Page 1 of 1

                                    FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


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

                For the quarterly period ended September 30, 2000

                                       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                         33-0016355
         -------------------------------            -------------
         (State or other jurisdiction of            (I.R.S. Employer
         incorporation or organization)           Identification  No.)

      400 South El Camino Real, Suite 1100
              San Mateo, California                    94402-1708
           ---------------------------              -------------
              (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 November 14,2000: 76,659

                                  Page 1 of 18
<PAGE>


PART I.             FINANCIAL INFORMATION

Item 1.             Financial Statements

                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                           Consolidated Balance Sheets
                       (in thousands, except unit amounts)

<TABLE>
<CAPTION>
<S>                                                                       <C>                   <C>
                                                                            September 30,         December 31,
                                                                                2000                  1999
                                                                             (Unaudited)            (Audited)
                                                                          ------------------    --------------
Assets
Investments in real estate:
     Rental property, net of accumulated depreciation of
       $15,259 and $14,144 at September 30, 2000 and
       December 31, 1999, respectively                                    $      32,590         $       32,680
     Land held for development                                                    2,003                  1,655
     Land held for sale                                                             219                    545
                                                                          -------------         --------------

         Total real estate investments                                           34,812                 34,880

     Cash and cash equivalents                                                    6,113                  6,133
     Restricted cash                                                                269                    269
     Deferred financing costs and other fees, net of
       accumulated amortization of $1,702 and $1,486 at
       September 30, 2000 and December 31, 1999,
       respectively                                                               1,163                  1,267
     Prepaid expenses and other assets                                            1,239                  1,220
                                                                          -------------         --------------

         Total assets                                                     $      43,596         $       43,769
                                                                          =============         ==============

Liabilities and Partners' Equity (Deficit)
Liabilities:
     Notes payable                                                        $      15,624         $       15,834
     Accounts payable and other liabilities                                         935                    589
                                                                          -------------         --------------

          Total liabilities                                                      16,559                 16,423
                                                                          -------------         --------------

Commitments and contingent liabilities (see Note 4)                                  --                     --

Partners' Equity (Deficit):
     General partners                                                              (645)                  (645)
     Limited partners, 76,671 and 76,765 limited partnership
       units outstanding at September 30, 2000 and December
       31, 1999, respectively                                                     27,682                27,991
                                                                          --------------        --------------

           Total partners' equity                                                27,037                 27,345
                                                                          -------------         --------------

           Total liabilities and partners' equity                         $      43,596         $       43,769
                                                                          =============         ==============


          See accompanying notes to consolidated financialstatements.

</TABLE>



                                  Page 2 of 18
<PAGE>


                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                      Consolidated Statements of Operations
          (in thousands, except per unit amounts and units outstanding)
                                   (Unaudited)
<TABLE>
<CAPTION>
<S>                                                 <C>             <C>              <C>             <C>

                                                       Three months ended                 Nine months ended
                                                            September 30,                   September 30,
                                                    -----------------------------    ----------------------------
                                                       2000             1999            2000            1999
                                                    ------------    -------------    ------------    -----------
 Revenues
    Rental income                                   $    1,633      $    1,619       $     5,092     $     4,943
    Interest and other income                               70              40               214            150
                                                    ----------      ----------       -----------     ----------
            Total revenues                               1,703           1,659             5,306           5,093
                                                    ----------      ----------       -----------     -----------

 Expenses
    Operating                                              669             702             2,029           1,986
    Interest expense                                       372             383             1,121           1,142
    Depreciation and amortization                          428             403             1,254           1,198
    Loss on sales of real estate                            --              --                23               4
    Expenses  associated  with
       undeveloped land                                    123             121               336             339
    General and administrative                             294             250               783             749
    Proposed dissolution costs                               6             138                38             292
                                                    ----------      ----------       -----------     -----------
            Total expenses                               1,892           1,997             5,584           5,710
                                                    ----------      ----------       -----------     -----------

    Net loss                                        $     (189)     $     (338)      $      (278)    $      (617)
                                                    ===========     ===========      ============    ============

 Net loss per limited partnership unit              $    (2.46)     $    (4.40)      $     (3.62)    $     (8.03)
                                                    ===========     ===========      ============    ============

 Distributions per limited partnership unit:
       From net income                              $        --     $        --      $        --     $        --
       Representing return of capital                        --              --               --              --
                                                    -----------     -----------      -----------     -----------

              Total distributions per limited
              partnership unit                      $        --     $        --      $        --     $        --
                                                    ===========     ===========      ===========     ===========

 Weighted average number of limited  partnership
    units  outstanding  during each period used to
    compute net loss per limited partnership unit       76,688          76,765            76,734          76,765
                                                     ==========      ==========       ===========     ===========

</TABLE>





          See accompanying notes to consolidated financial statements.

