UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                       ----------------------------------

                                    FORM 10-K
                ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934
                       -----------------------------------


For the fiscal year ended December 31, 2002       Commission file number 1-12724

              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88
              ----------------------------------------------------
             (Exact name of registrant as specified in its charter)

          Delaware                                               13-3398206
 ------------------------------                              -------------------
(State or other jurisdiction of                               (I.R.S. Employer
Incorporation or organization)                               Identification No.)

                              11200 Rockville Pike
                            Rockville, Maryland 20852
                                 (301) 816-2300
               (Address, including zip code, and telephone number,
        including area code, of registrant's principal executive offices)

        ----------------------------------------------------------------


           Securities registered pursuant to Section 12(b) of the Act:

                                                        Name of each exchange on
    Title of each class                                     which registered
---------------------------                            -------------------------
Depositary Units of Limited                             American Stock Exchange
     Partnership Interest

           Securities registered pursuant to Section 12(g) of the Act:

                                      None
        ----------------------------------------------------------------


     Indicated  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 [ ]

     Indicate by check mark if disclosure of delinquent  filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's  knowledge,  in definitive proxy or information  statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [ ]

     Indicate by check mark whether the registrant is an  accelerated  filer (as
defined in Exchange Act Rule 12b-2). Yes [ ] No [X]

     As of December 31, 2002,  8,802,091 depositary units of limited partnership
interest  were  outstanding.  The  aggregate  market value of such units held by
non-affiliates  of the Registrant  based on the last reported sale price on June
28, 2002 was $43,126,600.

                       Documents incorporated by Reference

                                      None


<PAGE>2






              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88

                         2002 ANNUAL REPORT ON FORM 10-K

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                     PART I
                                                                                                       Page
                                                                                                       ----
<S>               <C>                                                                                   <C>
Item 1.           Business.......................................................................        3
Item 2.           Properties.....................................................................        5
Item 3.           Legal Proceedings..............................................................        5
Item 4.           Submission of Matters to a Vote of Security Holders............................        5


                                     PART II

Item 5.           Market for Registrant's Securities and Related Security Holder Matters.........        6
Item 6.           Selected Financial Data........................................................        7
Item 7.           Management's Discussion and Analysis of Financial Condition and Results
                     of Operations...............................................................        8
Item 7A.          Qualitative and Quantitative Disclosures About Market Risk.....................       14
Item 8.           Financial Statements and Supplementary Data....................................       14
Item 9.           Changes in and Disagreements with Accountants on Accounting and
                     Financial Disclosure........................................................       14


                                    PART III

Item 10.          Directors and Executive Officers of the Registrant.............................       16
Item 11.          Executive Compensation.........................................................       18
Item 12.          Security Ownership of Certain Beneficial Owners, Management and Related
                    Unitholder Matters...........................................................       18
Item 13.          Certain Relationships and Related Transactions.................................       18
Item 14.          Controls and Procedures........................................................       19

                                     PART IV

Item 15.          Exhibits, Financial Statement Schedules and Reports on Form 8-K................       20

Signatures        ...............................................................................       23

Certifications    ...............................................................................       24
</TABLE>

<PAGE>3
                                     PART II
ITEM 1.   BUSINESS

FORWARD-LOOKING  STATEMENTS.  When used in this Annual Report on Form 10-K,  the
words  "believe,"  "anticipate,"  "expect,"  "contemplate,"  "may,"  "will," and
similar  expressions  are  intended  to  identify  forward-looking   statements.
Statements  looking  forward in time are included in this Annual  Report on Form
10-K  pursuant  to  the  "safe  harbor"  provision  of  the  Private  Securities
Litigation  Reform Act of 1995. Such statements are subject to certain risks and
uncertainties,   which  could  cause  actual   results  to  differ   materially.
Accordingly,  the following information contains or may contain  forward-looking
statements: (1) information included or incorporated by reference in this Annual
Report on Form 10-K, including,  without limitation,  statements made under Item
7,  Management's  Discussion and Analysis of Financial  Condition and Results of
Operations,  (2) information  included or incorporated by reference in prior and
future  filings by the  Partnership  (defined  below)  with the  Securities  and
Exchange  Commission  ("SEC")  including,  without  limitation,  statements with
respect to  growth,  projected  revenues,  earnings,  returns  and yields on its
portfolio of mortgage assets,  the impact of interest rates,  costs and business
strategies and plans and (3) information contained in written material, releases
and oral  statements  issued by or on behalf  of,  the  Partnership,  including,
without  limitation,  statements  with  respect to growth,  projected  revenues,
earnings,  returns and yields on its portfolio of mortgage assets, the impact of
interest rates, costs and business strategies and plans. Factors which may cause
actual results to differ materially from those contained in the  forward-looking
statements  identified above include,  but are not limited to (i) regulatory and
litigation  matters,  (ii)  interest  rates,  (iii) trends in the economy,  (iv)
prepayment  of  mortgages,  (v)  defaulted  mortgages,  (vi) errors in servicing
defaulted  mortgages and (vii) sales of mortgage  investments  below fair market
value.   Readers  are   cautioned   not  to  place   undue   reliance  on  these
forward-looking statements, which speak only of the date hereof. The Partnership
undertakes no obligation to publicly revise these forward-looking  statements to
reflect events or  circumstances  occurring  after the date hereof or to reflect
the occurrence of unanticipated events.

Development and Description of Business
---------------------------------------

     American  Insured Mortgage  Investors L.P. - Series 88 (the  "Partnership")
was formed pursuant to a limited partnership agreement ("Partnership Agreement")
under the Uniform  Limited  Partnership Act of the State of Delaware on February
13, 1987.  During the period from  October 2, 1987 (the initial  closing date of
the Partnership's  public offering) through March 10, 1989 (the termination date
of the offering),  the  Partnership,  pursuant to its public  offering of Units,
raised a total of  $177,039,320  in gross  proceeds.  In  addition,  the initial
limited  partner  contributed  $2,500  to the  capital  of the  Partnership  and
received 125 units of limited partnership interest in exchange therefor.

     CRIIMI, Inc., a wholly-owned  subsidiary of CRIIMI MAE Inc. ("CRIIMI MAE"),
acts as the General  Partner (the  "General  Partner") for the  Partnership  and
holds a partnership  interest of 4.9%. The General Partner  provides  management
and  administrative  services  on behalf  of the  Partnership.  AIM  Acquisition
Partners  L.P.  serves as the advisor (the  "Advisor") to the  Partnership.  The
general   partner  of  the  Advisor  is  AIM   Acquisition   Corporation   ("AIM
Acquisition")  and the  limited  partners  include,  but are not limited to, The
Goldman Sachs Group, L.P., Sun America  Investments,  Inc.  (successor to Broad,
Inc.) and CRI/AIM  Investment,  L.P.,  a  subsidiary  of CRIIMI MAE,  over which
CRIIMI  MAE  exercises  100%  voting  control.  AIM  Acquisition  is a  Delaware
corporation  that is primarily  owned by Sun America  Investments,  Inc. and The
Goldman Sachs Group, L.P.

     Pursuant  to the terms of certain  origination  and  acquisition  services,
management services and disposition  services agreements between the Advisor and
the Partnership  (collectively the "Advisory  Agreements"),  the Advisor renders
services to the Partnership, including but not limited to, the management of the
Partnership's  portfolio of mortgages and the  disposition of the  Partnership's
mortgages. Such services are subject to the review and ultimate authority of the
General Partner. However, the General Partner is required to receive the consent
of the Advisor prior to taking certain  significant  actions,  including but not
limited to the  disposition of mortgages,  any transaction or agreement with the
General  Partner  or its  affiliates,  or any  material  change  as to  policies
regarding  distributions  or  reserves  of  the  Partnership  (collectively  the

<PAGE>4

"Consent Rights"). The Advisor is permitted and has delegated the performance of
services to CRIIMI MAE Services Limited Partnership  ("CMSLP"),  a subsidiary of
CRIIMI  MAE,   pursuant  to  a  sub-management   agreement  (the   "Sub-Advisory
Agreement").  The general partner and limited partner of CMSLP are  wholly-owned
subsidiaries  of CRIIMI MAE. The  delegation  of such services by the Advisor to
CMSLP does not relieve the Advisor of its  obligation to perform such  services.
Furthermore the Advisor has retained its Consent Rights.

     The General Partner also serves as the General Partner for American Insured
Mortgage Investors ("AIM 84"), American Insured Mortgage Investors. - Series 85,
L.P ("AIM 85") and American  Insured  Mortgage  Investors L.P. - Series 86 ("AIM
86") and  owns  general  partner  interests  therein  of  2.9%,  3.9% and  4.9%,
respectively.  The  Partnership,  AIM  84,  AIM 85 and  AIM 86 are  collectively
referred to as the "AIM Limited Partnerships".

     Prior to December  1996,  the  Partnership  was engaged in the  business of
originating  government insured mortgage loans ("Originated  Insured Mortgages")
and acquiring  government  insured mortgage loans ("Acquired  Insured Mortgages"
and, together with Originated Insured Mortgages,  referred to herein as "Insured
Mortgages").  In accordance  with the terms of the  Partnership  Agreement,  the
Partnership is no longer  authorized to originate or acquire  Insured  Mortgages
and, consequently,  its primary objective is to manage its portfolio of mortgage
investments,  all of which are insured under Section 221(d)(4) or Section 231 of
the National  Housing Act of 1937, as amended (the "National  Housing Act"). The
Partnership Agreement states that the Partnership will terminate on December 31,
2021, unless terminated earlier under the provisions thereof. The Partnership is
required,  pursuant to the Partnership Agreement, to dispose of its assets prior
to this date.

     Additional  information  concerning  the  business  of the  Partnership  is
contained in Part II, Item 7, Management's  Discussion and Analysis of Financial
Condition and Results of  Operations  and in Notes 1, 5, 6 and 7 of the Notes to
Financial  Statements  (filed in  response  to Item 8 hereof),  all of which are
incorporated by reference  herein.  See also Schedule  IV-Mortgage Loans on Real
Estate, for the table of the Partnership's  Insured Mortgages (as defined below)
as of December 31, 2002, which is incorporated herein by reference.

Employees and Management of the Partnership
-------------------------------------------

     The  Partnership  has no  employees.  The  business of the  Partnership  is
managed by its General  Partner  while its  portfolio of mortgages is managed by
the  Advisor and CMSLP  pursuant to the  Advisory  Agreements  and  Sub-Advisory
Agreement, respectively, as discussed above. A wholly-owned subsidiary of CRIIMI
MAE, CRIIMI MAE Management, Inc., provides personnel and administrative services
to the Partnership on behalf of the General Partner. The Partnership  reimburses
CRIIMI MAE Management,  Inc. for these services on an actual cost basis pursuant
to the terms of the Partnership Agreement.

     The fee paid by the Partnership to the Advisor for services performed under
the  Advisory  Agreements  (the  "Advisory  Fee"),  is  equal  to  0.95%  of the
Partnership's  Total Invested Assets (as defined in the Partnership  Agreement).
The Advisor pays CMSLP, as sub-advisor,  a fee of 0.28% (the "Sub-Advisory Fee")
of Total Invested Assets for services performed under the Sub-Advisory Agreement
from its Advisory Fee. The Partnership is not liable for paying the Sub-Advisory
Fee to CMSLP.  Additional information concerning these fees is contained in Part
II, Item 7,  Management's  Discussion  and Analysis of Financial  Condition  and
Results of Operations and in Note 7 of the Notes to Financial  Statements (filed
in  response  to Item 8  hereof),  all of which are  incorporated  by  reference
herein.

Competition
-----------

     The Partnership's  business consists of holding government insured mortgage
investments  primarily on multifamily housing  properties,  and distributing the
payments of  principal  and  interest on such  mortgage  investments,  including
debentures  issued  by  the  United  States  Department  of  Housing  and  Urban
Development  ("HUD")  in  exchange  for such  mortgages,  to the  holders of its

<PAGE>5

depository  units  of  limited  partnership   interests   ("Unitholders").   The
Partnership may elect to dispose of its mortgage  investments  through a sale to
third parties. In disposing of mortgage  investments,  the Partnership  competes
with private investors,  mortgage banking companies, mortgage brokers, state and
local government agencies, lending institutions, trust funds, pension funds, and
other  entities,  some with similar  objectives to those of the  Partnership and
some of which are or may be affiliates of the Partnership,  its General Partner,
the Advisor,  CMSLP or their respective  affiliates.  Some of these entities may
have  substantially  greater  capital  resources and  experience in disposing of
mortgages investments than the Partnership.

     CRIIMI  MAE and its  affiliates  also may  serve  as  general  partners  or
managers of real estate limited  partnerships,  real estate investment trusts or
other similar entities in the future.  The Partnership may attempt to dispose of
mortgages  at or about the same time that CRIIMI  MAE,  one or more of the other
AIM Limited  Partnerships  and/or  other  entities  managed by CRIIMI MAE or its
affiliates,  or the  Advisor or its  affiliates,  are  attempting  to dispose of
mortgages.  As a result of  market  conditions  that  could  have the  effect of
limiting the number of mortgage dispositions or adversely affecting the proceeds
received from such dispositions,  CMSLP, the General Partner and the Advisor and
their affiliates could be faced with conflicts of interest in determining  which
mortgages  would be disposed of and at which price.  CMSLP,  the General Partner
and the Advisor,  however,  are required to exercise their  fiduciary  duties of
good faith, care and loyalty when evaluating the appropriate  action to be taken
when faced with such conflicts.


ITEM 2.   PROPERTIES

     The  Partnership  does not own any  properties.  Generally,  the  mortgages
underlying the Partnership's  mortgage  investments are non-recourse first liens
on multifamily residential developments or retirement homes.


ITEM 3.   LEGAL PROCEEDINGS

     There are no  material  legal  proceedings  to which the  Partnership  is a
party.


ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     No matters were submitted to a vote of the Partnership's Unitholders during
the fourth quarter of 2002.


<PAGE>6


ITEM 5.   MARKET FOR REGISTRANT'S SECURITIES AND RELATED SECURITY HOLDER MATTERS

Principal Market and Market Price for Units and Distributions
-------------------------------------------------------------

     The depository units of Limited Partnership interests ("Limited Partnership
Units") are listed for trading on the American Stock Exchange ("AMEX") under the
symbol  "AIK." The high and low trade  prices for the Units as  reported on AMEX
and the distributions, as applicable, for each quarterly period in 2002 and 2001
were as follows:
<TABLE>
<CAPTION>
                                                     2002                       Amount of
                                                                              Distribution
   Quarter Ended                             High            Low                Per Unit
   -------------                            ------          ------              --------
   <S>                                      <C>             <C>                 <C>
   March 31,                                $ 5.90          $ 5.07              $ 0.355
   June 30,                                   5.13            4.83                0.090
   September 30,                              5.05            4.42                0.655
   December 31,                               4.75            4.18                0.560
                                                                                -------
                                                                                $ 1.660
                                                                                =======



                                                     2001                       Amount of
                                                                              Distribution
   Quarter Ended                             High            Low                Per Unit
   -------------                            ------          ------              --------
   March 31,                                $ 6.05          $ 5.33              $ 1.010
   June 30,                                   5.60            5.16                0.105
   September 30,                              5.80            5.25                0.305
   December 31,                               5.85            5.20                0.625
                                                                                -------
                                                                                $ 2.045
                                                                                =======
</TABLE>

     Detailed information regarding quarterly distributions is contained in Note
8 of the Notes to  Financial  Statements  (filed in  response  to Item 8 hereof)
incorporated by reference herein.

     There are no material legal restrictions upon the Partnership's  present or
future ability to make  distributions  in accordance  with the provisions of the
Partnership Agreement.

