UNITED STATES
                             SECURITIES AND EXCHANGE COMMISSION
                                   Washington D. C. 20549

                                        FORM 10-QSB

 ( X )      Quarterly report pursuant to Section 13 or 15(d) of the Securities
and Exchange Act of 1934.

                       For the quarterly period ended March 31, 1998.


 (    )     Transition report pursuant to Section 13 or 15(d) of the Exchange
Act for the transition period from ______________ to ____________ .



                             Commission File Number: 333-06328

                       Sterling Financial Services of Florida I, Inc.
                   (Exact Name of Registrant as Specified in Its Charter)

          Florida                                                65-0716464
(State of Incorporation)                               (I.R.S. Employer I.D. No)

                       239 Halliday Park Drive, Tampa, Florida 33612
                          (Address of Principal Executive Offices)


                                       (813) 932-2228
                    (Registrant's Telephone Number, Including Area Code)



Check whether the registrant:  (1) has filed all reports required to be filed by
Section 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 ( ) NO (X)

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
stock as of June 21, 1999.

                                    1,000 Common Shares


Transitional Small Business Disclosure Format:

                                       YES ( ) NO (X)




<PAGE>




                       Sterling Financial Services of Florida I, Inc.

                                    INDEX TO FORM 10-QSB


PART I.    FINANCIAL INFORMATION

Item 1.    Financial Statements (unaudited)

           Balance Sheets as of March 31, 1998 and December 31,
           1997..............................................................  3

           Statements of Operations  for the  three-months  ended March 31, 1998
           and the period  January 3, 1997  (date of  inception)  to March 31,
           1997............................................................... 4

           Statement of Stockholders' Deficit for the three-months ended  March
           31, 1998........................................................... 5

           Statements  of Cash Flows for the  three-months  ended March 31, 1998
           and the period  January 3, 1997  (date of  inception)  to March 31,
           1997............................................................... 6

           Notes to Financial Statements ..................................... 7

Item 2.    Management's Discussion and Analysis of Financial Condition and
           Results of Operations ............................................. 9


PART II.   OTHER INFORMATION

Item 1.    Legal Proceedings .................................                11
Item 2.    Changes in Securities ...............................              11
Item 3.    Defaults Upon Senior Securities ..........................         11
Item 4.    Submission of Matters to a Vote of Securities Holders              11
Item 5.    Other Information...................................               11
Item 6.    Exhibits and Reports on Form 8-K............................       11

Signatures




                                            -2-

<PAGE>



          STERLING FINANCIAL SERVICES OF FLORIDA I, INC.
                          BALANCE SHEETS

-------------------------------------------------------------------


                                         March 31        December
ASSETS                                     1998          31, 1997
------                                  Unaudited
                                         ----------      ----------

Cash and cash equivalents               $1,033,611     $   816,433
                                        -----------    ------------

Receivables:
Finance                                    314,693         196,503
Mobile home floor plan                     136,540          86,040
Affiliate                                   12,300          12,550
                                         ----------     -----------
     Total receivables                     463,533         295,093
                                        -----------      ----------

Inventories                                 12,000          12,000
                                        -----------    ------------

Property and equipment - net               197,851         173,231
                                        -----------    ------------

Deferred debt issuance                     211,595         172,856
costs, net
                                        -----------    ------------

TOTAL                                   $1,918,590     $ 1,469,613
                                        ===========    ============

LIABILITIES AND STOCKHOLDERS' DEFICIT

LIABILITIES:
Secured notes payable                   $2,201,000     $ 1,612,000
Accrued and other liabilities               14,728           8,150
                                        -----------    ------------
  Total liabilities                      2,215,728       1,620,150
                                        -----------    ------------

STOCKHOLDERS' DEFICIT
Common stock, no par value, 10,000
shares authorized,                           1,000           1,000
1,000 shares issued and outstanding
Deficit                                  (298,138)       (151,537)
                                        -----------    ------------
  Total stockholders' deficit            (297,138)       (150,537)
                                        -----------    ------------

TOTAL                                   $1,918,590     $ 1,469,613
                                        ===========    ============


-------------------------------------------------------------------

See accompanying notes.





