SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

             [ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                For the quarterly period ended September 30, 1997

                                       OR

            [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934


                         Commission file number: 0-14207


                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP
             (Exact name of registrant as specified in its charter)


                 California                           33-0061355
      (State or other jurisdiction of              (I.R.S. Employer
      incorporation or organization)             Identification  No.)

    400 South El Camino Real, Suite 1100
           San Mateo, California                         94402
           (Address of principal                      (Zip Code)
            executive offices)

                                 (650) 343-9300
              (Registrant's telephone number, including area code)

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  ____

       Total number of units outstanding as of September 30, 1997: 79,846




                                  Page 1 of 18
<PAGE>


PART 1.  FINANCIAL INFORMATION


Item 1.  Financial Statements
<TABLE>
<CAPTION>
                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                           Consolidated Balance Sheets
                    (in thousands, except units outstanding)
                                   (Unaudited)

                                                           September 30,   December 31,
                                                               1997            1996
                                                           ------------    -----------
<S>                                                         <C>             <C>
  Assets
  Investments in real estate:
     Rental property, net of accumulated depreciation
         of $14,226 and $13,077 at September 30, 1997
         and December 31, 1996, respectively                 $  43,214      $  38,094
      Construction in progress                                     ---          2,184
      Land held for development                                  4,915          4,911
      Land held for sale                                         3,749          4,869
                                                             ---------      ---------

         Total real estate investments                          51,878         50,058

  Cash and cash equivalents                                      1,015             97
  Restricted cash                                                  371            102
  Accounts and interest receivable                                 239            188
  Note receivable                                                  ---            405
  Deferred financing costs and other fees, net of
      accumulated amortization of $969 and $775
      at September 30, 1997 and December 31, 1996,
      respectively                                               1,437          1,223
  Prepaid expenses and other assets                                958            622
                                                             ---------      ---------

         Total assets                                        $  55,898      $  52,695
                                                             =========      =========
</TABLE>









                                  - continued -




                                  Page 2 of 18
<PAGE>


                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP
<TABLE>
<CAPTION>
                     Consolidated Balance Sheets - continued
                    (in thousands, except units outstanding)
                                   (Unaudited)

                                                           September 30,   December 31,
                                                               1997            1996
                                                           ------------    -----------
<S>                                                          <C>            <C>
  Liabilities and Partners' Equity (Deficit)
  Liabilities:
      Notes payable                                          $  22,071      $  17,256
      Accounts payable and accrued expenses                        860            713
      Interest payable                                              85             67
                                                             ---------      ---------

         Total liabilities                                      23,016         18,036
                                                             ---------      ---------

  Commitments and contingent liabilities (see Note 5)

  Partners' equity (deficit):
      General partners                                            (891)          (891)
      Limited partners, 79,846 limited partnership units
         outstanding at September 30, 1997 and
         December 31, 1996                                      33,773         35,550
                                                             ---------      ---------

         Total partners' equity                                 32,882         34,659
                                                             ---------      ---------

         Total liabilities and partners' equity              $  55,898      $  52,695
                                                             =========      =========

</TABLE>
















                 See accompanying notes to financial statements.






                                  Page 3 of 18
<PAGE>



                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP
<TABLE>
<CAPTION>
                      Consolidated Statements of Operations
          (in thousands, except per unit amounts and units outstanding)
                                   (Unaudited)


                                        Three months ended            Nine months ended
                                           September 30,                September 30,
                                        -------------------          -------------------
                                          1997       1996              1997       1996
                                        --------   --------          --------   --------
<S>                                     <C>        <C>               <C>        <C>
 Revenue:
   Rental income                        $  1,767   $  1,410          $  5,054   $  3,579
   Interest and other income                   6         56                17        110
                                        --------   --------          --------   --------

        Total revenue                      1,773      1,466             5,071      3,689
                                        --------   --------          --------   --------

