UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

                Quarterly Report Under Section 13 or 15(d) of the
                         Securities Exchange Act of 1934

                  For the quarterly period ended: September 30, 2008

                         Commission File No. 333-118092


                          DEL MAR INCOME PARTNERS, LTD.
                          -----------------------------
        (Exact name of registrant as specified in governing instruments)


                                    MARYLAND
                                    --------
         (State or other jurisdiction of incorporation or organization)

                                   20-0478900
                                   ----------
                      (I.R.S. Employer Identification No.)

                         222 Milwaukee Street, Suite 304
                             Denver, Colorado 80206
                                  303-329-3479
                                  ------------
               (Address, including zip code, and telephone number
                         of principal executive offices)

Transitional Small Business Disclosure Format (check one): [ ] Yes [X] No

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:

  Large Accelerated Filer |_|            Accelerated Filer |_|
  Non-accelerated Filer |_|              Smaller reporting company |X|

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act):      Yes || No |X|

The number of shares of the registrant's Common Stock, no par value, outstanding
as of November _____, 2008 was 201,662 shares.


<PAGE>
                          DEL MAR INCOME PARTNERS, LTD.

                                      INDEX


                         PART I -- FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

The accompanying financial statements have been prepared by the Company without
audit. In the opinion of management, all adjustments (which include only normal
recurring adjustments) necessary to present fairly the financial position,
results of operations and cash flows at September 30, 2008 & 2007 and for the
periods then ended have been made. Certain information and footnote disclosure
normally included in financial statements prepared in accordance with accounting
principles generally accepted in the United States of America have been
condensed or omitted. It is suggested that these condensed financial statements
be read in conjunction with the financial statements and notes thereto included
in the Company's December 31, 2007 audited financial statements. The results of
operations for the periods ended September 30, 2008 and 2007 are not necessarily
indicative of the operating results for the full year.

Balance Sheets - September 30, 2008 (unaudited) and December 31, 2007          2

Statements of Operations - for the three months ended September 30, 2008
  and 2007 (unaudited)                                                         3

Statements of Operations - for the nine months ended September 30, 2008
  and 2007 (unaudited)                                                         4

Statements of Cash Flows - for the nine months ended September 30, 2008
  and 2007 (unaudited)                                                         6

Notes to Financial Statements (unaudited) - September 30, 2008                 7

Item 2.  Management's Discussion and Analysis of Financial Condition
  and Results of Operations                                                    8

Item 3.  Controls and Procedures                                              13

                            PART II OTHER INFORMATION

Item 1.  Legal Proceedings                                                    14

Item 6.  Exhibits                                                             14

SIGNATURES                                                                    15

                                       1
<PAGE>

PART I --  FINANCIAL INFORMATION
<TABLE>
<CAPTION>

Item 1.  Financial Statements

                          DEL MAR INCOME PARTNERS, LTD.
                                 BALANCE SHEETS

                                     ASSETS

                                                             Sept 30,    December 31,
                                                               2008         2007
                                                            (Unaudited)  (See Note 1)
                                                             ---------    ----------
<S>                                                          <C>          <C>
Current assets:
   Cash and cash equivalents                                 $ 181,311    $  363,299
   Accrued interest receivable                                     500         1,933
   Notes receivable, current                                    61,524       182,496
                                                             ---------    ----------

         Total current assets                                  243,335       547,728

Notes receivable, net of allowance of $30,000
   And deferred income of $33,430                              312,413       210,526
                                                             ---------    ----------

          Total assets                                       $ 555,748    $  758,254
                                                             =========    ==========

                      LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities


   Accounts payable                                          $   4,010    $    7,782
   Accrued expenses                                              2,325         6,325
   Accounts payable, related parties                            57,967        57,967
   Declared distribution                                             -       175,446
                                                             ---------    ----------

          Total liabilities (all current)                       64,302       247,520

Shareholders' equity:
   Common stock, $0.001 par value; authorized 25,000,000
    shares; 201,662 shares issued and outstanding                  202           202
   Additional paid-in capital                                  636,390       661,396
   Accumulated (deficit)                                      (145,146)     (150,864)
                                                             ---------    ----------

          Total shareholders' equity                           491,446       510,734
                                                             ---------    ----------

          Total liabilities and shareholders' equity         $ 555,748    $  758,254
                                                             =========    ==========
</TABLE>

    The accompanying notes are an integral part of these financial statements.




