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

                                  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, 1999 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. [X]

     As of February 17, 2000,  8,802,091 depositary units of limited partnership
interest were  outstanding and the aggregate  market value of such units held by
non-affiliates of the Registrant on such date was $60,509,261.

                       Documents incorporated by Reference

                                      None

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

<PAGE>






              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88

                         1999 ANNUAL REPORT ON FORM 10-K

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

                                     PART I
                                     ------
                                                                                                       Page
                                                                                                       ----
<S>               <C>                                                                                   <C>
Item 1.           Business.......................................................................        4
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.........        5
Item 6.           Selected Financial Data........................................................        6
Item 7.           Management's Discussion and Analysis of Financial Condition and Results
                     of Operations...............................................................        7
Item 7A.          Qualitative and Quantitative Disclosures About Market Risk.....................       13
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.............................       14
Item 11.          Executive Compensation.........................................................       16
Item 12.          Security Ownership of Certain Beneficial Owners and Management.................       16
Item 13.          Certain Relationships and Related Transactions.................................       16


                                   PART IV
                                   -------

Item 14.          Exhibits, Financial Statement Schedules and Reports on Form 8-K................       17

Signatures        ...............................................................................       19
</TABLE>
<PAGE>
                                     PART I

ITEM 1.           BUSINESS

FORWARD-LOOKING  STATEMENTS.  When used in this Annual Report on Form 10-K,  the
words  "believes,"   "anticipates,"   "expects,"   "contemplates,"  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 future  filings by the
Partnership  with the  Securities  and Exchange  Commission  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 and (v) defaulted mortgages.  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
---------------------------------------

     Information  concerning the business of American Insured Mortgage Investors
L.P.-Series 88 (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  of the  Partnership
(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
Insured  Mortgages  (as defined  below),  invested in by the  Partnership  as of
December 31, 1999, which is hereby incorporated herein by reference.

Employees
---------

     The  Partnership  has no  employees.  The  business of the  Partnership  is
managed  by  CRIIMI,  Inc.  (the  "General  Partner"),  while its  portfolio  of
mortgages is managed by AIM Acquisition Partners,  L.P. (the "Advisor") pursuant
to an advisory  agreement (the "Advisory  Agreement").  The General Partner is a
wholly owned subsidiary of CRIIMI MAE Inc. ("CRIIMI MAE").

     The general  partner of the Advisor is AIM  Acquisition  Corporation  ("AIM
Acquisition")  and the  limited  partners  include,  but are not limited to, AIM
Acquisition,  The Goldman Sachs Group, L.P., Sun America  Investments,  Inc. and
(successor to Broad, Inc.)CRI/AIM Investment,  L.P., an affiliate of CRIIMI MAE.
AIM Acquisition is a Delaware corporation that is primarily owned by Sun America
Investments, Inc. and The Goldman Sachs Group, L.P.

     Under the  Advisory  Agreement,  the Advisor  will  render  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  will be 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.  The  Advisor is  permitted  to
delegate the performance of services  pursuant to a sub-advisory  agreement (the
"Sub-Advisory Agreement").  The delegation of such services will not relieve the
Advisor of its obligation to perform such services.  CRIIMI MAE Services Limited
Partnership  ("CMSLP"),  an affiliate of CRIIMI MAE,  manages the  Partnership's
portfolio,  pursuant to the Sub-Advisory Agreement. The general partner of CMSLP
is CRIIMI MAE Services, Inc., an affiliate of CRIIMI MAE.

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

     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 Federal
Housing Administration ("FHA") insured mortgages than the Partnership.

     CRIIMI MAE and its affiliates also may serve as general partners,  sponsors
or managers of real estate limited partnerships,  REITS or other entities in the
future.  The  Partnership  may attempt to dispose of mortgage  investments at or
about the same time  that  CRIIMI  MAE,  one or more of the  other  "AIM  Funds"
[defined as the Partnership,  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/or other entities
sponsored or managed by CRIIMI MAE, or its affiliates, are attempting to dispose
of mortgages.  As a result of market  conditions that could limit  dispositions,
CMSLP  and  its  affiliates  could  be  faced  with  conflicts  of  interest  in
determining  which  mortgages  would be disposed  of. Both CMSLP and the General
Partner,  however,  are  subject to their  fiduciary  duties in  evaluating  the
appropriate action to be taken when faced with such conflicts.


ITEM 2.           PROPERTIES

     Although the  Partnership  does not own the  underlying  real  estate,  the
mortgages  underlying the  Partnership's  mortgage  investments are non-recourse
first liens on the respective multifamily residential developments.


ITEM 3.           LEGAL PROCEEDINGS

     Reference is made to Note 5 of the Notes to Financial  Statements  on pages
38 through 40.


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

     No matters were submitted to the security holders to be voted on during the
fourth quarter of 1999.


