30,****2007**
            
            **2006****CASH
                FLOWS FROM OPERATING ACTIVITIES**Net
                income
            
            $
            850,319
            
            $
            586Non-cash
                expenses, and revenuesincluded
                in net income:Increase
                in other current liabilities
            
            
            25,051
            
            
            89Increase
                in other current assets
            
            
            (125,741
            )
            
            (675
            )**NET
                CASH PROVIDED BY****OPERATING
                ACTIVITIES**
            
            
            749,629
            
            
            —**CASH
                FLOWS FROM INVESTING ACTIVITIES**Purchase
                of trust deeds notesreceivable
            
            
            (13,720,811
            )
            
            (750,000
            )Principal
                collected on trust deedsnotes
                receivable
            
            
            1,314,769
            
            
            —**NET
                CASH USED IN INVESTING****ACTIVITIES**
            
            
            (12,406,042
            )
            
            (750,000
            )**CASH
                FLOWS FROM FINANCING ACTIVITIES**Member
                Contributions
            
            
            12,227,240
            
            
            1,073,257Member
                Distributions
            
            
            (468,884
            )
            
            —**NET
                CASH PROVIDED BY****FINANCING
                ACTIVITIES**
            
            
            11,758,356
            
            
            1,073,257**NET
                INCREASE IN CASH**
            
            
            101,943
            
            
            323,257**CASH
                BALANCE - BEGINNING****OF
                PERIOD**
            
            
            43,743
            
            
            25,000**CASH
                BALANCE - END OF****PERIOD**
            
            $
            145,686
            
            $
            348,257




**THE
      ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL
      STATEMENTS**


4


**POINT
      CENTER MORTGAGE FUND I, LLC**


**NOTES
      TO FINANCIAL STATEMENT**


**JUNE
      30, 2007**





**NOTE
      1 - ORGANIZATION**





Point
      Center Mortgage Fund I, LLC (the “Fund”) was formed on July 14, 2004. The Fund
      was granted approval by the Securities and Exchange Commission to sell
      membership interests on February 3, 2006, and began operations on June 28,
      2006.





The
      Fund
      was organized to engage in the business of raising funds from investors and
      investing those funds primarily in both commercial and residential loans. The
      loans are secured by deeds of trust on real property located throughout the
      United States of America. The investors become members of the LLC. The managing
      member of the Fund is Point Center Financial, Inc., a California corporation.





Term
      of
      the Fund - The term of the Fund will end on December 31, 2029, unless the
      members vote to extend the term.





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





**Management
      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.





**Cash
      and Cash Equivalents -** For
      purposes of the statement of cash flows, cash includes all checking and savings
      accounts. The Fund’s cash balances often exceed federally insured limits.
      However, the Fund has not experienced any losses and believes it is not exposed
      to any significant credit risk on its cash balances.





**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 Fund has both the intent and ability to hold trust deeds until
      maturity and therefore, loans are classified and accounted for as held for
      investment and are carried at the principal balance due (see note
      4).





**Concentration
      of Credit Risk -** The
      Company’s trust deed notes receivable are secured by real estate located
      throughout the United States (see Note 7). Therefore the Company is subject
      to
      economic fluctuations and changes in real estate values in these different
      regions.





**Reserve
      for Loan Losses -** The
      Fund’s loan portfolio and the related accrued interest are analyzed on a
      continuous basis for recoverability. A reserve for loan losses is established
      based on management’s estimate of losses inherent and probable as of the balance
      sheet date. Management evaluates the adequacy of the reserve 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, the
      Manager estimates a reserve 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 reserve (see note 5). Since its inception,
      the
      Fund has not written off any loans.





**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.





**Late
      Fee Income -** Late
      fees
      are charged to borrowers when a payment is 10 days past its due date. Late
      fees
      are generally 10% of the payment due by the borrower. Late fee charges due
      and
      not received as of the balance sheet date are accrued.





