SECURITIES AND EXCHANGE
COMMISSION
                                               Washington, D.C. 20549

FORM l0-Q

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

For Quarter Ended June
30, 2003

Commission file number
O-17248

OWENS MORTGAGE
INVESTMENT FUND,a California Limited Partnership
                              (Exact
Name of Registrant as Specified In Its Charter)

|                                                                                                |  |                                                 
|----------------------------------------------------------------------------------------------- |  | ------------------------------------------------
|California             
   (State or other jurisdiction    
 of incorporation or organization)  |  | 68-0023931
 (I.R.S. Employer
Identification No.)
|2221 Olympic BoulevardWalnut Creek, California         
(Address of principal executive office) |  | 94595
(Zip Code)                                
|(925) 935-3840
   (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

---

PART I. FINANCIAL
INFORMATION

Item 1. Financial
Statements

OWENS MORTGAGE
INVESTMENT FUND,
                                           a California Limited
Partnership

Consolidated Balance
Sheets

June 30, 2003 and
December 31, 2002

|                                                                 | (UNAUDITED)
June 302003 | December 312002
|---------------------------------------------------------------- | ----------------------- | ---------------
|ASSETS                                                          
|Cash and cash equivalents                                        |                         |                
|Loans secured by trust deeds, net of allowance for               |                         |                
|losses of $4,100,000 in 2003 and $4,774,000 in 2002              |                         |                
|Interest and other receivables                                   |                         |                
|Due from affiliate                                               |                         |                
|Real estate held for sale, net of allowance for losses           |                         |                
|of $660,000 in 2003 and $250,000 in 2002                         |                         |                
|Real estate held for investment, net of accumulated depreciation |                         |                
|and amortization of $647,000 in 2003 and $628,000 in 2002        |                         |                
|                                                                 |                         |                
|                                                                 |                         |                
|                                                                 |                         |                
|LIABILITIES AND
PARTNERS CAPITAL                               
|                                                                 |                         |                
|LIABILITIES:                                                     |                         |                
|Accrued distributions payable                                    |                         |                
|Due to general partner                                           |                         |                
|Accounts payable and accrued liabilities                         |                         |                
|Note payable                                                     |                         |                
|Line of credit payable                                           |                         |                
|                                                                 |                         |                
|Total Liabilities                                                |                         |                
|                                                                 |                         |                
|Minority interest                                                |                         |                
|                                                                 |                         |                
|PARTNERS CAPITAL (units subject to redemption):                 |                         |                
|General partner                                                  |                         |                
|Limited partners                                                 |                         |                
|                                                                 |                         |                
|Total partners capital                                          |                         |                
|                                                                 |                         |                
|                                                                 |                         |                
|                                                                 |                         |                

The accompanying notes are an
integral part of these financial statements

---

OWENS MORTGAGE
INVESTMENT FUND,
                                          a California Limited Partnership

Consolidated Statements
of Income
                        For the Three and Six Months Ended June 30, 2003 and
2002 (Unaudited)

|                                                                     | For the Three Months Ended |             | For the Six Months Ended
|-------------------------------------------------------------------- | -------------------------- | ----------- | ------------------------
|                                                                     | June 302003                | June 302002 |                         
|REVENUES:                                                            |                            |             |                         
|Interest income on loans secured by trust deeds                      |                            |             | $                       
|Gain (loss) on sale of real estate, net                              |                            |             |                         
|Rental and other income from real estate properties                  |                            |             |                         
|Other income                                                         |                            |             |                         
|                                                                     |                            |             |                         
|Total revenues                                                       |                            |             |                         
|                                                                     |                            |             |                         
|EXPENSES:                                                            |                            |            
|Management fees to general partner                                   |                            |             |                         
|Servicing fees to general partner                                    |                            |             |                         
|Carried interest to general partner                                  |                            |             |                         
|Administrative                                                       |                            |             |                         
|Legal and accounting                                                 |                            |             |                         
|Rental and other expenses on real estate properties                  |                            |             |                         
|Interest expense                                                     |                            |             |                         
|Minority interest                                                    |                            |             |                         
|Provision for loan losses                                            |                            |             |                         
|Provision for (recovery of) losses on real estate held for sale, net |                            |             |                         
|Other                                                                |                            |             |                         
|                                                                     |                            |             |                         
|Total expenses                                                       |                            |             |                         
|                                                                     |                            |             |                         
|Net income                                                           |                            |             | $                       
|                                                                     |                            |             |                         
|Net income allocated to general partner                              |                            |             | $                       
|                                                                     |                            |             |                         
|Net income allocated to limited partners                             |                            |             | $                       
|                                                                     |                            |             |                         
|Net income allocated to limited partners                             |                            |            
|per weighted average limited partnership unit                        |                            |             | $                       
|                                                                     |                            |             |                         
|Weighted average limited partnership units                           |                            |             |                         
|                                                                     |                            |             |                         

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

---

OWENS MORTGAGE
INVESTMENT FUND,
                                          a California Limited Partnership

Consolidated Statements
of Cash Flows

For the Six Months
Ended June 30, 2003 and 2002

                                                    (UNAUDITED)

|                                                                     | June 302003 | June 302002
|-------------------------------------------------------------------- | ----------- | -----------
|CASH FLOWS FROM OPERATING ACTIVITIES:                                |             |            
|Net Income                                                           |             |            
|Adjustments to reconcile net income                                  |             |            
|to net cash provided by operating activities:                        |             |            
|Gain on sale of real estate properties                               |             |            
|Provision for loan losses                                            |             |            
|Provision for (recovery of) losses on real estate held for sale, net |             |            
|Depreciation and amortization                                        |             |            
|Changes in operating assets and liabilities:                         |             |            
|Interest and other receivables                                       |             |            
|Due from affiliate                                                   |             |            
|Accounts payable and accrued liabilities                             |             |            
|Due to general partner                                               |             |            
|                                                                     |             |            
|Net cash provided by operating activities                            |             |            
|                                                                     |             |            
|CASH FLOWS FROM INVESTING ACTIVITIES:                                |             |            
|Purchases of loans secured by trust deeds                            |             |            
|Principal collected on loans                                         |             |            
|Loan payoffs                                                         |             |            
|Investment in real estate properties                                 |             |            
|Net proceeds from disposition of real estate properties              |             |            
|Proceeds received from real estate joint venture                     |             |            
|Minority interest in limited liability companies                     |             |            
|                                                                     |             |            
|Net cash provided by (used in) investing activities                  |             |            
|                                                                     |             |            
|CASH FLOWS FROM FINANCING ACTIVITIES:                                |             |            
|Proceeds from sale of partnership units                              |             |            
|Accrued distributions payable                                        |             |            
|Advances on note payable                                             |             |            
|Repayments on line of credit                                         |             |            
|Partners cash distributions                                         |             |            
|Partners capital withdrawals                                        |             |            
|                                                                     |             |            
|Net cash used in financing activities                                |             |            
|                                                                     |             |            
|Net increase (decrease) in cash and cash equivalents                 |             |            
|Cash and cash equivalents at beginning of period                     |             |            
|                                                                     |             |            
|Cash and cash equivalents at end of period                           |             |            
|                                                                     |             |            
|Supplemental Disclosures of Cash Flow Information                    |             |            
|Cash paid during the period for interest                             |             |            

See notes 2, 3 and 8 for
supplemental disclosure of non-cash investing activities.