                                     PART II

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

Principal Market and Market Price for Units and Distributions

     The Units are traded on the American Stock Exchange ("AMEX") with a trading
symbol of "AIK." The high and low trade prices for the Units as reported on AMEX
and the distributions, as applicable, for each quarterly period in 1999 and 1998
were as follows:
<TABLE>
<CAPTION>
                                                   1999                         Amount of
                                                                              Distribution
Quarter Ended                             High             Low                  Per Unit
-------------                             ----             ---                  ----------
<S>                                      <C>               <C>                <C>
March 31,                                $11 7/16          $10 9/16           $      0.61 (1)
June 30,                                  11 5/8            10 1/2                   3.26 (2)(3)(4)
September 30,                             11                 7 3/8                   0.15
December 31,                               7 15/16           6 1/4                   1.04 (5)(6)(7)
                                                                              -----------
                                                                              $      5.06
                                                                              ===========
</TABLE>

<TABLE>
<CAPTION>

                                                   1998                        Amount of
                                                                              Distribution
   Quarter Ended                          High              Low                Per Unit
   -------------                          ----              ---               -----------
   <S>                                   <C>               <C>                <C>
   March 31,                             $14 1/4           $13 5/16           $      1.21 (8)(9)
   June 30,                               14               12 1/2                    1.50 (10)(11)
   September 30,                          13 1/4           11 7/8                    1.42 (12)
   December 31,                           12 5/8           10 11/16                  0.21
                                                                              -----------
                                                                              $      4.34
                                                                              ===========

     The following disposition proceeds are included in the distributions listed
above:

                                                                                                  Net
                                                                         Type of               Distibution
                   Complex Name                                        Disposition              Per Unit
                   ------------                                        -----------              --------
         <S>       <C>                                                 <C>                        <C>
         (1)       Olde Mill Apartments                                Prepayment                 $ 0.37
         (2)       Seven Springs Apartments                            Prepayment                   0.53
         (3)       Kon Tiki Apartments                                 Prepayment                   0.06
         (4)       The Breakers Golf Mill                              Prepayment                   2.43
         (5)       Oak Grove Apartments                                Prepayment                   0.06
         (6)       Heather Ridge Apartments                            Prepayment                   0.49
         (7)       St. Charles Place - Phase II                        Sale                         0.32
         (8)       Northpoint Apartments                               Prepayment                   0.19
         (9)       Olmstead Apartments                                 Prepayment                   0.73
         (10)      Olde Mill Apartments                                Curtailment                  0.08
         (11)      Arbor Village                                       Prepayment                   1.18
         (12)      Water's Edge II Apartments                          Prepayment                   1.19
</TABLE>

     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.

                                                            Approximate Number
                                                              of Unitholders
Title of Class                                           as of December 31, 1999
--------------                                           -----------------------

Depositary Units of Limited                                       6,700
       Partnership Interest


ITEM 6.           SELECTED FINANCIAL DATA
                  (Dollars in thousands, except per Unit amounts)

<TABLE>
<CAPTION>
                                                       For the Years Ended December 31,

                                           1999         1998         1997         1996          1995
                                        ----------   ----------   ----------    ---------    ----------

<S>                                     <C>          <C>          <C>           <C>          <C>
Income                                  $    7,294   $    9,998   $   12,167    $  12,465    $   13,236

Net gains (losses) on mortgage
  dispositions                               1,072          756         (354)        (378)        2,452
Net earnings                                 7,053        9,179       10,097       10,293        13,795

Composition of distributions per Limited
  Partnership Unit(1)(2):
    Net earnings - Basic                $     0.76   $     0.99   $     1.09    $    1.11    $     1.49
    Return of capital                         4.30         3.35         1.44         0.11          0.17
Total                                   $     5.06   $     4.34   $     2.53    $    1.22    $     1.66


                                                       For the Years Ended December 31,

                                           1999         1998         1997          1996          1995
                                        ----------   ----------   ----------    ----------    ----------
 <S>                                    <C>          <C>          <C>           <C>          <C>
Total assets                            $   83,455   $  116,464   $  150,616    $  159,554    $  161,927

Partners' equity                        $   73,702   $  114,442   $  146,977    $  156,644    $  158,806

(1)  Calculated based upon the weighted average number of Units outstanding. See
     Note 2 to Notes to Financial Statements of the Partnership.

(2)  Includes  distributions  due the Unitholders for the  Partnership's  fiscal
     quarters ended December 31, 1999,  1998,  1997,  1996 and 1995,  which were
     paid  subsequent  to year  end.  See  Notes 7 and 8 to Notes  to  Financial
     Statements of the Partnership  contained in Item 9,  "Financial  Statements
     and Supplementary Data."