                                        2
<PAGE>

                          DEL MAR INCOME PARTNERS, LTD.
                            STATEMENTS OF OPERATIONS
                                   (Unaudited)

                                                For the three     For the three
                                                months ended       months ended
                                                  Sept 30,           Sept 30,
                                                    2008               2007
                                                -------------     -------------
Income:
   Interest income                              $       4,388      $     22,330
   Origination fee                                          -            10,000
                                                -------------     -------------

                                                        4,388            32,330
                                                -------------     -------------
Expenses:
   Legal and accounting                                 3,109             3,485
   Professional fees                                      275               305
   Management fees                                          -            10,668
   Other                                                    9               329
                                                -------------     -------------

                                                        3,393            14,787
                                                -------------     -------------

Income from continuing operations                         995            17,543
                                                -------------     -------------
Discontinued Operations:
   (Loss) from discontinued operations                      -            (3,740)
                                                -------------     -------------

Net income                                      $         995     $      13,803
                                                =============     =============
Net income (loss) per share:
   Continued operations                                  0.01             0.09
   Discontinued operations                               0.00            (0.02)
                                                -------------     -------------
                                                $        0.01    $        0.07
                                                =============     =============

Weighted average shares of common
   common stock outstanding                           201,662           201,662
                                                =============     =============



    The accompanying notes are an integral part of these financial statements.

                                        3

<PAGE>
                          DEL MAR INCOME PARTNERS, LTD.
                            STATEMENTS OF OPERATIONS
                                   (Unaudited)

                                                For the nine       For the nine
                                                months ended       months ended
                                                   Sept 30,          Sept 30,
                                                    2008               2007
                                                -------------     -------------
Income:
   Interest income                              $      16,692      $     49,576
   Origination fee                                          -            17,215
                                                -------------     -------------

                                                       16,692            66,791
                                                -------------     -------------
Expenses:
   Legal and accounting                                11,722            20,088
   Professional fees                                      925               575
   Management fees                                          -            28,517
   Other                                                  342             1,809
                                                -------------     -------------

                                                       12,989            50,989
                                                -------------     -------------

Income from continuing operations                       3,703            15,802
                                                -------------     -------------
Discontinued Operations:
   Income (loss) from discontinued operations           2,015           (22,216)
                                                -------------     -------------

Net income (loss)                               $       5,718     $      (6,414)
                                                =============     =============
Net income (loss) per share:
   Continued operations                                  0.02              0.08
   Discontinued operations                               0.01             (0.11)
                                                -------------     -------------
                                                $        0.03     $       (0.03)
                                                =============     =============

Weighted average shares of common
   common stock outstanding                     $     201,662     $     201,662
                                                =============     =============



    The accompanying notes are an integral part of these financial statements.

                                       4

<PAGE>




                          DEL MAR INCOME PARTNERS, LTD.
                            STATEMENTS OF CASH FLOWS
                                   (Unadited)