     The basis for paying  distributions  to  Unitholders  is net proceeds  from
mortgage  dispositions,  if any, and cash flow from  operations,  which includes
regular  interest  income and  principal  from Insured  Mortgages.  Although the
Partnership's  Insured Mortgages pay a fixed monthly mortgage payment,  the cash
distributions  paid to the Unitholders  will vary during each quarter due to (1)
the  fluctuating  yields in the  short-term  money  market in which the  monthly
mortgage  payment  receipts are temporarily  invested,  by the General  Partner,
prior to the payment of quarterly distributions,  (2) the reduction in the asset
base resulting from monthly mortgage payments received or mortgage dispositions,
(3) variations in the cash flow  attributable  to the  delinquency or default of
Insured  Mortgages,  the timing of receipt of  debentures,  the interest rate on
debentures  and  debenture  redemptions,  and (4)  changes in the  Partnership's
operating  expenses.  As the  Partnership  continues to  liquidate  its mortgage
investments  and  Unitholders  receive  distributions  of return of capital  and
taxable   gains,   Unitholders   should  expect  a  reduction  in  earnings  and
distributions due to the decreasing mortgage base.

     As of December 31, 2002, there were approximately 5,800 Unitholders.

     The  Partnership  has no  compensation  plans  or  individual  compensation
arrangements under which equity securities of the Partnership are authorized for
issuance.

<PAGE>7


ITEM 6.   SELECTED FINANCIAL DATA
          (Dollars in thousands, except per Unit amounts)
<TABLE>
<CAPTION>
                                                       For the Years Ended December 31,
                                           2002          2001          2000          1999          1998
                                        ----------    ----------    ----------    ----------    ----------
<S>                                     <C>           <C>           <C>           <C>           <C>
Income                                  $    3,497    $    4,388    $    5,501    $    7,294    $    9,998

Net gains on mortgage
  dispositions                                 195           910           387         1,072           756

Net earnings                                 3,111         4,551         4,738         7,053         9,179

Net earnings per Limited
  Partnership Unit - Basic (1)          $     0.34    $     0.49    $     0.51    $     0.76    $     0.99

Distributions per Limited
  Partnership Unit (1)(2)               $     1.66    $    2.045    $     1.78    $     5.06    $     4.34

                                                                As of December 31,
                                           2002          2001          2000          1999          1998
                                        ----------    ----------    ----------    ----------    ----------

Total assets                            $   42,383    $   54,129    $   71,288    $   83,455    $  116,464

Partners' equity                        $   37,133    $   48,215    $   63,131    $   73,702    $  114,442
</TABLE>

(1)  Calculated  based upon the weighted  average number of Limited  Partnership
     Units outstanding.
(2)  Includes  distributions  due the Unitholders for the  Partnership's  fiscal
     years ended  December  31,  2002,  2001,  2000,  1999 and 1998,  which were
     partially  paid  subsequent  to year end. See Notes 7 and 8 of the Notes to
     Financial Statements.

     The selected  income  statement  data  presented  above for the years ended
December 31, 2002,  2001 and 2000,  and the  selected  balance  sheet data as of
December 31, 2002 and 2001, are derived from, and are qualified by, reference to
the Partnership's  financial  statements,  which are included  elsewhere in this
Annual Report on Form 10-K.  The selected  income  statement  data for the years
ended  December  31, 1999 and 1998,  and the selected  balance  sheet data as of
December 31, 2000, 1999 and 1998 are derived from audited  financial  statements
not  included  as part of this Annual  Report on Form 10-K.  This data should be
read in conjunction with the financial statements and the notes thereto.


<PAGE>8

ITEM 7.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
          AND RESULTS OF OPERATIONS

General
-------

     The  following  discussion  and analysis  contains  statements  that may be
considered  forward  looking.  These  statements  contain  a number of risks and
uncertainties  as  discussed  herein  and in Item 1 of this Form 10-K that could
cause actual results to differ materially.

Mortgage Investments
--------------------

     As of  December  31,  2002,  the  Partnership  had  invested  in 12 Insured
Mortgages  with an  aggregate  amortized  cost,  face  value  and fair  value of
approximately $34.1 million, $35.3 million and $35.0 million,  respectively,  as
discussed below.

     The   Partnership's   investment  in  Insured  Mortgages  is  comprised  of
participation  certificates  evidencing a 100% undivided  beneficial interest in
government insured multifamily  mortgages issued or sold pursuant to the Federal
Housing   Administration   ("FHA")   programs   ("FHA-Insured    Certificates"),
mortgage-backed  securities  guaranteed  by  the  Government  National  Mortgage
Association ("GNMA")("GNMA Mortgage-Backed Securities") and FHA-Insured mortgage
loans   ("FHA-Insured   Loans").   The  mortgages   underlying  the  FHA-Insured
Certificates,  the GNMA Mortgage-Backed Securities and the FHA-Insured Loans are
non-recourse first liens on multifamily  residential  developments or retirement
homes.

     The  following  is a  discussion  of  the  Partnership's  Insured  Mortgage
investments, along with the risks related to each type of investment:

Fully Insured FHA-Insured Certificates and GNMA Mortgage-Backed Securities
--------------------------------------------------------------------------

     Listed below is the  Partnership's  aggregate  investment  in fully insured
FHA-Insured Certificates and GNMA Mortgage-Backed  Securities as of December 31,
2002 and 2001:

<TABLE>
<CAPTION>
                                                                   2002                     2001
                                                               ------------             ------------
<S>                                                                     <C>                      <C>
Number of:
  GNMA Mortgage-Backed Securities (1)(2)(3)(4)                            9                       13
  FHA-Insured Certificates                                                1                        1
Amortized Cost                                                 $ 20,908,052             $ 33,196,354
Face Value                                                       20,822,378               33,067,185
Fair Value                                                       21,211,314               32,300,617
</TABLE>

(1)  In January 2002, the mortgage on Orchard Creek Apartments was prepaid.  The
     Partnership  received  net  proceeds  of  approximately  $1.3  million  and
     recognized a gain of approximately  $33,000 for the year ended December 31,
     2002.  A  distribution  of  approximately  $0.14  per Unit  related  to the
     prepayment  of this  mortgage  was  declared in  February  2002 and paid to
     Unitholders in May 2002.
(2)  In February 2002, the mortgage on Westview Terrace  Apartments was prepaid.
     The  Partnership  received net proceeds of  approximately  $1.2 million and
     recognized a gain of approximately  $49,000 for the year ended December 31,
     2002.  A  distribution  of  approximately  $0.12  per Unit  related  to the
     prepayment  of this  mortgage  was  declared  in  March  2002  and  paid to
     Unitholders in May 2002.
(3)  In  September  2002,  the  mortgage  on  Stoney  Creek  was  prepaid.   The
     Partnership  received  net  proceeds  of  approximately  $5.2  million  and
     recognized a gain of approximately  $41,000 for the year ended December 31,
     2002.  A  distribution  of  approximately  $0.565  per Unit  related to the
     prepayment  of this  mortgage was  declared in  September  2002 and paid to
     Unitholders in November 2002.
(4)  In November 2002,  the mortgage on Hewitt  Gardens  Apartments was prepaid.
     The  Partnership  received net proceeds of  approximately  $4.4 million and
     recognized a gain of approximately  $72,000 for the year ended December 31,
     2002.  A  distribution  of  approximately  $0.47  per Unit  related  to the
     prepayment  of this  mortgage  was  declared in  December  2002 and paid to
     Unitholders in February 2003.

     As of March 1, 2003,  all of the  Partnership's  fully insured  FHA-Insured
Certificates and GNMA Mortgage-Backed Securities are current with respect to the
payment of principal and interest.
<PAGE>9

Coinsured Program
-----------------

     Under the HUD coinsurance program,  both HUD and the coinsurance lender are
responsible  for  paying a portion  of the  insurance  benefits  if a  mortgagor
defaults and the sale of the development  collateralizing  the mortgage produces
insufficient net proceeds to repay the mortgage  obligation.  In such cases, the
coinsurance  lender will be liable to the Partnership for the first part of such
loss in an amount up to 5% of the outstanding  principal balance of the mortgage
as of the date foreclosure proceedings are instituted or the deed is acquired in
lieu of foreclosure.  For any loss greater than 5% of the outstanding  principal
balance, the responsibility for paying the insurance benefits will be borne on a
pro-rata basis, 85% by HUD and 15% by the coinsurance lender.

     While  the  Partnership  is due  payment  of all  amounts  owed  under  the
mortgage,  the  coinsurance  lender is  responsible  for the  timely  payment of
principal and interest to the Partnership.  The coinsurance lender is prohibited
from  entering  into any  workout  arrangement  with the  borrower  without  the
Partnership's  consent and must file a claim for coinsurance  benefits with HUD,
upon  default,  if the  Partnership  so  directs.  As an  ongoing  HUD  approved
coinsurance  lender,  and under the terms of the  participation  documents,  the
coinsurance lender is required to satisfy certain minimum net worth requirements
as set forth by HUD.  However,  it is  possible  that the  coinsurance  lender's
potential liability for loss on these developments, and others, could exceed its
HUD-required  minimum net worth.  In such case, the  Partnership  would bear the
risk of loss if the  coinsurance  lenders were unable to meet their  coinsurance
obligations.  In addition,  HUD's obligation for the payment of its share of the
loss  could be  diminished  under  certain  conditions,  such as the  lender not
adequately  pursuing  regulatory  violations  of the  borrower or the failure to
comply with other terms of the  mortgage.  However,  the General  Partner is not
aware of any  conditions  or actions  that would result in HUD  diminishing  its
insurance coverage.

     As of December 31, 2002 and 2001, the Partnership  held one investment in a
coinsured FHA-Insured Certificate secured by a coinsured mortgage. The remaining
FHA-Insured  Certificate is coinsured by Integrated  Funding,  Inc. ("IFI"),  an
affiliate of the Partnership. The following is a discussion of the Partnership's
coinsured mortgage investments.

a.   Coinsured by affiliate
     ----------------------

     As of December 31, 2002 and 2001, the Partnership held one investment in an
FHA-Insured  Certificate secured by a coinsured mortgage,  where the coinsurance
lender is IFI.  This  investment  was made on behalf of the  Partnership  by the
former managing  general  partner.  As structured by the former managing general
partner the Partnership bears the risk of loss upon default for IFI's portion of
the  coinsurance  loss on  this  mortgage  investment.  There  was no loan  loss
recognized  for the years ended 2002,  2001 and 2000. A cumulative  loan loss of
$1,511,743  was  recognized  in  prior  years  for the  mortgage  on  Summerwind
Apartments - Phase II when it appeared  probable the mortgagor  would default on
the loan.

     Listed below is the Partnership's  investment in the mortgage  coinsured by
affiliate as of December 31, 2002 and 2001:

                                  2002                     2001
                              ------------             ------------
Amortized Cost                $  7,679,488             $  7,747,039
Face Value                       8,958,360                9,057,300
Fair Value                       8,293,338                8,473,167

     As of March 1, 2003,  the  mortgagor was current with respect to payment of
principal and interest on this coinsured mortgage.

b.   Coinsured by third party
     ------------------------

     The  previously  owned  mortgage  on St.  Charles  Place  - Phase  II,  was
coinsured by The Patrician Mortgage Company ("Patrician"), an unaffiliated third
party coinsurance lender under the HUD coinsurance program. On October 14, 1993,

<PAGE>10

Patrician filed a foreclosure  action on the property  underlying this coinsured
mortgage.  On November 2, 1993, the mortgagor filed for protection under chapter
11 of the U.S.  Bankruptcy  Code.  The  property  was  acquired  and vested with
Patrician in November 1998 and subsequently sold on October 12, 1999.  Patrician
filed a coinsurance  claim for insurance  benefits with HUD in October 1999, for
remaining  amounts due,  including  past due  interest.  In November  1999,  the
Partnership  received sales proceeds of approximately $3 million. A distribution
of  approximately  $0.32 per Unit  related to the sale was  declared in November
1999 and was paid to  Unitholders  in  February  2000.  In  February  2001,  the
Partnership received claim proceeds from Patrician of approximately $2.2 million
and recognized a gain of approximately  $822,000 for the year ended December 31,
2001.  The claim proceeds  represent the remaining  balance due on the mortgage,
including  interest  from  November  1,  1995  through  the date of  receipt.  A
distribution of  approximately  $0.24 per Unit related to the prepayment of this
mortgage was  declared in March 2001 and paid to  Unitholders  in May 2001.  The
amount  of  the  Partnership's  investment  in  this  mortgage  represented  the
Partnership's  approximate 55% ownership interest in the mortgage. The remaining
45% ownership interest was held by AIM 86.

Investment in FHA-Insured Loan
------------------------------

     Listed below is the Partnership's investment in the one FHA-Insured Loan as
of December 31, 2002 and 2001:

                                  2002                     2001
                              ------------             ------------
Amortized Cost                $  5,516,188             $  5,573,879
Face Value                       5,516,188                5,573,879
Fair Value                       5,520,512                5,230,714

     As of March 1, 2003, the  Partnership's  FHA-Insured  Loan was current with
respect to payment of principal and interest.

Results of Operations
---------------------

2002 compared to 2001
---------------------

     Net earnings  decreased  approximately $1.4 million for 2002 as compared to
2001,  primarily  due to decreases in gains on mortgage  dispositions,  mortgage
investment  income and  interest  and other  income,  as  discussed  below.  The
decrease  was also  impacted by an  adjustment  to  provision  for loss that was
recognized in 2001.

     Mortgage  investment  income decreased  approximately  $747,000 for 2002 as
compared to 2001,  due to a reduction in the mortgage  base.  The mortgage  base
decreased as a result of four mortgage  dispositions with an aggregate principal
balance of approximately  $12 million,  representing an approximate 25% decrease
in the  aggregate  principal  balance  of the  total  mortgage  portfolio  since
December 2001.

     Interest  and other  income  decreased  approximately  $144,000 for 2002 as
compared  to  2001,  primarily  due to  the  amounts  and  timing  of  temporary
investment  of  mortgage   disposition   proceeds  prior  to   distribution   to
Unitholders.

     Asset management fee expense  decreased  approximately  $93,000 for 2002 as
compared to 2001.  This decrease was due to the reduction in the mortgage  base,
as previously discussed.

     General and  administrative  expenses decreased  approximately  $73,000 for
2002 as compared to 2001,  primarily due to a decrease in costs  associated with
the size of the mortgage  base and a decrease in legal  expenses  related to the
litigation  of the mortgage on Water's Edge of New Jersey,  which was settled in
2001.

<PAGE>11

     Gains on mortgage dispositions decreased approximately $1.0 million for
2002 as compared to 2001.  During  2002,  the  Partnership  recognized  gains of
approximately  $195,000  from the  prepayment  of the mortgages on Orchard Creek
Apartments,   Westview  Terrace  Apartments,  Stoney  Creek  and  Hewitt  Garden
Apartments,  as previously  discussed.  During 2001, the Partnership  recognized
gains of  approximately  $403,000 from the prepayment of the mortgages on Silver
Lake Plaza Apartments, Holton Manor, Lorenzo Carolina Apartments, Beauvoir Manor
Apartments and Woodcrest  Townhomes.  In addition,  the Partnership  recognzed a
gain of approximately $822,000 on the disposition of the mortgage on St. Charles
Place  - Phase  II,  a  delinquent  mortgage  coinsured  by a  third  party,  as
previously discussed.