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

---

OWENS MORTGAGE
INVESTMENT FUND,                                          a California Limited Partnership

Notes to Consolidated
Financial Statements

June 30, 2003

(1)     Summary
of Significant Accounting Policies

| | In
the opinion of the management of the Partnership, the accompanying unaudited financial
statements          contain all adjustments, consisting of normal, recurring adjustments,
necessary to present fairly the          financial information included therein.  These
financial statements should be read in conjunction with          the audited financial
statements included in the Partnerships Form 10-K for the fiscal year ended
         December 31, 2002 filed with the Securities and Exchange Commission.  The
results of operations for the          three and six month periods ended June 30, 2003
are not necessarily indicative of the operating results          to be expected for the
full year.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Basis
of Presentation
| | ---------------------

| | The
consolidated financial statements include the accounts of the Partnership and its
majority-owned          limited liability companies.  All significant inter-company
transactions and balances have been          eliminated in consolidation.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Recent
Accounting Pronouncements
| | --------------------------------

| | In
June 2001, the Financial Accounting Standards Board (FASB) issued SFAS 143, Accounting
for Asset          Retirement Obligations, which addresses financial accounting and
reporting for obligations associated          with the retirement of tangible long-lived
assets and associated asset retirement costs.  The new rules          apply to legal
obligations associated with the retirement of long-lived assets that result from the
         acquisition, construction, development and (or) normal operation of long-lived
assets.  SFAS 143 was          effective at the beginning of January 1, 2003. SFAS 143
did not have a significant impact on the          Partnerships consolidated financial
position or results of operations.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
April 2002, the FASB issued SFAS 145, Rescission of FASB Statements Nos. 4, 44, and 64,
Amendment of          SFAS Statement No. 13, and Technical Corrections.  SFAS 145
eliminates extraordinary accounting          treatment for reporting a loss on debt
extinguishments, and amends other existing authoritative          pronouncements to make
various technical corrections, to clarify meanings, and to describe applicability
         under changed conditions. The provisions of SFAS 145 were implemented for the
Partnerships fiscal year          beginning January 1, 2003.  Debt extinguishments
reported as extraordinary items prior to scheduled or          early adoption of SFAS 145
would be reclassified in most cases following adoption.  SFAS 145 did not          have a
significant impact on the Partnerships consolidated financial position or results of
operations.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
June 2002, the FASB issued SFAS 146, Accounting for Costs Associated with Exit or
Disposal          Activities. SFAS 146 requires the recording of costs associated with
exit or disposal activities at their          fair values when a liability has been
incurred.  Under previous guidance, certain exit costs were          accrued upon the
Partnerships commitment to an exit plan, which is generally before an actual liability
         has been incurred.  Adoption of SFAS 146 was implemented for the Partnerships
fiscal year beginning          January 1, 2003.  SFAS 146 did not have a significant
impact on the Partnerships consolidated financial          position or results of
operations.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
May 2003, the FASB issued SFAS 150, Accounting for Certain Financial Instruments with
Characteristics          of Both Liabilities and Equity.  SFAS 150 specifies that
instruments within its scope embody obligations          of the issuer and that,
therefore, the issuer must classify them as liabilities.  The Partnership does
         not expect SFAS 150 to have any impact on its financial position or results of
operations.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
November 2002, the FASB issued FASB Interpretation No. 45 (FIN 45), Guarantors
Accounting and          Disclosure Requirements for Guarantees, Including Indirect
Guarantees of Indebtedness of Others.  FIN 45          also requires that a liability be
recorded in the guarantors balance sheet upon issuance of certain          guarantees.
 FIN 45 also requires disclosure about certain guarantees that an entity has issued.  The
         Partnership has implemented the disclosure requirements required by FIN 45,
which were effective for          fiscal years ending after December 15, 2002.  The
Partnership will apply the recognition provisions of          FIN 45 prospectively to
guarantees issued after December 31, 2002.  The adoption of this statement had
         no material effect upon the Partnerships consolidated financial position or
results of operations.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

(2)     Loans
Secured by Trust Deeds and Allowance for Loan Losses

| | The
Partnerships investment in impaired loans that were delinquent in payments greater than
ninety days          was approximately $17,368,000 and $26,327,000 as of June 30, 2003
and December 31, 2002, respectively.          The Partnerships investment in delinquent
loans consisted of 5 and 11 loans as of June 30, 2003 and          December 31, 2002,
respectively. In addition, the Partnerships investment in loans that were past
         maturity (delinquent in principal) but current in monthly payments was
approximately $65,378,000 and          $42,126,000 as of June 30, 2003 and December 31,
2002, respectively.  As of June 30, 2003, $12,042,000          of the delinquent loans
has a specific related allowance for credit losses totaling $1,300,000. There is
         a non-specific allowance for credit losses of $2,800,000 for the remaining
delinquent balance and for          other current loans.  The Partnership has
discontinued the accrual of interest on all loans that are          delinquent greater
than ninety days.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | During
the three months ended June 30, 2003 and 2002, the Partnership refinanced loans totaling
         $21,050,000 and $11,800,000, respectively.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------

| | In
June 2003, the borrower of a participated loan, with a principal balance outstanding to
the Partnership of $12,500,000, filed bankruptcy.  In July 2003, a stipulation of the
bankruptcy court was executed, whereby the terms of the original loan were modified as
follows: 1) an additional $1,375,000 will be loaned by the Partnership to the borrower
for operating purposes; 2) the interest rate on the loan was reduced from 12.5% to 7.0%
effective July 17, 2003; 3) interest payments will be accrued and deferred through
October 31, 2003, with such deferred interest to be payable upon maturity; 4) interest
payments are to recommence monthly on November 15, 2003; and 5) the maturity date was
extended from June 14, 2003 to June 14, 2005.  The loan was current in monthly payments as
of June 30, 2003.  The General Partner believes that no allowance for this loan is
necessary as of June 30, 2003.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Changes
in the allowance for loan losses for the three months ended June 30, 2003 and 2002 were
as          follows:
| | --------------------------------------------------------------------------------------------------------------------

|                                        | 2003 | 2002
|--------------------------------------- | ---- | ----
|Balance, beginning of period            |      |     
|Provision                               |      |     
|Charge-off to real estate held for sale |      |     
|                                        |      |     
|Balance, end of period                  |      |     
|                                        |      |     

| | The
General  Partner  believes that the allowance for estimated  loan losses is appropriate
as of June 30,          2003.  The  allowance  for loan losses is evaluated  on a regular
 basis by  management  and is based upon          managements  periodic review of the
 collectibility of the loans in light of historical  experience,  the          nature and
volume of the loan  portfolio,  adverse  situations  that may affect the borrowers
 ability to          repay,  estimated value of any underlying  collateral and prevailing
economic conditions.  This evaluation          is inherently  subjective as it requires
 estimates that are  susceptible to significant  revision as more          information
 becomes  available.  Impairment  is  measured  on a loan by loan basis by either the
 present          value of  expected  future  cash  flows  discounted  at the loans
 effective  interest  rate,  the loans          obtainable market price, or the fair
value of the underlying collateral.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

