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 June 30, 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 23, 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 June 30, 1998 and December 31,
           1997.........................................................      3

           Statements of Operations for the three and six-months ended June
           30, 1998, the three-months ended June 30, 1997 and the period
           January 3, 1997 (date of inception) to June 30, 1997..........     4

           Statement of Stockholders' Deficit for the six-months ended June
           30, 1998 .....................................................     5

           Statements of Cash Flows for the three and six-months  ended June 30,
           1998, the  three-months  ended June 30, 1997 and the period January
           3, 1997 (date of inception) to June 30, 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

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


                                          June 30        December
ASSETS                                     1998          31, 1997
------                                    Unaudited
                                         ----------      ----------

Cash and cash equivalents               $1,836,324     $   816,433
                                        -----------    ------------

Receivables:
Finance                                    759,633         196,503
Mobile home floor plan                     191,066          86,040
Affiliate                                   12,300          12,550
                                                         ----------
                                        -----------
     Total receivables                     962,999         295,093
                                        -----------      ----------


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

Property and equipment -                   228,569         173,231
net
                                        -----------    ------------

Deferred debt issuance                     357,407         172,856
costs, net
                                        -----------    ------------

TOTAL                                   $3,397,299     $ 1,469,613
                                        ===========    ============

LIABILITIES AND STOCKHOLDERS' DEFICIT

LIABILITIES:
Secured notes payable                   $3,803,000     $ 1,612,000
Accrued and other                           36,621           8,150
liabilities
                                        -----------    ------------
  Total liabilities                      3,839,621       1,620,150
                                        -----------    ------------

STOCKHOLDERS' DEFICIT
Common stock, no par value, 10,000
shares authorized,
    1,000 shares issued and outstanding    1,000            1,000
Deficit                                  (443,322)       (151,537)
                                        -----------    ------------
  Total stockholders' deficit            (442,322)       (150,537)
                                        -----------    ------------

TOTAL                                   $3,397,299     $ 1,469,613
                                        ===========    ============


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

See accompanying notes.





                                    -3-
<PAGE>

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

                                (Unaudited)


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

                                                                   Period
                                                                  January
                            Three-Months Three-Months Six-Months   3, 1997
                              Ended         Ended       Ended     (date of
                             June 30,     June 30,    June       inception)
                               1998         1997       30,1998     to June
                                                                  30, 1997
                            ------------ ------------ -----------------------

REVENUES:
Interest and fees             $  65,211                $  89,552
Rental income                    24,437                   43,317
Other                             1,080                    3,745
                            ------------              -----------
      Total revenues             90,728                  136,614
                            ------------              -----------


OPERATING EXPENSES:
Management fees                  88,488     $  4,550     137,189    $  4,550
Interest                        102,579          796     161,428         796
Occupancy and equipment          35,392        4,400      80,660       4,400
Professional fees                10,763                   15,013
Other                           (1,310)          250      34,109         700
                            ------------ ------------ -----------------------
    Total operating             235,912        9,996     428,399      10,446
expenses
                            ------------ ------------ -----------------------

NET LOSS                     $(145,184)    $  (9,996)  $(291,785)  $ (10,446)
                            ============ ============ =======================

LOSS PER COMMON SHARE        $ (145.18)   $  (10.00)  $ (291.79)   $ (10.45)
                            ============ ============ =======================


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

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 the six
months ended                                          (291,785)      (291,785)
   June 30, 1998
                            --------  -----------    -----------   -----------
Balances, June 30, 1998       1,000 $      1,000      (443,322)     $ (442,322)
                            ========  ===========    ===========   ===========



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


See accompanying notes.





























                                     -5-


<PAGE>



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

                                   (Unaudited)


--------------------------------------------------------------------------------
<TABLE>
<CAPTION>

                                                                                  January
                                           Three-Months Three-Months Six-Months   3, 1997
                                               Ended         Ended       Ended     (date of
                                              June 30,     June 30,    June       inception)
                                                1998         1997       30,1998     to June
                                                                                   30, 1997
                                           ------------ ------------ -----------------------
<S>                                        <C>          <C>          <C>       <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss                                    $(145,184) $(9,996)   $ (291,785)$ (10,446)
  Adjustments to reconcile net loss to net
cash provided bY
(used in) operating activities:
    Depreciation                                  6,446                 12,892
    Amortization and write off of deferred       21,189                 33,750
       debt issuance costs
    Increase in accrued and other                21,893     30,000      28,471     30,000
       liabilities
                                              ---------- ----------- ----------------------

NET CASH PROVIDED BY (USED IN) OPERATING
   ACTIVITIES                                  (95,665)     20,004   (216,672)     19,554