                                            -3-

<PAGE>

P

               STERLING FINANCIAL SERVICES OF FLORIDA I, INC.
                          STATEMENTS OF OPERATIONS

                                 (Unaudited)


--------------------------------------------------------------------------

                                                               Period
                                             Three-Months      January
                                               Ended           3, 1997
                                               March          (inception)
                                              31,1998           to March
                                                                31, 1997
                                             -----------     -------------

REVENUES:
Interest and fee                           $      24,341
Rental                                            19,180
Other                                              2,364      $       450
                                           --------------     ------------
      Total revenues                              45,885              450
                                           --------------     ------------


OPERATING EXPENSES:
Management fees                                   48,701
Interest                                          58,849
Occupancy and equipment                           45,268
Professional fees                                  4,250
Other                                             35,418
                                           --------------     ------------
    Total operating expenses                     192,486                0
                                           --------------     ------------

NET INCOME (LOSS)                          $   (146,601)      $       450
                                           ==============     ============

INCOME (LOSS) PER COMMON SHARE             $    (146.60)      $       .45
                                           ==============     ============


--------------------------------------------------------------------------

See accompanying notes.








                                            -4-


<PAGE>



           STERLING FINANCIAL SERVICES OF FLORIDA I, INC.
                 STATEMENT OF STOCKHOLDERS' DEFICIT

                             (Unaudited)

------------------------------------------------------------------------------

                                        Common Stock
                            Shares      Amount         Deficit         Total
                            --------  -----------     ----------      --------

Balances, December 31,        1,000        1,000     $(151,537)     $ (150,537)
1997

Net loss for three-months
ended March 31, 1998                                  (146,601)       (146,601)
                            --------  -----------    -----------   -----------

Balances, March 31, 1998      1,000   $    1,000     $(298,138)     $ (297,138)
                            ========  ===========    ===========   ===========


------------------------------------------------------------------------------


See accompanying notes.





























                                            -5-


<PAGE>



               STERLING FINANCIAL SERVICES OF FLORIDA I, INC.
                          STATEMENTS OF CASH FLOWS

                                (Unaudited)

-----------------------------------------------------------------------------
                                                                   Period
                                                Three-Months      January
                                                  Ended           3, 1997
                                                 March          (inception)
                                                31,1998           to March
                                                                  31, 1997
                                                -----------     -------------

CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)                              $ (146,601)      $        450

Adjustments to reconcile net income (loss) to
net cash provided by
(used in) operating activities:
    Depreciation                                     6,446
    Amortization and write off of deferred          12,561
      debt issuance costs
    Increase in accrued  and other                   6,578
      liabilities
                                                -----------   ---------------
NET CASH PROVIDED BY (USED IN) OPERATING
   ACTIVITIES                                    (121,016)               450
                                               ------------   ---------------

CASH FLOWS FROM INVESTING ACTIVITIES:
 Purchases of property and equipment              (31,066)
 Finance receivables originated and
    purchased, net of payments                   (118,190)
    and discounts
 Floor plan receivables originated, net           (50,500)
    of payments
                                               ------------   ---------------

NET CASH USED BY INVESTING ACTIVITIES            (199,756)            -
                                               ------------   ---------------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from issuance of common stock                               1,000
  Proceeds from issuance of secured notes          589,000           139,000
     payable
  Decrease in affiliate receivables                    250
  Cash paid for deferred debt issuance costs      (51,300)           (6,990)
                                               ------------   ---------------
NET CASH PROVIDED BY FINANCING ACTIVITIES          537,950           133,010
                                               ------------   ---------------

NET INCREASE IN CASH AND CASH EQUIVALENTS          217,178           133,460

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD     816,433                 0
                                               ------------   ---------------

CASH AND CASH EQUIVALENTS, END OF PERIOD       $ 1,033,611    $      133,460
                                               ============   ===============

SUPPLEMENTAL DISCLOSURE OF CASH FLOW
  INFORMATION - Interest paid                  $    46,288    $            -
                                               ============   ===============

-----------------------------------------------------------------------------

See accompanying notes.