(3)     Real
Estate Held for Sale

| | Real
estate held for sale includes the following components as of June 30, 2003:
| | --------------------------------------------------------------------------------

|                                          | 
|----------------------------------------- | 
|Real estate held for sale                 | 
|Investment in limited liability companies | 
|Investment in real estate joint venture   | 
|                                          | 
|                                          | 
|                                          | 

| | In
April 2003, the Partnership foreclosed on a first mortgage loan secured by a
retail/commercial          building located in Norfolk, Virginia in the amount of
$2,300,000 and obtained the property via the          trustees sale.  The property was
transferred to real estate held for sale net of a $1,000,000 specific          allowance
previously established.  The Partnership sold the property for $1,289,000 in May 2003,
         resulting in an additional loss of $11,000 during the quarter ended June 30,
2003.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | During
the quarter ended June 30, 2003, one lot and house located in a manufactured home
subdivision          development located in Ione, California (that was acquired by the
Partnership through foreclosure in          1997) was sold for $142,000, resulting in a
gain to the Partnership of approximately $24,000.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | During
the quarter ended June 30, 2003 a hotel property located in Phoenix, Arizona that was
acquired by          the Partnership through foreclosure in 2002 was sold for cash of
$370,000 and a note in the amount of          $1,480,000, resulting in no gain or loss.
 An additional allowance in the amount of $174,532 had been          established during
the quarter ended March 31, 2003.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Changes
in the allowance for real estate losses for the quarters ended June 30, 2003 and 2002
were as          follows:
| | -----------------------------------------------------------------------------------------------------------------------

|                                                | 2003 | 2002
|----------------------------------------------- | ---- | ----
|Balance, beginning of period                    |      |     
|Provision                                       |      |     
|Deductions for real estate sold                 |      |     
|Recovery of losses on real estate held for sale |      |     
|                                                |      |     
|Balance, end of period                          |      |     
|                                                |      |     

| | Investment
in Limited Liability Companies
| | -----------------------------------------

| | Oregon
Leisure Homes, LLC
| | -------------------------

| | Oregon
Leisure Homes, LLC (OLH) was formed in 2001 between the Partnership and an unrelated
developer          for the purpose of developing and selling eight condominium units
located in Lincoln City, Oregon, which          were acquired by the Partnership via a
deed in lieu of foreclosure.  OLH also purchased a house located          on the ocean in
Lincoln City for renovation and ultimate sale and holds a purchase option for another
         house on the ocean that is in the process of being renovated for ultimate sale.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Partnership is co-manager of OLH and is to receive 70% of the profits. The assets,
liabilities,          income and expenses of OLH have been consolidated into the
accompanying consolidated balance sheet and          income statement of the Partnership.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | During
the quarter ended June 30, 2003, the Partnership advanced an additional $94,000 to OLH
 for          continued development and marketing of the condominium units and house that
are for sale. The first          ocean house was fully sold during the first quarter of
2003. The net loss to the Partnership (including          gains on sales) was
approximately $114,000 for the quarter ended June 30, 2003.  The Partnerships
         investment in OLH real property was approximately $1,098,000 as of June 30, 2003.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Dation,
LLC
| | -----------

| | Dation,
LLC (Dation) was formed in 2001 between the Partnership and an unrelated developer for
the          purpose of developing and selling lots in a mobile home park located in Lake
Charles, Louisiana, which          were acquired by the Partnership via a deed in lieu of
foreclosure.  The Partnership is advancing funds          to Dation as needed under the
terms of the loan to the original borrower and as additional capital
         contributions.  The Partnership is co-manager of Dation and is to receive 50% of
the profits and          losses.  The net operating loss to the Partnership was
approximately $6,000 during the quarter ended          June 30, 2003. The Partnerships
total investment in Dation was approximately $1,869,000 as of June 30,          2003.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Investment
in Real Estate Joint Venture
| | ---------------------------------------

| | The
 Partnership has a construction  loan made on a housing  development  located in Hayward,
 California.          The loan is reported in the  financial  statements  as an
 investment  in a real estate  joint  venture to          account  for  the  investment
 pursuant  to  accounting   guidelines  for  acquisition,   development  and
         construction  arrangements.  The  Partnership is to receive  interest on its
advances to the joint venture          at the rate of 10.25%  per annum and is to
 receive  30% of the net  profits  from the sale of each  house          after  payment
 of a 10% loan fee is made to the  General  Partner  of the  Partnership,  Owens
 Financial          Group,  Inc. (OFG). As of June 30, 2003, the Partnership has received
 approximately  $377,000 in payments          of residual  profits.  The Partnership
 advanced an additional  $346,000 to the joint venture and received          payment of
advances in the amount of $500,000  during the quarter ended June 30, 2003.  The
 Partnerships          investment in the joint venture was approximately $181,000 as of
June 30, 2003.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

(4)     Real
Estate Held for Investment

| | 720
University, LLC
| | -------------------

| | The
Partnership has an investment in a limited liability company, 720 University, LLC (720
University),          which owns a commercial retail property located in Greeley,
Colorado.  The Partnership receives 65% of          the profits and losses in 720
University after priority return on partner contributions is allocated at          the
rate of 10% per annum.  The assets, liabilities, income and expenses of 720 University
have been          consolidated into the accompanying consolidated balance sheet and
income statement of the Partnership.          The net loss to the Partnership was
approximately $67,000 during the quarter ended June 30, 2003.  The          minority
interest of the joint venture partner of approximately $107,000 as of June 30, 2003 is
reported          in the accompanying consolidated balance sheet.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

(5)     Transactions
with Affiliates

| | OFG
is entitled to receive from the Partnership a management fee of up to 2.75% per annum of
the average          unpaid balance of the Partnerships mortgage loans at the end of
each of the preceding twelve months for          services rendered as manager of the
Partnership.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | All
of the Partnerships loans are serviced by OFG, in consideration for which OFG receives
up to .25%          per annum of the unpaid principal balance of the loans.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | OFG,
at its sole discretion may, on a monthly basis, adjust the management and servicing fees
as long as          they do not exceed the allowable limits calculated on an annual
basis. Even though the fees for a          particular month may exceed one-twelfth of the
maximum limits, at the end of the calendar year the sum          of the fees collected
for each of the twelve months may not exceed the stated limits. Management fees
         amounted to approximately $744,000 and $518,000 for the three months ended June
30, 2003 and 2002,          respectively, and $1,718,000 and $1,280,000 for the six
months ended June 30, 2003 and 2002,          respectively.  Service fee payments to OFG
approximated $159,000 and $147,000 for the three months ended          June 30, 2003 and
2002, respectively, and $312,000 and $287,000 for the six months ended June 30, 2003
         and 2002, respectively.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
maximum servicing fees were paid to the General Partner during the three and six months
ended June          30, 2003 and 2002. If the maximum management fees had been paid to
the General Partner during the three          and six months ended June 30, 2003, the
management fees would have been $1,753,000 (increase of          $1,008,000) and
$3,436,000 (increase of $1,718,000), respectively, which would have reduced net income
         allocated to limited partners by approximately 19.4% and 15.5%, respectively,
and net income allocated          to limited partners per weighted average limited
partner unit by the same percentage to $.01 and $.03,          respectively.  If the
maximum management fees had been paid to the General Partner during the three and
         six months ended June 30, 2002, the management fees would have been $1,619,000
(increase of $1,101,000)          and $3,159,000 (increase of $1,879,000), respectively,
which would have reduced net income allocated to          limited partners by
approximately 20.9% and 17.0%, respectively, and net income allocated to limited
         partners per weighted average limited partner unit by the same percentage to
$.02 and $.03, respectively.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
determining the management fees and hence the yield to the partners, OFG may consider a
number of          factors, including current market yields, delinquency experience,
uninvested cash and real estate          activities. OFG expects that the management fees
that it receives from the Partnership will vary in          amount and percentage from
period to period, and it is highly likely that OFG will again receive less          than
the maximum management fees in the future.  However, if OFG chooses to take the maximum
allowable          management fees in the future, the yield paid to limited partners may
be reduced.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

