FORM 10-QSB--QUARTERLY OR TRANSITIONAL REPORT UNDER SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                        Quarterly or Transitional Report

                      U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   Form 10-QSB

(Mark One)
[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


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


                For the transition period from _________to _________

                         Commission file number 0-14470

                         INVESTORS FIRST-STAGED EQUITY L.P.
         (Exact name of small business issuer as specified in its charter)



         Delaware                                           36-3310965
(State or other jurisdiction of                          (I.R.S. Employer
 incorporation or organization)                         Identification No.)

                          55 Beattie Place, PO Box 1089

                        Greenville, South Carolina 29602

                      (Address of principal executive offices)

                                 (864) 239-1000

                           (Issuer's telephone number)

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 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___


<PAGE>


                         PART I - FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS

a)

                         INVESTORS FIRST-STAGED EQUITY L.P.
                           CONSOLIDATED BALANCE SHEET

                                   (Unaudited)

                          (in thousands, except unit data)

                               September 30, 2000
<TABLE>
<CAPTION>

Assets

<S>                                                            <C>          <C>
   Cash and cash equivalents                                                $ 2,270
   Receivables and deposits                                                     459
   Restricted escrows                                                           495
   Other assets                                                                 607
   Investment properties:
       Land                                                  $  6,431
       Buildings and related personal property                 29,849
                                                               36,280
       Less accumulated depreciation                          (22,469)       13,811
                                                                           $ 17,642

Liabilities and Partners' Deficit
Liabilities

   Accounts payable                                                          $ 46
   Accrued interest                                                             353
   Tenant security deposit liabilities                                          308
   Disposition fee payable to affiliates of General
     Partner                                                                    603
   Accrued taxes                                                                110
   Other liabilities                                                            100
   Advances from affiliates of General Partner                                  340
   Mortgage notes payable                                                    38,024

Partners' Deficit

   General partner                                             $ (200)
   Limited partners (16,261.152 units issued and
      outstanding)                                            (22,042)      (22,242)
                                                                           $ 17,642

            See Accompanying Notes to Consolidated Financial Statements

</TABLE>

<PAGE>




b)
                         INVESTORS FIRST-STAGED EQUITY L.P.
                      CONSOLIDATED STATEMENTS OF OPERATIONS

                                   (Unaudited)

                          (in thousands, except unit data)

<TABLE>
<CAPTION>

                                               Three Months Ended      Nine Months Ended

                                                  September 30,          September 30,
                                                2000        1999        2000       1999
                                                         (restated)             (restated)
Revenues:

<S>                                          <C>           <C>       <C>          <C>
  Rental income                              $  1,496      $ 1,413   $  4,361     $ 4,128
  Other income                                    120           57        328         187
      Total revenues                            1,616        1,470      4,689       4,315

Expenses:
  Operating                                       501          396      1,267       1,195
  General and administrative                       50           45        132         136
  Depreciation                                    380          358      1,145       1,074
  Interest                                      8,559          560      9,675       1,654
  Property taxes                                  111          101        321         294
      Total expenses                            9,601        1,460     12,540       4,353

 (Loss) income from continuing operations      (7,985)          10     (7,851)        (38)

Income from discontinued operations                --          163         --         412
         Net (loss) income                   $ (7,985)     $   173   $ (7,851)    $   374

Net (loss) income allocated to general
   partner (1%)                              $    (80)     $     2   $    (79)    $     4
Net (loss) income allocated to limited
   partners (99%)                              (7,905)         171     (7,772)        370

         Net income                          $ (7,985)     $   173   $ (7,851)    $   374

Net (loss) income per limited partnership unit:

(Loss) income from continuing operations     $ (486.13)    $   .60   $(477.95)    $ (2.33)
Income from discontinued operations                --         9.92         --       25.08
         Net (loss) income                   $(486.13)     $ 10.52   $(477.95)    $ 22.75

Distributions per limited partnership
  unit                                       $  50.92      $    --   $ 524.50     $    --


            See Accompanying Notes to Consolidated Financial Statements
</TABLE>


<PAGE>


c)

                         INVESTORS FIRST-STAGED EQUITY L.P.
               CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' DEFICIT
                                   (Unaudited)