     In 2001, the Partnership  recognized an adjustment to provision for loss of
approximately $315,000 on the disposition of the mortgage on Water's Edge of New
Jersey.  In February 1996, the General  Partner  instructed the servicer for the
mortgage on Water's Edge of New Jersey,  a fully insured  acquired  construction
loan,  to file a Notice of Default and an Election to Assign the  mortgage  with
HUD. The property  underlying this  construction loan was a nursing home located
in Trenton,  New Jersey.  As of January 31, 1997, the  Partnership  had received
approximately  $10.2  million  of the  assignment  proceeds,  including  partial
repayment of the outstanding principal and accrued interest.  HUD had disallowed
approximately  $1.65  million  of the  assignment  claim.  The  General  Partner
retained  counsel  in this  matter  and  pursued  litigation  against  the  loan
servicer,  Greystone Servicing Corporation,  Inc. ("Greystone"),  for the amount
disallowed  by HUD.  On July  30,  1998,  the  Partnership  filed a  Motion  for
Judgement against  Greystone in the Circuit Court of Fauquier County,  Virginia.
On June 1,  2001,  a jury  rendered a verdict  in favor of the  Partnership  and
against Greystone in the amount of approximately  $780,000.  On August 17, 2001,
the  Partnership  received  this amount plus accrued  interest of  approximately
$9,000.  A distribution  of  approximately  $0.09 per Unit related to this court
order was declared in September  2001 and paid to  Unitholders in November 2001.
In September 2001, the Partnership and Greystone agreed on a final settlement of
approximately $238,000 for reimbursement of legal fees, to the Partnership. This
amount was received on October 4, 2001. A distribution  of  approximately  $0.03
per Unit related to the reimbursement of legal fees was declared in October 2001
and paid to  Unitholders  in February  2002.  During the year ended December 31,
2001, the Partnership incurred a loss of approximately  $315,000 related to this
litigation. This loss includes legal fees incurred from April 1 through December
31, 2001, of  approximately  $199,000.  As of December 31, 2002, the Partnership
had  recognized  aggregate  losses  of  approximately  $894,000  related  to the
disposition of the mortgage on Water's Edge of New Jersey, which includes losses
recognized in 1996,  1997 and 2001. The  Partnership did not recognize a loss on
this mortgage in 2002 and does not expect to incur any additional losses related
to this mortgage.

2001 compared to 2000
---------------------

     Net earnings decreased approximately $187,000 for 2001 as compared to 2000,
primarily  due to a decrease in mortgage  investment  income,  which was largely
offset by an increase in net gains on  mortgage  dispositions  and a decrease in
expenses, as discussed below.

     Mortgage investment income decreased by approximately $1.1 million for 2001
as compared to 2000,  due to a reduction in the mortgage base. The mortgage base
decreased as a result of nine mortgage  dispositions with an aggregate principal
balance of approximately  $22 million,  representing an approximate 31% decrease
in the aggregate  principal  balance of the total mortgage  portfolio during the
period from February 2000 to December 2001.

     Interest and other income  decreased by  approximately  $43,000 for 2001 as
compared to 2000. This decrease was primarily due to the timing of the temporary
investment of proceeds from mortgage prepayments.

     Asset management fee expense  decreased by approximately  $148,000 for 2001
as compared to 2000.  This  decrease  was due to the  reduction  in the mortgage
base, as previously discussed.

     General and administrative  expenses decreased  approximately  $255,000 for
2001 as compared to 2000,  primarily due to a decrease in legal expense  related
to the  litigation  of the  mortgage on Water's  Edge of New  Jersey,  which was
settled in 2001.

<PAGE>12

     Gains on mortgage  dispositions  increased  approximately  $839,000 for
2001 as compared to 2000.  During  2001,  the  Partnership  recognized  gains of
approximately $403,000 from the prepayment of the mortgages on Silver Lake Plaza
Apartments, Holton Manor, Lorenzo Carolina Apartments, Beauvoir Manor Apartments
and Woodcrest Townhomes; and a gain of approximately $822,000 on the disposition
of the mortgage on St. Charles Place - Phase II, as previously  discussed.  This
compares to gains  recognized in 2000 of  approximately  $387,000 related to the
prepayment of the  mortgages on Linville  Manor,  Park Avenue  Plaza,  Lioncrest
Towers Apartments and Kingsway Apartments.

     Adjustment to provision for loss increased  approximately $315,000 for 2001
as  compared  to  2000.  The  Partnership   recognized  an  additional  loss  of
approximately $315,000 on the disposition of the mortgage on Water's Edge of New
Jersey, as previously discussed.

Liquidity and Capital Resources
-------------------------------

     The  Partnership's  operating  cash  receipts,  derived  from  payments  of
principal and interest on Insured Mortgages, plus cash receipts from interest on
short-term investments are the Partnership's principal sources of cash flows and
were sufficient  during the years ended December 31, 2002, 2001 and 2000 to meet
operating  requirements.  The  Partnership  anticipates  its cash  flows will be
sufficient to meet operating expense requirements for 2003.

     The basis for paying  distributions  to  Unitholders  is net proceeds  from
mortgage  dispositions,  if any, and cash flow from  operations,  which includes
regular  interest  income and  principal  from Insured  Mortgages.  Although the
Partnership's  Insured Mortgages pay a fixed monthly mortgage payment,  the cash
distributions  paid to the Unitholders  will vary during each quarter due to (1)
the  fluctuating  yields in the  short-term  money  market in which the  monthly
mortgage  payment  receipts are temporarily  invested,  by the General  Partner,
prior to the payment of quarterly distributions,  (2) the reduction in the asset
base resulting from monthly mortgage payments received or mortgage dispositions,
(3) variations in the cash flow  attributable  to the  delinquency or default of
Insured  Mortgages,  the timing of receipt of  debentures,  the interest rate on
debentures  and  debenture  redemptions,  and (4)  changes in the  Partnership's
operating  expenses.  As the  Partnership  continues to  liquidate  its mortgage
investments  and  Unitholders  receive  distributions  of return of capital  and
taxable   gains,   Unitholders   should  expect  a  reduction  in  earnings  and
distributions due to the decreasing mortgage base.

     Since the  Partnership  is obligated to distribute the proceeds of mortgage
prepayments,  sales and  insurance  on  Insured  Mortgages  (as  defined  in the
partnership  agreement)  to its  Unitholders,  the  size  of  the  Partnership's
portfolio  will continue to decrease.  The magnitude of the decrease will depend
upon the amount of the Insured  Mortgages,  which are prepaid,  sold or assigned
for insurance proceeds.

Cash flow - 2002 compared to 2001
---------------------------------

     Net cash  provided  by  operating  activities  decreased  by  approximately
$377,000 for 2002 as compared to 2001.  This  decrease is  primarily  due to the
decrease in mortgage base partially offset by the change in accounts payable and
accrued  expenses.  The change in  accounts  payable  and  accrued  expenses  is
primarily  due to the payment of legal  expenses in 2001  related to the Water's
Edge of New Jersey litigation, as discussed previously.

     Net cash provided by investing  activities  decreased by approximately $3.0
million for 2002 as compared to 2001. This decrease is primarily due to proceeds
received from Patrician in 2001 for the  disposition of the delinquent  mortgage
on St. Charles Place - Phase II and proceeds  received from Greystone in 2001 as
a result of the settlement of Water's Edge of New Jersey litigation.

     Net cash used in  financing  activities  decreased  by  approximately  $5.0
million  for 2002 as  compared  to 2001,  due to a  decrease  in the  amount  of
distributions  paid to partners  during 2002,  as compared to the same period in
2001.  The  decrease  in  distributions  is  due  to  a  decrease  in  investing
activities, as discussed above.

<PAGE>13

Cash flow - 2001 compared to 2000
---------------------------------

     Net cash provided by operating  activities  decreased by approximately $1.5
million for 2001 as  compared to 2000.  This  decrease is  primarily  due to the
decrease in mortgage base. The change in accounts  payable and accrued  expenses
is primarily due to the payment of legal expenses related to the Water's Edge of
New Jersey litigation, as discussed previously.

     Net cash provided by investing  activities  increased by approximately $3.9
million for 2001 as compared to 2000.  This  increase is  primarily  due to: (1)
proceeds received from Patrician for the disposition of the delinquent  mortgage
on St.  Charles  Place - Phase II; (2)  proceeds  received  from  Greystone as a
result of the  settlement of Water's Edge of New Jersey  litigation;  and (3) an
increase in the receipt of proceeds from mortgage dispositions.  These increases
were slightly offset by a decrease in scheduled  principal  payments as a result
of the reduction in mortgage base.

     Net cash used in  financing  activities  increased  by  approximately  $2.6
million  for 2001 as  compared  to 2000,  due to an  increase  in the  amount of
distributions  paid to partners  during 2001,  as compared to the same period in
2000.  The  increase  in  distributions  is  due  to an  increase  in  investing
activities, as discussed above.

Critical Accounting Policies
----------------------------

     The Partnership's significant accounting polices are described in Note 2 to
the Financial Statements.  The Partnership believes its most critical accounting
policy (a critical  accounting  policy being one that is both very  important to
the portrayal of the Partnership's financial condition and results of operations
and requires  management's  most difficult,  subjective,  or complex  judgments)
is the determination of fair value of Insured Mortgages.

-    Fair Value of Insured Mortgages - The Partnership  estimates the fair value
     of its Insured Mortgages internally. The Partnership uses a discounted cash
     flow methodology to estimate the fair value.  This requires the Partnership
     to  make  certain   estimates   regarding   discount   rates  and  expected
     prepayments.  The cash flows were discounted using a discount rate that, in
     the Partnership's  view, was commensurate  with the market's  perception of
     risk and value.  The Partnership used a variety of sources to determine its
     discount rate including:  (i)  institutionally-available  research reports,
     and (ii)  communications  with dealers and active insured mortgage security
     investors  regarding the valuation of comparable  securities.  Increases in
     the  discount  rate used by the  Partnership  would  generally  result in a
     corresponding  decrease  in the  fair  value of the  Partnership's  insured
     mortgages.  Decreases in the discount  rate used by the  Partnership  would
     generally  result  in a  corresponding  increase  in the fair  value of the
     Partnership's  insured  mortgages.   The  Partnership  also  makes  certain
     assumptions regarding the prepayment speeds of its Insured Mortgages.  In a
     low interest rate environment,  mortgages are more likely to prepay even if
     the mortgage contains prepayment penalties.  In general, if the Partnership
     increases  its  assumed  prepayment  speed,  the fair value of the  Insured
     Mortgages  will  decrease.   If  the  Partnership   decreases  its  assumed
     prepayment speed, the fair value of the Insured Mortgages will increase.

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

     In January  2003,  the FASB  issued  FASB  Interpretation  ("FIN")  No. 46,
"Consolidation of Variable Interest  Entities",  an interpretation of Accounting
Research  Bulletin  No.  51,  "Consolidated  Financial  Statements."  FIN No. 46
explains  how to  identify  variable  interest  entities  and how an  enterprise
assesses  its  interests  in a  variable  interest  entity to decide  whether to
consolidate that entity.  This Interpretation  requires existing  unconsolidated
variable interest entities to be consolidated by their primary  beneficiaries if

<PAGE>14

the entities do not effectively  disperse risks among parties involved.  FIN No.
46 is effective immediately for variable interest entities created after January
31, 2003, and to variable  interest  entities in which an enterprise  obtains an
interest after that date. The Interpretation applies in the first fiscal year or
interim period beginning after June 15, 2003, to variable  interest  entities in
which an enterprise  holds a variable  interest that it acquired before February
1, 2003.  The  Partnership  does not expect the adoption of FIN No. 46 to have a
material effect on its financial position or results of operations.


ITEM 7A.  QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK

     The Partnership's  principal market risk is exposure to changes in interest
rates in the U.S. Treasury market. The Partnership will experience  fluctuations
in the market value of its assets  related to (i) changes in the interest  rates
of U.S.  Treasury  securities,  (ii) changes in the spread  between the interest
rates on U.S.  Treasury  securities and the interest rates on the  Partnership's
Insured Mortgages, and (iii) changes in the weighted average life of the Insured
Mortgages,  determined by reviewing the  attributes of the Insured  Mortgages in
relation to the current market interest rates.  The weighted average life of the
Insured  Mortgages  decreased as of December  31, 2002  compared to December 31,
2001, due to the lower market interest rates,  which may imply faster prepayment
rates, and other attributes of the Partnership's Insured Mortgages.

     The  Partnership   has  changed  its  method  of  presenting   market  risk
disclosures  from those  disclosures  presented  in the December 31, 2001 Annual
Report on Form 10-K. The Partnership  believes that the market risk  disclosures
presented  below  provide more  meaningful  information  to its  Unitholders  in
assessing the affect of changes in interest rates on the values of its assets.

     As of December 31, 2002,  the  weighted  average life of the U.S.  Treasury
securities that were used to value the insured mortgage  securities were shorter
than those used at December  31,  2001 due to lower  market  interest  rates and
other loan attributes of the underlying insured mortgage securities,  which made
the likelihood of the mortgage assets prepaying  greater than the previous year.
If the  Partnership  assumed that the discount  rate used to determine  the fair
values of its insured mortgage securities  increased by 100 basis points and 200
basis  points,  the  increase  in the  discount  rate would have  resulted  in a
corresponding  decrease in the fair values of its insured mortgage securities by
approximately   $229,000  (or  0.7%)  and  approximately   $453,000  (or  1.3%),
respectively,  as of December  31,  2002.  A 100 basis point and 200 basis point
increase in the discount rate would have resulted in a corresponding decrease in
the  fair  values  of  the   Partnership's   insured   mortgage   securities  by
approximately  $2.0 million (or 4.3%) and approximately  $3.8 million (or 8.3%),
respectively, as of December 31, 2001.


ITEM 8.   FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

     The  information  required by Item 8 is set forth in this Annual  Report on
Form 10-K commencing on page 26.


ITEM 9.   CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
          AND FINANCIAL DISCLOSURES

     On May 8,  2002,  the Board of  Directors  of the  General  Partner  of the
Partnership   dismissed   Arthur   Andersen  LLP  ("Arthur   Andersen")  as  the
Partnership's   independent   auditors.   Arthur  Andersen  had  served  as  the
Partnership's independent accountants since 1991.

     Arthur  Andersen's  reports on the Partnership's  financial  statements for
each of the  past two  fiscal  years  did not  contain  an  adverse  opinion  or
disclaimer  of  opinion,  nor were such  reports  qualified  or  modified  as to
uncertainty, audit scope or accounting principles.

<PAGE>15

     During each of the  Partnership's  two most recent fiscal years and through
the date of Arthur Andersen's  dismissal,  there were: (i) no disagreements with
Arthur Andersen on any matter of accounting  principles or practices,  financial
statements disclosure,  or auditing scope or procedure which, if not resolved to
Arthur Andersen's satisfaction,  would have caused them to make reference to the
subject matter in connection  with their report on the  Partnership's  financial
statements for such years;  and (ii) there were no reportable  events as defined
in Item 304(a)(1)(v) of Regulation S-K.

     The  Partnership  has provided Arthur Andersen with a copy of the foregoing
disclosure.  The  Partnership  requested  Arthur  Andersen  to furnish it with a
letter addressed to the SEC stating whether it agrees with the above statements.
A copy of that letter  dated May 9, 2002 was filed as Exhibit 16 to the Form 8-K
filed with the SEC by the Partnership on May 10, 2002.

     On June 5, 2002, the General Partner of the  Partnership  appointed Ernst &
Young LLP to audit the  Partnership's  financial  statements for the year ending
December  31,  2002.  During the years ended  December 31, 2001 and 2000 and the
subsequent  interim period  through June 5, 2002,  neither the  Partnership  nor
anyone on its behalf consulted Ernst & Young LLP with respect to the application
of  accounting  principles  to  a  specified  transaction  either  completed  or
proposed;  or  the  type  of  audit  opinion  that  might  be  rendered  on  the
Partnership's  financial  statements or any other  matters or reportable  events
listed in Items 304(a)(2)(1) and (11) of Regulation S-K.