                                    -6-


<PAGE>



                       STERLING FINANCIAL SERVICES OF FLORIDA I, INC.
                               NOTES TO FINANCIAL STATEMENTS
                                        (Unaudited)


-------------------------------------------------------------------------------

NOTE A - FORMATION AND OPERATIONS OF THE COMPANY

Sterling  Financial Services of Florida I, Inc, (the "Company") was incorporated
under the laws of the state of Florida on January 3, 1997.  The  Company,  which
was in the  development  stage  through  December 31, 1997,  is primarily in the
business of originating  and  purchasing  retail mobile home  installment  sales
contracts  created in connection with the financing of manufactured  homes.  The
Company also owns and rents mobile homes located in the Halliday  Village Mobile
Home Park ("Halliday"); a related party. The Company's operations are located in
Tampa, Florida and substantially all of its customers are Florida residents.

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The  accompanying  unaudited  financial  statements  of the  Company  have  been
prepared in accordance with generally accepted accounting principals for interim
financial  information  and the  instructions  to Form  10-QSB  and Rule 10-1 of
Regulation  S-X  of  the  Securities  and  Exchange   Commission   (the  "SEC").
Accordingly,  these  financial  statements  do not include all of the  footnotes
required  by  generally  accepted  accounting  principals.  In  the  opinion  of
management,  all  adjustments  (consisting of normal and recurring  adjustments)
considered  necessary  for a fair  presentation  have been  included.  Operating
results for the three months ended March 31, 1998 are not necessarily indicative
of the results  that may be expected for the year ended  December 31, 1998.  The
accompanying  financial  statements  and the notes should be read in conjunction
with  the  Company's  audited  financial  statements  as of  December  31,  1997
contained in its Form 10KSB.

Use of Estimates

The preparation of financial  statements in accordance  with generally  accepted
accounting  principals  requires  that  management  make certain  estimates  and
assumptions  that affect the reported  amounts of assets and liabilities and the
disclosure of  contingent  assets and  liabilities  at the date of the financial
statements.  The  reported  amounts  of the  revenues  and  expenses  during the
reporting  period  may  be  affected  by  the  estimates  and  assumptions  that
management  is  required  to  make.  Actual  results  could  differ  from  those
estimates.

Loss Per Common Share

Loss per  common  share is based on the  weighted  average  number of common and
common equivalent  shares  outstanding  during the period.  The weighted average
number of such shares  outstanding for the three-months ended March 31, 1998 and
the period January 3, 1997 (date of inception) to March 31, 1997 was 1,000.

NOTE C - SECURED NOTES PAYABLE

Secured  notes  payable (the  "Notes")  bear  interest at 10.5%,  with  interest
payable  monthly,  and mature on June 30, 2002. The Notes are secured by a first
lien on any assets  acquired with the proceeds and may be prepaid in whole or in
part at any time without  premium or penalty.  The Company has  registered  $9.9
million of Notes,  and as of March 31, 1998 is continuing to offer the remaining
$7,699,000 of Notes for sale.  The Notes are being  offered on a  "best-efforts"
basis  by  broker-dealers,  who  are  members  of the  National  Association  of
Securities Dealers, Inc.

                                            -7-

<PAGE>


NOTE D - RELATED PARTY TRANSACTIONS

Affiliate  receivables  bear  interest at 12.9.%,  are  unsecured and contain no
specified repayment terms.