                                                    For the nine   For the nine
                                                    months ended   months ended
                                                       Sept 30,       Sept 30,
                                                         2008           2007
                                                    ------------   ------------
Cash Flows From (Used in):
Operating Activities of Continued Operations:
     Net income (loss)                              $      5,718   $     (6,414)
     Less: Income (loss) from discontinued
           Operations                                      2,015        (22,216)
                                                    ------------   ------------
Net Income (loss) from Continuing operations               3,703         15,802
Adjustments to reconcile net income (loss) from
continuing operations to net cash used in
operating activities of continuing operations:
      Decrease in accrued interest receivable              1,433            834
      (Decrease) in deferred income                           --         (2,215)
      (Increase) in prepaids                                  --         (3,846)
      Increase (decrease) in accounts payable             (7,772)        26,961
                                                    ------------   ------------
Net Cash provided by (used in) operating activities
 of continuing operations                                 (2,636)        37,536
                                                    ------------   ------------
Cash flow from (Used in):
Investing activities of Continuing Operations:
  (Investment in) repayments of notes receivable, net     19,085        (39,045)
                                                    ------------   ------------
Net cash provided by (used in) investing activities
 of continuing operations                                 19,085        (39,045)
                                                    ------------   ------------
Cash flow from (Used in):
Financing activities of Continuing Operations:
  Return of capital                                     (200,452)            --
                                                    ------------   ------------
Net Cash (used in) financing activities of
 Continuing operations                                  (200,452)            --
                                                    ------------   ------------
Discontinued operations:
  Investing Activities of Discontinued Operations          2,015        (19,989)
                                                    ------------   ------------
Net Cash provided by (used in) discontinued
 Operations                                                2,015        (19,989)

Net (Decrease) in cash and cash equivalents             (181,988)       (21,498)
  Cash at beginning of period                            363,299        103,073
                                                    ------------   ------------
  Cash at end of period                             $    181,311   $     81,575
                                                    ============   ============
  Interest paid                                     $         --   $         --
                                                    ============   ============
  Income taxes paid                                 $         --   $         --
                                                    ============   ============
Supplemental Non-cash Transactions
   Exchange of real estate for note receivable      $         --   $    195,496
                                                    ============   ============
   Exchange of origination fees for note receivable $         --   $     21,520
                                                    ============   ============


   The accompanying notes are an integral part of these financial statements.

                                        5
<PAGE>
                          DEL MAR INCOME PARTNERS, INC.
                          NOTES TO FINANCIAL STATEMENTS

                               September 30, 2008
                                   (UNAUDITED)

1.   Unaudited Statements

     The Balance Sheet as of September 30, 2008 and, the Statements of
     Operations and the Statements of Cash Flows for the three month and nine
     month periods ended September 30, 2008 and 2007, have been prepared by the
     company without audit. In the opinion of management, all adjustments (which
     include only normal recurring adjustments) necessary to present fairly the
     financial position, results of operations, and changes in financial
     position at September 30, 2008, and for all periods presented, have been
     made.

     It is suggested that these statements be read in conjunction with the
     Company's audited financial statements and the accompanying notes for the
     year ended December 31, 2007, included in the Company's registration
     statement on Form S-11, filed with the Securities and Exchange Commission.

2.   Notes Receivable

     As of September 30, 2008, the Company had notes receivable totaling
     $407,367. A summary of mortgage loans outstanding is as follows:
<TABLE>
<CAPTION>

                                                                                          Principal   Interest   Interest
                                                                                          Amount of   Income     Income
                                  Final                                       Carrying       Loan     Included   Excluded
                                  Maturity   Periodic              Face       Amount of   Subject to  in Net     from Net
                       Interest   Date       Payment    Prior      Amount of   Mortgage   Delinquent  Income     Income
Description            Rate                  Terms      Liens      Mortgage               Principal   for Nine   for Nine
                                                                                          or Interest Months     months
                                                                                                      Ended      Ended
                                                                                                      09/30/08   09/30/08
--------------------------------------------------------------------------------------------------------------------------
<C>                    <C>        <C>   <C>                          <C>        <C>          <C>                   <C>
Note collateralized    Prime                 Monthly
by a commercial loan   plus                  interest
1st deed of trust      8.875%     08/01/06   payments        None    135,500    105,500      135,500        --     21,450
--------------------------------------------------------------------------------------------------------------------------
Note collateralized    Prime                 Monthly
by a commercial loan   plus                  interest
1st deed of trust      8.875%     02/01/07   payments        None    135,000    108,070         None     10,624        --
--------------------------------------------------------------------------------------------------------------------------
Note collateralized
by personal signatures Prime
                       plus
                       8.875%     02/01/07                   None      7,745      7,745           --         --        --
--------------------------------------------------------------------------------------------------------------------------
Note collateralized                          Monthly
by a  1st deed of                            principal
trust                                        &               None     62,313     61,524           --      4,511        --
                       9.75%      09/01/08   interest
                                             payments
--------------------------------------------------------------------------------------------------------------------------
Note collateralized
by a mortgage loan                           Monthly
1st deed of trust                            interest
                       8.81%      06/01/08   payments        None    123,000    124,528      123,000         --      8,124
--------------------------------------------------------------------------------------------------------------------------
Total                                                                $463,558   $407,367     $258,500    $15,135    $29,574
                                                                                             --------
Less deferred income                                                            (33,430)
                                                                                -------
                                                                                 373,937
Current                                                                         (61,524)
                                                                                -------
Net of current                                                                  $312,413
                                                                                ========
</TABLE>

