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 June 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___

                         PART I - FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS

a)

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

                                   (Unaudited)

                          (in thousands, except unit data)

                                  June 30, 2000
<TABLE>
<CAPTION>

Assets

<S>                                                          <C>               <C>
   Cash and cash equivalents                                                $ 2,536
   Receivables and deposits                                                     570
   Restricted escrows                                                           502
   Other assets                                                                 646
   Investment properties:
       Land                                                  $ 6,431
       Buildings and related personal property                 29,744
                                                               36,175
       Less accumulated depreciation                          (22,089)       14,086
                                                                           $ 18,340

Liabilities and Partners' Deficit
Liabilities

   Accounts payable                                                          $ 52
   Accrued interest                                                             342
   Tenant security deposit liabilities                                          291
   Disposition fee payable to affiliates of General
     Partner                                                                    603
   Other liabilities                                                             51
   Advances from affiliates of General Partner                                  340
   Mortgage notes payable                                                    30,090

Partners' Deficit

   General partner                                             $ (120)
   Limited partners (16,261.152 units issued and
      outstanding)                                            (13,309)      (13,429)
                                                                           $ 18,340

            See Accompanying Notes to Consolidated Financial Statements
</TABLE>

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

                                   (Unaudited)

                          (in thousands, except unit data)

<TABLE>
<CAPTION>
                                               Three Months Ended       Six Months Ended
                                                    June 30,                June 30,
                                                2000        1999        2000       1999
                                                         (restated)             (restated)
Revenues:

<S>                                            <C>         <C>         <C>        <C>
  Rental income                                $ 1,449     $ 1,362     $ 2,865    $ 2,715
  Other income                                      82          61         208        130
      Total revenues                             1,531       1,423       3,073      2,845

Expenses:
  Operating                                        364         408         766        799
  General and administrative                        32          34          82         91
  Depreciation                                     384         356         765        716
  Interest                                         572         550       1,116      1,094
  Property taxes                                   108         115         210        193
      Total expenses                             1,460       1,463       2,939      2,893

  Income (loss) from continuing operations          71         (40)        134        (48)

Income from discontinued operations                 --         138          --        249
         Net income                            $    71     $    98     $   134    $   201

Net income allocated to general
   partner (1%)                                $     1     $     1     $     1    $     2
Net income allocated to limited
   partners (99%)                                   70          97         133        199

         Net income                            $    71     $    98     $   134    $   201

Net income (loss) per limited partnership unit:

Income (loss) from continuing operations       $  4.30     $ (2.43)    $  8.18    $ (2.92)
Income from discontinued operations                 --        8.40          --      15.16
         Net income                            $  4.30     $  5.97     $  8.18    $ 12.24
Distributions per limited partnership
  unit                                         $    --     $    --     $473.58    $    --

            See Accompanying Notes to Consolidated Financial Statements
</TABLE>

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                                --        --        (7,701)      (7,701)

Net income for the six months
   ended June 30, 2000                     --         1           133          134

Partners' deficit
   at June 30, 2000                 16,261.152   $ (120)     $(13,309)    $(13,429)

            See Accompanying Notes to Consolidated Financial Statements
</TABLE>

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

                                   (Unaudited)

                                  (in thousands)
<TABLE>
<CAPTION>

                                                                  Six Months Ended
                                                                        June 30,
                                                                   2000        1999
Cash flows from operating activities:

<S>                                                             <C>          <C>
  Net income                                                    $   134      $   201
  Adjustments to reconcile net income to net cash
   provided by operating activities:
   Depreciation                                                     765          958
   Amortization of loan costs and leasing commissions                50           83
  Change in accounts:
      Receivables and deposits                                       10           (9)
      Other assets                                                  (26)         (32)
      Accounts payable                                                5           (9)
      Accrued interest                                              199           14
      Tenant security deposit liabilities                            15           17
      Other liabilities                                             (84)         (20)

       Net cash provided by operating activities                  1,068        1,203

Cash flows from investing activities:

  Property improvements and replacements                           (370)        (111)
  Net withdrawals from (deposits to) restricted escrows              40         (139)
  Lease commissions paid                                             --          (34)