(6)     Note
Payable

| | The
Partnership has a note payable with a bank through its investment in 720 University,
which is          secured by a retail development in Greeley, Colorado.  The note
requires monthly interest payments with          the balance of unpaid principal and
interest due on May 22, 2004.  Beginning in January 2004, an          additional $24,800
is to be paid monthly and applied to principal. The interest rate on the note is
         variable based on the LIBOR rate plus 2.75% (4.0% at June 30, 2003).  Interest
expense for the quarter          ended June 30, 2003 and 2002 was approximately $91,000
and $84,000, respectively.  The principal balance          on the note as of June 30,
2003 and December 31, 2002 was approximately $8,519,000 and $8,190,000,
         respectively.  The Company drew an additional $271,000 on the note during the
quarter ended June 30,          2003.  The note contains certain covenants, which the
Company has complied with as of June 30, 2003.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

(7)     Line
of Credit Payable

| | The
Partnership finalized a line of credit agreement with a group of banks in August 2001,
which          provides interim financing on mortgage loans invested in by the
Partnership.  The amount of credit          available under this line of credit is
$40,000,000.  There was a balance of $6,867,000 outstanding on          the line of
credit as of December 31, 2002.  There was no balance outstanding as of June 30, 2003.
         Interest expense for the quarter ended June 30, 2003 was approximately $10,000.
 Borrowings under the          line of credit bear interest at the banks prime rate,
which was 4.0% as of June 30, 2003.  The line of          credit expires on July 31,
2005.  The Partnership is required to maintain non-interest bearing accounts          in
the total amount of $500,000 with two of the banks.   The agreement requires the
Partnership to meet          certain financial covenants including profitability, minimum
tangible net worth and total liabilities to          tangible net worth.  The Partnership
has complied with these covenants as of June 30, 2003.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

(8)     Supplemental
Disclosure of Non-Cash Operating and Investing Activities

|                                                               | 
|-------------------------------------------------------------- | 
|Loans foreclosed and transferred to real estate held for sale, | 
|net of allowance previously established                        | 

|                                               | 
|---------------------------------------------- | 
|Loans charged off against allowance for losses | 

|                                                             | 
|------------------------------------------------------------ | 
|Sale of real estate included in loans secured by trust deeds | 

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

Forward Looking Statements

Some
of the information in this Form 10-Q may contain forward-looking statements.  Such
statements can be identified by the use of forward-looking words such as may, will, expect, anticipate, estimate, continue or
other similar words.  These statements discuss future expectations, contain projections
of results of operations or of financial conditions or state other forward-looking
information.  When considering such forward-looking statements you should keep in mind
the risk factors and other cautionary statements in the Partnerships Form 10-Q. Although
management of the Partnership believes that the expectations reflected in such
forward-looking statements are based on reasonable assumptions, there are certain
factors, in addition to these risk factors and cautioning statements, such as general
economic conditions, local real estate conditions, adequacy of reserves, or weather and
other natural occurrences that might cause a difference between actual results and those
forward-looking statements.

Results of Operations

Three Months Ended June 30,
2003 Compared to 2002

The net income decrease of $74,000
(1.4%) for 2003 compared to 2002 was due to:

|o | a
decrease in gain on sale of real estate of $167,000;
|- | ------------------------------------------------------

|o | a
decrease in rental and other income from real estate properties of $192,000;
|- | ------------------------------------------------------------------------------

|o | a
decrease in other income of $61,000;
|- | --------------------------------------

|o | an
increase in management fees to general partner of $226,000;
|- | --------------------------------------------------------------

|o | an
increase in rental and other expenses from real estate properties of $154,000; and
|- | -------------------------------------------------------------------------------------

|o | a
decrease in the net recovery of losses on real estate held for sale of $314,000.
|- | ----------------------------------------------------------------------------------

The net income decrease in 2003 as
compared to 2002 was offset by:

|o | an
increase in interest income on loans secured by trust deeds of $847,000; and
|- | -------------------------------------------------------------------------------

|o | a
decrease in the provision for loan losses of $242,000.
|- | --------------------------------------------------------

Gain
on sale of real estate decreased by $167,000 (92.7%) for the quarter ended June 30, 2003,
as compared to the same period in 2002 due to the sale of four properties during the
quarter ended June 30, 2002, which resulted in a net gain of $180,000.  During the
quarter ended June 30, 2003, only two properties were sold resulting in a net gain of
$13,000.

The
decrease in rental and other income from real estate properties of $192,000 (22.5%) was
due primarily to the sale of a commercial building located in Monterey, California in
March 2003 and the sale of a hotel property located in Phoenix, Arizona in June 2003.

Interest
income on investments (other income) decreased by $61,000 (56.2%) for the quarter ended
June 30, 2003, as compared to the same period in 2002 due to a decrease of approximately
$15,500,000 in the average amount of cash and equivalents held by the Partnership during
the quarter ended June 30, 2003 as compared to 2002.

Management
fees to the General Partner are paid pursuant to the Partnership Agreement and are
determined at the sole discretion of the General Partner.  The increase in management
fees of $226,000 (43.7%) during the quarter ended June 30, 2003 as compared to 2002 was
partially a result of the growth in the average loan portfolio of approximately 8.3%
during the quarter ended June 30, 2003 as compared to the quarter ended June 30, 2002.

The
maximum management fee permitted under the Partnership Agreement is 2-3/4% per year of the
average unpaid balance of mortgage loans.  For the years 2000, 2001 and 2002 and the six
months ended June 30, 2003 (annualized), the management fees were 1.85%, 1.48%, 1.46% and
1.38% of the average unpaid balance of mortgage loans, respectively.

In
determining the management fees and hence the yield to the partners, the General Partner
may consider a number of factors, including current market yields, delinquency
experience, uninvested cash and real estate activities.  The General Partner expects that
the management fees that it receives from the Partnership will vary in amount and
percentage from period to period, and it is highly likely that the General Partner will
again receive less than the maximum management fees in the future.  However, if the
General Partner chooses to take the maximum allowable management fees in the future, the
yield paid to limited partners may be reduced.