                                  Page 3 of 18
<PAGE>


                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

            Consolidated Statement of Partners' Equity (Deficit) For
                    the nine months ended September 30, 2000
                                 (in thousands)
                                   (Unaudited)

<TABLE>
<CAPTION>
<S>                                                      <C>                  <C>                 <C>

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

     Balance at December 31, 1999                        $        (645)       $      27,991       $      27,346

     Retirement of limited partnership units                        --                  (31)                (31)

     Net loss                                                       --                 (278)               (278)
                                                         -------------        --------------      --------------

     Balance at September 30, 2000                       $        (645)       $      27,682       $      27,037
                                                         ==============       =============       =============

</TABLE>


































          See accompanying notes to consolidated financial statements.


                                  Page 4 of 18
<PAGE>


                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                      Consolidated Statements of Cash Flows
                                 (in thousands)
                                   (Unaudited)

<TABLE>
<CAPTION>
<S>                                                                         <C>                    <C>
                                                                                     Nine months ended
                                                                                       September 30,
                                                                           ---------------------------------------
                                                                                2000                    1999
                                                                           ----------------        ---------------
Cash flows from operating activities:
     Net loss                                                              $        (278)          $        (617)
-
     Adjustments  to  reconcile  net  loss
       to net  cash  provided  by  operating activities:
         Loss on sales of real estate                                                 23                       4
         Depreciation and amortization                                             1,254                   1,198
         Amortization of loan fees, included in
           interest expense                                                           77                      82
         Changes in certain assets and liabilities:
           Deferred financing costs and other fees                                  (112)                   (230)
           Prepaid expenses and other assets                                         (19)                    210
           Accounts payable and other liabilities                                    346                     (79)
                                                                           -------------           --------------
           Net cash provided by operating activities                               1,291                     568
                                                                           -------------           -------------
Cash flows from investing activities:
     Net proceeds from sales of land                                                 290                     296
     Net additions to real estate investments                                     (1,360)                   (389)
                                                                           --------------          --------------
           Net cash used for investing activities                                 (1,070)                    (93)
                                                                           --------------          --------------
Cash flows from financing activities:
     Notes payable principal payments                                               (210)                   (125)
     Retirement of limited partnership units                                         (31)                     (1)
                                                                           --------------          --------------

           Net cash used for financing activities                                   (241)                   (126)
                                                                           --------------          --------------

Net (decrease) increase in cash and cash equivalents                                 (20)                    349

Cash and cash equivalents at beginning of period                                   6,133                   4,297
                                                                           -------------           -------------
Cash and cash equivalents at end of period                                 $       6,113           $       4,646
                                                                           =============           =============
Supplemental disclosure of cash flow information:
       Cash paid for interest                                              $       1,097           $       1,060
                                                                           =============           =============
       Interest capitalized                                                $          53           $          --
                                                                           =============           =============

</TABLE>





          See accompanying notes to consolidated financial statements.

                                  Page 5 of 18

<PAGE>

                              RANCON REALTY FUND IV
                        A California Limited partnership

                   Notes to Consolidated Financial Statements

                               September 30, 2000
                                   (Unaudited)

Note 1.      THE PARTNERSHIP AND ITS SIGNIFICANT ACCOUNTING POLICIES
             -------------------------------------------------------

In the opinion of Rancon Financial Corporation ("RFC") and Daniel Lee Stephenson
(the  "Sponsors"  or  "General  Partner")  and  Glenborough   Corporation,   the
Partnership's  asset and  property  manager  ("Glenborough"),  the  accompanying
unaudited consolidated 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, 2000 and December 31, 1999, the related unaudited  consolidated
statements of operations for the three and nine months ended  September 30, 2000
and 1999, and cash flows for the nine months ended September 30, 2000 and 1999.

Asset Sale and Dissolution Proposal
-----------------------------------

At the beginning of 1999, the Partnership's  business strategy had been to focus
on the eventual disposition of its assets at the optimal time and sales price. A
Consent  Solicitation  Statement (the "Solicitation") was sent to the holders of
limited partnership units ("Unitholders" or "Limited Partners") on July 6, 1999.
The  Solicitation  (incorporated  by reference to the Schedule 14A - Preliminary
Proxy Statement filed with the United States Securities and Exchange  Commission
("Commission")  in the second quarter of 1999),  discussed the General Partner's
proposal to sell all of the  Partnership's  assets  ("Asset Sale") and liquidate
the Partnership thereafter  ("Dissolution  Proposal"). A final tabulation of the
results of the  Solicitation was made on August 25, 1999, with holders of 54,010
Units,  or 88%,  of the Units  Voted in favor,  holders of 5,783  Units,  or 9%,
against and holders of 1,636 Units, or 3%, abstaining.