5




**POINT
      CENTER MORTGAGE FUND I, LLC**


**NOTES
      TO FINANCIAL STATEMENT**


**JUNE
      30, 2007**





**NOTE
      2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**





**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 Fund. If the
      collateral real estate is not acquired at a foreclosure sale by an outside
      purchaser, the real estate becomes the property of the Fund. This real estate
      will be considered held for sale and is stated at the lower of the recorded
      investment in the loan including foreclosure costs and expenses, accrued
      interest and late charges as of the date of the foreclosure sale (i.e. the
      acquisition date) or at the property’s estimated fair value. The Fund had no
      real estate held for sale at June 30, 2007.





**Income
      Taxes -** The Fund
      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 Fund as an entity. Each individual member reports on their
      income tax returns their distributive share of the Fund’s income, gains, losses,
      deductions and credits, whether or not any actual distribution is made to such
      member during a taxable year.





**NOTE
      3 - FUND PROVISIONS**





The
      Fund
      is a Delaware limited liability company. The rights, duties and powers of the
      members of the Fund are governed by the offering circular and the Delaware
      Limited Liability Company Act. The following description of the Fund’s offering
      circular provides only selected information. Members should refer to the Fund’s
      offering circular for a more complete description of the various
      provisions.





The
      Manager is in complete control of the Fund business, subject to the voting
      rights of the members on specified matters. The Manager has the power and
      authority to act for and bind the Fund.





Profits
      and Losses - Profits and losses accrued during any calendar month are allocated
      to the members in proportion to their capital accounts maintained throughout
      the
      month. Investors who become members of the Fund other than on the first day
      of a
      calendar month shall be allocated a proportionate share of the Fund’s profits or
      losses for that month reflecting the days during the month that the investor
      was
      a member.





Each
      month the Manager will distribute the Fund’s accrued net profits to the Members,
      to the extent that there is cash available and provided that the monthly
      distribution will not impact the continuing operation of the Fund.





Investors
      may elect to receive monthly cash distributions from the Fund 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.





Member
      Withdrawal - The Fund will use its best efforts to redeem shares from Members
      that have (i) held said Shares for a period of at least twenty four months
      and
      (ii) have requested, in writing by certified mail two to three months prior
      to
      the Shares being redeemed. Any obligation of the Fund to repurchase Shares
      shall
      be subject to availability of cash for such purpose. In no event shall the
      Fund
      be obligated to sell any of its assets to raise cash to pay any portion of
      the
      repurchase price.





The
      amount that a withdrawing member will receive from the Fund is based on the
      withdrawing Member’s capital account as of the date of the
      withdrawal.





**NOTE
      4 - TRUST DEED NOTES RECEIVABLE**





These
      consist of investments in primarily first trust deeds by the Fund. These trust
      deeds are secured by real estate and carry various interest rates ranging from
      9.95% to 13.50%, with maturity dates ranging from one to five years.




6


**POINT
      CENTER MORTGAGE FUND I, LLC**


**NOTES
      TO FINANCIAL STATEMENT**


**JUNE
      30, 2007**





**NOTE
      4 - TRUST DEED NOTES RECEIVABLE (CONTINUED)**





The
      following is a schedule of the contractual maturity of the trust deed notes
      receivable for consecutive 12 month periods ending:





**June
                30, 2007**
            
            **December
                31, 2006**2007
            
            $
            0
            
            $
            6,281,2672008
            
            
            11,902,182
            
            
            2,908,5762009
            
            
            8,810,506
            
            
            388,9552010
            
            
            394,084
            
            
            15,3012011
            
            
            519,724
            
            
            2,162,2582012
            
            
            2,535,903
            
            
            0$
            24,162,399
            
            $
            11,756,357





It
      is the
      Fund’s experience that often times trust deed notes receivable are either
      extended or repaid before contractual maturity dates, or refinanced at maturity.
      Occasionally a loan may go into default and be repaid after the contractual
      maturity date.