Expenses:
   Operating                                 853        583             2,323      1,671
   Interest expense                          515        390             1,376        968
   Depreciation and amortization             447        280             1,267      1,008
   Loss on sale of real estate                64        ---                64        ---
   Provision for impairment of land
    held for sale                            ---        ---               378        ---
   Expenses associated with
    undeveloped land                         154        290               479        692
   General and administrative expenses       320        283               961        938
                                        --------   --------          --------   --------

        Total expenses                     2,353      1,826             6,848      5,277
                                        --------   --------          --------   --------

Net loss                                $   (580)  $   (360)         $ (1,777)  $ (1,588)
                                        ========   ========          ========   ========

Net loss per limited partnership unit   $  (7.26)  $  (4.51)         $ (22.25)  $ (19.89)
                                        ========   ========          ========   ========

Weighted average number of limited
  partnership units outstanding during
  each period used to compute net loss
  per limited partnership unit            79,846      79,846           79,846     79,846
                                        ========  ==========         ========   ========

</TABLE>






                 See accompanying notes to financial statements.






                                  Page 4 of 18
<PAGE>

                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                      Consolidated Statements of Partners'
                      Equity (Deficit) For the nine months
                        ended September 30, 1997 and 1996
                                 (in thousands)
                                   (Unaudited)




                                      General      Limited
                                      Partners     Partners       Total
                                     --------     ---------     ---------

Balance at December 31, 1996         $   (891)    $  35,550     $  34,659

Net loss                                  ---        (1,777)       (1,777)
                                     --------     ---------     ---------

Balance at September 30, 1997        $   (891)    $  33,773     $  32,882
                                     ========     =========     =========




Balance at December 31, 1995         $   (891)    $  37,060     $  36,169

Net loss                                  ---        (1,588)       (1,588)
                                     --------     ---------     ---------

Balance at September 30, 1996        $   (891)    $  35,472     $  34,581
                                     ========     =========     =========

















                 See accompanying notes to financial statements.






                                  Page 5 of 18
<PAGE>



                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP
<TABLE>
<CAPTION>
                      Consolidated Statements of Cash Flows
                                 (in thousands)
                                   (Unaudited)

                                                                 Nine months ended
                                                                   September 30,
                                                                  1997       1996
                                                               --------    --------
<S>                                                            <C>         <C>
Cash flows from operating activities:
  Net loss                                                     $ (1,777)   $ (1,588)
  Adjustments to reconcile net loss to net cash
   used for operating activities:
     Depreciation and amortization                                1,267       1,008
     Amortization of loan fees, included in interest expense         76          53
     Provision for impairment of land held for sale                 378         ---
     Loss on sale of real estate                                     64         ---
     Changes in certain assets and liabilities:
          Accounts and interest receivable                          (51)        (52)
          Deferred leasing commissions                             (286)        (57)
          Prepaid expenses and other assets                        (336)       (133)
          Accounts payable and accrued expenses                     129         188
          Interest payable                                           18          47
                                                               --------    --------

  Net cash used for operating activities                           (518)       (534)
                                                               --------    --------

Cash flows from investing activities:
  Net proceeds from sale of real estate                             699         248
  Additions to real estate and property development costs        (3,687)     (6,823)
                                                               --------    --------

  Net cash used for investing activities                         (2,988)     (6,575)
                                                               --------    --------

Cash flows from financing activities:
  Net loan proceeds                                               6,500      12,136
  Decrease (increase) in restricted cash, net                      (269)        826
  Payment of loan fees                                             (122)       (211)
  Notes payable principal payments                               (1,685)     (6,575)
                                                               --------    --------

  Net cash provided by financing activities                       4,424       6,176
                                                               --------    --------

Net increase (decrease) in cash and cash equivalents                918        (933)

Cash and cash equivalents at beginning of period                     97       1,296
                                                               --------    --------

Cash and cash equivalents at end of period                     $  1,015    $    363
                                                               ========    ========
</TABLE>