A total of 94 and 2 Units in 2000 and 1999, respectively,  were repurchased as a
result of Unitholders'  requests for the Partnership to take over such Units. As
of September 30, 2000, there were 76,671 Units outstanding.

After  extensive work on the potential sale of the Assets,  the General  Partner
has  determined  that,  at this time,  it is not  possible  to sell the Tri City
properties to the most qualified bidders.  The General Partner currently intends
to  retain  the Tri City  properties  and has  begun an  assessment  of  various
opportunities   to  develop   additional   parcels  of  undeveloped  land  on  a
build-to-suit basis.

Allocation of Net Income and Net Loss
-------------------------------------
Allocation  of net income and net losses are made  pursuant  to the terms of the
Partnership Agreement. Generally, net income from operations is allocated 90% to
the limited partners and 10% to the general partners. Net losses from operations
are allocated 99% to the limited  partners and 1% to the general  partners until
such time as a partner's  capital account is reduced to zero.  Additional losses
will be allocated  entirely to those  partners  with  positive  capital  account
balances until such balances are reduced to zero.

                                  Page 6 of 18
<PAGE>

Net income other than net income from operations  shall be allocated as follows:
(i) first, to the partners who have a deficit balance in their capital  account,
provided that, in no event shall the general  partners be allocated more than 5%
of the net income  other than net income  from  operations  until the earlier of
sale or disposition of  substantially  all of the assets or the  distribution of
cash (other than cash from operations) equal to the limited  partner's  original
invested  capital;  (ii) second, to the limited partners in proportion to and to
the extent of the  amounts  required to increase  their  capital  accounts to an
amount equal to the sum of the adjusted  invested capital of their units plus an
additional  cumulative  non-compounded  6%  return  per annum  (plus  additional
amounts  depending  on the date  units  were  purchased);  (iii)  third,  to the
partners in the minimum amount required to first equalize their capital accounts
in  proportion  to the number of units owned,  and then, to bring the sum of the
balances  of the  capital  accounts  of the  limited  partners  and the  general
partners  into the  ratio of 4 to 1; and (iv) the  balance,  if any,  80% to the
limited partners and 20% to the general partners.  In no event shall the general
partners be allocated  less than 1% of the net income other than net income from
operations for any period. Net loss other than net loss from operations shall be
allocated 99% to the limited partners and 1% to the general partners.

General Partner and Management Agreement
----------------------------------------

Effective January 1, 1995, Glenborough
entered into an 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.  Effective  January 1, 1998,  the
agreement was amended to eliminate  Glenborough's  responsibility  for providing
investor  relations  services  and  Preferred  Partnership  Services,   Inc.,  a
California corporation  unaffiliated with the Partnership,  contracted to assume
these services.  In August 1998, the management agreement was further amended to
provide  Glenborough  with a guarantee of a specified amount of asset management
and property  management fees through  December 31, 1999,  regardless of whether
the  Partnership  sold  any or all of its  properties  prior  to such  date.  In
exchange,  Glenborough  waived any and all claims related to liquidated  damages
under the agreement to which it may have otherwise been entitled.

The  Partnership  will  pay  Glenborough  for its  services  as  follows:  (i) a
specified  asset  management fee ($460,000 and $448,000 as of September 30, 2000
and  1999);  (ii)  sales  fees of 2% for  improved  properties  and 4% for  land
($13,000 as of September 30, 2000);  (iii) a refinancing  fee of 1% ($50,000 and
$49,750 as of September  30, 2000 and 1999) and (iv) a  management  fee of 5% of
gross  rental  receipts.  As part of this  agreement,  Glenborough  will perform
certain duties for the General Partner of the Rancon Partnerships. RFC agreed to
cooperate with Glenborough should Glenborough  attempt to obtain a majority vote
of the  limited  partners  to  substitute  itself as the  Sponsor for the Rancon
Partnerships. Glenborough is not an affiliate of RFC or the Partnership.

                                  Page 7 of 18
<PAGE>

Basis of Accounting
-------------------
The accompanying  unaudited consolidated financial statements have been prepared
on the  accrual  basis of  accounting  in  accordance  with  generally  accepted
accounting principles under the assumption that the Partnership will continue as
a going concern.