                          (in thousands, except unit data)


<TABLE>
<CAPTION>

                                     Limited
                                   Partnership    General     Limited
                                      Units       Partner     Partners      Total

Partners' deficit at
<S>         <C> <C>                 <C>          <C>         <C>          <C>
   December 31, 1999                16,261.152   $ (121)     $ (5,741)    $ (5,862)

Distributions to limited
   partners                                --        --        (8,529)      (8,529)

Net loss for the nine months
   ended September 30, 2000                --       (79)       (7,772)      (7,851)

Partners' deficit
   at September 30, 2000            16,261.152   $ (200)     $(22,042)    $(22,242)


            See Accompanying Notes to Consolidated Financial Statements
</TABLE>

<PAGE>


d)
                         INVESTORS FIRST-STAGED EQUITY L.P.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                                   (Unaudited)

                                   (in thousands)

<TABLE>
<CAPTION>
                                                                 Nine Months Ended
                                                                   September 30,

                                                                  2000        1999
Cash flows from operating activities:

<S>                                                             <C>          <C>
  Net (loss) income                                             $(7,851)     $   374
  Adjustments to reconcile net (loss) income to net cash
   provided by operating activities:
   Depreciation                                                   1,145        1,437
   Interest on Residual Proceeds Agreement                        8,000           --
   Amortization of loan costs and leasing commissions                76          141
  Change in accounts:
      Receivables and deposits                                      121         (134)
      Other assets                                                  (13)         (38)
      Accounts payable                                               (1)          79
      Accrued interest                                              210           13
      Tenant security deposit liabilities                            32           34
      Accrued property taxes                                        110          125
      Other liabilities                                             (35)          (4)

       Net cash provided by operating activities                  1,794        2,027

Cash flows from investing activities:

  Property improvements and replacements                           (475)        (461)
  Net withdrawals from (deposits to) restricted escrows              47          (61)
  Lease commissions paid                                             --          (39)

       Net cash used in investing activities                       (428)        (561)

Cash flows from financing activities:

  Distributions to limited partners                              (8,529)          --
  Payments on mortgage notes payable                               (181)        (742)

       Net cash used in financing activities                     (8,710)        (742)

Net (decrease) increase in cash and cash equivalents             (7,344)         724
Cash and cash equivalents at beginning of period                  9,614        1,184

Cash and cash equivalents at end of period                      $ 2,270      $ 1,908

Supplemental disclosure of cash flow information:

  Cash paid for interest                                        $ 1,388      $ 2,338

            See Accompanying Notes to Consolidated Financial Statements
</TABLE>


<PAGE>


e)
                         INVESTORS FIRST-STAGED EQUITY L.P.
                     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

Note A - Going Concern

The accompanying  consolidated  financial statements have been prepared assuming
Investors  First-Staged  Equity L.P. (the  "Partnership  or  "Registrant")  will
continue as a going concern.  During the fourth quarter of 1999, the Partnership
was notified that it is in default on the Residual Proceeds  Agreements relating
to Rivercrest Village Apartments and Richardson  Highlands  Apartments,  the two
remaining  investment  properties  owned by the  Partnership.  These  agreements
require, among other things, that each property be marketed for sale nine months
prior to January 15, 2000, which was the maturity date of the subordinated notes
payable, and that half of certain residual proceeds from the sale be paid to the
lender (see Note H - Mortgage Notes  Payable).  The  Partnership  did not market
these properties for sale in accordance with the agreements,  which also provide
that the lender may commence an action for the appointment of a receiver to sell
each property.  If the properties are not sold within 180 days  thereafter,  the
lender may foreclose on the properties.  After notifying the Partnership of such
defaults,  the lender proposed that a party believed by the Partnership to be an
affiliate of the lender purchase the properties.

There  can be no  assurance  that a  receiver  will  not be  appointed  for  the
properties  or that  the  properties  will be sold or  foreclosed  upon.  If the
Partnership  loses  its  remaining   investment   properties   through  sale  or
foreclosure, then it will be forced to terminate.

As a result of the above,  there is  substantial  doubt about the  Partnership's
ability to continue as a going concern. The consolidated financial statements do
not  include  any  adjustments  to reflect the  possible  future  effects on the
recoverability  and  classification  of assets or amounts and  classification of
liabilities that may result from this uncertainty.