<PAGE>16
                                    PART III

ITEM 10.  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

     The  Partnership  has no executive  officers or directors.  The Partnership
does not directly  employ any persons  responsible for managing or operating the
Partnership or for providing  services relating to day-to-day  business affairs.
The affairs of the Partnership are managed by its General Partner,  CRIIMI, Inc.
a wholly-owned  subsidiary of CRIIMI MAE, a corporation  whose shares are listed
on the New  York  Stock  Exchange.  CRIIMI,  Inc.  holds a  general  partnership
interest of 4.9%.

     The business of the  Partnership is managed by its General  Partner,  while
its  portfolio of mortgages is managed by the Advisor and CMSLP  pursuant to the
Advisory  Agreements  and  Sub-Advisory  Agreement,  respectively,  as discussed
above. A wholly-owned  subsidiary of CRIIMI MAE,  CRIIMI MAE  Management,  Inc.,
provides personnel and  administrative  services to the Partnership on behalf of
the General Partner.

     The General  Partner is also the general  partner of AIM 84, AIM 85 and AIM
86, limited  partnerships  with  investment  objectives  similar to those of the
Partnership.

     The Board of Directors of the General  Partner has  established a committee
(the "Audit  Committee")  consisting  of  independent  directors  (as defined in
Section 121 of the AMEX listing  standards.)  The Audit Committee of the General
Partner has appointed Ernst & Young LLP as the Partnership's  independent public
accountants for the fiscal year ending  December 31, 2003,  such  appointment to
continue at the discretion of the Audit Committee.

     All  directors of the General  Partner are elected  annually by CRIIMI MAE.
All executive officers serve at the discretion of the General Partner. There are
no family relationships among any directors or executive officers of the General
Partner.

     The  following  table  sets  forth  information  concerning  the  executive
officers and the directors of the General Partner as of March 5, 2003:

<TABLE>
<CAPTION>

Name                                        Age                  Position
----                                        ---                  --------
<S>                                         <C>                  <C>
Barry S. Blattman                           40                   Chairman of the Board of Directors,
                                                                   President and Chief Executive Officer

David B. Iannarone                          42                   Executive Vice President,
                                                                   Chief Operating Officer and a Director

Cynthia O. Azzara                           43                   Senior Vice President, Chief Financial
                                                                     Officer and Treasurer


Craig M. Lieberman                          41                   Senior Vice President and
                                                                   Chief Portfolio Risk Officer

Brian L. Hanson                             41                   Senior Vice President

John R. Cooper                              55                   Director

Robert J. Merrick                           57                   Director

Robert E. Woods                             55                   Director

</TABLE>

<PAGE>17

     Barry S.  Blattman  has been  Chairman  of the  Board of  Directors,  Chief
Executive  Officer and President of the General  Partner since January 23, 2003.
Mr. Blattman is the Managing Partner of Brascan Real Estate Financial  Partners.
From 1996 until the end of 2001,  Mr.  Blattman was a Managing  Director of Real
Estate Investment Banking at Merrill Lynch.

     David B.  Iannarone has served as Chief  Operating  Officer and Director of
the General  Partner  since  January 2003 and  Executive  Vice  President of the
General  Partner  since  December  2000,  as Senior Vice  President  and General
Counsel of the General  Partner  from March 1998 to December  2000;  and as Vice
President  and General  Counsel of the General  Partner  from July 1996 to March
1998.

     Cynthia  O.  Azzara has served as Chief  Financial  Officer of the  General
Partner since 1994, as Senior Vice  President of the General  Partner since 1995
and Treasurer of the General Partner since 1997.

     Craig M. Lieberman has served as Senior Vice President and Chief  Portfolio
Risk Officer of the General  Partner since February  2003.  From 2001 to January
2003, Mr. Lieberman was a managing partner for Quantico  Partners.  From 1998 to
2001,  Mr.  Lieberman  served  as the  Director  of  Commercial  Mortgage-Backed
Securitization  for First  Union  Securities.  From  1996 to 1998 Mr.  Lieberman
practiced  as both a  partner  and  counsel  in the law  firm  of  Kilpatrick  &
Stockton, LLP.

     Brian L. Hanson has served as Senior Vice President of the General  Partner
since March 1998; and as Group Vice President of the General  Partner from March
1996 to March 1998.

     John R. Cooper has served as Director  of the General  Partner  since April
2001. Mr. Cooper was Senior Vice  President,  Finance,  of PG&E National  Energy
Group,  Inc. until  February 2003. He had been with PG&E National  Energy Group,
Inc. and its predecessor, U.S. Generating Company, since its inception in 1989.

     Robert J. Merrick has served as Director of the General Partner since 1997.
Mr.  Merrick  has served as Chief  Credit  Officer  and  Director of MCG Capital
Corporation  since February  1998;  Executive Vice President from 1985 and Chief
Credit Officer of Signet Banking  Corporation through 1997. While at Signet, Mr.
Merrick also served as Chairman of the Credit Policy Committee and member of the
Asset and Liability Committee and the Management Committee.

     Robert E. Woods has served as Director of the General  Partner  since 1998.
Mr. Woods has served as Managing  Director and Head of Loan Syndications for the
Americas at Societe Generale,  New York since 1997;  Managing Director,  Head of
Real Estate Capital Markets and Mortgage-Backed  Securities division at Citicorp
from 1991 to 1997

Section  16(a)  Beneficial  Ownership  Reporting  Compliance - Section 16 of the
Securities Exchange Act of 1934, as amended,  (the "Exchange Act") requires each
director and executive  officer of the General  Partner and each person who owns
more than 10% of the  Partnership's  Units to  report to the SEC by a  specified
date, his, her or its beneficial  ownership of, and certain  transactions in the
Partnership's  Units.  Based  solely  on  its  review  of  Forms  3, 4 and 5 and
amendments  thereto  furnished to the Partnership,  and written  representations
from certain reporting persons that no Form 5's were required for those persons,
the Partnership  believes that all directors,  executive officers and beneficial
owners of more than 10% of the Partnership's  Units have filed on a timely basis
Forms 3, 4 and 5 as required in the fiscal year ended December 31, 2002.

<PAGE>18


ITEM 11.  EXECUTIVE COMPENSATION

     The  Partnership  does not have any  directors or executive  officers.  The
Partnership  does not directly  employ any persons  responsible  for managing or
operating  the  Partnership  or for  providing  services  relating to day to day
business   affairs.   The  General  Partner   provides  such  services  for  the
Partnership. None of the directors or executive officers of the General Partner,
however,  received  compensation  from the Partnership,  and the General Partner
does not receive  reimbursement  from the  Partnership  for any portion of their
salaries or other  compensation.  The  Partnership's  portfolio  of mortgages is
managed  by the  Advisor  and CMSLP  pursuant  to the  Advisory  Agreements  and
Sub-Advisory  Agreement,   respectively,  as  discussed  above.  A  wholly-owned
subsidiary of CRIIMI MAE, CRIIMI MAE  Management,  Inc.  provides  personnel and
administrative services to the Partnership on behalf of the General Partner. The
Partnership  reimburses  CRIIMI MAE  Management,  Inc. for these  services on an
actual cost basis.

     The fee paid by the Partnership to the Advisor for services performed under
the  Advisory  Agreements  (the  "Advisory  Fee"),  is  equal  to  0.95%  of the
Partnership's  Total Invested Assets (as defined in the Partnership  Agreement).
The Advisor pays CMSLP, as sub-advisor,  a fee of 0.28% (the "Sub-Advisory Fee")
of Total Invested Assets for services performed under the Sub-Advisory Agreement
from its Advisory Fee. The Partnership is not liable for paying the Sub-Advisory
Fee to CMSLP.  Additional information concerning these fees is contained in Part
II, Item 7,  Management's  Discussion  and Analysis of Financial  Condition  and
Results of Operations and in Note 7 of the Notes to Financial  Statements (filed
in  response  to Item 8  hereof),  all of which are  incorporated  by  reference
herein.


ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS,
         MANAGEMENT AND RELATED UNITHOLDER MATTERS

(a)  As of March 5,  2003,  no  person  was known by the  Partnership  to be the
     beneficial owner of more than five percent (5%) of the outstanding Units of
     the Partnership.

(b)  The following table sets forth certain information regarding the beneficial
     ownership  of the  Partnership's  Units as of March 5, 2003 by each  person
     known by the Partnership to be the beneficial  owner of more than 5% of its
     Units,  each director of the General Partner,  each named Executive Officer
     of the  General  Partner,  and by  affiliates  of the  Partnership.  Unless
     otherwise  indicated,  each Unitholder has sole voting and investment power
     with respect to the Units beneficially owned.
<TABLE>
<CAPTION>
                                                  Amount and Nature
                                                      of Units                          Percentage of Units
         Name                                    Beneficially Owned                         Outstanding
         ----                                    ------------------                         -----------
         <S>                                            <C>                                     <C>
         CRIIMI MAE                                     744                                      *

         * Less than 1%
</TABLE>

(c)  There are no arrangements known to the Partnership,  the operation of which
     may  at  any  subsequent  date  result  in  a  change  in  control  of  the
     Partnership.


ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

(a)  Transactions with management and others.

     Note 7 of the Notes to Financial  Statements of the Partnership  contains a
     discussion of the amounts,  fees and other  compensation paid or accrued by
     the  Partnership  to the directors  and  executive  officers of the General
     Partner  and their  affiliates,  and is hereby  incorporated  by  reference
     herein.

<PAGE>19

(b)  Certain business relationships.

     Other than as set forth in Item 11 of this Annual Report on Form 10-K which
     is hereby incorporated by reference herein, the Partnership has no business
     relationship  with  entities  of which the current  General  Partner of the
     Partnership are officers, directors or equity owners.


ITEM 14.  CONTROLS AND PROCEDURES

     Within 90 days prior to the date of filing this Annual Report on Form 10-K,
the General  Partner  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 (CEO) and the Chief Financial  Officer (CFO),
of the effectiveness of the design and operation of its disclosure  controls and
procedures pursuant to Exchange Act Rule 13a-14.  Based on that evaluation,  the
General  Partner's  CEO and CFO  concluded  that  its  disclosure  controls  and
procedures  are effective  and timely in alerting  them to material  information
relating  to the  Partnership  required  to be  included  in  the  Partnership's
periodic SEC filings. There were no significant changes in the General Partner's
internal  controls or in other  factors  that could  significantly  affect these
internal  controls  subsequent  to the  date  of  its  most  recent  evaluation,
including any  corrective  actions with regard to significant  deficiencies  and
material weaknesses.


<PAGE>20
                                     PART IV

ITEM 15.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K

     (a)(1) Financial Statements:
<TABLE>
<CAPTION>
                                                                                                                  Page
Description                                                                                                      Number
-----------                                                                                                      ------
<S>                                                                                                                <C>
Balance Sheets as of December 31, 2002 and 2001 ................................................................   29

Statements of Income and Comprehensive Income for the years ended December 31, 2002,
   2001 and 2000 ...............................................................................................   30

Statements of Changes in Partners' Equity for the years ended December 31, 2002,
    2001 and 2000...............................................................................................   31

Statements of Cash Flows for the years ended December 31, 2002, 2001 and 2000 ..................................   32

Notes to Financial Statements ..................................................................................   33

     (a)(2) Financial Statement Schedules:

IV - Mortgage Loans on Real Estate .............................................................................   44
</TABLE>

     All other schedules have been omitted because they are not applicable,  not
required,  or the  information is included in the Financial  Statements or Notes
thereto.

     (a)(3) Exhibits:

     3.0  Certificate  of Limited  Partnership is  incorporated  by reference to
          Exhibit  4(a) to  Amendment  No. 1 to the  Partnership's  Registration
          Statement on Form S-11 (No.  33-12479)  filed with the  Commission  on
          June 10, 1987.

     4.0  Agreement of Limited Partnership, incorporated by reference to Exhibit
          3  to  the  Post-Effective   Amendment  No.  1  to  the  Partnership's
          Registration  Statement  on Form S-11 (No.  33-12479)  filed  with the
          Commission  on  March  8,  1988  (such  Amendment  is  referred  to as
          Post-Effective Amendment No.1).

     4.1  Material   Amendments   to  Agreement  of  Limited   Partnership   are
          incorporated by reference to Exhibit 3(a) to Post-Effective  Amendment
          No.1.

     4.2  Amendment to the Amended and Restated Agreement of Limited Partnership
          of the Partnership dated February 12, 1990.

    10.1  Origination  and  Acquisition  Services  Agreement is  incorporated by
          reference to Exhibit 10(b) to the Partnership's  Annual Report on Form
          10-K for the year ended December 31, 1987.

    10.2  Management  Services Agreement is incorporated by reference to Exhibit
          10(c) to the  Partnership's  Annual  Report  on Form 10-K for the year
          ended December 31, 1987.

<PAGE>21

    10.3  Disposition Services Agreement is incorporated by reference to Exhibit
          10(d) to the  Partnership's  Annual  Report  on Form 10-K for the year
          ended December 31, 1987.

    10.4  Agreement  among the  former  managing  general  partner,  the  former
          associate   general   partner  and  Integrated   Resources,   Inc.  is
          incorporated by reference to Exhibit 10(e) to the Partnership's Annual
          Report on Form 10-K for the year ended December 31, 1987.

    10.5  Reinvestment  Plan is  incorporated  by reference to Exhibit  10(f) to
          Post- Effective Amendment No. 1.

    10.6  Pages  A-1  -  A-5  of  the   partnership   agreement  of  Registrant,
          incorporated  by reference to Exhibit 28 to the  Partnership's  Annual
          Report on Form 10-K for the year ended December 31, 1990.

    10.7  Purchase Agreement among AIM Acquisition,  the former managing general
          partner,  the former  corporate  general  partner,  IFI and Integrated
          dated  as  of  December  13,  1990,   as  amended   January  9,  1991,
          incorporated by reference to Exhibit 28(a) to the Partnership's Annual
          Report on Form 10-K for the year ended December 31, 1990.

    10.8  Purchase  Agreement among CRIIMI,  Inc., AIM  Acquisition,  the former
          managing general partner,  the former corporate  general partner,  IFI
          and Integrated  dated as of December 13, 1990 and executed as of March
          1,  1991,   incorporated   by  reference  to  Exhibit   28(b)  to  the
          Partnership's  Annual Report on Form 10-K for the year ended  December
          31, 1990.

    10.9  Amendments   to   partnership   agreement   dated   August  13,  1991.
          Incorporated by reference to Exhibit 28(c) to the Partnership's Annual
          Report on Form 10-K for the year ended December 31, 1991.

    10.10 Sub-management  Agreement by and between AIM  Acquisition  and CRI/AIM
          Management, Inc., dated as of March 1, 1991, incorporated by reference
          to Exhibit 28(e) the Partnership's  Annual Report on Form 10-K for the
          year ended December 31, 1992.

    10.11 Amendment  No. 3 to  Reimbursement  Agreement by  Integrated  Funding,
          Inc. and the AIM Funds,  effective  January 1, 2000,  incorporated  by
          reference to exhibit 10.19 to the Partnership's  Annual Report on Form
          10-K for the year ended December 31, 2000.

    10.12 Amendment  No. 4 to  Reimbursement  Agreement by  Integrated  Funding,
          Inc. and the AIM Funds,  effective  January 1, 2001,  incorporated  by
          reference to exhibit 10.20 to the Partnership's  Annual Report on Form
          10-K for the year ended December 31, 2001.

    16.0  Letter  from  Arthur  Andersen  LLP to  the  Securities  and  Exchange
          Commission dated May 9, 2002, regarding the General Partner's decision
          to change its  certifying  accountant,  incorporated  by  reference to
          Exhibit 16 to the Partnership's Form 8-K filed on May 10, 2002.