Use of Estimates
----------------
The preparation of financial  statements in conformity  with generally  accepted
accounting principles requires management to make estimates and assumptions that
affect  the  reported  amounts  of assets  and  liabilities  and  disclosure  of
contingent  assets and  liabilities at the date of the financial  statements and
the results of operations  during the  reporting  period.  Actual  results could
differ from those estimates.

Consolidation
-------------
In April 1996,  the  Partnership  formed Rancon Realty Fund IV Tri-City  Limited
Partnership,  a Delaware limited partnership ("RRF IV Tri-City"). As required by
the lender (Bear,  Stearns  Funding,  Inc.) of a $6,400,000 loan obtained by the
Partnership  in  1996,  the  Partnership  contributed  three  of  its  operating
properties  to RRF IV Tri-City to provide a bankruptcy  remote  borrower for the
lender. The loan, secured by the properties in RRF IV Tri-City,  has a principal
balance of $6,119,000 at September 30, 2000,  and matures on May 1, 2006 with an
8.744% fixed interest rate and a 25-year amortization of principal.  The limited
partner of RRF IV Tri-City is the  Partnership and the general partner is Rancon
Realty  Fund IV,  Inc.  ("RRF IV,  Inc."),  a  corporation  wholly  owned by the
Partnership. Since the Partnership owns 100% of RRF IV, Inc. and indirectly owns
100% of RRF IV Tri-City,  the  financial  statements  of RRF IV, Inc. and RRF IV
Tri-City have been consolidated with those of the Partnership. All inter-company
balances and transactions have been eliminated in the consolidation.

Note 2.     REFERENCE TO 1999 AUDITED FINANCIAL STATEMENTS
            ----------------------------------------------

These unaudited  consolidated financial statements should be read in conjunction
with the Notes to Financial Statements included in the December 31, 1999 audited
consolidated financial statements.

                                  Page 8 of 18
<PAGE>

Note 3.      SALES OF REAL ESTATE
             --------------------

On January 15, 1999, the Partnership sold approximately 17 acres of land located
in Perris, Riverside County,  California to an unaffiliated entity for $334,800.
The Partnership recognized a $4,000 loss on the sale.

On June 30, 2000,  the  Partnership  sold one of the two remaining  lots of land
(Lot 11) located in Temecula,  Riverside County,  California, to an unaffiliated
third party for $325,000. The Partnership recognized a $23,000 loss on sale.

Note 4.      COMMITMENTS AND CONTINGENT LIABILITIES
             --------------------------------------
The Partnership is contingently  liable for subordinated real estate commissions
payable to the Sponsors in the  aggregate  amount of $643,000 at  September  30,
2000 for sales that were  completed 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.  Since the circumstances under which these commissions would be payable
are limited, the liability has not been recognized in the accompanying financial
statements; however, the amount will be recorded if and when it becomes payable.

The Partnership is also  contingently  liable for a subordinated note payable in
connection  with  the  land  in  Temecula,   California,  that  the  Partnership
reacquired in June 1992 through a deed in lieu of foreclosure in satisfaction of
a $2,276,000 note receivable. The subordinated note payable and accrued interest
total $566,000 as of September 30, 2000. This amount is payable upon the sale of
the property  only after the  Partnership  receives the full amount of the prior
note receivable with accrued and unpaid interest, costs of development, costs of
sale,  and other amounts paid to obtain good title to the  property,  subject to
certain release  provisions.  Since the circumstances under which this liability
would be payable are  limited,  the note payable and accrued  interest  have not
been recorded in the accompanying  unaudited  consolidated financial statements;
however,  the amount will be recognized  prior to recording any gain on the sale
of the related land.





                                 Page 9 of 18
<PAGE>

Note 5.            NOTES PAYABLE
                   -------------
Notes payable as of September 30, 2000 and December 31, 1999 were as follows (in
thousands):
<TABLE>
<CAPTION>
<S>                                                                               <C>                      <C>
                                                                                       2000                  1999
                                                                                  ---------------        ------------
Note  payable  secured  by  first  deeds  of trust  on  Service  Retail  Center,
Promotional  Retail  Center  and  Carnegie  Business  Center I. The note,  which
matures  May 1,  2006,  is a  10-year,  8.744%  fixed  rate  loan with a 25-year
amortization requiring monthly payments of principal and interest totaling $53.    $    6,119              $    6,196

Note  payable  secured by first deed of trust on the IRC  building  with a fixed
interest rate of 8.75%,  monthly payments of principal and interest totaling $21
and a maturity date of April 23, 2001.                                             $    2,362              $    2,390