                                  - continued -




                                  Page 6 of 18
<PAGE>


                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP
<TABLE>
<CAPTION>
                Consolidated Statements of Cash Flows - continued
                                 (in thousands)
                                   (Unaudited)

                                                                 Nine months ended
                                                                   September 30,
                                                                 1997        1996
                                                               --------    --------


<S>                                                            <C>         <C>
Supplemental disclosure of cash flow information:
     Cash paid for interest                                    $  1,282    $    864
                                                               ========    ========

Supplemental disclosure of net proceeds from sale
 of real estate:
     Sales price of real estate                                $    936    $    ---
     Less:  Closing and other costs                                (237)        ---
                                                               --------    --------

Net proceeds from sale of real estate                          $    699    $    ---
                                                               ========    ========

Supplemental disclosure of additions to real estate
 and property development costs:
     Purchase price of real estate                             $ (1,750)   $    ---
     Reduction of note receivable                                   405         ---
     Additions to real estate and property development costs     (2,342)     (6,823)
                                                               --------    --------

Net additions to real estate and property development costs    $ (3,687)   $ (6,823)
                                                               ========    ========

Supplemental disclosure of non-cash refinancing activity:
   New financing                                               $  7,700    $ 12,136
   Original financing paid off in escrow                         (1,200)        ---
                                                               --------    --------

Net loan proceeds                                              $  6,500    $ 12,136
                                                               ========    ========

</TABLE>









                 See accompanying notes to financial statements.






                                  Page 7 of 18
<PAGE>


                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                               September 30, 1997
                                   (Unaudited)



Note 1.  THE PARTNERSHIP AND SIGNIFICANT ACCOUNTING POLICIES

In the opinion of Rancon Financial Corporation ("RFC") and Daniel Lee Stephenson
(the  "Sponsors")  and  Glenborough   Corporation   (successor  by  merger  with
Glenborough Inland Realty  Corporation),  the accompanying  unaudited  financial
statements  contain  all  adjustments   (consisting  of  only  normal  accruals)
necessary to present  fairly the financial  position of Rancon Realty Fund IV, A
California Limited  Partnership (the "Partnership") as of September 30, 1997 and
December 31, 1996,  and the related  statements of operations  for the three and
nine months  ended  September  30, 1997 and 1996,  and the changes in  partners'
equity (deficit) and cash flows for the nine months ended September 30, 1997 and
1996.

In December  1994, RFC entered into an agreement  with  Glenborough  Corporation
("Glenborough")  whereby  RFC sold to  Glenborough  the  contract to perform the
rights and responsibilities under RFC's agreement with the Partnership and other
related  Partnerships  (collectively,  the "Rancon  Partnerships") to perform or
contract  on  the  Partnership's   behalf,  for  financial,   accounting,   data
processing,   marketing,   legal,  investor  relations,  asset  and  development
management and consulting services for the Partnership for a period of ten years
or until the liquidation of the Partnership,  whichever comes first. Pursuant to
the contract,  the Partnership will pay Glenborough for its services as follows:
(i) a specified asset  administration fee, which is fixed for five years subject
to reduction in the year  following the sale of assets,  currently  $989,000 per
year;  (ii) sales fees of 2% for improved  properties  and 4% for land;  (iii) a
refinancing fee of 1% and (iv) a management fee of 5% of gross rental  receipts.
As part of this  agreement,  Glenborough  will  perform  certain  tasks  for the
General  Partner of the Rancon  Partnerships  and RFC agreed to  cooperate  with
Glenborough, should Glenborough attempt to obtain a majority vote of the limited
partners  to   substitute   itself  as  the  General   Partner  for  the  Rancon
Partnerships.  This agreement became effective  January 1, 1995.  Glenborough is
not an affiliate of RFC or the Partnership.