**NOTE
      5 - RESERVE FOR LOSSES ON TRUST DEED NOTES RECEIVABLE**





An
      analysis of the recoverability of specific loans in the Fund’s loan portfolio as
      of December 31, 2006 and June 30, 2007 is as follows:





The
      following loan was in default status as of December 31, 2006:


Loan
                  # 205119 - DCP, LLCMaturity
                  Date - November 1, 2006Last
                  payment received - December 4, 2006Principal
                  balance due
              
              $
              752,258Interest
                  receivable
              
              
              6,183Total
                  Due at December 31, 2006
              
              $
              758,441Fair
                  market value of collateral real estate
              
              $
              1,557,470Loan
                  to value percentage
              
              
              48.70
              %


On
      October 19, 2006, the Manager entered into a forbearance agreement on behalf
      of
      the Fund with the borrower, and has agreed to temporarily forbear from
      commencing foreclosure proceedings until January 1, 2007. The borrower paid
      off
      the balance of the loan on January 8, 2007.





Management
      believes that there is enough equity available in the collateral real estate
      to
      repay the Fund the total amount due on this loan, and no specific provision
      for
      loss is warranted at December 31, 2006.





The
      following loan was in default status as of June 30, 2007:


Loan
                  # 606001 - Properties Development & Management, Inc.Maturity
                  Date - June 1, 2007Last
                  payment received - June 5, 2007Principal
                  balance due
              
              $
              600,000Interest
                  receivable
              
              
              5,482Late
                  fees receivable
              
              
              0Advances
                  receivable made on behalf of borrower
              
              
              0Total
                  Due at December 31, 2006
              
              $
              605,482Fair
                  market value of collateral real estate
              
              $
              1,630,500Loan
                  to value percentage
              
              
              37.13
              %




7




**POINT
      CENTER MORTGAGE FUND I, LLC**


**NOTES
      TO FINANCIAL STATEMENT**


**JUNE
      30, 2007**





**NOTE
      5 - RESERVE FOR LOSSES ON TRUST DEED NOTES RECEIVABLE
      (CONTINUED)**





On
      June
      1, 2007 the Manager entered into a forbearance agreement on behalf of the Fund
      with the borrower, and has agreed to temporarily forbear from commencing
      foreclosure proceedings until July 31, 2007 for the purpose of allowing the
      borrower additional time within which to arrange to repay the indebtedness
      in
      full.





Management
      believes that there is enough equity available in the collateral real estate
      to
      repay the Fund the total amount due on this loan, and no specific provision
      for
      loss is warranted at June 30, 2007.





Based
      on
      review of the above factors, management has determined that no specific reserve
      for loan loss on trust deed notes receivable is warranted at December 31, 2006
      and June 30, 2007.





**NOTE
      6 - RELATED PARTY TRANSACTIONS**





Point
      Center Financial, Inc., a California corporation, is the Manager of the Fund.
      Point Center Financial, Inc. has the following related party transactions with
      Point Center Mortgage Fund I, LLC.





Point
      Center Financial, Inc. realizes the following types of compensation from the
      Fund:





Loan
      Servicing Fee - Represents servicing fees paid by the Fund 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. As of June 30, 2007, $132,326
      of
      this fee has been incurred.





The
      Manager is entitled to receive 50% of any late charges, prepayment penalties
      and
      exit fees.





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. For the six months ended June
      30,
      2007, $97,295 of management fees have 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.





The
      Manager will pay and will not be reimbursed by the Fund for any general or
      administrative overhead expenses, such as labor, rent, supplies, etc. it incurs
      in connection with managing the operations of the Fund.





Loan
      Extension Fees and Forbearance Agreement Fees - Where the Manager in its best
      judgment, enters into an agreement with the borrower to extend the maturity
      date
      of a loan or forebear foreclosure on a loan, the Manager is paid a fee by the
      borrower. The Manager retains 100% of all loan extension fees and forbearance
      fees received from borrowers.





The
      Fund
      will bear the following costs:





California
      franchise tax and the California limited liability company gross receipts
      fee.





Legal,
      accounting, and tax preparation fees.





Annual
      bond fee for the California Finance Lender license.





Organizational
      and offering costs have been paid by the Manager of the Fund. The Manager waives
      its rights to recover such expenses at a later time. As of June 30, 2007 the
      Manager has paid $263,376 for organization costs, and $734,257 for offering
      costs.