Note B - Basis of Presentation

The accompanying  unaudited consolidated financial statements of the Partnership
have been prepared in accordance with generally accepted  accounting  principles
for interim  financial  information and with the instructions to Form 10-QSB and
Item  310(b) of  Regulation  S-B.  Accordingly,  they do not  include all of the
information and footnotes required by generally accepted  accounting  principles
for complete financial  statements.  In the opinion of the General Partner,  all
adjustments (consisting of normal recurring accruals) considered necessary for a
fair presentation  have been included.  Operating results for the three and nine
month periods ended  September 30, 2000, are not  necessarily  indicative of the
results that may be expected for the year ending  December 31, 2000. For further
information,  refer  to the  consolidated  financial  statements  and  footnotes
thereto included in the Partnership's  Annual Report on Form 10-KSB for the year
ended December 31, 1999.


<PAGE>


Reclassifications

Certain  reclassifications  have been made to the 1999  financial  statements to
conform with the 2000 presentation.

Principles of Consolidation

The financial  statements  include all the accounts of the  Partnership  and its
three  99.99%  owned  partnerships.  The  General  Partner  of the  consolidated
partnerships is MAERIL,  Inc. MAERIL, Inc. may be removed as the general partner
of the consolidated partnerships by the Registrant;  therefore, the consolidated
partnerships are controlled and consolidated by the Registrant.  All significant
interpartnership balances have been eliminated.

Note C - Transfer of Control

Pursuant  to a series  of  transactions  which  closed  on  October  1, 1998 and
February 26, 1999,  Insignia Financial Group, Inc. and Insignia Properties Trust
merged into Apartment Investment and Management Company,  ("AIMCO"),  a publicly
traded real estate investment trust, with AIMCO being the surviving  corporation
(the "Insignia Merger").  As a result, AIMCO acquired 100% ownership interest in
the General Partner.  The General Partner does not believe that this transaction
has had or will have a material  effect on the  affairs  and  operations  of the
Partnership.

Note D - Transactions with Affiliates and Related Parties

The Partnership has no employees and is dependent on the General Partner and its
affiliates for the management and administration of all Partnership  activities.
The Partnership  Agreement  provides for (i) certain  payments to affiliates for
services and (ii)  reimbursement of certain  expenses  incurred by affiliates on
behalf of the  Partnership.  The following  payments were made or accrued to the
General  Partner and its affiliates  during the nine months ended  September 30,
2000 and 1999:

                                                     2000                1999
                                                           (in thousands)

Property management fees (included in
  operating expenses)                                $180                $171
Reimbursement for services of affiliates
  (included in general and administrative
   expense)                                            93                  88
Real estate brokerage commission due to
  general partner (included in disposition
  fee payable to General Partner)                     603                  --

During the nine months  ended  September  30, 2000 and 1999,  affiliates  of the
General  Partner were entitled to receive 5% of gross  receipts from both of the
Registrant's  residential  properties as  compensation  for  providing  property
management  services.  The  Registrant  paid  to such  affiliates  approximately
$180,000 and $171,000  for the nine months  ended  September  30, 2000 and 1999,
respectively.


<PAGE>



An  affiliate  of the  General  Partner  was paid or  accrued  reimbursement  of
accountable  administrative  expenses  amounting  to  approximately  $93,000 and
$88,000 for the nine months ended September 30, 2000 and 1999, respectively.

In prior years the  Partnership was advanced funds from a former General Partner
in order to meet its existing obligations. Interest accrues on these advances at
rates agreed to by the Partnership and the former General Partner.  The interest
rates at September  30, 2000 ranged from 4.70% to 9.50%.  The unpaid  balance on
these  advances  at  September  30,  2000 and the  related  accrued  interest is
approximately $340,000 and $178,000, respectively.