    99.0  Letter to  Securities  and Exchange  Commission  from the  Partnership
          dated March 20,  2002,  regarding  the  representation  received  from
          Arthur  Andersen LLP in performing  the audit of the December 31, 2001
          financial statements, incorporated by reference to Exhibit 99.0 to the
          Partnership's  Annual Report on Form 10-K for the year ended  December
          31, 2001.
<PAGE>22

    99.1  Certification  pursuant  to Section 906 of the  Sarbanes-Oxley  Act of
          2002 from Barry S. Blattman,  Chief  Executive  Officer of the General
          Partner (Filed herewith).

    99.2  Certification  pursuant  to Section 906 of the  Sarbanes-Oxley  Act of
          2002 from Cynthia O. Azzara,  Chief  Financial  Officer of the General
          Partner (Filed herewith).

     (b)  Reports on Form 8-K filed  during the last quarter of the fiscal year:
          None.

     All other items are not applicable.


<PAGE>23
                                   SIGNATURES

     KNOW ALL  PERSONS  BY THESE  PRESENTS,  that each  person  whose  signature
appears below constitutes and appoints Barry S. Blattman,  his attorney-in-fact,
each with the power of substitution  for him in any and all capacities,  to sign
any  amendments  to this  Annual  Report  on Form 10-K and to file the same with
exhibits  thereto  and  other  documents  in  connection  therewith,   with  the
Securities  and Exchange  Commission,  hereby  ratifying and confirming all that
each said attorney-in-fact, or his substitute or substitutes, may do or cause to
be done by virtue hereof.

     Pursuant  to the  requirements  of  Section  13 or 15(d) of the  Securities
Exchange Act of 1934, Registrant has duly caused this Report to be signed on its
behalf by the undersigned, thereunto duly authorized.

                                          AMERICAN INSURED MORTGAGE
                                          INVESTORS L.P. - SERIES 88
                                          (Registrant)

                                          By:  CRIIMI, Inc.
                                               General Partner


March 19, 2003                            /s/Barry S. Blattman
--------------                            --------------------------------------
DATE                                      Barry S. Blattman
                                          Chairman of the Board,
                                          Chief Executive Officer and President
                                          (Principal Executive Officer)


March 24, 2003                            /s/Cynthia O. Azzara
--------------                            --------------------------------------
DATE                                      Cynthia O. Azzara
                                          Senior Vice President,
                                          Chief Financial Officer and Treasurer
                                          (Principal Accounting Officer)


March 19, 2003                            /s/David B. Iannarone
--------------                            --------------------------------------
DATE                                      David B. Iannarone
                                          Executive Vice President,
                                          Chief Operating Officer and a Director


March 19, 2003                            /s/John R. Cooper
--------------                            --------------------------------------
DATE                                      John R. Cooper
                                          Director


March 19, 2003                            /s/Robert J. Merrick
--------------                            --------------------------------------
DATE                                      Robert J. Merrick
                                          Director


March 19, 2003                            /s/Robert E. Woods
--------------                            --------------------------------------
DATE                                      Robert E. Woods
                                          Director


<PAGE>24
                                  CERTIFICATION

     I, Barry S. Blattman,  Chairman of the Board,  Chief Executive  Officer and
President, certify that:

1.   I have  reviewed  this  annual  report  on Form  10-K of  American  Insured
     Mortgage Investors L.P. - Series 88;

2.   Based on my  knowledge,  this  annual  report  does not  contain any untrue
     statement of a material fact or omit to state a material fact  necessary to
     make the statements  made, in light of the  circumstances  under which such
     statements  were made, not misleading with respect to the period covered by
     this annual report;

3.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information included in this annual report,  fairly present in all material
     respects the financial  condition,  results of operations and cash flows of
     the registrant as of, and for, the periods presented in this annual report;

4.   The  registrant's  other  certifying  officers  and I are  responsible  for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

     a)   Designed  such  disclosure  controls  and  procedures  to ensure  that
          material  information  relating  to  the  registrant,   including  its
          consolidated subsidiaries,  is made known to us by others within those
          entities,  particularly  during the period in which this annual report
          is being prepared;

     b)   Evaluated the  effectiveness of the registrant's  disclosure  controls
          and procedures as of a date within 90 days prior to the filing date of
          this annual report (the "Evaluation Date"); and

     c)   Presented   in  this   annual   report  our   conclusions   about  the
          effectiveness  of the disclosure  controls and procedures based on our
          evaluation as of the Evaluation Date;

5.   The registrant's other certifying  officers and I have disclosed,  based on
     our most recent  evaluation,  to the  registrant's  auditors  and the audit
     committee of  registrant's  board of directors (or persons  performing  the
     equivalent functions):

     a)   All  significant  deficiencies  in the design or operation of internal
          controls  which could  adversely  affect the  registrant's  ability to
          record,  process,   summarize  and  report  financial  data  and  have
          identified for the  registrant's  auditors any material  weaknesses in
          internal controls; and

     b)   Any fraud, whether or not material,  that involves management or other
          employees who have a  significant  role in the  registrant's  internal
          controls; and

6.   The  registrant's  other  certifying  officers and I have indicated in this
     annual report whether there were significant  changes in internal  controls
     or in other  factors  that could  significantly  affect  internal  controls
     subsequent  to the  date  of our  most  recent  evaluation,  including  any
     corrective  actions with regard to  significant  deficiencies  and material
     weaknesses.

                                           AMERICAN INSURED MORTGAGE
                                           INVESTORS L.P. - SERIES 88
                                           (Registrant)

                                           By: CRIIMI, Inc.
                                               General Partner


Date:  March 19, 2003                      /s/Barry S. Blattman
       --------------                      ------------------------------------
                                           Barry S. Blattman
                                           Chairman of the Board,
                                           Chief Executive Officer and President
<PAGE>25



     I, Cynthia O. Azzara,  Senior Vice President,  Chief Financial  Officer and
Treasurer, certify that:

1.   I have  reviewed  this  annual  report  on Form  10-K of  American  Insured
     Mortgage Investors L.P. - Series 88;

2.   Based on my  knowledge,  this  annual  report  does not  contain any untrue
     statement of a material fact or omit to state a material fact  necessary to
     make the statements  made, in light of the  circumstances  under which such
     statements  were made, not misleading with respect to the period covered by
     this annual report;

3.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information included in this annual report,  fairly present in all material
     respects the financial  condition,  results of operations and cash flows of
     the registrant as of, and for, the periods presented in this annual report;

4.   The  registrant's  other  certifying  officers  and I are  responsible  for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

     a)   Designed  such  disclosure  controls  and  procedures  to ensure  that
          material  information  relating  to  the  registrant,   including  its
          consolidated subsidiaries,  is made known to us by others within those
          entities,  particularly  during the period in which this annual report
          is being prepared;

     b)   Evaluated the  effectiveness of the registrant's  disclosure  controls
          and procedures as of a date within 90 days prior to the filing date of
          this annual report (the "Evaluation Date"); and

     c)   Presented   in  this   annual   report  our   conclusions   about  the
          effectiveness  of the disclosure  controls and procedures based on our
          evaluation as of the Evaluation Date;

5.   The registrant's other certifying  officers and I have disclosed,  based on
     our most recent  evaluation,  to the  registrant's  auditors  and the audit
     committee of  registrant's  board of directors (or persons  performing  the
     equivalent functions):

     a)   All  significant  deficiencies  in the design or operation of internal
          controls  which could  adversely  affect the  registrant's  ability to
          record,  process,   summarize  and  report  financial  data  and  have
          identified for the  registrant's  auditors any material  weaknesses in
          internal controls; and

     b)   Any fraud, whether or not material,  that involves management or other
          employees who have a  significant  role in the  registrant's  internal
          controls; and

6.   The  registrant's  other  certifying  officers and I have indicated in this
     annual  report  whether there were  significant  changes in internal
     controls  or in other  factors  that could  significantly  affect  internal
     controls  subsequent to the date of our most recent  evaluation,  including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.

                                  AMERICAN INSURED MORTGAGE
                                  INVESTORS L.P. - SERIES 88
                                  (Registrant)

                                  By: CRIIMI, Inc.
                                      General Partner

Date: March 24, 2003              /s/ Cynthia O. Azzara
      --------------              ----------------------------------------------
                                  Cynthia O. Azzara
                                  Senior Vice President, Chief Financial Officer
                                  and Treasurer

<PAGE>26



















              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88



                              Financial Statements

                        as of December 31, 2002 and 2001


                             and for the Years Ended

                        December 31, 2002, 2001 and 2000


<PAGE>27


                         REPORT OF INDEPENDENT AUDITORS



Partners
American Insured Mortgage Investors L.P. - Series 88

     We have audited the accompanying balance sheet of American Insured Mortgage
Investors  L.P. - Series 88 (the  Partnership)  as of December 31, 2002, and the
related  statements  of income and  comprehensive  income,  changes in partners'
equity,  and cash flows for the year then  ended.  Our audit also  included  the
financial  statement  schedule  listed  in the  Index  at Item  15(a)(2).  These
financial  statements and schedule are the  responsibility  of the Partnership's
management.  Our  responsibility  is to express  an  opinion on these  financial
statements  and schedule  based on our audit.  The  financial  statements of the
Partnership  as of December 31, 2001,  and for the years ended December 31, 2001
and 2000,  were audited by other  auditors who have ceased  operations and whose
report  dated  March  4,  2002,   expressed  an  unqualified  opinion  on  those
statements.

     We conducted our audit in  accordance  with  auditing  standards  generally
accepted in the United States.  Those standards require that we plan and perform
the audit to obtain reasonable  assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.  An
audit also includes  assessing the accounting  principles  used and  significant
estimates  made by  management,  as well as  evaluating  the  overall  financial
statement  presentation.  We believe that our audit provides a reasonable  basis
for our opinion.

     In our opinion,  the 2002  financial  statements  referred to above present
fairly, in all material  respects,  the financial position of the Partnership at
December 31, 2002,  and the results of its operations and its cash flows for the
year then ended in conformity with accounting  principles  generally accepted in
the United  States.  Also,  in our  opinion,  the  related  financial  statement
schedule, when considered in relation to the basic financial statements taken as
a whole,  presents  fairly in all material  respects the  information  set forth
therein.


/s/Ernst & Young LLP
McLean, Virginia
March 14, 2003



<PAGE>28


                    REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS



To the Partners of American Insured Mortgage Investors L.P. - Series 88:

     We have  audited  the  accompanying  balance  sheets  of  American  Insured
Mortgage Investors L.P. - Series 88 (the  "Partnership") as of December 31, 2001
and 2000, and the related statements of income and comprehensive income, changes
in partners'  equity and cash flows for the years ended December 31, 2001,  2000
and 1999. These financial  statements and the schedule referred to below are the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial statements and the schedule based on our audits.

     We conducted our audits in accordance  with  auditing  standards  generally
accepted in the United States.  Those standards require that we plan and perform
the audit to obtain reasonable  assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.  An
audit also includes  assessing the accounting  principles  used and  significant
estimates  made by  management,  as well as  evaluating  the  overall  financial
statement  presentation.  We believe that our audits provide a reasonable  basis
for our opinion.

     In our opinion,  the financial statements referred to above present fairly,
in all  material  respects,  the  financial  position of the  Partnership  as of
December 31, 2001 and 2000, and the results of its operations and its cash flows
for the years  ended  December  31,  2001,  2000 and 1999,  in  conformity  with
accounting principles generally accepted in the United States.

     Our  audits  were made for the  purpose  of forming an opinion on the basic
financial statements taken as a whole. Schedule IV-Mortgage Loans on Real Estate
as of  December  31,  2001 is  presented  for  purposes  of  complying  with the
Securities and Exchange Commission's rules and regulations and is not a required
part of the basic  financial  statements.  The  information in this schedule has
been  subjected  to the auditing  procedures  applied in our audits of the basic
financial  statements  and, in our  opinion,  is fairly  stated in all  material
respects in relation to the basic financial statements taken as a whole.



/s/Arthur Andersen LLP
Vienna, Virginia
March 4, 2002




--------------------------------------------------------------------------------
This is a copy of the audit report  previously  issued by Arthur Andersen LLP in
connection with the  Partnership's filing of its  Annual Report on Form 10-K for
the year ended  December  31, 2001.  This audit report has not been  reissued by
Arthur  Andersen  LLP in  connection with this Annual  Report on Form 10-K.  See
exhibit 16.0 for further discussion.



<PAGE>29

             AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88

                         BALANCE SHEETS
<TABLE>
<CAPTION>
                                                            December 31,    December 31,
                                                                2002            2001
                                                            ------------    ------------
                                     ASSETS

<S>                                                         <C>             <C>
Investment in FHA-Insured Certificates and GNMA
   Mortgage-Backed Securities, at fair value:
      Acquired insured mortgages                            $ 21,211,314    $ 32,300,617
      Originated insured mortgages                             8,293,338       8,473,167
                                                            ------------    ------------

                                                              29,504,652      40,773,784


Investment in FHA-Insured Loan at cost
      Originated insured mortgage                              5,516,188       5,573,879

Cash and cash equivalents                                      5,240,883       5,626,184

Investment in affiliate                                        1,843,066       1,789,536

Receivables and other assets                                     278,608         365,767
                                                            ------------    ------------

      Total assets                                          $ 42,383,397    $ 54,129,150
                                                            ============    ============



                        LIABILITIES AND PARTNERS' EQUITY

Distributions payable                                       $  5,183,145    $  5,784,760

Accounts payable and accrued expenses                             67,315         129,533
                                                            ------------    ------------

      Total liabilities                                        5,250,460       5,914,293
                                                            ------------    ------------

Partners' equity:
   Limited partners' equity, 15,000,000 Units authorized,
      8,802,091 Units issued and outstanding                  43,686,324      55,338,877
   General partner's deficit                                  (6,887,087)     (6,286,695)
   Less:  Repurchased Limited Partnership
      Units - 50,000 Units                                      (618,750)       (618,750)
  Accumulated other comprehensive income (loss)                  952,450        (218,575)
                                                            ------------    ------------

      Total Partners' equity                                  37,132,937      48,214,857
                                                            ------------    ------------

      Total liabilities and partners' equity                $ 42,383,397    $ 54,129,150
                                                            ============    ============
</TABLE>

                   The accompanying notes are an integral part
                         of these financial statements.
<PAGE>30

              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88

                  STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
<TABLE>
<CAPTION>
                                                                    For the years ended December 31,
                                                                   2002           2001           2000
                                                               ------------   ------------   ------------
<S>                                                            <C>            <C>            <C>
Income:
  Mortgage investment income                                   $  3,458,465   $  4,205,728   $  5,276,523
  Interest and other income                                          38,566        182,126        224,751
                                                               ------------   ------------   ------------

                                                                  3,497,031      4,387,854      5,501,274
                                                               ------------   ------------   ------------

Expenses:
  Asset management fee to related parties                           471,887        565,368        712,869
  General and administrative                                        108,943        181,816        437,036
                                                               ------------   ------------   ------------

                                                                    580,830        747,184      1,149,905
                                                               ------------   ------------   ------------

Earnings before gains (losses) on
  mortgage dispositions                                           2,916,201      3,640,670      4,351,369



Gains on mortgage dispositions                                      195,182      1,225,250        386,654
Adjustment to provision for loss                                          -       (315,155)             -
                                                               ------------   ------------   ------------

Net earnings                                                   $  3,111,383   $  4,550,765   $  4,738,023
                                                               ============   ============   ============
Other comprehensive income (loss) - adjustment to unrealized
  gains and losses on investments in insured mortgages            1,171,025       (538,874)     1,165,618
                                                               ------------   ------------   ------------

Comprehensive income                                           $  4,282,408   $  4,011,891   $  5,903,641
                                                               ============   ============   ============

Net earnings allocated to:
  Limited partners - 95.1%                                     $  2,958,925   $  4,327,778   $  4,505,860
  General Partner -   4.9%                                          152,458        222,987        232,163
                                                               ------------   ------------   ------------