8





**POINT
      CENTER MORTGAGE FUND I, LLC**


**NOTES
      TO FINANCIAL STATEMENT**


**JUNE
      30, 2007**





**NOTE
      6 - RELATED PARTY TRANSACTIONS (CONTINUED)**





Point
      Center Financial, Inc., the Manager, had 0.2181% and 0.1108% ownership interest
      in the Fund as of December 31, 2006 and June 30, 2007, respectively.





**NOTE
      7 - LOAN CONCENTRATIONS AND CHARACTERISTICS**





At
      December 31, 2006, there were 19 secured loans outstanding with the following
      characteristics:




Number
                of secured loans outstanding
            
            19Total
                secured loans outstanding
            
            $11,756,357Largest
                secured loan outstanding
            
            $973,384Largest
                secured loan as a percent of the total
            
            8
            %U.S.
                state collateral real estate is located in
            
            
            Arizona
                California
              Florida
              Georgia
              Michigan
            
            
            New
                York
              Tennessee
              Texas
              Utah
              VirginiaThe
                following categories of secured loans were held at December 31,
                2006:First
                trust deeds
            
            $11,756,357Second
                trust deeds
            
            0





The
                following types of loans were held at December 31, 2006:Vacant
                Land
            
            $
            5,064,018Commercial
            
            
            3,412,087Construction
            
            
            2,940,393Residential
            
            
            339,859




At
      June
      30, 2007, there were 29 secured loans outstanding with the following
      characteristics:




Number
                of secured loans outstanding
            
            29Total
                secured loans outstanding
            
            $24,162,399Largest
                secured loan outstanding
            
            $3,623,450Largest
                secured loan as a percent of the total
            
            15%U.S.
                state collateral real estate is located in
            
            
            Arizona
                California
              Florida
              Georgia
              Indiana
              Michigan
            
            
            North
                Carolina
              New
                York
              Tennessee
              Texas
              Utah
              Virginia




9


**POINT
      CENTER MORTGAGE FUND I, LLC**


**NOTES
      TO FINANCIAL STATEMENT**


**JUNE
      30, 2007**





**NOTE
      7 - LOAN CONCENTRATIONS AND CHARACTERISTICS (CONTINUED)**





The
                following categories of secured loans were held at June 30,
                2007:First
                trust deeds
            
            $
            24,162,399Second
                trust deeds
            
            
            0





The
                following types of loans were held at June 30, 2007:Vacant
                Land
            
            $
            10,010,403Commercial
            
            
            6,606,074Construction
            
            
            7,545,922Residential
            
            
            0


10


**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 three and six months ended June 30, 2007. The
      quarter ended June 30, 2006 is not relative for comparison purposes to the
      quarter ended June 30, 2007 because our business operations did not begin until
      June 28, 2006, when we received capital contributions from our first investors
      totaling $1,073,257 and invested $750,000 in our first loan.





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; our Form 10-K for the year ended December 31, 2006; and in our the
      most recent prospectus dated June 11, 2007, filed with the Securities and
      Exchange Commission 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. As of the filing
      date of this Form 10-Q, we have sold $26,569,968.74 million
      of units and we currently estimate that we will sell less than $100 million
      of
      units by the time of the offering terminates on February 3, 2008.





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 June 30, 2007, the
      daily
      unit price was $1002.36.





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
      the State of Arizona, 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 one (1) to five (5) years. We 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 currently have
      no residential loans in our portfolio and we require substantially lower
      loan-to-value ratios than the sub-prime residential lenders that have been
      reporting substantial losses from their portfolios. We also believe that our
      underwriting criteria is significantly more stringent than these troubled
      lenders and that our portfolio can withstand a much deeper downturn in the
      real
      estate market than these other companies can.




11





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 12 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. All of these loans are described in greater
      detail in our prospectus under the heading “Types of Loans We Intend to Invest
      In.”





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 one (1) to five (5) 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 to 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 first 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, we plan to invest in real estate loans where our collateral
      is real property located throughout the United States. Our Manager selects
      real
      estate loans for us, and also assists 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 the public offering, which is not presently anticipated
      to exceed $100 million. To sufficiently diversify our loan portfolio, our
      Manager anticipates that we need to raise between $30 million and $100 million
      from investors.