                                       6
<PAGE>
In addition to the $15,135 interest income received on notes receivable, the
Company also received $1,557 interest income from its interest bearing bank
accounts, totaling $16,692 interest income for the nine months ended September
30, 2008.

The Company's note receivable balance of $105,500, 108,070, 124,528 and $7,745
are currently in default. Management believes that these balances are not
impaired due to the collateral received, and therefore, no further impairment
has been recognized. (See Note 5)

The Company's note receivable balance of $61,624 is current and management
believes that the collateral is sufficient for the balances receivable.


3.   Origination Fee Income

     Origination fees are being amortized over the life of the loans. As of
     September 30, 2008, the Company had deferred income totaling $33,340 and
     recognized $0 in origination fee income during the nine months ended
     September 30, 2008. Also at September 30, 2008, the Company had prepaid
     management fees of $0 related to origination fees.


4.   Litigation

     During the year ended December, 2006, the Company was named as defendant in
     a lawsuit relating to its note receivable in the current amount of $135,500
     less allowance for bad debt of $30,000. The title insurance company is
     defending the lawsuit. During 2007, the Company entered into an arrangement
     with the other parties, whereby the Company would receive $105,000 in cash,
     and receive an uncollateralized note receivable for $30,000. Due to the
     uncertainty of collection and lack of collateral, the Company provided a
     $30,000 allowance for bad debt at December 31, 2007.


5.   Real Estate Owned and Discontinued Operations

     The Company's policy with respect to the carrying value of property
     acquired through foreclosure or property considered in-substance to be
     foreclosed is to carry such property at the lower of cost or market. Cost
     is to be determined based on the amounts loaned on the property plus the
     foreclosure costs. Market is determined based on the current sale prices of
     comparable property, net of estimated selling costs.

     At September 30, 2008, the Company had no investments in real estate held
     for sale

6.   Return of Capital

     During the nine months ended September 30, 2008, the Company paid out a pro
     rata return of capital totaling $25,006 to its shareholders.

                                       7
<PAGE>

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

Introduction

We were organized in November 2003. We made nine sets of mortgage loans through
September 30, 2008. Our first set of loans was made in May 2004. Each of these
loans was secured by a first mortgage on a single-family residence located in
St. Joseph, Missouri. The terms of the loans were set forth in four promissory
notes, each of which provides for a maturity date in November 2004 (six months
after the loans were made). The borrowers attempted to refinance the loan and to
sell the properties, but were unsuccessful in those efforts. Both of the
borrowers filed for bankruptcy, which delayed our collection efforts. In
December 2005 we were granted the right to proceed with foreclosure by the
bankruptcy court, and in January 2006 the borrowers conveyed the properties to
us in lieu of foreclosure. We agreed not to make further claims against the
borrowers.

In July 2006, two of the St. Joseph, Missouri properties were sold. In the case
of one of the sales, we carried back the loan. The promissory note provides for
interest at 9.875% for two years with a balloon payment of all principal and
accrued interest was due on September 1, 2008. This loan is current and the
borrower
is in the process of refinancing the loan. The original principal balance of the
loan was $62,313 and as of September 30, 2008 the principal balance due is
$61,524.