In connection  with the sale of Serramonte  Plaza in December 1999, a commission
of approximately  $603,000 was accrued to the General Partner in accordance with
the terms of the  Partnership  Agreement.  Payment of the commission will not be
made until the  limited  partners  have  received  distributions  equal to their
original  invested  capital  plus  a  6%  per  annum  non-compounded  cumulative
preferred return on their adjusted invested capital.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership, AIMCO and its affiliates currently own 2,497.46 limited partnership
units in the Partnership  representing 15.36% of the outstanding units. A number
of these  units were  acquired  pursuant  to tender  offers made by AIMCO or its
affiliates.  It is possible that AIMCO or its  affiliates  will make one or more
additional offers to acquire  additional  limited  partnership  interests in the
Partnership  for cash or in exchange for units in the operating  partnership  of
AIMCO. Under the Partnership  Agreement,  unitholders  holding a majority of the
Units are  entitled to take action with  respect to a variety of matters,  which
would  include  without   limitation,   voting  on  certain  amendments  to  the
Partnership  Agreement and voting to remove the General Partner.  When voting on
matters,  AIMCO would in all  likelihood  vote the Units it acquired in a manner
favorable to the interest of the General  Partner  because of their  affiliation
with the General Partner.

Note E - Disposition of Property/Operating Segment

On December 16, 1999,  Serramonte Plaza, located in Daly City,  California,  was
sold to an unaffiliated  third party.  Serramonte  Plaza was the only commercial
property  owned  by  the   Partnership   and  represented  one  segment  of  the
Partnership's  operations.  Due to the sale of this property, the results of the
commercial  segment  have been  shown as income  from  discontinued  operations.
Accordingly,  the consolidated 1999 statement of operations has been restated to
reflect this presentation. Revenues of this property were approximately $821,000
and  $2,405,000  for the three and nine month periods ended  September 30, 1999,
respectively. Income from discontinued operations was approximately $163,000 and
$412,000  for the  three  and nine  month  periods  ended  September  30,  1999,
respectively.


<PAGE>





Note F - Segment Information

Description  of the types of products  and  services  from which the  reportable
segment derives its revenues:

The  Partnership  had two  reportable  segments:  residential  properties  and a
commercial property. The Partnership's  residential property segment consists of
two apartment complexes both of which are located in California. The Partnership
rents apartment  units to tenants for terms that are typically  twelve months or
less.  The  commercial  property  segment  consisted of office space  located in
Serramonte,  California, which was sold on December 16, 1999. As a result of the
sale of the commercial  property during 1999, the commercial segment is shown as
a discontinued operation.

Measurement of segment profit or loss:

The  Partnership  evaluates  performance  based on segment  profit (loss) before
depreciation. The accounting policies of the reportable segments are the same as
those of the Partnership as described in the Partnership's Annual Report on Form
10-KSB for the year ended December 31, 1999.

Factors management used to identify the enterprise's reportable segment:

The  Partnership's  reportable  segments  consist of investment  properties that
offer different products and services.  The reportable segments are each managed
separately  because they  provide  distinct  services  with  different  types of
products and customers.

Segment  information  for the three and nine months ended September 30, 2000 and
1999 is shown in the tables below (in  thousands).  The "Other" column  includes
Partnership administration related items and income and expense not allocated to
the reportable segments.

<TABLE>
<CAPTION>

 Three Months Ended September 30, 2000
                                          Residential  Commercial    Other     Totals
                                                       (discontinued)
<S>                                         <C>           <C>         <C>      <C>
Rental income                               $ 1,496       $ --        $ --     $1,496
Other income                                    108           --         12       120
Interest expense                              8,559           --         --     8,559
Depreciation                                    380           --         --       380
General and administrative expenses              --           --         50        50
Segment (loss)                               (7,947)          --        (38)   (7,985)

</TABLE>
<PAGE>

<TABLE>
<CAPTION>
  Nine Months Ended September 30, 2000
                                          Residential  Commercial    Other     Totals
                                                       (discontinued)


<S>                                         <C>           <C>         <C>      <C>
Rental income                               $ 4,361       $ --        $ --     $4,361
Other income                                    239           --         89       328
Interest expense                              9,675           --         --     9,675
Depreciation                                  1,145           --         --     1,145
General and administrative expenses              --           --        132       132
Segment (loss)                               (7,808)          --        (43)   (7,851)
Total assets                                 17,108           --        534    17,642
Capital expenditures for investment
  properties                                    475           --         --       475
</TABLE>