Consolidation  - In  order  to  satisfy  certain  lender  requirements  for  the
Partnership's  1996 loan secured by Service  Retail Center,  Promotional  Retail
Center,  and Carnegie  Business Center I, Rancon Realty Fund IV Tri-City Limited
Partnership,  a Delaware limited  partnership  ("RRF IV Tri-City") was formed in
April 1996. The three  properties  securing the loan were  contributed to RRF IV
Tri-City  by the  Partnership.  The  limited  partner of RRF IV  Tri-City is the
Partnership and the general partner is RRF IV, Inc., a corporation  wholly owned
by the  Partnership.  Since  the  Partnership  indirectly  owns  100%  of RRF IV
Tri-City,  the financial  statements  of RRF IV Tri-City have been  consolidated
with  those  of the  Partnership.  All  intercompany  transactions  and  account
balances have been eliminated in consolidation.

Reclassification  - Certain 1996 balances have been  reclassified  to conform to
the current period presentation.





                                  Page 8 of 18
<PAGE>


                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                               September 30, 1997
                                   (Unaudited)

Note 2.  REFERENCE TO 1996 AUDITED FINANCIAL STATEMENTS

These  unaudited  financial  statements  should be read in conjunction  with the
Notes  to  Financial  Statements  included  in the  December  31,  1996  audited
financial statements.

Note 3.  REAL ESTATE INVESTMENTS

On February 28,  1997,  the  Partnership  purchased  the  property  known as TGI
Friday's  for  $1,750,000.  The  Partnership  paid  $1,345,000  in cash  and the
existing $405,000 note receivable secured by a deed of trust on the TGI Friday's
property was retired as part of this transaction.

In May 1997,  construction  of the Circuit City site in the  Tri-City  Corporate
Center  was  completed  for a total  cost of  approximately  $3,840,000  and was
classified as rental property.

In the second and third quarters of 1997, due to the sales price of pending land
sales,  management  concluded  that  the  carrying  value  of the  Partnership's
investment  in the land held for sale in Temecula,  California  was in excess of
its fair value and  provisions  for  impairment of the land held for sale in the
cumulative amount of $442,000 were recorded. Sales of four lots, with a carrying
value totaling $1,079,000, were completed in the third quarter of 1997 (see Note
7). As management had written the land down to its estimated fair value, no gain
or loss on the sales was recorded.

On September 30, 1997, the  Partnership  entered into a definitive  agreement to
sell all of its real estate  assets to  Glenborough  Realty  Trust  Incorporated
("GLB"),  a  publicly  traded  real  estate  investment  trust  and  Glenborough
Properties,  L.P.  ("Properties"),  the  operating  partnership  of GLB,  for an
aggregate price of  $48,204,500.  This sale is subject to approval by a majority
vote of the limited  partners of the Partnership.  Accordingly,  there can be no
assurance that this transaction will be completed.

If the sale to GLB and Properties is completed,  management intends to liquidate
the Partnership as soon as possible  following the sale. A Consent  Solicitation
Statement  (the  "Solicitation")  sent to the  Unitholders  on October 17, 1997,
detailing  these two  transactions  is hereby  incorporated  by reference to the
Definitive Schedule 14A - Proxy Statement filed with the Securities and Exchange
Commission  on  October 17, 1997.  The General Partner  estimates  that the  net
proceeds from the sale of the real estate assets to GLB and Properties  together
with the net cash  proceeds  from the  payment  by the  General  Partner  of its
negative capital account will equal  approximately $316 per limited  partnership
unit.







                                  Page 9 of 18
<PAGE>

                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                               September 30, 1997
                                   (Unaudited)


On October 17,  1997,  a  Solicitation  was sent to the limited  partners of the
Partnership  proposing to sell all of its real estate assets and then  liquidate
the Partnership. See Note 3 for further detail of the proposed transactions.  As
of November 13 1997,  47,420  Unitholders or 59% of the total  outstanding Units
have responded with 40,698  Unitholders or 51% of the total outstanding Units in
favor,  5,789 Unitholders or 7% against,  492 Unitholders or 1% abstaining,  and
441 Unitholders or less than 1% pending.  Final tabulation of the results of the
Solicitation will be made on November 21, 1997 unless the Solicitation period is
extended.