If
the maximum management fees had been paid to the General Partner during the quarter ended
June 30, 2003, the management fees would have been $1,753,000 (increase of $1,008,000),
which would have reduced net income allocated to limited partners by approximately 19.4%,
and net income allocated to limited partners per weighted average limited partner unit by
the same percentage to $.01.

The
increase in rental and other expenses on real estate properties of $154,000 (20.8%)
between the quarter ended June 30, 2003 and 2002 was primarily the result of an increase
in expenses from the Partnerships investments in OLH and 720 University of approximately
$98,000 and selling expenses incurred of approximately $125,000 in connection with the
sale of the hotel property located in Phoenix, Arizona. See further discussion under Real
Estate Properties Held for Sale and Investment below.

The
decrease in the net recovery of losses on real estate held for sale of $314,000 (100%)
was primarily due to the reversal of an allowance in the amount of $384,000 established
on the manufactured home subdivision development located in Ione, California during the
quarter ended June 30, 2002.  No provisions or reversals were made during the quarter
ended June 30, 2003. See Financial Condition - Real Estate Held for Sale and Investment below.

Interest
income on loans secured by trust deeds increased $847,000 (14.1%) for the quarter ended
June 30, 2003, as compared to the same period in 2002.  This increase was a result of an
8.3% growth in the total loan portfolio during the quarter ended June 30, 2003 as
compared to 2002.  The increase in the loan portfolio was partially offset by a decrease
in the weighted average yield of the loan portfolio from 11.9% for the quarter ended June
30, 2002 to 11.6% for the quarter ended June 30, 2003.  See Financial Condition - Loan
Portfolio below.

The
decrease in the provision for loan losses of $242,000 (39%) was the result of a specific
allowance in the amount of $621,000 established on one delinquent loan during the quarter
ended June 30, 2002.  The specific allowance on this loan was increased by $379,000
during the quarter ended June 30, 2003.

Six Months Ended June 30, 2003
Compared to 2002

The net income increase of $30,000
(0.3%) for 2003 compared to 2002 was due to:

|o | an
increase in interest income on loans secured by trust deeds of $1,709,000;
|- | -----------------------------------------------------------------------------

|o | an
increase in gain on sale of real estate of $89,000;
|- | ------------------------------------------------------

|o | a
decrease legal and accounting expenses of $30,000; and
|- | --------------------------------------------------------

|o | a
decrease in the provision for loan losses of $362,000.
|- | --------------------------------------------------------

The net income increase in 2003 as
compared to 2002 was offset by:

|o | a
decrease in rental and other income from real estate properties of $200,000;
|- | ------------------------------------------------------------------------------

|o | a
decrease in other income of $150,000;
|- | ---------------------------------------

|o | an
increase in management fees to general partner of $437,000;
|- | --------------------------------------------------------------

|o | an
increase in rental and other expenses from real estate properties of $453,000; and
|- | -------------------------------------------------------------------------------------

|o | an
increase in the provision for losses on real estate held for sale of $898,000.
|- | ---------------------------------------------------------------------------------

Interest
income on loans secured by trust deeds increased $1,709,000 (13.9%) for the six months
ended June 30, 2003, as compared to the same period in 2002.  This increase was a result
of an 8.8% growth in the total loan portfolio during the six months ended June 30, 2003
as compared to 2002 and the collection of interest on certain delinquent loans during the
first quarter of 2003.  The increase in the loan portfolio was partially offset by a
decrease in the weighted average yield of the loan portfolio from 11.9% for the six
months ended June 30, 2002 to 11.6% for the six months ended June 30, 2003.  See Financial
Condition - Loan Portfolio below.

Gain
on sale of real estate increased by $89,000 (9.7%) for the six months ended June 30,
2003, as compared to the same period in 2002 due to the sale of nine properties during
the six months ended June 30, 2003, which resulted in a net gain of $1,003,000.  During
the quarter ended June 30, 2002, five properties were sold resulting in a total gain of
$914,000.

The
decrease in legal and accounting expenses of $30,000 (23.3%) was due to professional fees
incurred in the first quarter 2002 as a result of a new S-11 filing with the Securities
and Exchange Commission in January 2002 and the S-11 Post-Effective Amendment filing in
April 2002.  No new filings S-11 filings were made during the six months ended June 30,
2003.

The
decrease in the provision for loan losses of $362,000 (34.7%) was the result of a
specific allowance in the amount of $679,000 established on two delinquent loans during
the six months ended June 30, 2003. Specific and general allowances were made in the
total amount of $1,041,000 during the six months ended June 30, 2002.

The
decrease in rental and other income from real estate properties of $200,000 (12.2%) was
due primarily to the sale of a commercial building located in Monterey, California in
March 2003 and the sale of a hotel property located in Phoenix, Arizona in June 2003.

Interest
income on investments (other income) decreased by $150,000 (61.3%) for the six months
ended June 30, 2003, as compared to the same period in 2002 due to a decrease of
approximately $20,600,000 in the average amount of cash and equivalents held by the
Partnership during the six months ended June 30, 2003 as compared to 2002.

Management
fees to the General Partner are paid pursuant to the Partnership Agreement and are
determined at the sole discretion of the General Partner.  The increase in management
fees of $437,000 (34.2%) during the six months ended June 30, 2003 as compared to 2002
was partially a result of an increase in interest income collected on delinquent loans
during the six month period and the growth in the loan portfolio of approximately 8.8%.

The
maximum management fee permitted under the Partnership Agreement is 2-3/4% per year of the
average unpaid balance of mortgage loans.  For the years 2000, 2001 and 2002 and the six
months ended June 30, 2003 (annualized), the management fees were 1.85%, 1.48%, 1.46% and
1.38% of the average unpaid balance of mortgage loans, respectively.

In
determining the management fees and hence the yield to the partners, the General Partner
may consider a number of factors, including current market yields, delinquency
experience, uninvested cash and real estate activities.  The General Partner expects that
the management fees that it receives from the Partnership will vary in amount and
percentage from period to period, and it is highly likely that the General Partner will
again receive less than the maximum management fees in the future.  However, if the
General Partner chooses to take the maximum allowable management fees in the future, the
yield paid to limited partners may be reduced.

If
the maximum management fees had been paid to the General Partner during the six months
ended June 30, 2003, the management fees would have been $3,436,000 (increase of
$1,718,000), which would have reduced net income allocated to limited partners by
approximately 15.5%, and net income allocated to limited partners per weighted average
limited partner unit by the same percentage to $.03.

The
increase in rental and other expenses on real estate properties of $453,000 (33.2%)
between the quarter ended June 30, 2003 and 2002 was primarily the result of the
following:

|o |  | an
increase in rental and other expenses from the Partnerships investments in OLH, Dation,
|- |  | -------------------------------------------------------------------------------------------

|o |  | selling
expenses incurred of approximately $125,000 in connection with the sale of the hotel
property          located in Phoenix, Arizona; and
|- |  | -----------------------------------------------------------------------------------------------------------------------------------------------

|o |  | expenses
incurred of approximately $233,000 on three non-operating properties that were obtained
via          foreclosure during late 2002 and early 2003.
|- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------

See
further discussion under Real Estate Properties Held for Sale and Investment below.