                                        8

<PAGE>

The remaining two residences in St. Joseph, Missouri were sold June 1, 2007 for
$123,000. We carried back the loan for one year at 8.81% per annum, payable in 9
monthly payments commencing on September 1, 2007 and a final payment in the
approximate amount of $123,000 due June 1, 2008. This loan is currently in
default.

In December 2004, we made two other loans. One loan for $62,000 was secured by a
first mortgage on a single-family residence located in Carrier, Mississippi. The
other loan was for $35,000 and was secured by a first mortgage on a
single-family residence located in Milwaukee, Wisconsin. The promissory notes
for both loans provided for interest equal to the prime rate as published in The
Wall Street Journal plus 9.875%, but not less than 14.875%. Payments of interest
only were due monthly on the Wisconsin loan and payments of interest and $500 of
principal were due monthly on the Mississippi loan. Both notes provided for
maturity in December 2005. Installment payments due on both loans were made as
required in January, February and March 2005. However, no monthly payments were
received on the Mississippi loan after March 2005 due to problems between the
co-borrowers. As a result of Hurricane Katrina, the Mississippi property
suffered some damage. The damage to the property was not extensive, the
borrowers sold the property, and they paid the loan in full in November 2005.
The Wisconsin loan was paid in full in July 2005.


                                       9
<PAGE>
In May 2005, we made a loan for $70,000, which was secured by a first mortgage
on a single-family residence located in McCord Ville, Indiana. The promissory
note for this loan provided for interest equal to the prime rate as published in
The Wall Street Journal plus 7.875%, but not less than 13.875%. Payments of
interest and $1,000 of principal were due monthly until the maturity on November
1, 2005. This loan was paid in full in October 2005.

We made two loans in August 2005. Each of the two loans is in the principal
amount of $135,000, and provides for interest at prime plus 8.875%, but not less
than 14%. The loan that is secured by property in Elkhart, Indiana provides for
monthly payments of interest and $1,500 of principal and is due August 1, 2006.
This loan is currently in default and the property is the subject of litigation.
We plan to commence foreclosure proceedings. The loan that is secured by
property in Asheboro, North Carolina provides for monthly payments of interest
only with a balloon payment of all principal and accrued interest due on
September 1, 2006. We extended the maturity date to February 1, 2007, but the
borrower failed to pay at maturity. The loan was in default and we pursued
foreclosure proceedings. The borrower filed bankruptcy (reorganization). In the
reorganization plan, the Borrower agreed then to monthly payments to move toward
total repayment of the loan. The Trustee was making monthly payments to us of at
least $3,900. During the three months ended September 30, 2008, the loan became
in default, the bankruptcy was dismissed and foreclosure proceedings have begun.

In April 2006, we made a loan for $110,000, which was secured by a first
mortgage on a restaurant located in Leadville, Colorado. The promissory note for
this loan provides for interest equal to the prime rate as published in The Wall
Street Journal plus 6.125%, but not less than 13.875%. Payments are $2,000
monthly and represent interest at the applicable rate, with the remaining
applied towards principal until maturity on May 1, 2007. The borrower defaulted,
and in December 2006 we entered into an agreement for deed in lieu of
foreclosure in which the borrower conveyed to us all of his interest in the
property. The property was sold July 27, 2007 for $195,000. We carried back a
$175,500 loan for three (3) months at 11.4% per annum. This loan was paid in
full in December 2007.

In November 2006, we made a loan for $99,000, which is secured by a first
mortgage on a Single-family home located in Slidell, Louisiana. The promissory
note for this loan provides for interest equal to the prime rate as published in
The Wall Street Journal plus 6.625%, but not less than 14.875%. This loan has
been paid in full.


                                        10
<PAGE>


Our Manager, Port Funding, conducts our day-to-day operations pursuant to a
management agreement. Port Funding will be responsible for expenses of
operations, including rent and salaries. We will be responsible for expenses
related to operation as a separate publicly-held corporation, including the
legal and accounting expense incurred in connection with the filing of periodic
reports with the SEC pursuant to the Exchange Act and expenses associated with
qualifying and maintaining REIT status and stockholder matters, including
transfer agent fees and expenses.