<TABLE>
<CAPTION>

 Three Months Ended September 30, 1999
                                          Residential   Commercial    Other     Totals
                                                       (discontinued)
<S>                                         <C>            <C>          <C>      <C>
Rental income                               $ 1,413        $  --        $ --    $ 1,413
Other income                                     53           --           4         57
Interest expense                                560           --          --        560
Depreciation                                    358           --          --        358
General and administrative expense               --           --          45         45
Income from discontinued operations              --          163          --        163
Segment profit (loss)                            51          163         (41)       173
</TABLE>

<TABLE>
<CAPTION>

  Nine Months Ended September 30, 1999
                                          Residential   Commercial    Other     Totals
                                                       (discontinued)
<S>                                         <C>            <C>         <C>      <C>
Rental income                               $ 4,128        $ --        $ --     $ 4,128
Other income                                    171           --          16        187
Interest expense                              1,654           --          --      1,654
Depreciation                                  1,074           --          --      1,074
General and administrative expense               --           --         136        136
Income from discontinued operations              --          412          --        412
Segment profit (loss)                            82          412        (120)       374
Total assets                                 17,225        8,367         768     26,360
Capital expenditures for investment
  properties                                    309          152          --        461
</TABLE>


<PAGE>



Note G - Distributions

A  distribution  of  approximately  $7,701,000  from the proceeds of the sale of
Serramonte Plaza  (approximately  $473.58 per limited partnership unit) was made
during the nine months  ended  September  30,  2000.  Also,  a  distribution  of
approximately  $828,000  ($828,000 paid to the limited partners or approximately
$50.92  per  limited  partnership  unit)  was  paid  from  operations.  No  cash
distributions were paid during the nine months ended September 30, 1999.

Note H - Mortgage Notes Payable

In October  1990,  the  Partnership  defaulted on the  Richardson  Highlands and
Rivercrest Village  Subordinate notes payable (the second mortgage loans) due to
the failure to make the required monthly debt service payments.  The Partnership
and the lender  finalized an agreement on June 22, 1994,  retroactive to July 1,
1993,  to  restructure  the debt held on  Richardson  Highlands  and  Rivercrest
Village.  The junior lien mortgages were  restructured  to mature on January 15,
2000,  and provide for a 10%  interest  rate (with a 7% pay rate),  based on the
"Agreed  Valuation  Amount",  as  defined  in  the  restructure  agreement.  The
agreement  also allowed the lender to receive  fifty percent of any net proceeds
from the sale or refinancing of the properties after the payment of all mortgage
notes payable and subordinated debt.

During the fourth quarter of 1999, the  Partnership  was notified that it was in
default on the  Residual  Proceeds  Agreements  relating to  Rivercrest  Village
Apartments and Richardson  Highlands  Apartments,  the two remaining  investment
properties owned by the  Partnership.  These  agreements  required,  among other
things,  that each property be marketed for sale six months prior to January 15,
2000,  which was the maturity date of the subordinated  notes payable,  and that
half of  certain  residual  proceeds  from the sale be paid to the  lender.  The
Partnership  did not market these  properties  for sale in  accordance  with the
agreements,  which also  provide  that the lender may commence an action for the
appointment of a receiver to sell each property.  If the properties are not sold
within 180 days  thereafter,  the lender may foreclose on the properties.  After
notifying the  Partnership  of such defaults,  the lender  proposed that a party
believed  by the  Partnership  to be an  affiliate  of the lender  purchase  the
properties.

During the third  quarter of 2000,  the  properties  were  marketed  for sale in
accordance  with the Residual  Proceeds  Agreements.  Based upon current  market
conditions within the location of the properties,  there has been an increase in
the  value  of  the  properties  and  accordingly,  the  liability  representing
anticipated amount due to the lender for its fifty percent share of the expected
net proceeds from the sale of the  properties  after the payment of all mortgage
notes  payable  and  subordinated  debt  has  been  adjusted.  The  increase  of
approximately  $8,000,000 was recorded  during the three months ended  September
30,  2000 and is  included in interest  expense.  As of  September  30, 2000 the
estimated  amount  that the  lender is  entitled  to  receive  is  approximately
$10,207,000  and is based upon  current  sales  values  for the two  properties.
Although  present  market  conditions  reflect  an  increase  in  value  of  the
properties,  there is no  guarantee  that the  properties  will be sold at their
present fair market value.