Note payable secured by first deed of trust on the One Vanderbilt building.  The
note bears a fixed  interest  rate of 9%.  Monthly  payments  of  principal  and
interest totaling $20 are due until the maturity date of January 1, 2005.          $    2,218              $    2,248

Note payable  secured by first deeds of trust on Circuit City and TGI  Friday's.
The note bears  interest  at a variable  rate of one  percent  (1%) per annum in
excess of the lender's  "Prime Rate" (10.5% as of September 30, 2000 and 9.5% as
of December 31, 1999), has a maturity date of April 30, 2001 and requires
monthly payments of principal and interest totaling $60.                            $    4,925              $    5,000
                                                                                  ---------------        ------------
                  Total notes payable                                              $   15,624$             $   15,834
                                                                                  ===============        ============
</TABLE>

Note 6.           SUBSEQUENT EVENTS
                  -----------------
In October 2000, the  Partnership  entered into a contract to sell the remaining
lot of land (Lot 10) located in Temecula,  Riverside County,  California,  to an
unaffiliated third party. Currently,  the buyer is completing its due diligence.
The contract  price for the land is $202,000 and the estimated time for close of
escrow is at February 2001. If completed, the Partnership expects a minimal loss
on this transaction.




                                 Page 10 of 18
<PAGE>

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

The following discussion of the Partnership's financial condition and results of
operations  should be read in conjunction  with the  Partnership's  December 31,
1999 audited  consolidated  financial  statements,  and the notes to the audited
consolidated financial statements.

Asset Sale and Dissolution Proposal
-----------------------------------
The Partnership's  properties consist of ten rental properties and approximately
23 acres of unimproved  land  (approximately  13,000 square feet in construction
phase) in the  Tri-City  Corporate  Centre in San  Bernardino,  California  (the
"Tri-City  Properties") and approximately 1 acre of unimproved land in Temecula,
California (the "Remaining Property").Subsequent to obtaining the consent of the
majority of the Unitholders, the General Partner grouped the Tri-City Properties
into packages of  properties  (such as separate  packages of retail  properties,
office  properties and unimproved land) and included  properties in the Tri-City
Corporate  Centre  which  are  owned  by  Rancon  Realty  Fund V ("Fund  V"),  a
partnership  also sponsored by the General  Partner.  Bidders for any package of
properties containing Tri-City Properties and Fund V properties were required to
specify how their overall bid was allocated  among the individual  properties in
the package,  and the  proceeds and expenses  from the sales of any such package
were to be  apportioned  between  the  Partnership  and Fund V based  upon  such
allocation.  The General Partner hired an independent real estate firm to market
the properties and to prepare marketing  materials and informational  brochures.
The informational brochures were presented to a number of prospective buyers and
at the end of  September  1999,  the  General  Partner  had  received  39 signed
confidentiality agreements requesting offering memorandums.  The General Partner
assessed  all  offers on the  properties  in an effort to  achieve  the  highest
possible sales price and return value for the  properties.  The General  Partner
closed  the  bidding  process  with a request  for "best and final  offers"  and
received six final bids on the Tri-City  properties in early  November  1999. In
November 1999, the General  Partner  entered into a due diligence  period with a
potential  buyer.  In January  2000,  this due diligence  period was  terminated
largely  due to the impact of rising  interest  rates on the  potential  buyer's
ability to fund the purchase price.  The General Partner  subsequently  received
three  written  offers from  prospective  buyers and selected one. In June 2000,
this  prospective  buyer  was  completing  its due  diligence  on the  Tri  City
properties,  and the Partnership was preparing a Purchase and Sale Agreement for
signature.  Interest rates  continued to rise, and the buyer  determined that it
was unable to fund the acquisition due to the changing economic conditions.

After  extensive work on the potential sale of the Assets,  the General  Partner
has  determined  that,  at this time,  it is not  possible  to sell the Tri City
properties to the most qualified bidders.  The General Partner currently intends
to  retain  the Tri City  properties  and has  begun an  assessment  of  various
opportunities   to  develop   additional   parcels  of  undeveloped  land  on  a
build-to-suit  basis. This aligns with the General Partner's goals of increasing
revenues at the Tri-City Properties and increasing distributions to Unitholders.