The
increase in the provision for losses on real estate held for sale of $898,000 was due to
the creation of reserves on two properties in the total amount of $585,000 during the six
months ended June 30, 2003.  See Financial Condition - Real Estate Properties Held for
Sale and Investment below. During the six months ended June 30, 2002, an allowance
established on a manufactured home subdivision development located in Ione, California
was reversed resulting in a net recovery of losses on real estate held for sale of
$314,000.

Financial Condition

June 30, 2003 and December 31,
2002

Loan Portfolio

The
number of Partnership mortgage investments decreased from 100 to 89, and the average loan
balance increased from $2,602,000 to $2,769,000 between December 31, 2002 and June 30,
2003.

Approximately
$17,368,000 (7.1%) and $26,327,000 (10.1%) of the loans invested in by the Partnership
were more than 90 days delinquent in monthly payments as of June 30, 2003 and December
31, 2002, respectively. Of these amounts, approximately $3,450,000 (1.4%) and $6,503,000
(2.5%), respectively, were in the process of foreclosure, and approximately $1,600,000
(0.7%) and $4,300,000 (1.7%), respectively, involved loans to borrowers who were in
bankruptcy. In addition, the Partnerships investment in loans that were past maturity
(delinquent in principal) but current in monthly payments was approximately $65,378,000
as of June 30, 2003. Of the total past maturity loans as of June 30, 2003, $7,100,000 was
paid off subsequent to quarter end.

Loans
in the process of foreclosure as of December 31, 2002 consisted of five loans, of which
one loan in the amount of $353,000 was written off by the Partnership during the six
months ended June 30, 2003, the borrower of one loan in the amount of $1,600,000 entered
into bankruptcy, one loan in the amount of $1,100,000 became current and is no longer in
foreclosure, and two loans in the total amount of $3,450,000 are still delinquent and in
foreclosure.

Loans
to borrowers who were in bankruptcy as of December 31, 2002 consisted of two loans, one
in the amount of $2,000,000 was foreclosed upon during the six months ended June 30, 2003
and one loan in the amount of $2,300,000 was foreclosed upon and the property sold during
the quarter ended June 30, 2003.  In addition, one loan in the amount of $1,600,000 was
reclassified from a loan in the process of foreclosure to a loan subject to bankruptcy
during the six months ended June 30, 2003.

As
of June 30, 2003 and December 31, 2002, the Partnership held the following types of
mortgages:

|                            | June 30,2003 | December 31,2002
|--------------------------- | ------------ | ----------------
|1st Mortgages               |              |                 
|2nd Mortgages               |              |                 
|                            |              |                 
|Total                       |              |                 
|                            |              |                 
|                            |              |                 
|Income Producing Properties |              |                 
|Construction                |              |                 
|Unimproved Land             |              |                 
|Residential                 |              |                 
|                            |              |                 
|Total                       |              |                 
|                            |              |                 

As
of June 30, 2003 and December 31, 2002, approximately 42% and 43% of the Partnerships
mortgage loans are secured by real property located in Northern California.

The
Partnerships investment in construction loans increased by $5,221,000 (41.2%) since
December 31, 2002. This increase was primarily due to additional construction advances
made on existing loans during the six months ended June 30, 2003.

The
Partnerships investment in loans on unimproved land decreased by $7,438,000 (43.9%)
since December 31, 2002. This decrease was the result of the repayment of five loans in
the total amount of $9,900,000 during the six months ended June 30, 2003, net of five new
loans on unimproved land in the total amount of $2,395,000.

Changes
in the allowance for loan losses for the quarter ended June 30, 2003 and 2002 were as
follows:

|                                        | 2003 | 2002
|--------------------------------------- | ---- | ----
|Balance, beginning of period            |      |     
|Provision                               |      |     
|Charge-off to real estate held for sale |      |     
|                                        |      |     
|Balance, end of period                  |      |     
|                                        |      |     

In
June 2003, the borrower of a participated loan, with a principal balance outstanding to
the Partnership of $12,500,000, filed bankruptcy.  In July 2003, a stipulation of the
bankruptcy court was executed, whereby the terms of the original loan were modified as
follows: 1) an additional $1,375,000 will be loaned by the Partnership to the borrower
for operating purposes; 2) the interest rate on the loan was reduced from 12.5% to 7.0%
effective July 17, 2003; 3) interest payments will be accrued and deferred through
October 31, 2003, with such deferred interest to be payable upon maturity; 4) interest
payments are to recommence monthly on November 15, 2003; and 5) the maturity date was
extended from June 14, 2003 to June 14, 2005.  The loan was current in monthly payments as
of June 30, 2003.  The General Partner believes that no allowance for this loan is
necessary as of June 30, 2003.

Real Estate Properties Held for
Sale and Investment

The
 Partnership  currently  holds title to 15  properties  that were  foreclosed  on or
 purchased by the Partnership  since  1994 in the  amount  of  $29,246,000  (including
 properties  held in three  limited  liability companies  and  one  real  estate  joint
 venture),  net of  allowance  for  losses  of  $660,000  and  accumulated depreciation
 and  amortization of $647,000.  As of June 30, 2003,  properties held for sale total
 $13,908,000 and properties held for investment  total  $15,338,000.  When the
 Partnership  acquires  property by  foreclosure,  it typically  earns less  income on
those  properties  than could be earned on  mortgage  loans and may not be able to sell
the properties in a timely manner.

In
April 2003, the Partnership foreclosed on a first mortgage loan secured by a
retail/commercial building located in Norfolk, Virginia in the amount of $2,300,000 and
obtained the property via the trustees sale.  The property was transferred to real
estate held for sale net of a $1,000,000 specific allowance previously established.  The
Partnership sold the property for $1,289,000 in May 2003, resulting in an additional loss
of $11,000 during the quarter ended June 30, 2003.

During
the quarter ended June 30, 2003, one lot and house located in a manufactured home
subdivision development located in Ione, California (that was acquired along with other
improved lots by the Partnership through foreclosure in 1997) was sold for $142,000,
resulting in a gain to the Partnership of approximately $24,000.

During
the quarter ended June 30, 2003 a hotel property located in Phoenix, Arizona that was
acquired by the Partnership through foreclosure in 2002 was sold for cash of $370,000 and
a note in the amount of $1,480,000, resulting in no gain or loss.  An additional
allowance in the amount of $175,000 had been established during the quarter ended March
31, 2003.

During
the quarter ended June 30, 2003, the Partnership advanced an additional $94,000 to Oregon
Leisure Homes, LLC (OLH) for continued development and marketing of the condominium units
and house that are for sale. The first ocean house was fully sold during the first
quarter of 2003. The net loss to the Partnership (including gains on sales) was
approximately $114,000 for the quarter ended June 30, 2003.

Changes
in the allowance for real estate losses for the quarters ended June 30, 2003 and 2002
were as follows:

|                                                | 2003 | 2002
|----------------------------------------------- | ---- | ----
|Balance, beginning of period                    |      |     
|Provision                                       |      |     
|Deductions for real estate sold                 |      |     
|Recovery of losses on real estate held for sale |      |     
|                                                |      |     
|Balance, end of period                          |      |     
|                                                |      |     

Seven
of the Partnerships fifteen properties do not currently generate revenue. Expenses from
rental properties have increased from approximately $741,000 to $896,000 (20.8%) for the
quarter ended June 30, 2002 and 2003, respectively, and revenues associated with these
properties  have decreased from $856,000 to $664,000 (22.5%), respectively.