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 that 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 takeout financing. This in turn could
      increase the level of defaults we may experience.


12




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 that 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 wrong
      credit decisions 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 that 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 with construction and development 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 three and six months ended June 30, 2007, was $649,107 and $1,106,159,
      respectively, 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
      three and six months ended June 30, 2007, total expenses were approximately
      $156,368 and $255,840, respectively.





*Distributions
      to Members* .  For
      the
      three and six months ended June 30, 2007, we have made distributions of $503,294
      and $865,238, respectively, including $234,629 and $396,354 of reinvested
      distributions, which would otherwise have been paid to our reinvesting members.
      Through June 30, 2007, members have realized an internal rate of return on
      their
      investments of approximately 9.36%. However, as of June 30, 2007, the blended
      gross portfolio yield on our loans was 12.36%, with a currently estimated net
      yield to our members of 9.5%.





*Investments
      in Mortgage Loans* *.* As of
      June 30, 2007, we had investments in 29 mortgage loans secured by real estate
      totaling $24,162,399 with a weighted average contractual interest rate of
      12.36%. These mortgage loans have contractual maturities ranging from 2007
      through 2011.




13


Investments
      in mortgage loans as of June 30, 2007, are as follows:




**Loan
                Type**
            
            **Number****of
                Loans**
            
            **Balance**
            
            **Weighted
                Average****Interest
                Rate**
            
            **Portfolio****Percentage**
            
            **Weighted
                Loan-to-****Value********Land
            
            
            12
            
            $
            10,010,403
            
            
            12.71
            %
            
            41.00
            %
            
            56.03
            %Commercial
            
            
            12
            
            
            6,606,074
            
            
            11.83
            %
            
            27.34
            %
            
            48.80
            %Construction
            
            
            5
            
            
            7,545,922
            
            
            12.36
            %
            
            31.23
            %
            
            64.42
            %Residential
            
            
            0
            
            
            -0-
            
            
            -0-
            %
            
            -0-
            %
            
            -0-
            %Acquisition
                and Development
            
            
            0
            
            
            -0-
            
            
            -0-
            %
            
            -0-
            %
            
            -0-
            %Bridge
            
            
            0
            
            
            -0-
            
            
            -0-
            %
            
            -0-
            %
            
            -0-
            %Totals:
            
            
            29
            
            $
            24,162,399
            
            
            12.36
            %
            
            100.00
            %
            
            56.04
            %




*
            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
                are generally dated no greater than six 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, we 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 $100 million. From time to time, until the
      offering is complete, the percentage of second mortgages we invest in may exceed
      20%.




**Loan
                Type**
            
            ******June
                30, 2007**
            
            **Portfolio
                Percentage**First
                Mortgages
            
            $
            24,162,399
            
            
            100
            %Second
                Mortgages
            
            
            -0-
            
            
            0
            %Portfolio
                Total:
            
            $
            24,162,399
            
            
            100
            %





The
      following is a schedule of contractual maturities of investments in mortgage
      loans for consecutive 12 month periods ending June 30 th :




**Year**
            
            **Maturity
                Amount**2007
            
            $
            -0-2008
            
            $
            11,902,1822009
            
            $
            8,810,5062010
            
            $
            394,0842011
            
            $
            519,7242012
            
            $
            2,535,903Total:
            
            $
            24,162,399




14


The
      following is a schedule by geographic location of investments in mortgage loans
      as of June 30, 2007:




**State**
            
            **June
                30, 2007**
              **Balance**
            
            **Portfolio**
              **Percentage**Arizona
            
            $
            2,367,959
            
            
            9.80
            %California
            
            
            7,184,009
            
            
            29.73
            %Florida
            
            
            475,586
            
            
            1.97
            %Georgia
            
            
            1,842,484
            
            
            7.63
            %Indiana
            
            
            1,080,690
            
            
            4.47
            %Michigan
            
            
            898,966
            
            
            3.72
            %North
                Carolina
            
            
            150,000
            
            
            0.62
            %New
                York
            
            
            1,111,597
            
            
            4.60
            %Tennessee
            
            
            501,929
            
            
            2.08
            %Texas
            
            
            4,178,842
            
            
            17.29
            %Utah
            
            
            3,623,450
            
            
            15.00
            %Virginia
            
            
            746,887
            
            
            3.09
            %Total:
            
            $
            24,162,399
            
            
            100.00
            %




We
      have six (6) 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 13.5%.
      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
      June 30, 2007.