Sterling  Financial  Services,  Inc.  ("SFS"),  a  related  party  due to common
ownership  manages the Company and provides all services in connection  with the
origination,  purchase and servicing of receivables.  As consideration for these
services,  the  Company  pays  SFS  for  all of its  expenses  plus  20% of such
expenses.  Management  fees paid to SFS during the three  months ended March 31,
1998  approximated  $49,000.  No  management  fees were paid  during  the period
January 3, 1997 (date of inception) to March 31, 1997.

The Company rents certain office space for its administrative operations and lot
space for mobile home rental units it owns from Halliday, a related party due to
common ownership.  Total rent paid under these arrangements approximated $26,000
during the three months ended March 31, 1998. No rent was paid during the period
January 3, 1997 (date of inception) to March 31, 1997.




--------------------------------------------------------------------------------





                                    -8-


<PAGE>


Item 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATION

OVERVIEW

The following  discussion and analysis  should be read in  conjunction  with the
balance sheet as of December 31, 1997 and the financial statements as of and for
the three  months  ended March 31, 1998 and the period  January 3, 1997 (date of
inception) to March 31, 1997 included with this Form 10-QSB. The Company did not
have  significant  operations  during  the  period  January  3,  1997  (date  of
inception)  to March 31,  1997 and as such this  analysis  does not  include any
additional discussion as of and for such period.

The Company,  which was in the development  stage through  December 31, 1997, is
primarily in the  business of  originating  and  purchasing  retail  mobile home
installment  sales  contracts  created  in  connection  with  the  financing  of
manufactured  homes. The Company also owns and rents mobile homes located in the
Halliday  Village Mobile Home Park  ("Halliday").  The Company's  operations are
located in Tampa,  Florida and  substantially  all of its  customers are Florida
residents.

Readers   are   referred   to  the   cautionary   statement,   which   addresses
forward-looking statements made by the Company.

RESULTS OF OPERATIONS

During the three months ended March 31, 1998, the Company generated  revenues of
approximately  $46,000.  These revenues resulted substantially from interest and
fee income earned on cash  equivalents,  and finance and floor plan receivables,
of  approximately  $8,900 and $15,400,  respectively.  In addition,  the Company
generated  approximately  $19,200 of  revenues  from the rental of mobile  homes
located in Halliday.

Operating  expenses  during the three months  ended March 31, 1998  approximated
$192,500 and  consisted  primarily of  management  fees and rent paid to related
parties  ($48,701 and $26,270,  respectively),  and interest of $58,849  arising
from secured notes payable. The remaining expenses of approximately $59,000 were
spread over a large number of accounts;  none of which had significant  balances
at March 31, 1998. The management fees and rent were paid to Sterling  Financial
Services, Inc. and Halliday,  respectively,  which are related to the Company by
virtue of common ownership.

The net loss for the three  months ended March 31, 1998  approximated  $146,600;
such loss  occurred  because  the  Company's  interest  bearing  assets  did not
generate  sufficient  income  to  cover  expenses  necessary  to  implement  the
Company's business plan.

LIQUIDITY AND CAPITAL RESOURCES

Operating activities used cash of approximately $121,000 during the three months
ended  March  31,  1998.  This  cash was used  primarily  to fund the  Company's
aforementioned net loss for such period.

Investing activities used cash of approximately $199,756 during the three months
ended March 31, 1998;  this cash was used  primarily  to originate  and purchase
finance and floor plan receivables with a net balance of approximately  $169,000
(such amount is net of principal payments).  In addition,  the Company purchased
property and  equipment  having a cost of  approximately  $31,000 for use in its
operations.

Financing activities generated net cash proceeds of approximately  $538,000 from
the sale of secured  notes payable (the  "Notes").  The Company is continuing to
offer  subscriptions  for a maximum of 9,900  Notes in the  principal  amount of
$1,000 each. As such, $7,699,000 remain available for sale as of March 31, 1998.
If all of the  remaining  Notes are sold,  the Company  will  generate  net cash
proceeds  of  approximately  $6,929,000.  The Notes bear  interest  at 10.5% and
mature on June 30, 2002. Interest is payable monthly. The Notes are secured by a
first lien on the

                                    -9-
<PAGE>

assets  acquired with proceeds  generated from their sale, and may be prepaid in
whole or in part at any time.