Note 4.  RESTRICTED CASH

On March 12, 1997,  pursuant to the Inland  Regional  Center  ("IRC")  lease,  a
$269,000  certificate  of deposit ("CD") was opened.  The $269,000  represents a
security  deposit,  that the Partnership  will retain in the event of default by
IRC.  Provisions  in the  lease  allow for the  security  deposit  plus  accrued
interest to be  converted  to prepaid  rent after the 60th month of the lease if
the tenant is not in default of the provisions of the lease.

Note 5.  COMMITMENTS AND CONTINGENT LIABILITIES

The Partnership is contingently  liable for subordinated real estate commissions
payable to the Sponsor in the amount of $643,000  for sales that  transpired  in
previous years. The subordinated real estate  commissions are payable only after
the  Limited  Partners  have  received  distributions  equal to  their  original
invested  capital  plus a  cumulative  non-compounded  return of six percent per
annum on their adjusted invested capital ("priority return"). If the Partnership
completes the sale as described in Note 3 and liquidates,  the Limited  Partners
will not have received their priority  return and the  subordinated  real estate
commissions will not be paid.

Note 6.  NOTES PAYABLE

On January 31, 1997, the Partnership obtained an unsecured promissory note for a
$1,500,000 revolving line of credit from Glenborough at a rate of eleven percent
(11%) per annum to fund capital  expenditures  and other  partnership  costs. By
April 1997, the Partnership had drawn the total $1,500,000 available on the line
of credit and the loan was paid off in May 1997,  from new  permanent  financing
proceeds (see below).

On February 28, 1997, the Partnership  obtained a $1,200,000 unsecured loan from
Wells Fargo Bank at an interest  rate of one percent (1%) per annum in excess of
the bank "Prime Rate." The loan was used to finance the  acquisition  of the TGI
Friday's  property.  This  loan was  also  paid  off in May  1997,  from the new
permanent financing proceeds (see below).




                                 Page 10 of 18
<PAGE>


                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                               September 30, 1997
                                   (Unaudited)

On May 8, 1997, the Partnership  obtained new permanent  financing of $5,000,000
from Wells Fargo Bank,  secured by real estate  referred to as Circuit  City and
TGI  Friday's.  The  Partnership  used the  proceeds  to pay off the  $1,500,000
Glenborough  line of credit and $1,221,000 to pay off the unsecured  Wells Fargo
Bank loan (including accrued interest).  In addition,  the Partnership  incurred
approximately  $193,000 in loan fees and closing  costs and  $1,956,000  for the
Circuit City tenant improvement allowance,  of which $34,000 was paid on October
22,  1997,   following   final  and   satisfactory   completion  of  all  tenant
improvements. The remaining net proceeds of approximately $130,000 were added to
the Partnership's cash reserves.

The new loan  bears  interest  at one  percent  (1%) per  annum in excess of the
lender's "Prime Rate," requires monthly interest-only  payments,  and matures on
May 31, 1999 with an option for a one-year extension.

Note 7.  SALE OF REAL ESTATE

On July 1, 1997 and August 7, 1997, the Partnership  sold a total of four of the
eleven Rancon Towne Village lots to unaffiliated entities for an aggregate sales
price of $936,000. Since provisions for impairment of the land held for sale had
previously been recorded,  there is no reportable gain or loss on the sales. The
gross sales  proceeds  were used to partially pay down  previously  subordinated
real  estate  commissions,  with the  balance  added to the  Partnership's  cash
reserves.







                                 Page 11 of 18
<PAGE>


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

LIQUIDITY  AND CAPITAL RESOURCES

At September 30, 1997,  the  Partnership  had cash of  $1,015,000  (exclusive of
restricted cash). The remainder of the Partnership's assets consist primarily of
its real estate investments, totaling approximately $51,878,000.