<PAGE>



Note I - Legal Proceedings

The Partnership is unaware of any pending or outstanding  litigation that is not
of a routine nature arising in the ordinary course of business.


<PAGE>



ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS

The  matters  discussed  in this Form  10-QSB  contain  certain  forward-looking
statements  and  involve  risks and  uncertainties  (including  changing  market
conditions,   competitive  and  regulatory   matters,   etc.)  detailed  in  the
disclosures  contained  in this  Form  10-QSB  and the  other  filings  with the
Securities and Exchange Commission made by the Registrant from time to time. The
discussions of the  Registrant's  business and results of operations,  including
forward-looking  statements  pertaining  to such  matters,  does not  take  into
account the effects of any changes to the  Registrant's  business and results of
operations.  Accordingly,  actual  results  could differ  materially  from those
projected in the forward-looking  statements as a result of a number of factors,
including those identified herein.

The Partnership's  investment properties consist of two apartment complexes. The
following  table sets forth the average  occupancy for these  properties for the
nine months ended September 30, 2000 and 1999:

                                                   Average Occupancy

      Property                                      2000       1999

      Rivercrest Village Apartments                 93%        92%
         Sacramento, California
      Richardson Highlands Apartments               99%        99%
         Marin City, California

Results of Operations

The Registrant's net loss for the three and nine months ended September 30, 2000
was approximately $7,985,000 and $7,851,000 respectively, compared to net income
of  approximately  $173,000 and $374,000,  respectively,  for the three and nine
months ended  September  30, 1999.  The decrease in net income for the three and
nine months ended September 30, 2000 is primarily  attributable to a decrease in
income from discontinued operations as a result of the sale of the Partnership's
sole commercial property,  Serramonte Plaza on December 16, 1999 and an increase
in total expenses.

Excluding the impact of the  operations of the  commercial  property sold during
1999,  the net loss from  continuing  operations  for the three and nine  months
ended   September  30,  2000  was   approximately   $7,985,000   and  $7,851,000
respectively  compared  to income  of  approximately  $10,000  and a net loss of
approximately $38,000 respectively for the three and nine months ended September
30, 1999.  The  increase in net loss from  continuing  operations  was due to an
increase in total  expenses  which was partially  offset by an increase in total
revenues  for both the three and nine  months  ended  September  30,  2000.  The
increase in total  revenues  was the result of  increases  in rental  income and
other income.  Rental income increased  primarily as a result of the increase in
occupancy at Rivercrest  Village  Apartments  and an increase in average  rental
rates at both Rivercrest Village Apartments and Richardson Highlands Apartments.
The increase in other income was  primarily due to higher  interest  income as a
result of an increase in cash balances held in interest bearing accounts.

Total expenses  increased for the three and nine months ended September 30, 2000
as a result of increases in operating,  property tax,  depreciation and interest
expenses.  Operating expense increased as a result of an increase in maintenance
expenses  predominantly at Rivercrest Village  Apartments.  Property tax expense
increased  for the nine  months  ended  September  30,  2000 as a  result  of an
increase in the assessed value of Richardson Highlands Apartments.  Depreciation
expense  increased  for the nine months ended  September 30, 2000 as a result of
significant  capital  improvements  placed in service at the  Partnership's  two
investment properties during the past twelve months.  Interest expense increased
for the three and nine months ended  September  30, 2000 as a result of interest
on the  Residual  Proceeds  Agreement  encumbering  both  of  the  Partnership's
investment properties as discussed below.

General and administrative  expense remained relatively stable for the three and
nine months ended  September  30, 2000.  Included in general and  administrative
expenses for the nine months ended  September  30, 2000 and 1999 are  management
reimbursements  to the General Partner allowed under the Partnership  Agreement.
In addition,  costs associated with the quarterly and annual communications with
investors  and  regulatory  agencies  and  the  annual  audit  required  by  the
Partnership Agreement are also included.