       Net cash used in investing activities                       (330)        (284)

Cash flows from financing activities:

  Distributions to limited partners                              (7,701)          --
  Payments on mortgage notes payable                               (115)        (501)

       Net cash used in financing activities                     (7,816)        (501)

Net (decrease) increase in cash and cash equivalents             (7,078)         418
Cash and cash equivalents at beginning of period                  9,614        1,184

Cash and cash equivalents at end of period                      $ 2,536      $ 1,602

Supplemental disclosure of cash flow information:

  Cash paid for interest                                        $   865      $ 1,557

            See Accompanying Notes to Consolidated Financial Statements
</TABLE>

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 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.  However,  MAERIL,  Inc. (the "General  Partner")  believes that the
Residual  Proceeds  Agreement  may no  longer be  effective,  since the debt was
repaid in full prior to maturity.  The  Partnership  currently is in discussions
with the lender with respect to the resolution of these issues.

There  can be no  assurance  that a  receiver  will  not be  appointed  for  the
properties or that the  properties  will not 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 six
month periods ended June 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.

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 six months ended June 30, 2000 and
1999:

                                                     2000                1999
                                                           (in thousands)

Property management fees (included in
  operating expenses)                                $118                $113
Reimbursement for services of affiliates
  (included in general and administrative
   expense)                                            37                  57
Real estate brokerage commission due to
  general partner (included in disposition
  fee payable to General Partner)                     603                  --

During the six months  ended June 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
$118,000  and  $113,000  for the six  months  ended  June  30,  2000  and  1999,
respectively.

An  affiliate  of the General  Partner  received  reimbursement  of  accountable
administrative  expenses amounting to approximately  $37,000 and $57,000 for the
six months ended June 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 June 30, 2000 ranged from 4.70% to 9.50%.  The unpaid  balance on these
advances  at June 30,  2000 and the related  accrued  interest is  approximately
$340,000 and $166,000, 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.

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.  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 $813,000
and  $1,584,000  for the  three  and six  month  periods  ended  June 30,  1999,
respectively. Income from discontinued operations was approximately $138,000 and
$249,000 for the three and six month periods ended June 30, 1999, respectively.

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 six months ended June 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.

   Three Months Ended June 30, 2000
                                        Residential    Other     Totals

Rental income                             $ 1,449       $ --     $1,449
Other income                                   72          10        82
Interest expense                              572          --       572
Depreciation                                  384          --       384
General and administrative expenses            --          32        32
Segment profit  (loss)                         76          (5)       71

    Six Months Ended June 30, 2000
                                        Residential    Other     Totals

Rental income                             $ 2,865       $ --     $2,865
Other income                                  131          77       208
Interest expense                            1,116          --     1,116
Depreciation                                  765          --       765
General and administrative expenses            --          82        82
Segment profit  (loss)                        139          (5)      134
Total assets                               16,949       1,391    18,340
Capital expenditures                          370          --       370

<TABLE>
<CAPTION>

   Three Months Ended June 30, 1999
                                        Residential   Commercial    Other    Totals
                                                     (discontinued)
<S>                                       <C>            <C>        <C>      <C>
Rental income                             $ 1,362        $ --       $ --     $ 1,362
Other income                                   55           --          6         61
Interest expense                              550           --         --        550
Depreciation                                  356           --         --        356
General and administrative expense             --           --         34         34
Income from discontinued operations            --          138         --        138
Segment profit (loss)                         (12)         138        (28)        98
</TABLE>

<TABLE>
<CAPTION>

    Six Months Ended June 30, 1999
                                        Residential   Commercial    Other    Totals
                                                     (discontinued)
<S>                                       <C>            <C>        <C>      <C>
Rental income                             $ 2,715        $ --       $ --     $ 2,715
Other income                                  118           --         12        130
Interest expense                            1,094           --         --      1,094
Depreciation                                  716           --         --        716
General and administrative expense             --           --         91         91
Income from discontinued operations            --          249         --        249
Segment profit (loss)                          31          249        (79)       201
Total assets                               17,177        8,328        678     26,183
Capital expenditures                           93           18         --        111
</TABLE>

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 six month period ended June 30, 2000. No cash distributions were paid
during the six months ended June 30, 1999.