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 June 30, 2007, we did not have any investments in loans which have been
      extended. **** Our
      Manager concluded that no allowance for loan loss was necessary with respect
      to
      these loans as of June 30, 2007.





**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 to service 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 three and six months ended June
      30,
      2007, we recorded fees to our Manager of $79,711 and $132,326,
      respectively.





Our
      Manager will receive 50% of any late charges, penalty interest and prepayment
      premiums on our loans. For the three and six months ended June 30, 2007, we
      recorded late fee income to our Manager of $2,220 and $3,878,
      respectively.





15


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. For the three and six
      months ended June 30, 2007, management fees of $56,496 and $97,295,
      respectively, were paid to our Manager and management fees of $20,444 had been
      accrued as of that date.





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 June 30, 2007,
      none of these fees were accrued or paid.





*Transactions
      with Other Program and Other Related Parties* .
      As of
      June 30, 2007, 22 of the 29 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 seven (7) 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 12 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 that are not
      reflected on our balance sheet, nor do we have any commitments or obligations
      that 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.




16





***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
      on 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;





·
            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; and





·
            Conditional
                management fee of 1% annually upon all capital contributions paid
                to our
                Manager.





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.




17


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





We
      make
      investments in mortgage loans and make distributions from interest income to
      our
      members, therefore, 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 do we own any options, futures or other
      derivative instruments.





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. Some
      of
      our mortgage loans may contain prepayment penalties. We anticipate that up
      to 3%
      of our assets will be held as cash reserves.





**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 six months ended June 30, 2007, that have materially
      affected, or are reasonably likely to materially affect, our internal control
      over financial reporting.




18


**PART
      II. OTHER INFORMATION**





**Item
      1. Legal proceedings**





None.





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





Set
      forth
      below is a discussion of the material changes in our risk factors as previously
      disclosed in Item 1A of Part I of our Annual Report on Form 10-K for
      the fiscal year ended December 31, 2006; and in our most recent prospectus
      dated
      June 11, 2007, that was filed with the Securities and Exchange Commission
      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.
      However, the risks and uncertainties described in the Form 10-K and the
      prospectus are not the only ones facing us. Other events that we do not
      currently anticipate or that we currently deem immaterial also may affect our
      results of operations and financial condition.





The  information
      presented below updates, and should be read in conjunction with, the risk
      factors and other information disclosed in our December 31, 2006, Form 10-K
      and
      our prospectus dated June 11, 2007.





**Recent
      Developments in the Residential Sub-Prime Mortgage Market Could Adversely Effect
      Our Markets.**




Uncertain
      economic conditions during the next year could have a material impact on the
      collectibility of our loans. To date, the problems experienced by some lenders
      in the sub-prime residential mortgage market have not had any material adverse
      affect upon the commercial mortgage markets in which we operate. However, we
      understand that the weakness in residential lending could at some point have
      an
      adverse impact upon our markets. Therefore, we seek to maintain a loan-to-value
      ratio that is significantly lower than troubled sub-prime residential lenders.
      Our weighted average loan to value ratio was approximately 56% as of June 30,
      2007. We hope our loan to value ratio will provide us with a sufficient equity
      cushion in the underlying properties to protect the value of our loans 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.





A
      downturn in the real estate markets where we conduct business might result
      in
      defaults on our loans and might require us to record reserves with respect
      to
      non-performing loans. In addition, there is a continuing weakness in certain
      sectors of the economy and we are subject to risks inherent in our business
      strategy that entails more lenient underwriting standards and expedited loan
      approval procedures. If the economy weakens and our borrowers are unable to
      complete their projects or obtain takeout financing or are otherwise adversely
      impacted, we may experience loan defaults, which may reduce the amount of funds
      we have to pay dividends to our shareholders.