                                                               $  3,111,383   $  4,550,765   $  4,738,023
                                                               ============   ============   ============

Net earnings per Limited Partnership
  Unit outstanding - Basic                                     $       0.34   $       0.49   $       0.51
                                                               ============   ============   ============
</TABLE>



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



<PAGE>31

              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88

                    STATEMENTS OF CHANGES IN PARTNERS' EQUITY

              For the years ended December 31, 2002, 2001 and 2000
<TABLE>
<CAPTION>
                                                                                   Repurchased      Accumulated
                                                                                     Limited           Other           Total
                                                   General          Limited        Partnership     Comprehensive      Partners'
                                                   Partner          Partners          Units        Income (Loss)       Equity
                                                -------------    -------------    -------------    -------------    -------------
<S>                                             <C>              <C>              <C>              <C>              <C>
Balance, January 1, 2000                        $  (5,007,111)   $  80,173,264    $    (618,750)   $    (845,319)   $  73,702,084

  Net Earnings                                        232,163        4,505,860                -                -        4,738,023
  Adjustment to unrealized gains and losses
    on investments in Insured Mortgages                     -                -                -        1,165,618        1,165,618
  Distributions paid or accrued of $1.78
     per Unit, including return of capital
     of $1.27 per Unit                               (807,275)     (15,667,722)               -                -      (16,474,997)
                                                -------------    -------------    -------------    -------------    -------------
Balance, December 31, 2000                         (5,582,223)      69,011,402         (618,750)         320,299       63,130,728

  Net Earnings                                        222,987        4,327,778                -                -        4,550,765
  Adjustment to unrealized gains and losses
    on investments in Insured Mortgages                     -                -                -         (538,874)        (538,874)
  Distributions paid or accrued of $2.045
     per Unit, including return of capital of
     $1.555 per Unit                                 (927,459)     (18,000,303)               -               -       (18,927,762)
                                                -------------    -------------    -------------    ------------     -------------
Balance, December 31, 2001                         (6,286,695)      55,338,877         (618,750)        (218,575)      48,214,857

  Net Earnings                                        152,458        2,958,925                -                -        3,111,383
  Adjustment to unrealized gains and losses
    on investments in Insured Mortgages                     -                -                -        1,171,025        1,171,025
  Distributions paid or accrued of $1.66
     per Unit, including return of capital of
     $1.32 per Unit                                  (752,850)     (14,611,478)               -                -      (15,364,328)
                                                -------------    -------------    -------------    -------------    -------------
Balance, December 31, 2002                      $  (6,887,087)   $  43,686,324    $    (618,750)   $     952,450    $  37,132,937
                                                =============    =============    =============    =============    =============

Limited Partnership Units outstanding -
   basic, as of December 31, 2002, 2001,
   and 2000                                                          8,802,091
                                                                     =========
</TABLE>

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

<PAGE>32

                 AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88

                               STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                                 For the years ended December 31,
                                                                               2002           2001             2000
                                                                           ------------    ------------    ------------
<S>                                                                        <C>             <C>             <C>
Cash flows from operating activities:
   Net earnings                                                            $  3,111,383    $  4,550,765    $  4,738,023
   Adjustments to reconcile net earnings to net cash
      provided by operating activities:
      Net gains on mortgage dispositions                                       (195,182)     (1,225,250)       (386,654)
      Adjustment to provision for loss                                                -         315,155               -
      Changes in assets and liabilities:
         Decrease in investment in affiliate                                     30,776          28,489          42,360
         Decrease in receivables and other assets                                87,159         109,205         154,071
         (Decrease) increase in accounts payable and accrued expenses           (62,218)       (429,545)        256,015
                                                                           ------------    ------------    ------------

         Net cash provided by operating activities                            2,971,918       3,348,819       4,803,815
                                                                           ------------    ------------    ------------

Cash flows provided by investing activities:
   Proceeds from mortgage prepayments                                        12,033,478      11,697,541      11,008,711
   Proceeds received from Greystone, related to the mortgage
      on Water's Edge of New Jersey                                                   -       1,026,921               -
   Proceeds received from Patrician, related to the mortgage
      on St. Charles Place - Phase II                                                 -       2,241,218               -
   Receipt of mortgage principal from scheduled payments                        575,246         623,671         707,084
                                                                           ------------    ------------    ------------

         Net cash provided by investing activities                           12,608,724      15,589,351      11,715,795
                                                                           ------------    ------------    ------------

Cash flows used in financing activities:
   Distributions paid to partners                                           (15,965,943)    (20,917,720)    (18,326,120)
                                                                           ------------    ------------    ------------

Net decrease in cash and cash equivalents                                      (385,301)     (1,979,550)     (1,806,510)

Cash and cash equivalents, beginning of year                                  5,626,184       7,605,734       9,412,244
                                                                           ------------    ------------    ------------

Cash and cash equivalents, end of year                                     $  5,240,883    $  5,626,184    $  7,605,734
                                                                           ============    ============    ============
</TABLE>

                   The accompanying notes are an integral part
                         of these financial statements.
<PAGE>33


              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88

                          NOTES TO FINANCIAL STATEMENTS


1.   ORGANIZATION

     American  Insured Mortgage  Investors L.P. - Series 88 (the  "Partnership")
was formed pursuant to a limited partnership agreement ("Partnership Agreement")
under the Uniform  Limited  Partnership Act of the State of Delaware on February
13, 1987.  During the period from  October 2, 1987 (the initial  closing date of
the Partnership's  public offering) through March 10, 1989 (the termination date
of the offering),  the  Partnership,  pursuant to its public  offering of Units,
raised a total of  $177,039,320  in gross  proceeds.  In  addition,  the initial
limited  partner  contributed  $2,500  to the  capital  of the  Partnership  and
received 125 units of limited partnership interest in exchange therefor.

     CRIIMI, Inc., a wholly-owned  subsidiary of CRIIMI MAE Inc. ("CRIIMI MAE"),
acts as the General  Partner (the  "General  Partner") for the  Partnership  and
holds a partnership  interest of 4.9%. The General Partner  provides  management
and  administrative  services  on behalf  of the  Partnership.  AIM  Acquisition
Partners  L.P.  serves as the advisor (the  "Advisor") to the  Partnership.  The
general   partner  of  the  Advisor  is  AIM   Acquisition   Corporation   ("AIM
Acquisition")  and the  limited  partners  include,  but are not limited to, The
Goldman Sachs Group, L.P., Sun America  Investments,  Inc.  (successor to Broad,
Inc.) and CRI/AIM  Investment,  L.P.,  a  subsidiary  of CRIIMI MAE,  over which
CRIIMI  MAE  exercises  100%  voting  control.  AIM  Acquisition  is a  Delaware
corporation  that is primarily  owned by Sun America  Investments,  Inc. and The
Goldman Sachs Group, L.P.

     Pursuant  to the terms of certain  origination  and  acquisition  services,
management services and disposition  services agreements between the Advisor and
the Partnership  (collectively the "Advisory  Agreements"),  the Advisor renders
services to the Partnership, including but not limited to, the management of the
Partnership's  portfolio of mortgages and the  disposition of the  Partnership's
mortgages. Such services are subject to the review and ultimate authority of the
General Partner. However, the General Partner is required to receive the consent
of the Advisor prior to taking certain  significant  actions,  including but not
limited to the  disposition of mortgages,  any transaction or agreement with the
General  Partner  or its  affiliates,  or any  material  change  as to  policies
regarding  distributions  or  reserves  of  the  Partnership  (collectively  the
"Consent Rights"). The Advisor is permitted and has delegated the performance of
services to CRIIMI MAE Services Limited Partnership  ("CMSLP"),  a subsidiary of
CRIIMI  MAE,   pursuant  to  a  sub-management   agreement  (the   "Sub-Advisory
Agreement").  The general partner and limited partner of CMSLP are  wholly-owned
subsidiaries  of CRIIMI MAE. The  delegation  of such services by the Advisor to
CMSLP does not relieve the Advisor of its  obligation to perform such  services.
Furthermore the Advisor has retained its Consent Rights.

     The General Partner also serves as the General Partner for American Insured
Mortgage Investors ("AIM 84"), American Insured Mortgage Investors. - Series 85,
L.P ("AIM 85") and American  Insured  Mortgage  Investors L.P. - Series 86 ("AIM
86") and  owns  general  partner  interests  therein  of  2.9%,  3.9% and  4.9%,
respectively.  The  Partnership,  AIM  84,  AIM 85 and  AIM 86 are  collectively
referred to as the "AIM Limited Partnerships".

     Prior to December  1996,  the  Partnership  was engaged in the  business of
originating  government insured mortgage loans ("Originated  Insured Mortgages")
and acquiring  government  insured mortgage loans ("Acquired  Insured Mortgages"
and, together with Originated Insured Mortgages,  referred to herein as "Insured
Mortgages").  In accordance  with the terms of the  Partnership  Agreement,  the
Partnership is no longer  authorized to originate or acquire  Insured  Mortgages
and, consequently,  its primary objective is to manage its portfolio of mortgage
investments,  all of which are insured under Section 221(d)(4) or Section 231 of
the National  Housing Act of 1937, as amended (the "National  Housing Act"). The
Partnership Agreement states that the Partnership will terminate on December 31,
2021, unless terminated earlier under the provisions thereof. The Partnership is
required,  pursuant to the Partnership Agreement, to dispose of its assets prior
to this date.

<PAGE>34

2.   SIGNIFICANT ACCOUNTING POLICIES

Method of Accounting
--------------------

     The Partnership's financial statements are prepared on the accrual basis of
accounting in accordance with accounting  principles  generally  accepted in the
United States  ("GAAP").  The preparation of financial  statements in conformity
with GAAP requires  management to make estimates and assumptions that affect the
reported  amounts  of  assets  and  liabilities  at the  date  of the  financial
statements  and the  reported  amounts  of  revenues  and  expenses  during  the
reporting period. Actual results could differ from those estimates.

Investment in Mortgages
-----------------------

     The   Partnership's   investment  in  Insured  Mortgages  is  comprised  of
participation  certificates  evidencing a 100% undivided  beneficial interest in
government  insured  multifamily  mortgages  issued or sold  pursuant to Federal
Housing   Administration   ("FHA")   programs   ("FHA-Insured    Certificates"),
mortgage-backed  securities  guaranteed  by  the  Government  National  Mortgage
Association  ("GNMA")  ("GNMA   Mortgage-Backed   Securities")  and  FHA-insured
mortgage loans ("FHA-Insured  Loans").  The mortgages underlying the FHA-Insured
Certificates,   GNMA  Mortgage-Backed   Securities  and  FHA-Insured  Loans  are
primarily non-recourse first liens on multifamily residential developments.

     Payments  of  principal  and  interest  on  FHA-Insured   Certificates  and
FHA-Insured  Loans are insured by the United  States  Department  of Housing and
Urban  Development  ("HUD")  pursuant to Title 2 of the  National  Housing  Act.
Payments of  principal  and  interest  on GNMA  Mortgage-Backed  Securities  are
guaranteed by GNMA pursuant to Title 3 of the National Housing Act.

     As of  December  31,  2002,  the  weighted  average  remaining  term of the
Partnership's  investments in GNMA  Mortgage-Backed  Securities and  FHA-Insured
Certificates is  approximately  23 years.  However,  the  Partnership  Agreement
states  that the  Partnership  will  terminate  in  approximately  19 years,  on
December  31,  2021,  unless  terminated  earlier  under the  provisions  of the
Partnership  Agreement.  As the Partnership is anticipated to terminate prior to
the weighted  average  remaining term of its investment in GNMA  Mortgage-Backed
Securities  and  FHA-Insured  Certificates,  the  Partnership  does not have the
ability  or  intent,  at this  time,  to hold  these  investments  to  maturity.
Consequently, the General Partner believes that the Partnership's investments in
GNMA   Mortgage-Backed   Securities  and  FHA-Insured   Certificates  should  be
classified as available for sale. Although the Partnership's investments in GNMA
Mortgage-Backed  Securities  and  FHA-Insured  Certificates  are  classified  as
available for sale for financial  statement  purposes,  the General Partner does
not  presently  intend to  voluntarily  dispose of these assets other than those
which may be assigned to HUD as a result of a default.

     In connection with this  classification  the  Partnership's  investments in
GNMA  Mortgage-Backed  Securities and FHA-Insured  Certificates  are recorded at
fair value, as of December 31, 2002 and 2001, with the net unrealized  gains and
losses on these assets  reported as other  comprehensive  income (loss) and as a
separate component of partners' equity. Subsequent increases or decreases in the
fair value of GNMA  Mortgage-Backed  Securities  and  FHA-Insured  Certificates,
classified as available for sale, will be included in other comprehensive income
(loss) and as a separate  component  of  partners'  equity.  Realized  gains and
losses  on  GNMA  Mortgage-Backed   Securities  and  FHA-Insured   Certificates,
classified as available for sale, will continue to be reported in earnings.

     As of  December  31,  2002 and  2001,  Investment  in  FHA-Insured  Loan is
recorded at amortized cost.

     The amortized cost of the investments in GNMA  Mortgage-Backed  Securities,
FHA-Insured  Certificates  and FHA-Insured  Loan is adjusted for amortization of
discounts and premiums to maturity.  Such  amortization  is included in mortgage
investment income.

     Mortgage  investment  income  consists of  amortization  of the discount or
premiums plus the stated mortgage  interest  payments  received or accrued.  The
difference  between  the cost and the  unpaid  principal  balance at the time of

<PAGE>35

purchase is carried as a discount or premium and  amortized  over the  remaining
contractual  life of the  mortgage  using the  effective  interest  method.  The
effective  interest  method provides a constant yield of income over the term of
the mortgage.

     Gains from  dispositions  of mortgage  investments  are recognized upon the
receipt of cash or HUD debentures.

     Losses on  dispositions  of mortgage  investments  are  recognized  when it
becomes  probable that a mortgage  will be disposed of and that the  disposition
will result in a loss.  In the case of Insured  Mortgages  fully insured by HUD,
the  Partnership's  maximum exposure for purposes of determining the loan losses
would generally be an assignment fee charged by HUD  representing  approximately
1% of the  unpaid  principal  balance  of the  Insured  Mortgage  at the date of
default, plus the unamortized balance of acquisition fees and closing costs paid
in  connection  with the  acquisition  of the Insured  Mortgage  and the loss of
approximately 30 days accrued interest.

Cash and Cash Equivalents
-------------------------

     Cash and cash equivalents consist of money market funds and time and demand
deposits with original maturities of three months or less.

Investment in affiliate
-----------------------

     Investment in affiliate  represents  an  investment in Integrated  Funding,
Inc. ("IFI"), an affiliate of the Partnership.  This investment is accounted for
under the equity  method  which  results in the original  invested  amount being
increased  for  the  Partnership's   share  of  income  and  decreased  for  the
Partnership's share of losses and distributions.

Income Taxes
------------

     No provision has been made for Federal,  state or local income taxes in the
accompanying   statements  of  income  and  comprehensive  income  since,  as  a
pass-through  entity, all income taxes assessed on the Partnership's  income are
the responsibility of its Unitholders.

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

     In January  2003,  the FASB  issued  FASB  Interpretation  ("FIN")  No. 46,
"Consolidation of Variable Interest  Entities",  an interpretation of Accounting
Research  Bulletin  No.  51,  "Consolidated  Financial  Statements."  FIN No. 46
explains  how to  identify  variable  interest  entities  and how an  enterprise
assesses  its  interests  in a  variable  interest  entity to decide  whether to
consolidate that entity.  This Interpretation  requires existing  unconsolidated
variable interest entities to be consolidated by their primary  beneficiaries if
the entities do not effectively  disperse risks among parties involved.  FIN No.
46 is effective immediately for variable interest entities created after January
31, 2003, and to variable  interest  entities in which an enterprise  obtains an
interest after that date. The Interpretation applies in the first fiscal year or
interim period beginning after June 15, 2003, to variable  interest  entities in
which an enterprise  holds a variable  interest that it acquired before February
1, 2003.  The  Partnership  does not expect the adoption of FIN No. 46 to have a
material effect on its financial position or results of operations.