The  discussion  above  contains   forward-looking   statements   regarding  the
Partnership's plans, goals and expectations,  including statements regarding the
Partnership's  estimates of sales  proceeds and future  distributions  resulting
from the Asset Sale, estimates of the timing of the sale of the properties,  the
dissolution  of  the  Partnership  and  the   distribution  of  sales  proceeds.
Forward-looking  statements  are  necessarily  speculative,  there being certain
risks and  uncertainties  that could  cause  actual  events or results to differ
materially  from  those  referred  to in  the  forward-looking  statements.  All
forward-looking  statements  included in this document are based on  information
available to the  Partnership on the date hereof,  and reflect the best judgment
of the management of the Partnership.  The General  Partner's  current plans are
subject to change,  both as a result of changes in general business and economic
conditions  as well as
                                 Page 11 of 18
<PAGE>

changes in the local real estate markets where the Partnership's  properties are
located.  There can be no assurance that the Asset Sale and Dissolution Proposal
will be  consummated,  or if and  when  the  properties  will be sold  that  the
proceeds will be distributed,  and the Partnership liquidated. The timing of any
sale of the  Partnership's  properties,  the  distribution of proceeds,  and the
liquidation  of  the   Partnership   are  subject  to  various  and  significant
uncertainties,  many of which are beyond  the  Partnership's  control  and which
could  delay  any  sale  of the  Partnership's  properties,  liquidation  of the
Partnership,  and distribution of proceeds significantly beyond the time periods
estimated above.  Among such  uncertainties are the demand for the Partnership's
properties by potential  purchasers,  the  availability of capital for potential
purchasers,  the actual dates when properties could be sold, and the duration of
any installment sales of any of the properties.

LIQUIDITY AND CAPITAL RESOURCES
-------------------------------
At September 30, 2000,  the  Partnership  had cash of  $6,113,000  (exclusive of
$269,000 in restricted cash). The remainder of the Partnership's  assets consist
primarily  of  its  net  investments  in  real  estate,  totaling  approximately
$34,812,000  at  September  30,  2000,  which  includes  $32,590,000  in  rental
properties,  $2,003,000 of land held for  development  and $219,000 of land held
for sale.

The  Partnership's  restricted cash at September 30, 2000 consists of a $269,000
certificate  of deposit ("CD") for Inland  Regional  Center's  security  deposit
("IRC CD").  Pursuant to the lease, the IRC CD will be converted to prepaid rent
after the 60th month of the lease  (July 17,  2001) and will be applied  towards
the IRC's monthly rent until  exhausted,  provided that IRC is not in default of
the lease and IRC receives a five-year  extension for its contract term with the
State of California.

The  Partnership's  liabilities  at  September  30, 2000 include  notes  payable
totaling  approximately  $15,624,000,   which  consist  of  four  secured  loans
encumbering  properties  with an  aggregate  net  book  value  of  approximately
$25,171,000  and with maturity  dates ranging from April 23, 2001 through May 1,
2006. These notes require monthly  principal and interest  payments ranging from
$20,000 to $60,000. Three notes bear fixed interest rates between 8.744% and 9%,
and one note bears  interest at a variable  rate of 1% over the  lender's  Prime
Rate.

On January 15, 1999, the Partnership sold approximately 17 acres of land located
in Perris, Riverside County,  California to an unaffiliated entity for $334,800.
The Partnership recognized a $4,000 loss on the sale, and the sale generated net
sale proceeds of $296,000.

On June 30, 2000,  the  Partnership  sold one of the two remaining  lots of land
(Lot 11) located in Temecula,  Riverside County,  California, to an unaffiliated
third party for $325,000. The Partnership recognized a $23,000 loss on sale, and
the sale generated net sales proceeds of $290,000.

The Partnership is contingently  liable for subordinated real estate commissions
payable to the Sponsors in the  aggregate  amount of $643,000 at  September  30,
2000 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

                                 Page 12 of 18
<PAGE>

cumulative  non-compounded  return of six  percent  per annum on their  adjusted
invested capital. Since the circumstances under which these commissions would be
payable are limited,  the liability has not been recognized in the  accompanying
consolidated financial statements; however, the amount will be recorded when and
if it becomes payable.

The Partnership is also  contingently  liable for a subordinated note payable in
connection  with  the  land  in  Temecula,   California,  that  the  Partnership
reacquired in June 1992 through a deed in lieu of foreclosure in satisfaction of
a $2,276,000 note receivable. The subordinated note payable and accrued interest
total $566,000 as of September 30, 2000. This amount is payable upon the sale of
the property  only after the  Partnership  receives the full amount of the prior
note receivable with accrued and unpaid interest, costs of development, costs of
sale,  and other amounts paid to obtain good title to the  property,  subject to
certain release  provisions.  Since the circumstances under which this liability
would be payable are  limited,  the note payable and accrued  interest  have not
been recorded in the accompanying  unaudited  consolidated financial statements;
however,  the amount will be recognized  prior to recording any gain on the sale
of the related land.