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

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of property and equipment           (37,164)    (9,635)    (68,230)    (9,635)
  Finance receivables originated and
    purchased, net of                         (444,940)              (563,130)
    payments and  discounts
  Floor plan receivables, net of payments      (54,526)              (105,026)
                                              ---------- ---------- ----------------------
NET CASH USED BY INVESTING ACTIVITIES         (536,630)    (9,635)   (736,386)    (9,635)
                                              ---------- ---------- ----------------------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from issuance of common stock                                            1,000
  Proceeds from issuance of secured notes     1,602,000    139,000   2,191,000    139,000
    payable
  Net increase (decrease) in stockholder                   (5,000)                  1,750
    advance
  Decrease in affiliate receivables                                        250
  Cash paid for deferred debt issuance        (167,001)   (46,326)   (218,301)   (53,316)
    costs
                                              ---------- ---------- ----------------------

NET CASH PROVIDED BY FINANCING ACTIVITIES     1,434,999     87,674   1,972,949     88,434
                                              ---------- ---------- ----------------------

NET INCREASE IN CASH AND CASH EQUIVALENTS       802,713     98,042   1,019,891     98,353

CASH AND CASH EQUIVALENTS, BEGINNING OF
   PERIOD                                     1,033,611        311     816,433
                                              ---------- ---------- ----------------------
CASH AND CASH EQUIVALENTS, END OF PERIOD      $1,836,324 $  98,353  $1,836,324 $   98,353
                                              ========== ========== ======================

SUPPLEMENTAL DISCLOSURE OF CASH FLOW
  INFORMATION - Interest paid                 $   81,390 $     796  $  127,678 $      796
                                              ========== ========== ======================
</TABLE>

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

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  and  six-month  periods  ended  June  30,  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 10-KSB.

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.  Estimates from  management that are critical to
the accompanying financial statements include the appropriate level or allowance
for credit losses which can be significantly impacted by future industry, market
and  economic  trends and  conditions.  Actual  results  could differ from those
estimates.

Allowance for Credit Losses

The Company enters into agreements with dealers that establish the allowance for
credit  losses  through  non-refundable  acquisition  discounts  to protect  the
Company from potential losses associated with the financing of installment sales
contracts.  All or a portion of these  negotiated  discounts  are  available  to
absorb credit losses.  Credit loss experience,  contractual  delinquency of loan
receivables,  the value of underlying collateral and current economic conditions
are factors  management  uses in  negotiating  the  discounts  and assessing the
overall  adequacy of the  discounts  to absorb  losses.  Management  attempts to
maintain the allowance at a level  consistent with anticipated loan charge offs,
and if  necessary  will charge  earnings  when the  negotiated  discounts do not
appear adequate to absorb losses.

The Company generally initiates repossession proceedings when an account is more
than two  payments  contractually  past due,  but the  repossession  process  is
accelerated for loans which become delinquent in the first or second payment.

                                    -7-
<PAGE>

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 and six-month periods ended June
30, 1998,  the  three-months  ended June 30, 1997 and the period January 3, 1997
(date of inception) to June 30, 1997 was 1,000.

NOTE C - SECURED NOTES PAYABLE

Secured notes payable bear interest at 10.5%, with interest payable monthly, and
mature on June 30, 2002. The notes,  which may be prepaid in whole or in part at
any time without  premium or penalty,  are secured by a first lien on any assets
acquired  with the  proceeds.  The Company has  registered  $9.9 million of such
notes and as of June 30, 1998 is continuing to offer the remaining $6,097,000 of
secured 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.

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, purchasing and servicing of receivables. As consideration for these
services, the Company pays SFS for all of its expenses plus 20%. Management fees
paid to SFS  during  the  three  and  six-months  ended  June  30,  1998 and the
three-months  ended  June  30,  1997  approximated  $88,000,  $137,189,  $4,550,
respectively.  No management fees were paid prior to the three-months ended June
30, 1997.

The Company  rents  certain lot space for mobile home rental units it owns,  and
prior to April 1998 certain office space for its administrative operations, from
Halliday, a related party by virtue of Anthony Sutter's ownership.  In May 1998,
SFS  began to pay the rent on the  administrative  space  and  accordingly,  the
related  rent  expense is  included in SFS  expenses  on which the Company  pays
management  fees  (see  preceding  paragraph).   Total  rent  paid  under  these
arrangements  for the three and  six-months  ended  June 30,  1998 and the three
months  ended  June  30,  1997   approximated   $22,200,   $48,600  and  $4,400,
respectively. No rent was paid prior to the three months ended June 30, 1997.





                                    -8-


<PAGE>


Item 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS.