The  Partnership's  primary  source of funds  consist of cash provided by rental
activities,  permanent  financing,  construction  financing,  property sales and
interest  income on certificates of deposit and other deposits of funds invested
temporarily, pending their use in the development of properties.

The  Partnership's  improved  cash  position at September  30, 1997  compared to
December 31, 1996 is largely due to the placement of the Inland  Regional Center
into service in June 1996, the acquisition of TGI Friday's in February 1997, the
net  proceeds  from the sale of four lots in Rancon  Towne  Village  in July and
August 1997, and the net proceeds from financing obtained in 1997 (see below).

On May 8, 1997, the Partnership  obtained permanent financing of $5,000,000 from
Wells Fargo Bank,  secured by real  estate  referred to as Circuit  City and TGI
Friday's.  The  Partnership  used the proceeds to pay off a  $1,500,000  line of
credit and a  $1,221,000  unsecured  Wells  Fargo Bank loan.  In  addition,  the
Partnership incurred  approximately  $193,000 in loan fees and closing costs and
$1,956,000 for the Circuit City tenant improvement allowance.  The remaining net
proceeds  of  approximately  $130,000  were  added  to  the  Partnership's  cash
reserves.

On July 1, 1997 and  August 7,  1997,  the  Partnership  sold four of the eleven
remaining available lots of Rancon Towne Village to unaffiliated entities for an
aggregate  sales price of $936,000.  The gross sales  proceeds  were used to pay
down  previously  subordinated  real  estate  commissions,  with the  balance of
$738,000 added to the Partnership's cash reserves.

On September 30, 1997, the  Partnership  entered into a definitive  agreement to
sell all of its real estate  assets to  Glenborough  Realty  Trust  Incorporated
("GLB"),  a real estate  investment  trust publicly traded on the New York Stock
Exchange and Glenborough Properties, L.P., the operating partnership of GLB, for
an  aggregate  price of  $48,204,500.  This sale is  subject  to  approval  by a
majority vote of the limited partners of the Partnership. Accordingly, there can
be no assurance that this transaction will be completed.

On  October  17,  1997,  the  Partnership   sent  a  proxy  to  its  Unitholders
(incorporated  by reference  to the  Definitive  Schedule 14A - Proxy  Statement
filed on October 17, 1997),  requesting the Unitholders' consent to the proposed
bulk  sale  of its  real  estate  assets  and a  subsequent  liquidation  of the
Partnership.  The General Partner  estimates that the net proceeds from the sale
together with the net cash  proceeds from the payment by the General  Partner of
its  negative  capital  account  will  net to  approximately  $316  per  limited
partnership  unit.  As of November 13, 1997,  47,420





                                 Page 12 of 18
<PAGE>


Unitholders  or 59% of the total  outstanding  Units have  responded with 40,698
Unitholders or 51% of the total outstanding Units in favor, 5,789 Unitholders or
7% against,  492 Unitholders or 1% abstaining,  and 441 Unitholders or less than
1% pending.  However,  there is no assurance that the contemplated  transactions
will be completed.


Tri-City

The  Partnership  currently  owns  the  following  properties  in  the  Tri-City
Corporate  Center  area  within  the Inland  Empire  submarket  of the  Southern
California region:

          Property                            Type                  Square Feet
 ----------------------------   ----------------------------------  -----------
 One Vanderbilt                 Four story office building             73,809
 Two Vanderbilt                 Four story office building             69,094
 Carnegie Business Center I     Two light industrial buildings         62,605
 Service Retail Center          Two retail buildings                   20,780
 Promotional Retail Center      Four strip center retail buildings    104,865
 Inland Regional Center         Two story office building              81,079
 TGI Friday's                   Restaurant                              9,386
 Circuit City                   Build-to-suit retail building          39,123

The  Partnership  also owns  approximately  26 acres of  unimproved  land in the
Tri-City area.

Additionally,  the  Partnership  owns the  Shadowridge  Woodbend  Apartments  (a
240-unit  apartment  complex)  in  Vista,  California  plus  unimproved  land in
Riverside County, California as described below.