**Our
      Real Estate Loans Will Not Be Marketable and We Expect No Secondary Market
      to
      Develop.**





We
      do not
      expect our real estate loans to be marketable and we do not expect a secondary
      market to develop for them. As a result, we will generally bear all the risk
      of
      our investment until the loans mature and are paid in full. This will limit
      our
      ability to hedge our risk in changing real estate markets and may result in
      reduced returns to our investors.





**Prepayments
      of Our Loans, Particularly During Periods of Low Interest Rates, May Reduce
      Our
      Recurring Income and We Also May Not Receive Prepayment
      Penalties.**





Borrowers
      may seek to prepay our loans, particularly during periods when interest rates
      are low. If loans repay before their maturity, we may not be able to reinvest
      the proceeds quickly or we may be forced to reinvest the proceeds in
      lower-yielding assets. Accordingly, prepayments of our assets may reduce the
      amount of our recurring income and could adversely affect our financial
      performance. Many, but not all, of our loans provide that the borrower must
      pay
      us a prepayment penalty if the loan is repaid before a specified date. This
      is
      often referred to as a “lock-out period.” While prepayment penalties provide us
      with financial compensation, they represent one-time payments as opposed to
      recurring income. After the end of the lock-out period, the borrower may prepay
      the loan without penalty prior to its maturity. We anticipate that approximately
      50% of our lending portfolio consisted of loans open to prepayment without
      penalty.





19


**Increases
      in Interest Rates During the Term of a Loan May Adversely Impact a Borrower’s
      Ability to Repay a Loan at Maturity or to Prepay a Loan.**





If
      interest rates increase during the term of our loan, a borrower may not be
      able
      to obtain the necessary funds to repay our loan at maturity through refinancing.
      Borrowers may also not be able to obtain refinancing proceeds that would enable
      them to prepay our loans. Increasing interest rates may hinder a borrower’s
      ability to refinance our loan because the borrower or the underlying property
      cannot satisfy the debt service coverage requirements necessary to obtain new
      financing or because the value of the property has decreased. If a borrower
      is
      unable to repay our loan at maturity, we could suffer a loss. If borrowers
      prepay fewer loans during periods of rising interest rates, we will not be
      able
      to reinvest prepayment proceeds in assets with higher interest rates. As a
      result, our financial performance and our ability to pay distributions could
      be
      materially adversely affected.





**An
      Earthquake, Other Natural Disaster or Terrorist Act Could Adversely Affect
      Our
      Business.**





Approximately
      30% of our loan portfolio as of June 30, 2007, was secured by properties located
      in California, which is a high risk geographical area for earthquakes. In
      addition, a significant number of our loans are on properties that are located
      in urban areas which have, in recent years, been high risk geographical areas
      for terrorism and threats of terrorism. We also have loans on properties located
      in areas that are subject to the risks of floods, hurricanes, tornados and
      other
      natural disasters. Future earthquakes, other natural disasters or acts of
      terrorism could adversely impact the demand for, and value of, our loans and
      could also directly impact the value of our loans through damage, destruction
      or
      loss, and could thereafter materially impact the availability or cost of
      insurance to protect against these events. Any earthquake, other natural
      disaster or terrorist attack, whether or not insured, could have a material
      adverse effect on our financial performance and our ability to pay
      distributions.





**Quarterly
      Results May Fluctuate and May Not Be Indicative of Future Quarterly
      Performance.**





Our
      quarterly operating results could fluctuate; therefore, you should not rely
      on
      past quarterly results to be indicative of our performance in future quarters.
      Factors that could cause quarterly operating results to fluctuate include,
      among
      others, variations in our loan origination volume, variations in the timing
      of
      prepayments, the degree to which we encounter competition in our markets and
      general economic conditions.





**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.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.




20


**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:
                August 14, 2007
            
            By: 
                /s/ M. GWEN MELANSONM.
                Gwen MelansonChief
                Financial Officer




21