Comparison of the Three Month Periods Ended September 30, 2008 and September 30,
2007.
--------------------------------------------------------------------------------

Income for the three months ended September 30, 2008 totaled $4,388, a $27,942
or 86% percent decrease over the comparable period in 2007. Income primarily
consisted of interest income for the period ended September 30, 2008 and 2007.
Expenses for the three months ended September 30, 2008 totaled $3,393, a $11,394
or 77% decrease from the comparable period in 2007.



Comparison of the Nine Month Periods Ended September 30, 2008 and September 30,
2007.
--------------------------------------------------------------------------------

Income for the nine months ended September 30, 2008 totaled $16,692, a $50,099
or 75% percent decrease over the comparable period in 2007. Income primarily
consisted of interest income for the period ended September 30, 2008 and 2007.
Expenses for the nine months ended September 30, 2008 totaled $12,989, a $38,000
or 74% decrease from the comparable period in 2007.

Liquidity and Capital Resources
-------------------------------

At September 30, 2008, we had current assets of $243,335 and current liabilities
of $64,302, resulting in working capital of $179,033.

We have no long-term debt. Because our Manager, Port Funding, will be
responsible for our operating expenses, including expenses relating to servicing
our mortgage loans, we believe that our current working capital will be
sufficient to satisfy our other cash requirements for the next 12 months. Port
Funding will receive compensation solely from amounts received from our
borrowers. We have a management agreement with Port Funding that provides that
origination fees up to 8% of the loan balance and 50% of the excess will be paid
to Port Funding. We will also pay Port Funding a fee of 50% of the interest
received on our loans in excess of the prime rate (as adjusted from time to
time) plus 500 basis points. Port Funding will also receive 50% of all default
interest, penalties, net foreclosure proceeds and equity participations. Any
amounts that Port Funding receives from our borrowers decreases the amount that
we will receive from our borrowers.

In August 2004, we completed a private placement of our common stock at $6.25
per share. The price per share was determined arbitrarily by our Board and does
not necessarily have any relationship to our book value, operating results or
any recognized standard of value. We did not obtain a contemporaneous valuation
by an unrelated valuation specialist in connection with our private placement at
$6.25 per share. We may obtain additional funding, from time to time, through
additional offerings, which may consist of common stock, investment notes, and
other securities.


                                       11
<PAGE>

Critical Accounting Policies
----------------------------

Notes Receivable
----------------

We account for notes receivable at origination as held in our portfolio and
carry the notes at the lower of aggregate cost or market value. Due to our high
risk lending activities, interest is accrued monthly on notes receivable as
earned. Interest is reversed if a loan becomes past due 59 days or more and
subsequently recognized on a cash basis if and when remitted by the borrower. We
will maintain a valuation account for certain loans that are in default, have
significant collateral deficiencies or have other attributes that reduce their
collectibility potential. The valuation account is netted against notes
receivable.

Revenue Recognition
-------------------

Loan origination fees and other lender fees received by us are deferred and
recognized as income over the life of the loan. Interest is accrued monthly on
notes receivable as earned. Interest is reversed if a loan becomes past due 59
days or more and subsequently recognized on a cash basis if and when remitted by
the borrower.

Fair Value of Financial Instruments
-----------------------------------

Our financial instruments include cash and cash equivalents. Book value of these
financial instruments is representative of their fair value.

Income Taxes
------------

We record deferred taxes in accordance with Statement of Financial Accounting
Standards (SFAS) 109, "Accounting for Income Taxes." The statement requires
recognition of deferred tax assets and liabilities for temporary differences
between the tax bases of assets and liabilities and the amounts at which they
are carried in the financial statements, the effect of net operating losses,
based upon the enacted tax rates in effect for the year in which the differences
are expected to reverse. A valuation allowance is established when necessary to
reduce deferred tax assets to the amount expected to be realized.