The Company  believes that it will be able to satisfy its cash  requirements for
the  foreseeable  future  if it does not  expand  its  business  by  originating
additional finance receivable  contracts.  However,  in order for the Company to
expand its dealer base and  portfolio of finance  receivable  contracts,  and to
ultimately pay the Notes in full,  the Company will have to generate  profitable
results  of  operations  and/or  secure  additional  capital  resources  through
additional debt or equity offerings and/or  institutional  financing,  such as a
line of  credit.  No  assurance  can be given  that the  Company  will  generate
profitable  results of operations or that additional  capital  resources will be
available,  or available on reasonable terms.  Also, if the Company is unable to
originate  receivable contracts in an amount and at a pace that approximates the
amount and the pace that capital is raised  through the issue of the Notes,  the
interest  earned on the capital  raised will not be sufficient to cover the cost
of the interest on the Notes.

CAUTIONARY STATEMENT

This Form 10-QSB, press releases and certain information  provided  periodically
in writing or orally by the Company's  officers or its agents contain statements
which constitute forward-looking statements within the meaning of Section 27A of
the Securities Act, as amended and Section 21E of the Securities Exchange Act of
1934. The words expect,  anticipate,  believe, goal, plan, intend,  estimate and
similar  expressions and variations thereof if used are intended to specifically
identify  forward-looking  statements.  Those  statements  appear in a number of
places in this  Form  10-QSB  and in other  places,  particularly,  Management's
Discussion and Analysis of Financial  Condition and Results of  Operations,  and
include statements  regarding the intent,  belief or current expectations of the
Company,  its directors or its officers with respect to, among other things: (i)
the Company's  liquidity  and capital  resources;  (ii) the Company's  financing
opportunities and plans and (iii) the Company's future performance and operating
results.  Investors  and  prospective  investors  are  cautioned  that  any such
forward-looking  statements are not guarantees of future performance and involve
risks and  uncertainties,  and that actual  results may differ  materially  from
those  projected  in the  forward-looking  statements  as a  result  of  various
factors.  The factors that might cause such differences  include,  among others,
the  following:  (i) any  material  inability  of the  Company  to  successfully
identify,  consummate and integrate the  acquisition  of finance  receivables at
reasonable and anticipated costs to the Company;  (ii) any material inability of
the Company to successfully  internally develop its products;  (iii) any adverse
effect or  limitations  caused by  Governmental  regulations;  (iv) any  adverse
effect on the  Company's  continued  positive  cash flow and abilities to obtain
acceptable  financing in  connection  with its growth  plans;  (v) any increased
competition  in  business;  (vi) any  inability  of the Company to  successfully
conduct its  business in new  markets;  and (vii)  other risks  including  those
identified in the Company's filings with the Securities and Exchange Commission.
The Company  undertakes no  obligation to publicly  update or revise the forward
looking  statements made in this Form 10-QSB to reflect events or  circumstances
after the date of this Form 10-QSB or to reflect the occurrence of unanticipated
events.

--------------------------------------------------------------------------------


                                            -10-


<PAGE>


                                PART II. - OTHER INFORMATION

Item 1. Legal Proceedings

      NONE

Item 2. Changes in Securities

      NONE

Item 3. Defaults Upon Senior Securities

      NONE

Item 4. Submission of Matters to a Vote of Securities Holders

      NONE

Item 5. Other Information

      NONE

Item 6. Exhibits and Reports on Form 8-K

      NONE


                                         SIGNATURES


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




July 15, 1999                                   /s/ Anthony A. Sutter
----------------------------                    --------------------------------

        Date                                    Anthony A. Sutter, President













                                            -11-

<PAGE>