The
increase in expenses between the quarter ended June 30, 2003 and 2002 was primarily the
result of an increase in expenses from the Partnerships investments in OLH and 720
University of approximately $98,000 and selling expenses incurred of approximately
$125,000 in connection with the sale of the hotel property located in Phoenix, Arizona.

The
decrease in income between the quarter ended June 30, 2003 and 2002 was due primarily to
the sale of the commercial building located in Monterey, California in March 2003 and the
sale of the hotel property located in Phoenix, Arizona in June 2003.

Cash and Cash Equivalents

Cash
and cash equivalents increased from approximately $6,684,000 as of December 31, 2002 to
$18,825,000 as of June 30, 2003 ($12,141,000 or 181.6%) due primarily to a greater amount
of repayments on loans received than new loans funded or purchased during the six months
ended June 30, 2003.

Interest and Other Receivables

Interest
and other receivables decreased from approximately $3,177,000 as of December 31, 2002 to
$2,832,000 as of June 30, 2003 ($345,000 or 10.8%) due primarily to the decrease in the
amount of loans outstanding as of June 30, 2003 as compared to December 31, 2002 and the
decrease in the weighted average yield on the loan portfolio from 11.7% as of December
31, 2002 to 11.6% as of June 30, 2003.

Due to General Partner

Due
to General Partner decreased from approximately $957,000 as of December 31, 2002 to
$420,000 as of June 30, 2003 ($537,000 or 56.1%) due to decreased management fees owed to
the General Partner as of June 30, 2003 pursuant to the Partnership Agreement (see Results
of Operations above).

Note Payable

Note
payable increased from approximately $8,190,000 as of December 31, 2002 to $8,519,000
($329,000 or 4.0%) as of June 30, 2003 due to additional advances made on the note
payable securing the Greeley, Colorado retail complex to complete improvements to the
property.  There is an additional $381,000 to be advanced from the note for construction
and tenant improvements.

Line of Credit Payable

Line
of credit payable decreased from $6,867,000 as of December 31, 2002 to no balance
outstanding at June 30, 2003 as a result of the repayment of loans during the quarter
ended June 30, 2003.  There is $40,000,000 available to be advanced from the line of
credit as of June 30, 2003.

Asset Quality

Some
losses are normal when lending money and the amounts of losses vary as the loan portfolio
is affected by changing economic conditions and financial experiences of borrowers.
 There is no precise method of predicting specific losses or amounts that ultimately may
be charged off on particular segments of the loan portfolio.

The
conclusion that a Partnership loan may become uncollectible, in whole or in part, is a
matter of judgment.  Although lenders such as banks and savings and loans are subject to
regulations that require them to perform ongoing analyses of their loan portfolios
(including analyses of loan to value ratios, reserves, etc.), and to obtain current
information regarding its borrowers and the securing properties, the Partnership is not
subject to these regulations and has not adopted these practices.  Rather, management of
the General Partner, in connection with the quarterly closing of the accounting records
of the Partnership and the preparation of the financial statements, evaluates the
Partnerships mortgage loan portfolio. The allowance for loan losses is established
through a provision for loan losses based on the General Partners evaluation of the risk
inherent in the Partnerships loan portfolio and current economic conditions.  Such
evaluation, which includes a review of all loans on which full collectibility may not be
reasonably assured, considers among other matters:

|o | prevailing
economic conditions;
|- | -------------------------------

|o | historical
experience;
|- | ----------------------

|o | the
types and dollar amounts of the loans in the portfolio;
|- | -----------------------------------------------------------

|o | borrowers financial
condition and adverse situations that may affect the borrowers ability to pay;
|- | ----------------------------------------------------------------------------------------------------

|o | evaluation
of industry trends;
|- | ------------------------------

|o | review
and evaluation of loans identified as having loss potential; and
|- | -----------------------------------------------------------------------

|o | estimated
net realizable value or fair value of the underlying collateral.
|- | --------------------------------------------------------------------------

Based
upon this evaluation, a determination is made as to whether the allowance for loan losses
is adequate to cover potential losses of the Partnership.  Additions to the allowance for
loan losses are made by charges to the provision for loan losses.  Loan losses deemed to
be uncollectible are charged against the allowance for loan losses. Recoveries of
previously charged off amounts are credited to the allowance for loan losses.  The
following is a summary of actual losses realized on loans and real estate for the six
months ended June 30, 2003 and the years ended December 31, 2002, 2001, 2000, 1999 and
1998.

|                | Loans | Real Estate
|--------------- | ----- | -----------
|2003 (6 Months) |       |            
|2002            |       |            
|2001            |       |            
|2000            |       |            
|1999            |       |            
|1998            |       |            

The
loss on real estate in the amount of $712,000 during the year ended December 31, 1998 was
a result of the sale of a foreclosed property to the General Partner at its fair market
value.

As
of June 30, 2003, management believes that the allowance for loan losses of $4,100,000
and the allowance for real estate losses in the amount of $660,000 are adequate.

Liquidity and
Capital Resources

Sales
of Units to investors and portfolio loan payoffs provide the capital for new mortgage
investments. If general market interest rates were to rise substantially, investors might
turn to interest-yielding investments other than Partnership Units, which would reduce
the liquidity of the Partnership and its ability to make additional mortgage investments
to take advantage of the generally higher interest rates.   In contrast, a significant
increase in the dollar amount of loan payoffs and additional limited partner investments
without the origination of new loans of the same amount would increase the liquidity of
the Partnership.  This increase in liquidity could result in a decrease in the yield paid
to limited partners as the Partnership would be required to invest the additional funds
in lower yielding, short term investments.

Withdrawal
percentages have been 7.33%, 7.99%, 6.64%, 5.45%, 3.32% and 3.83% (annualized) for the
years ended December 31, 1998, 1999, 2000, 2001 and 2002, and the six months ended June
30, 2003, respectively.  These percentages are the annual average of the limited partners capital
withdrawals in each calendar quarter divided by the total limited partner capital as of
the end of each quarter.

The
limited partners may withdraw, or partially withdraw, from the Partnership and obtain the
return of their outstanding capital accounts at $1.00 per Unit within 61 to 91 days after
written notices are delivered to the General Partner, subject to the following
limitations, among others:

|o | No
withdrawal of Units can be requested or made until at least one year from the date of
purchase of those      Units, other than Units received under the Partnerships
Reinvested Distribution Plan.
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|o | Any
such payments are required to be made only from net proceeds and capital contributions
(as defined)      during said 91-day period.
|- | ---------------------------------------------------------------------------------------------------------------------------------------

|o | A
maximum of $100,000 per partner may be withdrawn during any calendar quarter.
|- | -------------------------------------------------------------------------------

|o | The
General Partner is not required to establish a reserve fund for the purpose of funding
such payments.
|- | ---------------------------------------------------------------------------------------------------------

|o | No
more than 10% of the total outstanding limited partnership interests may be withdrawn
during any      calendar year except upon a plan of dissolution of the Partnership.
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

In
March 2001, the Partnership amended its Limited Partnership Agreement, with the consent
of a majority of limited partners, to allow the Partnership to incur indebtedness for the
purpose of investing in mortgage loans. The total amount of indebtedness incurred by the
Partnership cannot exceed the sum of 50% of the aggregate fair market value of all
Partnership loans. The Partnership finalized a line of credit agreement with a bank in
August 2001, which provides interim financing on mortgage loans invested in by the
Partnership.  The amount of credit available under this line of credit is $40,000,000.
 There was no balance outstanding on the line of credit as of June 30, 2003.