Lake Elsinore

Lake  Elsinore is 24.8 acres of  undeveloped  land,  commercially  zoned in Lake
Elsinore,  Riverside County, California.  Offsite improvements remain on hold at
the Lake Elsinore property and there is no development  activity planned for the
near future.

Perris

Perris is 17.14 acres of unimproved  land near Perris Lake in Perris,  Riverside
County,  California.  There has been no  development  of the Perris  property to
date.

Temecula

The  subdivision of the 12.4 gross acre property in Temecula,  California,  also
known as Rancon Towne Village,  into 12 lots was approved  January 2, 1996. From
February  1996 through  August 1997,  the  Partnership  sold five lots  totaling
approximately  3.7  acres  for a  cumulative  sales  price  of  $1,211,000.  The
Partnership has executed a sales contract on one lot consisting of approximately
1.06 acres for a sales price of $270,000 while the remaining lots continue to be
marketed for sale.





                                 Page 13 of 18
<PAGE>


The Partnership has a $100,000  certificate of deposit ("CD") held as collateral
for subdivision  improvements and monument bonds related to the land for sale in
Temecula,  California.  It is anticipated  that this CD will be released  during
1997.


General

Rental property  increased by $5,120,000 to $43,214,000 as of September 30, 1997
from $38,094,000 as of December 31, 1996 primarily due to the acquisition of the
TGI Friday's property, the reclassification of Circuit City from construction in
progress to rental property,  and the tenant improvement  allowance paid for the
completion of the Circuit City property.


RESULTS OF OPERATIONS

Revenues

Rental income for the nine and three months ended  September 30, 1997  increased
$1,475,000  or 41% and  $357,000 or 25%  compared  to the nine and three  months
ended  September  30,  1996,  respectively,  primarily  as a result  of: (i) the
commencement  of operations  of the Inland  Regional  Center in June 1996;  (ii)
ground  lease  revenue  earned  from  Circuit  City  as the  project  was  under
construction from September 1996 through May 1997; (iii) the commencement of the
Circuit  City  operating  lease in May  1997;  (iv) the  acquisition  of the TGI
Friday's  property in February  1997;  and (v) the  increased  occupancy  at One
Vanderbilt,  Two Vanderbilt, and Shadowridge Woodbend Apartments during the nine
and three months ended  September  30, 1997 over the nine and three months ended
September 30, 1996. These sources of increased revenue were slightly offset with
a decrease in rental income  associated with a decrease in occupancy at Carnegie
Business Center I.

Occupancy  rates at the  Partnership's  Tri-City  properties as of September 30,
1997 and 1996 were as follows:

                                                          September 30,
                                                        1997        1996
                                                      ------       ------ 
      One Vanderbilt                                     75%         64%
      Two Vanderbilt                                     93%         25%
      Service Retail Center                             100%        100%
      Carnegie Business Center I                         69%         87%
      Promotional Retail Center-Phase I                  97%         97%
      Inland Regional Center (commenced operations
         June, 1996)                                    100%        100%
      TGI Friday's (acquired February 28, 1997)         100%         n/a
      Circuit City (commenced operations May, 1997)     100%         n/a

As of September 30, 1997, tenants at Tri-City occupying  substantial portions of
leased rental space  included:  (i) Arrowhead  Central Credit Union with a lease
which  expires in September  2001;  (ii) Inland  Empire Health Plan with a lease
through March 2002; (iii) ITT Educational Services with a lease which expires in
December 2004;  (iv) Inland  Regional Center with a lease through July 2009;





                                 Page 14 of 18
<PAGE>


(v)CompUSA  with a lease through August 2003; (vi) PetsMart with a lease through
January 2009;  (vii) Circuit City with a lease through  January 2018; and (viii)
Fidelity  National Title with a lease through August 2003.  These eight tenants,
in the  aggregate,  occupied  approximately  272,000  square feet of the 461,000
total leasable  square feet at Tri-City as of September 30, 1997 and account for
62% of the rental  income  generated  at  Tri-City  and 45% of the total  rental
income for the Partnership during the nine months ended September 30, 1997.