Concentration of Credit Risk
----------------------------

Financial instruments, which potentially subject us to concentrations of credit
risks, consist primarily of cash and cash equivalents and notes receivable.

Our material concentration of credit risk consists principally of investments in
mortgage loans. Our investments in mortgage loans are collateralized principally
by first deeds of trust on real estate. At September 30, 2008, we had four
mortgage loans receivable from four individuals totaling approximately $437,367.
As of September 30, 2008, the $123,000 St. Joseph, Missouri note, the $135,000
Asheboro, North Carolina and the $135,500 South Bend, Indiana note are in
default. The weighted average interest rate on mortgagee notes receivable is
approximately 10.5% per annum.

                                       12

<PAGE>

Other financial instruments that potentially subject us to concentrations of
credit risk consist principally of cash and cash equivalents. At December 31,
2007 and September 30, 2008, the Company had approximately $228,000 and $50,275,
respectively, in cash or cash equivalents in financial institutions in excess of
amounts insured by agencies of the U.S. Government.

Market Risks
------------

We are involved in the real estate mortgage market. Changes in interest rates or
other market conditions within the real estate mortgage market may have a
significant effect on the volume and profitability of our business.

Management Fees
---------------

We have entered into an agreement with Port Funding to manage our day-to-day
operations, including originating loans through our account and providing
personnel and office space in exchange for a management fee. Management fees
related to origination fees are paid as collected, and deferred and expensed
over the life of the loans according to SFAS 91, "Accounting for Nonrefundable
Fees and Costs Negotiated with Originating or Acquiring Loans and Indirect Costs
of Leases." Management fees related to interest are expensed as the interest
income is recognized.


Item 3.  Controls and Procedures

(a)  Evaluation of disclosure controls and procedures.

(b)  Our principal executive officer and our principal financial officer, based
     on their evaluation of our disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of the end of the period
     covered by this Report on Form 10-Q, have concluded that our disclosure
     controls and procedures are effective for ensuring that information
     required to be disclosed by us in the report that we file or submit under
     the Securities Exchange Act of 1934 is recorded, processed, summarized and
     reported within the time period specified in the SEC's rules and forms.

(c)  Changes in Internal Controls.

     There were no changes in our internal control over financial reporting that
     occurred during our fiscal quarter that have materially affected, or are
     reasonably likely to materially affect, our internal control over financial
     reporting.




                                       13
<PAGE>

PART II  Other Information

Item 1. Legal Proceedings


In March 2006, an action was commenced against us in the Elkhardt, Indiana
Superior Court to quiet the title of the real estate, which serves as collateral
for a mortgage loan made by us to the owner of the property. The suit was
commenced by the former owner of the property who alleged that his contract of
sale of the real estate to the current owner (and our borrower) was breached.
During the year ended December 2006, the Company was named as defendant in a
lawsuit relating to its note receivable in the current amount of $135,500 less
allowance for bad debt of $30,000. The title insurance company is defending the
lawsuit. During 2007, the Company entered into an arrangement with the other
parties, whereby the Company would receive $105,000 in cash, and receive an
uncollateralized note receivable for $30,000. Due to the uncertainty of
collection and lack of collateral, the Company has provided a $30,000 allowance
for bad debt at December 31, 2007.


Item 6. Exhibits

     (a)       31.1 Certification of the principal executive officer pursuant to
               Rule 13a - 14(a).
     (b)       31.2 Certification of the principal financial officer pursuant to
               Rule 13a - 14(a).
     (c)       32.1 Section 1350 Certification.




                                       14



<PAGE>


                                   SIGNATURES


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


                                   Del Mar Income Partners, Ltd.


Date:  November 10, 2008           By: /s/ Stephen D. Replin
                                       ---------------------
                                   Name:   Stephen D. Replin
                                   Title:  President and Chief Executive Officer


Date:  November 10, 2008           By: /s/ Wanda E. Wages
                                       ------------------
                                   Name:   Wanda E. Wages
                                   Title:  Secretary and Treasurer







                                       15
<PAGE>