Operationally,  the  Partnership's  primary  source  of funds  consists  of cash
provided by its rental activities.  Other sources of funds may include permanent
financing,  property sales and interest income from invested cash balances. Cash
generated  from  property  sales is generally  added to the  Partnership's  cash
reserves, pending use in the development of properties, or is distributed to the
partners.

Management  believes that the Partnership's  cash balance at September 30, 2000,
together with the cash from operations,  sales and financing, will be sufficient
to finance  the  Partnership's  and the  properties'  continued  operations  and
development  plans,  on a short-term  basis and for the  reasonably  foreseeable
future.  There can be no assurance that the Partnership's  results of operations
will not  fluctuate  in the future and at times  affect its  ability to meet its
operating requirements.

The Partnership knows of no demands, commitments,  events or uncertainties might
effect  its  capital  resources  in  any  material  respect.  In  addition,  the
Partnership  is not subject to any  covenants  pursuant to its secured debt that
would constrain its ability to obtain additional capital.

Operating Activities
--------------------
During the nine months ended September 30, 2000, the Partnership's cash provided
by operating activities totaled $1,291,000.

The $112,000  increase in deferred  financing  costs and other fees at September
30, 2000, compared to December 31, 1999 was primarily due to the payment of loan
fees relating to the  refinancing of the note payable  secured by first deeds of
trust on  Circuit  City and TGI  Friday's,  and  payments  of lease  commissions
relative to new and renewal leases.

The $19,000 increase in prepaid expenses and other assets at September 30, 2000,
compared to December 31, 1999, was primarily due to the increase in the mortgage
impound  accounts and prepayments of the fourth quarter  investor  service fees.
Offsetting  the  increase  was the  decrease of accounts  receivable  due to the
collection of tenant rents.

                                 Page 13 of 18
<PAGE>

The $346,000 increase in accounts payable and other liabilities at September 30,
2000,  compared to December  31,  1999,  was  primarily  due to the  increase in
accrued  property  taxes  and  accrual  of  the  final  construction  costs  for
development of the pad sites at the Partnership properties.

Investing Activities
--------------------
During the nine months ended September 30, 2000, the Partnership's cash used for
investing  activities  totaled  $1,070,000,  which  consisted of  $1,360,000  of
capital  additions  primarily to One and Two  Vanderbilt,  Palm court Retail #1,
Service Retail Center and Carnegie  Business  Center,  offset by net proceeds of
$290,000 from the sale of Lot 11 in Temecula, California.

Financing Activities
--------------------
During the nine months ended September 30, 2000, the Partnership's cash used for
financing activities totaled $241,000,  which consisted of $210,000 in principal
payments  on its four  notes  payable,  and  $31,000  paid to redeem 94  limited
partnership units ("Units").

Results of Operations
---------------------
Revenues
--------
Rental income increased  $14,000,  or 1%, and $149,000,  or 3%, during the three
and nine months ended September 30, 2000,  compared to the three and nine months
ended  September  30,  1999,  respectively,  primarily  due  to an  increase  in
pass-through income resulting from an increase in property operating expenses as
discussed below.  During the three months ended September 30, 2000, the increase
was slightly offset by the decrease of rental income at Two Vanderbilt  property
relative to the 14 % decrease in occupancy in July 2000.

Occupancy rates at the Partnership's Tri-City Properties as of September 30,2000
and 1999 were as follows:
                                                       September 30,
                                           ------------------------------------
                                                2000                1999
                                           ---------------     ----------------
     One Vanderbilt                              88%                 88%
     Two Vanderbilt                              86%                100%
     Service Retail Center                      100%                100%
     Carnegie Business Center I                  88%                 77%
     Promotional Retail Center                  100%                100%
     Inland Regional Center                     100%                100%
     TGI Friday's                               100%                100%
     Circuit City                               100%                100%
     Office Max                                 100%                100%
     Mimi's Cafe                                100%                100%
     Palm Court Retail #1                        25%                 N/A

As of September 30, 2000, tenants at the Tri-City occupying substantial portions
of leased  rental space  included:  (i) Inland  Empire  Health Plan with a lease
through  March 2002;  (ii) CompUSA with a lease through  August 2003;  (iii) ITT
Educational  Services with a lease through  December 2004;  (iv) PetsMart with a
lease through January 2009; (v) Inland Regional Center with a lease

                                 Page 14 of 18
<PAGE>

through July 2009;  (vi) Circuit City with a lease  through  January  2018;  and
(vii) Office Max with a lease through October 2013. These seven tenants,  in the
aggregate,  occupied  approximately  275,000  square feet of the  452,000  total
leasable  square feet at Tri-City and  accounted  for  approximately  57% of the
total rental income of the Partnership during the third quarter of 2000.