<PAGE>36


3.   FAIR VALUE OF FINANCIAL INSTRUMENTS

     The  following  estimated  fair  values  of  the  Partnership's   financial
instruments  are presented in  accordance  with GAAP which defines fair value as
the  amount at which a  financial  instrument  could be  exchanged  in a current
transaction between willing parties, other than in a forced or liquidation sale.
These estimated fair values,  however, do not represent the liquidation value or
the market value of the Partnership.

<TABLE>
<CAPTION>
                                           As of December 31, 2002              As of December 31, 2001
                                         Amortized           Fair             Amortized           Fair
                                           Cost              Value              Cost              Value
                                        -----------       -----------        -----------       -----------
<S>                                     <C>               <C>                <C>               <C>
Investment in FHA-Insured
  Certificates and GNMA
  Mortgage-Backed Securities:
  Acquired Insured Mortgages            $20,908,052       $21,211,314        $33,196,354       $32,300,617
  Originated Insured Mortgages            7,679,488         8,293,338          7,747,039         8,473,167
                                        -----------       -----------        -----------       -----------

                                        $28,587,540       $29,504,652        $40,943,393       $40,773,784
                                        ===========       ===========        ===========       ===========

Investment in FHA-Insured Loan:
  Acquired Insured Mortgage             $ 5,516,188       $ 5,520,512        $ 5,573,879       $ 5,230,714

Cash and cash equivalents               $ 5,240,883       $ 5,240,883        $ 5,626,184       $ 5,626,184

GNMA Mortgage-Backed Security
  contributed to affiliate              $ 1,774,479       $ 1,809,818        $ 1,807,729       $ 1,758,760
</TABLE>


     The following  methods and assumptions were used to estimate the fair value
of each class of financial instrument:

Investment in FHA-Insured Certificates,
GNMA Mortgage-Backed Securities and FHA-Insured Loans
-----------------------------------------------------

     The fair  values  of the  FHA-Insured  Certificates,  GNMA  Mortgage-Backed
Securities and FHA-Insured Loans are priced  internally.  The Partnership used a
discounted  cash flow  methodology  to estimate the fair values;  the cash flows
were  discounted  using a discount rate that,  in the  Partnership's  view,  was
commensurate  with the market's  perception of risk and value.  The  Partnership
used a variety  of  sources  to  determine  its  discount  rate  including:  (i)
institutionally-available research reports, and (ii) communications with dealers
and active  insured  mortgage  security  investors  regarding  the  valuation of
comparable securities.

Cash and cash equivalents
-------------------------

     The carrying amount  approximates  fair value because of the short maturity
of these instruments.

<PAGE>37


4.   COMPREHENSIVE INCOME

     Comprehensive  income  includes net  earnings as currently  reported by the
Partnership adjusted for other comprehensive  income. Other comprehensive income
for the Partnership  consists of changes in unrealized  gains and losses related
to the Partnership's  Insured Mortgages accounted for as available for sale. The
table below breaks out other comprehensive income for the periods presented into
the following two categories: (1) the change to unrealized gains and losses that
relate to Insured  Mortgages  which were  disposed of during the period with the
resulting  realized  gain or loss  reflected in net  earnings  (reclassification
adjustments)  and (2) the change in the  unrealized  gains or losses  related to
those investments that were not disposed of during the period.

<TABLE>
<CAPTION>
                                                                       2002            2001           2000
                                                                       ----            ----           ----
<S>                                                                <C>            <C>             <C>
Reclassification adjustment for losses (gains)
  included in net income                                           $   220,158    $   (61,266)    $   187,450
Unrealized holding gains (losses) arising during
  the period                                                           950,867       (477,608)        978,168
                                                                   -----------    -----------     -----------

Net adjustment to unrealized gains and losses on investments in
  Insured Mortgages                                                $ 1,171,025    $  (538,874)    $ 1,165,618
                                                                   ===========    ===========     ===========
</TABLE>


5.   INVESTMENT IN FHA-INSURED CERTIFICATES AND GNMA MORTGAGE-BACKED SECURITIES

     The  following  is a  discussion  of  the  Partnership's  Insured  Mortgage
investments, along with the risks related to each type of investment:

Fully Insured FHA-Insured Certificates and GNMA Mortgage-Backed Securities
--------------------------------------------------------------------------

     Listed below is the  Partnership's  aggregate  investment  in fully insured
FHA-Insured Certificates and GNMA Mortgage-Backed  Securities as of December 31,
2002 and 2001:

<TABLE>
<CAPTION>
                                                                    2002                     2001
                                                                    ----                     ----
<S>                                                            <C>                      <C>
Number of:
  GNMA Mortgage-Backed Securities(1)(2)(3)(4)                             9                       13
  FHA-Insured Certificates                                                1                        1
Amortized Cost                                                 $ 20,908,052             $ 33,196,354
Face Value                                                       20,822,378               33,067,185
Fair Value                                                       21,211,314               32,300,617
</TABLE>

(1)  In January 2002, the mortgage on Orchard Creek Apartments was prepaid.  The
     Partnership  received  net  proceeds  of  approximately  $1.3  million  and
     recognized a gain of approximately  $33,000 for the year ended December 31,
     2002.  A  distribution  of  approximately  $0.14  per Unit  related  to the
     prepayment  of this  mortgage  was  declared in  February  2002 and paid to
     Unitholders in May 2002.
(2)  In February 2002, the mortgage on Westview Terrace  Apartments was prepaid.
     The  Partnership  received net proceeds of  approximately  $1.2 million and
     recognized a gain of approximately  $49,000 for the year ended December 31,
     2002.  A  distribution  of  approximately  $0.12  per Unit  related  to the
     prepayment  of this  mortgage  was  declared  in  March  2002  and  paid to
     Unitholders in May 2002.
(3)  In  September  2002,  the  mortgage  on  Stoney  Creek  was  prepaid.   The
     Partnership  received  net  proceeds  of  approximately  $5.2  million  and
     recognized a gain of approximately  $41,000 for the year ended December 31,
     2002.  A  distribution  of  approximately  $0.565  per Unit  related to the
     prepayment  of this  mortgage was  declared in  September  2002 and paid to
     Unitholders in November 2002.
(4)  In November 2002,  the mortgage on Hewitt  Gardens  Apartments was prepaid.
     The  Partnership  received net proceeds of  approximately  $4.4 million and
     recognized a gain of approximately  $72,000 for the year ended December 31,
     2002.  A  distribution  of  approximately  $0.47  per Unit  related  to the
     prepayment  of this  mortgage  was  declared in  December  2002 and paid to
     Unitholders in February 2003.

     As of March 1, 2003,  all of the  Partnership's  fully insured  FHA-Insured
Certificates and GNMA Mortgage-Backed Securities are current with respect to the
payment of principal and interest.

     In February  1996,  the General  Partner  instructed  the  servicer for the
mortgage on Water's Edge of New Jersey,  a fully insured  acquired  construction
loan,  to file a Notice of Default and an Election to Assign the  mortgage  with

<PAGE>38

HUD. The property  underlying this  construction loan was a nursing home located
in Trenton,  New Jersey.  As of January 31, 1997, the  Partnership  had received
approximately  $10.2  million  of the  assignment  proceeds,  including  partial
repayment of the outstanding principal and accrued interest.  HUD had disallowed
approximately  $1.65  million  of the  assignment  claim.  The  General  Partner
retained  counsel  in this  matter  and  pursued  litigation  against  the  loan
servicer,  Greystone Servicing Corporation,  Inc. ("Greystone"),  for the amount
disallowed  by HUD.  On July  30,  1998,  the  Partnership  filed a  Motion  for
Judgement against  Greystone in the Circuit Court of Fauquier County,  Virginia.
On June 1,  2001,  a jury  rendered a verdict  in favor of the  Partnership  and
against Greystone in the amount of approximately  $780,000.  On August 17, 2001,
the  Partnership  received  this amount plus accrued  interest of  approximately
$9,000.  A distribution  of  approximately  $0.09 per Unit related to this court
order was declared in September  2001 and paid to  Unitholders in November 2001.
In September 2001, the Partnership and Greystone agreed on a final settlement of
approximately $238,000 for reimbursement of legal fees, to the Partnership. This
amount was received on October 4, 2001. A distribution  of  approximately  $0.03
per Unit related to the reimbursement of legal fees was declared in October 2001
and paid to  Unitholders  in February  2002.  During the year ended December 31,
2001, the Partnership incurred a loss of approximately  $315,000 related to this
litigation. This loss includes legal fees incurred from April 1 through December
31, 2001, of  approximately  $199,000.  As of December 31, 2001, the Partnership
had  recognized  aggregate  losses  of  approximately  $894,000  related  to the
disposition of the mortgage on Water's Edge of New Jersey, which includes losses
recognized in 1996,  1997 and 2001. The  Partnership did not recognize a loss on
this mortgage in 2002 and does not expect to incur any additional losses related
to this mortgage.

Coinsured Program
-----------------

     Under the HUD coinsurance program,  both HUD and the coinsurance lender are
responsible  for  paying a portion  of the  insurance  benefits  if a  mortgagor
defaults and the sale of the development  collateralizing  the mortgage produces
insufficient net proceeds to repay the mortgage  obligation.  In such cases, the
coinsurance  lender will be liable to the Partnership for the first part of such
loss in an amount up to 5% of the outstanding  principal balance of the mortgage
as of the date foreclosure proceedings are instituted or the deed is acquired in
lieu of foreclosure.  For any loss greater than 5% of the outstanding  principal
balance, the responsibility for paying the insurance benefits will be borne on a
pro-rata basis, 85% by HUD and 15% by the coinsurance lender.

     While  the  Partnership  is due  payment  of all  amounts  owed  under  the
mortgage,  the  coinsurance  lender is  responsible  for the  timely  payment of
principal and interest to the Partnership.  The coinsurance lender is prohibited
from  entering  into any  workout  arrangement  with the  borrower  without  the
Partnership's  consent and must file a claim for coinsurance  benefits with HUD,
upon  default,  if the  Partnership  so  directs.  As an  ongoing  HUD  approved
coinsurance  lender,  and under the terms of the  participation  documents,  the
coinsurance lender is required to satisfy certain minimum net worth requirements
as set forth by HUD.  However,  it is  possible  that the  coinsurance  lender's
potential liability for loss on these developments, and others, could exceed its
HUD-required  minimum net worth.  In such case, the  Partnership  would bear the
risk of loss if the  coinsurance  lenders were unable to meet their  coinsurance
obligations.  In addition,  HUD's obligation for the payment of its share of the
loss  could be  diminished  under  certain  conditions,  such as the  lender not
adequately  pursuing  regulatory  violations  of the  borrower or the failure to
comply with other terms of the  mortgage.  However,  the General  Partner is not
aware of any  conditions  or actions  that would result in HUD  diminishing  its
insurance coverage.

     As of December 31, 2002 and 2001, the Partnership  held one investment in a
coinsured FHA-Insured Certificate secured by a coinsured mortgage. The remaining
FHA-Insured  Certificate is coinsured by Integrated  Funding,  Inc. ("IFI"),  an
affiliate of the Partnership. The following is a discussion of the Partnership's
coinsured mortgage investments.

a.   Coinsured by affiliate
     ----------------------

     As of December 31, 2002 and 2001, the Partnership held one investment in an
FHA-Insured  Certificate secured by a coinsured mortgage,  where the coinsurance
lender is IFI.  This  investment  was made on behalf of the  Partnership  by the
former managing  general  partner.  As structured by the former managing general
partner the Partnership bears the risk of loss upon default for IFI's portion of

<PAGE>39

the  coinsurance  loss on  this  mortgage  investment.  There  was no loan  loss
recognized  for the years ended 2002,  2001 and 2000. A cumulative  loan loss of
$1,511,743  was  recognized  in  prior  years  for the  mortgage  on  Summerwind
Apartments - Phase II when it appeared  probable the mortgagor  would default on
the loan.

     Listed below is the Partnership's  investment in the mortgage  coinsured by
affiliate as of December 31, 2002 and 2001:

                                  2002                     2001
                              ------------             ------------

Amortized Cost                $  7,679,488             $  7,747,039
Face Value                       8,958,360                9,057,300
Fair Value                       8,293,338                8,473,167

     As of March 1, 2003,  the  mortgagor was current with respect to payment of
principal and interest on this coinsured mortgage.

b.   Coinsured by third party
     ------------------------

     The  previously  owned  mortgage  on St.  Charles  Place  - Phase  II,  was
coinsured by The Patrician Mortgage Company ("Patrician"), an unaffiliated third
party coinsurance lender under the HUD coinsurance program. On October 14, 1993,
Patrician filed a foreclosure  action on the property  underlying this coinsured
mortgage.  On November 2, 1993, the mortgagor filed for protection under Chapter
11 of the U.S.  Bankruptcy  Code.  The  property  was  acquired  and vested with
Patrician in November 1998 and subsequently sold on October 12, 1999.  Patrician
filed a coinsurance  claim for insurance  benefits with HUD in October 1999, for
remaining  amounts due,  including  past due  interest.  In November  1999,  the
Partnership  received sales proceeds of approximately $3 million. A distribution
of  approximately  $0.32 per Unit  related to the sale was  declared in November
1999 and was paid to  Unitholders  in  February  2000.  In  February  2001,  the
Partnership received claim proceeds from Patrician of approximately $2.2 million
and recognized a gain of approximately  $822,000 for the year ended December 31,
2001.  The claim proceeds  represent the remaining  balance due on the mortgage,
including  interest  from  November  1,  1995  through  the date of  receipt.  A
distribution of  approximately  $0.24 per Unit related to the prepayment of this
mortgage was  declared in March 2001 and paid to  Unitholders  in May 2001.  The
amount  of  the  Partnership's  investment  in  this  mortgage  represented  the
Partnership's  approximate 55% ownership interest in the mortgage. The remaining
45% ownership interest was held by AIM 86.


6.   INVESTMENT IN FHA-INSURED LOAN

     Listed below is the Partnership's investment in the one FHA-Insured Loan as
of December 31, 2002 and 2001:

                                  2002                     2001
                              ------------             ------------

Amortized Cost                $  5,516,188             $  5,573,879
Face Value                       5,516,188                5,573,879
Fair Value                       5,520,512                5,230,714

     As of March 1, 2003, the  Partnership's  FHA-Insured  Loan was current with
respect to payment of principal and interest.


<PAGE>40


7.   TRANSACTIONS WITH RELATED PARTIES

     The principal executive officers of the General Partner for the years ended
December 31,  2002,  2001 and 2000 did not receive fees for serving as executive
officers of the  General  Partner,  nor are any fees  expected to be paid to the
executive officers in the future.

     The General Partner, CMSLP and certain affiliated entities have, during the
years ended December 31, 2002, 2001 and 2000, earned or received compensation or
payments for services from the Partnership as follows:

<TABLE>
<CAPTION>
                 COMPENSATION PAID OR ACCRUED TO RELATED PARTIES

                              Capacity in Which                 For the years ended December 31,
Name of Recipient                Served/Item                    2002         2001         2000
-----------------             -----------------                 ----         -----        ----
<S>                      <C>                                 <C>          <C>          <C>
CRIIMI, Inc. (1)         General Partner/Distribution        $  752,850   $  927,459   $  807,275

AIM Acquisition          Advisor/Asset Management Fee           471,887      565,368      712,869
  Partners, L.P. (2)

CRIIMI MAE               Affiliate of General Partner/           49,422       48,892       46,164
  Management, Inc. (3)   Expense Reimbursement
</TABLE>


(1)  The General Partner,  pursuant to amendments to the partnership  agreement,
     effective   September  6,  1991,   is  entitled  to  receive  4.9%  of  the
     Partnership's income, loss, capital and distributions,  including,  without
     limitation, the Partnership's adjusted cash from operations and proceeds of
     mortgage   prepayments,   sales  or  insurance  (both  as  defined  in  the
     partnership agreement).