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 and six-months  ended June 30, 1998, the  three-months  ended June 30,
1997 and the  period  January  3,  1997  (date of  inception)  to June 30,  1997
included with this Form 10-QSB. The Company did not have significant  operations
during the  three-months  ended June 30, 1997 or for the period  January 3, 1997
(date of  inception) to June 30, 1997 and as such this analysis does not include
any additional discussion as of and for such periods.

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.

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

RESULTS OF OPERATIONS

Three and Six-Months Ended June 30, 1998

The Company generated revenues of approximately  $90,700 and $136,600 during the
three and  six-months  ended June 30, 1998,  respectively  as they  continued to
implement their business plan.  These revenues  consisted  primarily of interest
and fees earned on receivables and cash equivalents of approximately $65,200 and
$89,500 during the respective  three and six-month  periods ended June 30, 1998.
In addition,  the Company  generated rental income of approximately  $24,400 and
$43,300 of rental  revenues from the rental of mobile homes owned by the Company
during the three and  six-months  ended June 30, 1998,  respectively.  Operating
expenses  during  the three and  six-months  ended  June 30,  1998  approximated
$236,000 and $428,400,  respectively and consisted  primarily of management fees
of $88,500 and $137,200, respectively and interest of approximately $102,600 and
$161,400,  respectively.  In addition,  occupancy  and  equipment  included rent
expense of  approximately  $22,000 and $46,000 during the  respective  three and
six-months  ended  June 30,  1998.  The  management  fees and rent  were paid to
Sterling Financial Services, Inc. ("SFS") and Halliday,  respectively, which are
related to the Company by virtue of common ownership.  Interest expense included
cash outlays of $81,390 and $127,678 during the three and six-months  ended June
30, 1998,  respectively on secured notes payable.  The differences  between such
amounts and actual interest expense resulted from  amortization of deferred debt
issuance  costs incurred in connection  with the sale of the secured notes.  The
net  losses  for the three  and  six-months  ended  June 30,  1998  approximated
$145,200  and  $291,800,   respectively  and  arose  substantially  because  the
Company's revenue  generating assets did not provide  sufficient income to cover
fixed  expenses  arising from interest on the secured  notes,  and various other
expenses necessary to implement the Company's business plan.

LIQUIDITY AND CAPITAL RESOURCES

Three and Six-Months Ended June 30, 1998

Operating  activities  during the  six-months  ended June 30,  1998 used cash of
approximately  $216,700,  of which  approximately  $95,600  was used  during the
three-months  ended June 30, 1998. This cash was used to fund the aforementioned
net losses less non-cash  expenses  (i.e.  depreciation  and  amortization)  and
certain  accrued  expenses  which did not require the outlay of cash during such
reporting periods.

                                    -9-
<PAGE>

Investing  activities  during the  six-months  ended June 30,  1998 used cash of
approximately  $736,400,  of which  approximately  $536,600  was used during the
three months ended June 30, 1998.  The majority of these cash outflows  resulted
from the purchase  and/or  origination of finance and floor plan  receivables of
approximately  $668,200  during the  six-months  ended June 30,  1998,  of which
approximately  $499,400 related to the three-months ended June 30, 1998 (both of
such amounts are net of principal reductions on such receivables).  In addition,
during the six-months  ended June 30, 1998, the Company  purchased  property and
equipment to be used in its operations of $68,230  (including  $37,164 purchased
during the three-months ended June 30, 1998).

The above cash  outflows  were funded  through cash existing at the beginning of
the respective  periods and additional cash raised through financing  activities
of  approximately  $1,435,000  and $1,973,000  during the  respective  three and
six-month  periods  ended June 30, 1998.  These cash inflows  resulted  from net
proceeds  received from the sale of secured  notes payable of $1,434,999  (gross
proceeds of $1,602,000  less cash paid for debt issuance  costs of $167,001) and
$1,972,699  (gross proceeds of $2,191,000 less cash paid for debt issuance costs
of $218,301)  during the respective  three and six-month  periods ended June 30,
1998.

The Company is offering  subscriptions  for a maximum of 9,900  secured notes in
the principal amount of $1,000 each. As such, $6,097,000 of secured notes remain
available  for sale as of June 30,  1998.  If all of these  notes are sold,  the
Company will net approximately $5,487,000. The notes, which bear simple interest
at 10.5% and mature on June 30, 2002, require monthly payments of interest only,
may be prepaid in whole or in part at any time  without  premium or penalty  and
are  secured by a first lien on the assets  acquired  with the  proceeds  of the
offering.

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 secured  notes,
the interest  earned on the capital  raised will not be  sufficient to cover the
cost of the interest on the secured 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>