As part of the ongoing  business plan of the  Partnership,  the General  Partner
monitors the rental market  environment of its  investment  properties to assess
the feasibility of increasing rents,  maintaining or increasing occupancy levels
and protecting the Partnership from increases in expenses. As part of this plan,
the  General  Partner  attempts to protect  the  Partnership  from the burden of
inflation-related  increases in expenses by increasing  rents and  maintaining a
high overall occupancy level.  However,  due to changing market conditions which
can  result in the use of rental  concessions  and rental  reductions  to offset
softening market conditions, there is no guarantee that the General Partner will
be able to sustain such a plan.

Liquidity and Capital Resources

At  September  30,  2000,  the  Registrant  had  cash and  cash  equivalents  of
approximately  $2,270,000 as compared to  approximately  $1,908,000 at September
30, 1999. Cash and cash equivalents decreased  approximately  $7,344,000 for the
nine months ended September 30, 2000 from the Registrant's  year end,  primarily
due to  approximately  $8,710,000  of cash  used in  financing  activities,  and
approximately $428,000 of cash used in investing activities which were partially
offset by  approximately  $1,794,000 of cash  provided by operating  activities.
Cash used in financing activities consisted of distributions to limited partners
and, to a lesser extent,  principal  payments on the mortgages  encumbering  the
Registrant's properties. Cash used in investing activities consisted of property
improvements  and  replacements  partially  offset by net  withdrawals  from the
escrow accounts  maintained by the mortgage lender.  The Registrant  invests its
working capital reserves in money market accounts.

The sufficiency of existing  liquid assets to meet future  liquidity and capital
expenditure   requirements   is  directly   related  to  the  level  of  capital
expenditures  required at the  properties  to  adequately  maintain the physical
assets and other  operating needs of the Partnership and to comply with Federal,
state, and local legal and regulatory requirements. Capital improvements planned
for each of the Partnership's properties are detailed below.

Rivercrest Village Apartments

Capital improvements  budgeted for, but not limited to,  approximately  $587,000
are planned for 2000 at this property consisting primarily of roof replacements,
fencing  replacements,  floor  covering and  appliance  replacements,  and major
landscaping.  As  of  September  30,  2000  approximately  $394,000  of  capital
improvements  have been  incurred  consisting  primarily  of roof  replacements,
structural  improvements,  siding  replacements,  appliances  and floor covering
replacements.  These  improvements  were  funded  from  operating  cash flow and
Partnership reserves.

Richardson Highlands Apartments

Capital improvements budgeted for, but not limited to, approximately $99,000 are
planned for 2000 at this  property  consisting  primarily of appliance and floor
covering  replacements,  and  pavement  resurfacing.  As of  September  30, 2000
approximately  $81,000 of capital  improvements  have been  incurred  consisting
primarily  of  appliances,  maintenance  equipment,  cabinet and floor  covering
replacements.  These  improvements  were  funded  from  operating  cash flow and
replacement reserves.

The additional  capital  expenditures will be incurred only if cash is available
from  operations  or  Partnership  reserves.  To the extent  that such  budgeted
capital improvements are completed, the Registrant's distributable cash flow, if
any, may be adversely affected at least in the short term.

The  Registrant's  current assets are thought to be sufficient for any near-term
needs  (exclusive  of capital  improvements)  of the  Registrant.  The  mortgage
indebtedness of approximately $30,024,000 has maturity dates of January 2005 and
January  2008,  with  balloon  payments  due at  maturity,  at  which  time  the
properties will either be refinanced and/or sold.

In October  1990,  the  Partnership  defaulted on the  Richardson  Highlands and
Rivercrest Village  Subordinate notes payable (the second mortgage loans) due to
the failure to make the required monthly debt service payments.  The Partnership
and the lender  finalized an agreement on June 22, 1994,  retroactive to July 1,
1993,  to  restructure  the debt held on  Richardson  Highlands  and  Rivercrest
Village.  The junior lien mortgages were  restructured  to mature on January 15,
2000,  and provide for a 10%  interest  rate (with a 7% pay rate),  based on the
"Agreed  Valuation  Amount",  as  defined  in  the  restructure  agreement.  The
agreement  also allowed the lender to receive  fifty percent of any net proceeds
from the sale or refinancing of the properties after the payment of all mortgage
notes payable and subordinated debt.