(2)  The Advisor is entitled to an asset  management fee equal to 0.95% of Total
     Invested  Assets  (as  defined  in the  Partnership  Agreement).  CMSLP  is
     entitled  to a fee  equal to of 0.28% of  total  invested  assets  from the
     Advisor's asset  management fee. Of the amounts paid to the Advisor,  CMSLP
     earned a fee equal to  $139,069,  $166,617 and $210,081 for the years ended
     December 31,  2002,  2001 and 2000,  respectively.  The general and limited
     partners of CMSLP are wholly-owned subsidiaries of CRIIMI MAE Inc.

(3)  CRIIMI MAE  Management,  Inc.,  an  affiliate  of the General  Partner,  is
     reimbursed  for  personnel  and  administrative  services on an actual cost
     basis.


<PAGE>41


8. DISTRIBUTIONS TO UNITHOLDERS

     The  distributions  paid or accrued to  Unitholders on a per Unit basis for
the years ended December 31, 2002, 2001 and 2000 are as follows:
<TABLE>
<CAPTION>
                                              2002                   2001                      2000
                                           ----------            ----------                 ----------
<S>                                        <C>                   <C>                        <C>
Quarter ended March 31                     $    0.355 (1)(2)     $    1.010 (5)(6)(7)       $     0.37 (13)
Quarter ended June 30                           0.090                 0.105                       0.42 (14)(15)
Quarter ended September 30                      0.655 (3)             0.305 (8)(9)                0.15
Quarter ended December 31                       0.560 (4)             0.625 (10)(11)(12)          0.84 (16)
                                           ----------            ----------                 ----------
                                           $    1.660            $    2.045                 $     1.78
                                           ==========            ==========                 ==========
</TABLE>

     The following disposition proceeds are included in the distributions listed
above:
<TABLE>
<CAPTION>
                                                  Date                                Net
                                                Proceeds        Type of             Proceeds
          Complex Name                          received      Disposition           Per Unit
          ------------                          --------      -----------           --------
<S>       <C>                                   <C>           <C>                    <C>
(1)       Orchard Creek Apartments              Jan 2002      Prepayment             $ 0.14
(2)       Westview Terrace Apartments           Feb 2002      Prepayment               0.12
(3)       Stoney Creek                          Sep 2002      Prepayment               0.565
(4)       Hewitt Gardens                        Nov 2002      Prepayment               0.47
(5)       Silver Lake Plaza Apartments          Jan 2001      Prepayment               0.56
(6)       Holton Manor                          Feb 2001      Prepayment               0.10
(7)       St. Charles Place-Phase II            Feb 2001      Coinsurance Claim        0.24
(8)       Water's Edge of New Jersey            Aug 2001      Assignment               0.09
(9)       Lorenzo Carolina Apartments           Aug 2001      Prepayment               0.11
(10)      Water's Edge of New Jersey            Oct 2001      Assignment               0.03
(11)      Beauvoir Manor Apartments             Oct 2001      Prepayment               0.14
(12)      Woodcrest Townhomes                   Nov 2001      Prepayment               0.34
(13)      Linville Manor                        Mar 2000      Prepayment               0.22
(14)      Park Avenue Plaza                     May 2000      Prepayment               0.22
(15)      Kingsway Apartments                   May 2000      Prepayment               0.05
(16)      Lioncrest Towers                      Nov 2000      Prepayment               0.70
</TABLE>

     The basis for paying  distributions  to  Unitholders  is net proceeds  from
mortgage  dispositions,  if any, and cash flow from  operations,  which includes
regular  interest  income and  principal  from Insured  Mortgages.  Although the
Partnership's  Insured Mortgages pay a fixed monthly mortgage payment,  the cash
distributions  paid to the Unitholders  will vary during each quarter due to (1)
the  fluctuating  yields in the  short-term  money  market in which the  monthly
mortgage  payment  receipts are temporarily  invested,  by the General  Partner,
prior to the payment of quarterly distributions,  (2) the reduction in the asset
base resulting from monthly mortgage payments received or mortgage dispositions,
(3) variations in the cash flow  attributable  to the  delinquency or default of
Insured  Mortgages,  the timing of receipt of  debentures,  the interest rate on
debentures  and  debenture  redemptions,  and (4)  changes in the  Partnership's
operating  expenses.  As the  Partnership  continues to  liquidate  its mortgage
investments  and  Unitholders  receive  distributions  of return of capital  and
taxable   gains,   Unitholders   should  expect  a  reduction  in  earnings  and
distributions due to the decreasing mortgage base.

<PAGE>42


9.   INVESTMENT IN AFFILIATE

     In addition to the related party transactions described in Note 7, in order
to capitalize  IFI with  sufficient  net worth under HUD  regulations,  in April
1994, the Partnership transferred a GNMA Mortgage-Backed  Security in the amount
of  approximately  $2.0 million to IFI. As of December  31, 2002 and 2001,  this
GNMA Mortgage-Backed Security had a face value and a fair value of approximately
$1.8  million.  The  Partnership's  interest in this security is included on the
balance  sheet  in  Investment  in  affiliate.  As of  December  31,  2002,  the
Partnership along with AIM 85 and AIM 86 equally own AIM Mortgage, Inc. In turn,
AIM Mortgage,  Inc. owns all of the outstanding preferred stock and common stock
of IFI.

     As part of the Partnership's transfer of the GNMA Mortgage-Backed  Security
to IFI, AIM 85 and AIM 86 each issued a demand note  payable to the  Partnership
and  recorded  an  investment  in IFI through  AIM  Mortgage,  Inc. at an amount
proportionate  to  each  entity's  coinsured  mortgages  for  which  IFI was the
mortgagee of record as of April 1, 1994. In April 1997, the GNMA Mortgage-Backed
Security was reallocated  between the Partnership and AIM 86 as AIM 85 no longer
held any mortgages coinsured by IFI. As a result, a new demand note payable from
AIM 86 was issued and the investment in IFI was reallocated.  As of December 31,
2000, the Partnership's  demand note receivable from AIM 86 was cancelled as AIM
86 no longer held mortgages  coinsured by IFI. As a result the investment in IFI
was reallocated.  Interest income on this note was $0, $0 and $45,994 during the
years ended December 31, 2002, 2001 and 2000,  respectively,  and is included in
interest  and  other  income  on  the  accompanying  statements  of  income  and
comprehensive income.

     In connection with these transfers, the expense reimbursement agreement was
amended  as  of  April  1,  1997,  to  adjust  the  allocation  of  the  expense
reimbursement to the AIM Limited Partnerships to an amount proportionate to each
entity's  coinsured  mortgage  investments  for which IFI was the  mortgagee  of
record as of April 1, 1997. The expense  reimbursement,  as amended,  along with
the  Partnership's   interest  income  from  the  notes   receivable,   and  the
Partnership's equity interest in IFI's net income or loss,  substantially equals
the mortgage interest on the GNMA  Mortgage-Backed  Security transferred to IFI.
In April 1997,  this  agreement  was amended to exclude AIM 85,  which no longer
held mortgages coinsured by IFI. In December 2000, this agreement was amended to
exclude AIM 86, which no longer held mortgages coinsured by IFI. The Partnership
received  expense  reimbursements  of $132,146,  $130,470 and $89,336 during the
years ended December 31, 2002, 2001 and 2000, respectively, which offset general
and  administrative  expenses  on the  accompanying  statements  of  income  and
comprehensive income.


10.  PARTNERS' EQUITY

     In  a  public  offering  which  ended  in  March  1989,   depositary  Units
representing  economic rights in limited  partnership  interests  ("Units") were
issued at a stated value of $20. A total of  8,851,966  Units were issued for an
aggregate capital contribution of $177,039,320. In addition, the initial limited
partner contributed $2,500 to the capital of the Partnership in exchange for 125
Units  and the  former  general  partners  contributed  a total of $1,000 to the
Partnership. During 1994, the Partnership repurchased 50,000 Units.

<PAGE>42


11.  SUMMARY OF QUARTERLY RESULTS OF OPERATIONS
     (Dollars In Thousands, Except Per Unit Data)

         The following is a summary of unaudited quarterly results of operations
for the years ended December 31, 2002, 2001 and 2000:
<TABLE>
<CAPTION>
                                                                     2002
                                                                 Quarter ended
                                         March 31           June 30        September 30       December 31
                                         --------           -------        ------------       -----------
<S>                                     <C>               <C>               <C>               <C>
Income                                  $      931        $      904        $      889        $      773
Net earnings                                   849               742               797               723
Net gains from mortgage
  dispositions                                  82                 -                41                72
Net earnings per
  Limited Partnership Unit - Basic            0.09              0.08              0.09              0.08


                                                                     2001
                                                                 Quarter ended
                                         March 31           June 30        September 30       December 31
                                         --------           -------        ------------       -----------

Income                                  $    1,209        $    1,106        $    1,065        $    1,008
Net earnings                                 1,927               450             1,103             1,071
Net gains (losses) from mortgage
  dispositions                                 941              (476)              210               235
Net earnings per
  Limited Partnership Unit - Basic            0.21              0.05              0.12              0.11


                                                                     2000
                                                                 Quarter ended
                                         March 31           June 30        September 30       December 31
                                         --------           -------        ------------       -----------

Income                                  $    1,464        $    1,383        $    1,339        $    1,315
Net earnings                                 1,329             1,252             1,117             1,040
Net gains from mortgage
  dispositions                                 107               100                --               180
Net earnings per
  Limited Partnership Unit - Basic            0.14              0.14              0.12              0.11
</TABLE>

<PAGE>44

              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88
                   SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE
                                DECEMBER 31, 2002
<TABLE>
<CAPTION>
                                                                    Interest                                          Annual Payment
                                                                    Rate on            Face               Net         Principal and
                                                      Maturity      Mortgage          Value of       Carrying Value      Interest
Development Name/Location                               Date          (5)           Mortgage (3)      (3)(6)(7)(9)        (5)(8)
-------------------------                               ----          ---           ------------      ------------        ------
<S>                                                     <C>          <C>            <C>               <C>               <C>
ACQUIRED INSURED MORTGAGE:
FHA-Insured Certificate (carried at fair value)
-----------------------------------------------

Sylvan Manor, Silver Spring, MD                         5/21         7.500%         $  2,830,343      $  2,835,984      $ 284,523
                                                                                    ------------      ------------

GNMA Mortgage-Backed Securities (carried at fair value)
-------------------------------------------------------

Burlwood Apts., Portland, OR                            8/15         9.000%              533,037           544,708         62,748
Collin Care Centers, Plano, TX                          9/30         8.125%            1,632,726         1,663,888        144,356
Garden Terrace, Douglasville, GA                        1/20         7.125%            2,391,356         2,441,174        236,948
Greenview Garden, Butler, PA                            7/33         9.000%              859,257           880,829         78,348
Lamplighter Apts., Port Arthur, TX                     10/29         9.000%            2,148,750         2,203,204        207,316
Oaklawn Apts., Boise, ID                                8/24         9.000%              450,752           459,564         40,599
Oakwood Gardens, San Jose, CA                          10/23         7.750%            1,064,690         1,085,894         97,932
San Jose South, San Jose, CA                           10/23         7.750%            7,613,407         7,765,042        700,292
Tehama Estates, Sacramento, CA                          7/29         8.750%            1,298,060         1,331,027        122,831
                                                                                    ------------      ------------

   Total Investment in GNMA Mortgage-Backed Securities, carried at fair value         17,992,035        18,375,330
                                                                                    ------------      ------------

     Total Investment in Acquired Insured Mortgages, carried at fair value            20,822,378        21,211,314
                                                                                    ------------      ------------

ORIGINATED INSURED MORTGAGES:
Coinsured FHA-Insured Certificate (carried at fair value)
---------------------------------------------------------

Summerwind Apartments-Phase II, Naples, FL(1)(4)        6/30         8.500%            8,958,360         8,293,338        865,175
                                                                                    ------------      ------------

     Total Investment in FHA-Insured Certificates and
       GNMA Mortgage-Backed Securities, carried at fair value                         29,780,738        29,504,652
                                                                                    ------------      ------------

Fully Insured FHA-Insured Loan (carried at amortized cost)(2)
-------------------------------------------------------------

The Turn at Gresham, Gresham, Oregon(1)                 8/29         8.000%            5,516,188         5,516,188 (2)    501,516
                                                                                    ------------      ------------     ----------

TOTAL INVESTMENT IN INSURED MORTGAGES                                               $ 35,296,926      $ 35,020,840
                                                                                    ============      ============


TOTAL ANNUAL PRINCIPAL AND INTEREST                                                                                    $3,342,584
                                                                                                                       ==========
</TABLE>

<PAGE>45

              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88
              NOTES TO SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE
                                DECEMBER 31, 2002

(1)  Two  Insured  Mortgages,  Summerwind  - Phase II and The  Turn at  Gresham,
     contain a special assignment option which allows the Partnership to require
     payment from the borrower of the unpaid principal  balance of the mortgage,
     anytime  after a certain date.  Upon such  request,  the borrower must make
     payment to the  Partnership or the Partnership may cancel the FHA insurance
     applicable to the mortgage and institute foreclosure proceedings.

(2)  Inclusive of closing costs and acquisition fees.

(3)  Prepayment  of these  Insured  Mortgages  would be  based  upon the  unpaid
     principal balance at the time of prepayment.

(4)  This  mortgage is insured  under the HUD  coinsurance  program.  IFI is the
     HUD-approved  coinsurance  lender and the Partnership bears the risk of any
     coinsurance loss, as previously  discussed.  The Partnership has recorded a
     cumulative  loan  loss  of  $1,511,743  in  prior  years,  related  to this
     mortgage. No loan losses were recognized for the years ended 2002, 2001 and
     2000.

(5)  In addition,  the servicer or the  sub-servicer of the mortgage,  primarily
     unaffiliated third parties, is entitled to receive compensation for certain
     services rendered.

(6)  A reconciliation of the carrying value of the  Partnership's  investment in
     Insured  Mortgages,  for the years ended  December 31, 2002 and 2001, is as
     follows:
<TABLE>
<CAPTION>
                                                                 2002                      2001
                                                             ------------              ------------
<S>                                                          <C>                       <C>
Beginning balance                                            $ 46,347,663              $ 58,768,702

Principal receipts on mortgages                                  (575,246)                 (623,671)

Proceeds from disposition of mortgages                        (12,033,478)              (11,697,541)

Net gains on mortgage prepayments                                 195,182                   402,811

Net unrealized gains (losses)  on investment in FHA-Insured
  Certificates and GNMA Mortgage-Backed Securities              1,086,719                  (502,638)
                                                             ------------              ------------
Ending balance                                               $ 35,020,840              $ 46,347,663
                                                             ============              ============
</TABLE>

(7)  The mortgages  underlying  the  Partnership's  investments  in  FHA-Insured
     Certificates,  GNMA  Mortgage-Backed  Securities and FHA-Insured  Loans are
     primarily non-recourse first liens on multifamily residential  developments
     or retirement homes.

(8)  Principal  and interest are payable at  relatively  level  amounts over the
     life of the Insured Mortgages.

(9)  As of December  31, 2002 and 2001,  the tax basis of the Insured  Mortgages
     was approximately $35 million and $48 million, respectively.