Note H - 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.

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
six months ended June 30, 2000 and 1999:

                                                   Average Occupancy

      Property                                      2000       1999

      Rivercrest Village Apartments                 93%        91%
         Sacramento, California
      Richardson Highlands Apartments               99%        99%
         Marin City, California

Results of Operations

The Registrant's net income for the three and six months ended June 30, 2000 was
approximately  $71,000  and  $134,000  respectively,  compared  to net income of
approximately $98,000 and $201,000,  respectively,  for the three and six months
ended June 30,  1999.  The  decrease  in net income for the three and six months
ended June 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.

Excluding the impact of the  operations of the  commercial  property sold during
1999,  the net income from  continuing  operations  for the three and six months
ended  June 30,  2000  was  approximately  $71,000  and  $134,000,  respectively
compared to a net loss of  approximately  $40,000 and $48,000,  respectively for
the three and six months  ended June 30,  1999.  The increase in net income from
continuing operations was due to an increase in total revenues for the three and
six months  ended June 30,  2000.  Partially  offsetting  the  increase in total
revenues  for the six  months  ended  June  30,  2000 was an  increase  in total
expenses.  For the three  months  ended June 30,  2000 total  expenses  remained
relatively constant.  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 six months ended June 30, 2000 as a result of
increases  in property  tax,  depreciation,  and  interest  expenses  which were
partially  offset by a decrease in  operating  and  general  and  administrative
expenses.  Property tax expense increased for the six months ended June 30, 2000
as a  result  of an  increase  in the  assessed  value of  Richardson  Highlands
Apartments.  Depreciation  expense  increased  for the six months ended June 30,
2000 as a result of significant  capital  improvements  placed in service during
the past twelve months.  Interest expense increased for the three and six months
ended  June  30,  2000 as a  result  of a  small  understatement  of  loan  cost
amortization and interest owed to affiliates during the first six month of 1999.

Operating expenses decreased as a result of a decrease in advertising expense as
a result of an increase in occupancy at Rivercrest Village  Apartments.  General
and administrative expense decreased for the six months ended June 30, 2000 as a
result  of a  decrease  in  professional  expenses  and  general  costs  of  the
Partnership.  Included in general and administrative expenses for the six months
ended  June  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 June 30, 2000, the Registrant had cash and cash  equivalents of approximately
$2,536,000 as compared to  approximately  $1,602,000 at June 30, 1999.  Cash and
cash  equivalents  decreased  approximately  $7,078,000 for the six months ended
June 30, 2000 from the  Registrant's  year end,  primarily due to  approximately
$7,816,000 of cash used in financing activities,  and approximately  $330,000 of
cash used in investing  activities  which were partially offset by approximately
$1,068,000  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 June 30, 2000 approximately $323,000 of capital improvements
have  been  incurred   consisting   primarily  of  roof   replacements,   siding
replacements,  appliances and floor covering  replacements.  These  improvements
were funded from operations and Partnership reserves.

Richardson Highlands Apartments

Capital improvements  budgeted for, but not limited to,  approximately  $121,000
are planned for 2000 at this  property  consisting  primarily of  appliance  and
floor  covering  replacements,  and  pavement  resurfacing.  As of June 30, 2000
approximately  $47,000 of capital  improvements  have been  incurred  consisting
primarily  of  appliances,  maintenance  equipment,  cabinet and floor  covering
replacements.  These  improvements  were  funded from  operating  cash flows 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 $30,090,000 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.

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 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.  However,  the General Partner  believes that the Residual  Proceeds
Agreement may no longer be effective, since the debt was repaid in full prior to
maturity.  The  Partnership  currently  is in  discussions  with the lender with
respect to the resolution of these issues.

There  can be no  assurance  that a  receiver  will  not be  appointed  for  the
properties or that the  properties  will not 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 six month period ended June 30, 2000. No cash distributions were paid
during the six months ended June 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.

                           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 June 30, 2000.

                                   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:      August 11, 2000