Interest income decreased  $93,000 or 85% and $50,000 or 89% during the nine and
three  months  ended  September  30, 1997  compared to the nine and three months
ended September 30, 1996,  respectively,  due to a lower average cash balance in
1997 as a result of additions to real estate and property  development  costs in
the second half of calendar year 1996 and the elimination of the interest income
on the $405,000 note  receivable  that was retired as part of the acquisition of
TGI Friday's on February 28, 1997.

Expenses:

Operating expenses increased $652,000 or 39% and $270,000 or 46% during the nine
and three months ended  September 30, 1997 compared to the nine and three months
ended  September  30,  1996,  respectively,  due to: (i) the  addition of Inland
Regional Center as an operating  property in June 1996; (ii) the addition of TGI
Friday's  as an  operating  property  in February  1997;  (iii) the  addition of
Circuit City as an operating  property in May 1997;  (iv) increased  utility and
operational expenses related to increased occupancy at selected properties;  and
(v) property tax refunds received in 1996.

Interest expense  increased  $408,000 or 42% and $125,000 or 32% during the nine
and three months ended  September 30, 1997 compared to the same periods in 1996,
respectively, due to the Partnership's increased debt to finance the acquisition
and construction of properties over the past year.

Depreciation  and amortization for the nine and three months ended September 30,
1997  increased  $259,000  or 26% and  $167,000  or 60% from the nine and  three
months  ended  September  30, 1996,  respectively,  primarily as a result of the
acquisition/operations  of the Inland Regional Center,  TGI Friday's and Circuit
City properties,  as well as additions to buildings and tenant improvements over
the past year.

Expenses associated with undeveloped land decreased $213,000 or 31% and $136,000
or 47% during the nine and three months ended September 30, 1997 compared to the
nine and  three  months  ended  September  30,  1996,  respectively,  due to the
reduction of property taxes resulting from a reduction by the Assessor's  office
of assessed values of selected parcels of land.

In the second and third quarters of 1997, due to the sales price of pending land
sales,  management  concluded  that  the  carrying  value  of the  Partnership's
investment  in the land held for sale in Temecula,  California  was in excess of
its fair value and  provisions  for  impairment of the land held for sale in the
cumulative amount of $442,000 were recorded.





                                 Page 15 of 18
<PAGE>

General and  administrative  expenses  increased $37,000 or 13% during the three
months ended September 30, 1997 compared to the three months ended September 30,
1996  due to the  costs  incurred  in 1997  related  to the  proposed  sale  and
liquidation of the Partnership discussed earlier.



                                 Page 16 of 18
<PAGE>

Part II. OTHER INFORMATION


Item 1.  Legal Proceedings

         None.

Item 2.  Changes in Securities

         Not applicable.

Item 3.  Defaults Upon Senior Securities

         Not applicable.

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

         Incorporated  by  reference  to Note 3 of the  Notes to  Consolidated
         Financial Statements.

Item 5.  Other Information

         None.

Item 6.  Exhibits and Reports on Form 8-K

         (a)  Exhibits:

              #27 - Financial Data Schedule

         (b)  Reports on Form 8-K:

              None.








                                 Page 17 of 18
<PAGE>



                                   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.


                                       RANCON REALTY FUND IV,
                                       a California Limited Partnership
                                       (Registrant)




Date: November 13, 1997                By:/s/ Daniel L. Stephenson
                                          ------------------------
                                          Daniel L. Stephenson
                                          Chief Executive Officer and
                                          Chief Financial Officer of
                                          Rancon Financial Corporation,
                                          General Partner of
                                          Rancon Realty Fund IV,
                                          a California Limited Partnership



                                 Page 18 of 18
<PAGE>