Contingency Reserves

The
Partnership maintains cash, cash equivalents and marketable securities as contingency
reserves in an aggregate amount of 2% of the limited partners capital accounts to cover
expenses in excess of revenues or other unforeseen obligations of the Partnership.
 Although the General Partner believes that contingency reserves are adequate, it could
become necessary for the Partnership to sell or otherwise liquidate certain of its
investments to cover such contingencies on terms which might not be favorable to the
Partnership.

Current Economic
Conditions

The
current economic climate in Northern California and the Western United States has shown
increasing signs of a slowdown. Interest rates have continued to decline and several key
indices are at the lowest levels in decades.  Despite the Partnerships historical
ability to make or purchase mortgage loans with relatively strong yields, increased
competition by other mortgage lenders or changes in the economy could have the effect of
reducing mortgage yields in the future.  Present loans with relatively high yields could
be replaced with loans with lower yields, which in turn could reduce the net yield paid
to the limited partners.  In addition, if there is less demand by borrowers for loans
and, thus, fewer loans for the Partnership to invest in, the Partnership may be required
to invest its excess cash in short-term alternative investments yielding considerably
less than investments in mortgage loans.  The Partnership has been closed to most new
limited partner investments since September 2001.  The Partnership has remained closed
during this time because there have not been enough suitable mortgage investments for the
Partnership to invest in to allow the Partnership to remain fully invested in loans.
 Remaining closed to limited partner investments prevents the Partnership from having to
invest its excess cash in lower yielding investments, which could have the effect of
decreasing the yield paid to existing limited partners.

The
Partnership Agreement permits the General Partner to purchase delinquent loans from the
Partnership as long as certain criteria are met.  Although the General Partner has
purchased some delinquent loans from the Partnership in the past, it is not required to
do so.  Therefore, if the General Partner does not choose to purchase delinquent loans of
the Partnership, the Partnership could sustain losses with respect to loans secured by
properties located in areas of declining real estate values.  This could result in a
reduction of the net income of the Partnership and possible loss of principal for a year
in which those losses occur.

Item 3. Quantitative and
Qualitative Disclosures About Market Risk

The
following table contains information about the cash held in money market accounts,
commercial paper, loans held in the Partnerships portfolio and a note payable securing a
real estate property owned by the Partnership as of June 30, 2003.  The presentation, for
each category of information, aggregates the assets and liabilities by their maturity
dates for maturities occurring in each of the years 2004 through 2008 and separately
aggregates the information for all maturities arising after 2008.  The carrying values of
these assets and liabilities approximate their fair values as of June 30, 2003.

Interest Earning
Assets and Interest Bearing Liabilities,
                                                   Aggregated by Maturity Date
                                                   Twelve Months Ended June 30,

|                      | 2004 | 2005 | 2006 | 2007        | 2008 | Thereafter | Total     
|--------------------- | ---- | ---- | ---- | ----------- | ---- | ---------- | ----------
|Interest earning      |      |      |      |             |      |            |           
|assets:               |      |     
|Money market          |      |     
|accounts              |      |      | $    | 18,211,058  |      |            | --        
|Average interest rate |      |      |      | 0.7%        |      |            | --        
|Loans secured by      |      |     
|trust deeds           |      |      | $    | 150,067,494 |      | $          | 67,959,995
|Average interest rate |      |      |      | 12.0%       |      |            | 11.2%     
|Interest bearing      |      |     
|liabilities:          |      |     
|Note payable to bank  |      |      | $    | 8,518,884   |      |            | --        
|Average interest rate |      |      |      | 4.0%        |      |            | --        

Market Risk

Market
risk is the exposure to loss resulting from changes in interest rates, equity prices and
real estate values. The Partnerships note payable bears interest at a variable rate,
tied to the LIBOR rate of interest.  As a result, the Partnerships primary market risk
exposure is to changes in interest rates, which will affect the interest cost of
outstanding amounts on the note payable.

The
majority of the Partnerships mortgage loans (87.8% as of June 30, 2003) earn interest at
fixed rates. Changes in interest rates may also affect the value of the Partnerships
investment in mortgage loans and the rates at which the Partnership reinvests funds
obtained from loan repayments and new capital contributions from limited partners.  As
interest rates increase, although the interest rates the Partnership obtains from
reinvested funds will generally increase, the value of the Partnerships existing loans
at fixed rates will generally tend to decrease.  As interest rates decrease, the amounts
becoming available to the Partnership for investment due to repayment of Partnership
loans may be invested at lower rates than the Partnership had been able to obtain in
prior investments, or than the rates on the repaid loans.

The
Partnership does not hedge or otherwise seek to manage interest rate risk.  The
Partnership does not enter into risk sensitive instruments for trading purposes.

Item 4. Controls and Procedures

Within
the 90 days prior to the date of this report, the General Partner of the Partnership
carried out an evaluation, under the supervision and with the participation of the
General Partners management, including the General Partners Chief Executive Officer and
Chief Financial Officer, of the effectiveness of the design and operation of the
Partnerships disclosure controls and procedures pursuant to Exchange Act Rule 13a-14.
 Based upon that evaluation, the Chief Executive Office and Chief Financial Officer of
the General Partner concluded that the Partnerships disclosure controls and procedures
are effective.  There were no significant changes in the Partnerships internal controls
or in other factors that could significantly affect these controls subsequent to the date
of their evaluation.

PART II. OTHER INFORMATION

Item 1.  Legal Proceedings

The Partnership is not presently
involved in any material legal proceedings.

Item 6(b).  Reports on Form 8-K

No reports on Form 8-K have been
filed during the quarter for which this report is filed.

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SIGNATURES

Pursuant
to the requirements of the Securities Exchange Act of 1934, this report has been signed
below by the following persons on behalf of the registrant and in the capacities and on
the dates indicated.

|                         |  |                                                                                                                   
|------------------------ |  | ------------------------------------------------------------------------------------------------------------------
|Dated:   August 13, 2003 |  | OWENS MORTGAGE INVESTMENT FUND,
a California Limited Partnership
By:  Owens Financial Group, Inc., General Partner

|                         |  |                                                          
|------------------------ |  | ---------------------------------------------------------
|Dated:   August 13, 2003 |  | By: /s/ William C. Owens
     William C. Owens, President

|                         |  |                                                                      
|------------------------ |  | ---------------------------------------------------------------------
|Dated:   August 13, 2003 |  | By: /s/ Bryan H. Draper
     Bryan H. Draper, Chief Financial Officer

|                         |  |                                                         
|------------------------ |  | --------------------------------------------------------
|Dated:   August 13, 2003 |  | By: /s/ Melina A. Platt
     Melina A. Platt, Controller