During the fourth quarter of 1999, the  Partnership  was notified that it was in
default on the  Residual  Proceeds  Agreements  relating to  Rivercrest  Village
Apartments and Richardson  Highlands  Apartments,  the two remaining  investment
properties owned by the  Partnership.  These  agreements  required,  among other
things,  that each property be marketed for sale six months prior to January 15,
2000,  which was the maturity date of the subordinated  notes payable,  and that
half of  certain  residual  proceeds  from the sale be paid to the  lender.  The
Partnership  did not market these  properties  for sale in  accordance  with the
agreements,  which also  provide  that the lender may commence an action for the
appointment of a receiver to sell each property.  If the properties are not sold
within 180 days  thereafter,  the lender may foreclose on the properties.  After
notifying the  Partnership  of such defaults,  the lender  proposed that a party
believed  by the  Partnership  to be an  affiliate  of the lender  purchase  the
properties.

During the third  quarter of 2000,  the  properties  were  marketed  for sale in
accordance  with the Residual  Proceeds  Agreements.  Based upon current  market
conditions within the location of the properties,  there has been an increase in
the  value  of  the  properties  and  accordingly,  the  liability  representing
anticipated amount due to the lender for its fifty percent share of the expected
net proceeds from the sale of the  properties  after the payment of all mortgage
notes  payable  and  subordinated  debt  has  been  adjusted.  The  increase  of
approximately  $8,000,000 was recorded  during the three months ended  September
30,  2000 and is  included in interest  expense.  As of  September  30, 2000 the
estimated  amount  that the  lender is  entitled  to  receive  is  approximately
$10,207,000  and is based upon  current  sales  values  for the two  properties.
Although  present  market  conditions  reflect  an  increase  in  value  of  the
properties,  there is no  guarantee  that the  properties  will be sold at their
present fair market value.

There  can be no  assurance  that a  receiver  will  not be  appointed  for  the
properties  or that  the  properties  will be sold or  foreclosed  upon.  If the
Partnership  loses  its  remaining   investment   properties   through  sale  or
foreclosure, then it will be forced to terminate.

As a result of the above,  there is  substantial  doubt about the  Partnership's
ability to continue as a going concern.  The financial statements do not include
any adjustments to reflect the possible future effects on the recoverability and
classification  of assets or amounts and  classification of liabilities that may
result from this uncertainty.

A  distribution  of  approximately  $7,701,000  from the proceeds of the sale of
Serramonte Plaza  (approximately  $473.58 per limited partnership unit) was made
during the nine month period ended September 30, 2000. Also, a cash distribution
of approximately  $828,000  ($828,000 paid to the limited partners or $50.92 per
limited  partnership unit) was paid from operations.  No cash distributions were
paid  during  the  nine  months  ended  September  30,  1999.  The  Registrant's
distribution  policy is reviewed on an annual basis.  Future cash  distributions
will  depend  on  the  levels  of  net  cash  generated  from  operations,   the
availability of cash reserves,  debt maturities,  refinancings,  and/or property
sales.  There can be no assurance,  however,  that the Registrant  will generate
sufficient   funds  from   operations,   after  required   capital   improvement
expenditures,  to permit  additional  distributions  to its partners  during the
remainder of 2000 or subsequent periods.


<PAGE>



                           PART II - OTHER INFORMATION

ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K

            a)    Exhibits:

                  Exhibit 27, Financial Data Schedule, is filed as an exhibit to
                  this report.

            b)    Reports on Form 8-K:

                  None filed during the quarter ended September 30, 2000.


<PAGE>



                                   SIGNATURES

In accordance with the  requirements of the Exchange Act, the Registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.

                                 INVESTORS FIRST-STAGED EQUITY L.P.
                                 (Registrant)


                                 By:     MAERIL, Inc.,
                                         Its General Partner

                                 By:     /s/Patrick J. Foye
                                         Patrick J. Foye
                                         Executive Vice President

                                 By:     /s/Martha L. Long
                                         Martha L. Long
                                         Senior Vice President and
                                         Controller

                                 Date:  November 14, 2000