The 14% decrease in occupancy  from  September 30, 1999 to September 30, 2000 at
Two  Vanderbilt  was due to the  expiration of a 9,504 square foot lease in July
2000. Management continues to aggressively market the space.

The 11% increase in occupancy  from  September 30, 1999 to September 30, 2000 at
Carnegie Business Center I was attributable to an aggregate of 6,945 square feet
of expansions for three existing tenants.

The 25% increase in occupancy  from  September 30, 1999 to September 30, 2000 at
Palm Court Retail #1 of the new development  was  attributable to the leasing of
3,089 square feet to the first new tenant.

Interest and other income increased $30,000, or 75%, and $64,000, or 43%, during
the three and nine months ended  September  30, 2000,  compared to the three and
nine months ended September 30, 1999, respectively, primarily due to an increase
in  invested  cash  balances  resulting  from the  increase  in  rental  revenue
discussed above.

Expenses
--------
Operating  expenses  decreased  $33,000,  or 5%,  for  the  three  months  ended
September  30,  2000,  compared to the three months  ended  September  30, 1999,
primarily due to a 1998 property tax refund  resulting  from a tax appeal at the
One and Two Vanderbilt properties.  Operating expenses increased $43,000, or 2%,
for the nine months ended September 30, 2000,  compared to the nine months ended
September 30, 1999,  primarily due to payments of  supplementary  property taxes
for the years of 1998 to 2000,  which  resulted from higher  assessments  to the
Circuit City and Mimi Cafe properties after construction was completed.

Interest expense decreased $11,000, or 3%, and $21,000, or 2%, for the three and
nine months  ended  September  20,  2000,  compared to the three and nine months
ended September 30, 1999,  respectively,  primarily due to the capitalization of
interest (beginning  subsequent to September 30, 1999) related to development of
pad sites at one of the Partnership's properties.

Depreciation and amortization  increased $25,000, or 6%, and $56,000, or 5%, for
the three and nine months ended  September  30, 2000,  compared to the three and
nine  months  ended   September  30,  1999,   respectively,   primarily  due  to
depreciation related to additions to rental properties.

The loss on sale of real estate of $23,000 for the three months ended  September
30, 2000 resulted from the sale of Lot 11 in Temecula,  California.  The loss on
sale of real  estate of $4,000 for the nine  months  ended  September  30,  1999
resulted from the sale of the Perris property.

Expenses associated with undeveloped land varied slightly for the three and nine
months ended  September  30,  2000,  compared to the three and nine months ended
September 30, 1999, respectively.

                                 Page 15 of 18
<PAGE>

General and administrative  expenses increased $44,000,  or 18%, and $34,000, or
5%, for the three and nine months  ended  September  30,  2000,  compared to the
three and nine months ended September 30, 1999,  respectively,  primarily due to
an increase in  investor  service  expenses  related to the  shareholder  update
meetings.

The proposed dissolution costs of $38,000 and $292,000 for the nine months ended
September  30,  2000 and 1999,  respectively,  consisted  of  expenses  incurred
related to the  Solicitation  and the Asset Sale and Dissolution as discussed in
Note 1 of the Notes to Consolidated Financial Statements in Part I. The decrease
in these costs in 2000 was primarily due to the  discontinuation  of the plan to
sell the properties.





                                 Page 16 of 18
<PAGE>

Part II.          OTHER INFORMATION


Item 1.           Legal Proceedings

                  None.

Item 2.           Changes in Securities and Use of Proceeds

                  Not applicable.

Item 3.           Defaults Upon Senior Securities

                  Not applicable.

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

                  Incorporated  herein  by  reference  to Note 1 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 (incorporated herein by reference):

                  None.





                                 Page 17 of 18
<PAGE>

                                   SIGNATURES


Pursuant to the  requirements  of Section 13 or Section 15(d) of the  Securities
Exchange Act of 1934, the  Partnership  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

                                   By:   Rancon Financial Corporation
                                         a California corporation,
                                         its General Partner




Date:    November 14, 2000               By:    /s/  DANIEL L. STEPHENSON
                                                -------------------------
                                                Daniel L. Stephenson, President

Date:    November 14, 2000        By:        /s/  DANIEL L. STEPHENSON
                                            --------------------------
                                            Daniel L. Stephenson,
                                            General Partner


                                 Page 18 of 18