</TABLE>

     The selected  income data presented  above for the years ended December 31,
1999,  1998 and 1997,  and the balance  sheet data as of  December  31, 1999 and
1998,  are derived from and are  qualified  by  reference  to the  Partnership's
financial  statements which have been included  elsewhere in this Form 10-K. The
income data for the years ended December 31, 1996 and 1995 and the balance sheet
data as of December 31, 1997,  1996 and 1995 are derived from audited  financial
statements  not  included  in  this  Form  10-K.  This  data  should  be read in
conjunction with the financial statements and the notes thereto.


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.

     The  American   Insured   Mortgage   Investors,   L.P.  -  Series  88  (the
"Partnership") was formed 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. (the "General Partner") holds a partnership  interest of 4.9%
and is a  wholly-owned  subsidiary  of  CRIIMI  MAE  Inc.  ("CRIIMI  MAE").  AIM
Acquisition  Partners,  L.P.  (the  "Advisor")  serves  as  the  advisor  to the
Partnership pursuant to an advisory agreement (the "Advisory Agreement").

     The general  partner of the Advisor is AIM  Acquisition  Corporation  ("AIM
Acquisition")  and the  limited  partners  include,  but are not limited to, AIM
Acquisition,  The Goldman  Sachs  Group,  L.P.,  Sun America  Investments,  Inc.
(successor to Broad,  Inc.)and CRI/AIM Investment,  L.P., an affiliate of CRIIMI
MAE. AIM  Acquisition is a Delaware  corporation  that is primarily owned by Sun
America Investments, Inc. and the Goldman Sachs Group, L.P.

     Under the  Advisory  Agreement,  the Advisor  will  render  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  will be 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.  The  Advisor is  permitted  to
delegate the performance of services  pursuant to a sub-advisory  agreement (the
"Sub-Advisory Agreement").  The delegation of such services will not relieve the
Advisor of its obligation to perform such services.  CRIIMI MAE Services Limited
Partnership  ("CMSLP"),  an affiliate of CRIIMI MAE,  manages the  Partnership's
portfolio,  pursuant to the Sub-Advisory Agreement. The general partner of CMSLP
is CRIIMI MAE Services, Inc., an affiliate of CRIIMI MAE.

Year 2000
---------

     During the transition from 1999 to 2000, the Partnership did not experience
any significant problems or errors in its information  technology ("IT") systems
or date-sensitive  embedded  technology that controls certain systems.  Based on
operations   since  January  1,  2000,  the  Partnership  does  not  expect  any
significant  impact to its  business,  operations,  or financial  condition as a
result of the Year 2000 issue.  However,  it is possible that the full impact of
the date change has not been fully  recognized.  The Partnership is not aware of
any  significant  Year 2000  problems  affecting  third  parties  with which the
Partnership interfaces directly or indirectly.

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

     Prior  to  the  expiration  of the  Partnership's  reinvestment  period  in
December  1996,  the  Partnership  was engaged in the  business  of  originating
mortgage loans  ("Originated  Insured  Mortgages") and acquiring  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 or guaranteed,
in whole or in part, by the Federal Housing Administration ("FHA") under section
221(d)(4)  or section 231 of the National  Housing Act of 1937,  as amended (the
"National Housing Act"). The Partnership is a liquidating  partnership and as it
continues  to  liquidate  its  mortgage   investments   and  investors   receive
distributions of return of capital and taxable gains,  investors should expect a
reduction in earnings and distributions due to the decreasing mortgage base. The
partnership agreement states that the Partnership will terminate on December 31,
2021,  unless  previously  terminated  under the  provisions of the  partnership
agreement.

     As of  December  31,  1999,  the  Partnership  had  invested  in 25 Insured
Mortgages  with  aggregate   amortized  cost,  face  value  and  fair  value  of
approximately  $70  million,  $71  million  and $68  million,  respectively,  as
discussed below.

Investment in Insured 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 FHA programs
("FHA-Insured  Certificates"),  mortgage-backed  securities  guaranteed  by 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.

     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.

     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
Mortgages as of December 31, 1999 and 1998:

<TABLE>
<CAPTION>                                                                  December 31,
                                                                   1999                     1998
                                                               ------------             ------------
<S>                                                            <C>                      <C>
Number of:
 GNMA Mortgage-Backed Securities (1)(2)(3)                               20                       22
  FHA-Insured Certificates (1)(4)                                         2                        3
Amortized Cost                                                 $ 55,763,736             $ 65,698,059
Face Value                                                       55,736,170               65,930,408
Fair Value                                                       54,329,225               67,018,830
</TABLE>

(1)  As of  March 6,  2000,  all of the  Partnership's  fully  insured  mortgage
     investments are current with respect to payment of principal and interest.

(2)  In April 1999, the mortgage on Seven Springs  Apartments  was prepaid.  The
     Partnership  received  net  proceeds  of  approximately  $4.9  million  and
     recognized a gain of approximately $436,000 for the year ended December 31,
     1999.  A  distribution  of  approximately  $0.53  per Unit  related  to the
     prepayment of this mortgage was declared in May and was paid to Unitholders
     in August 1999.

(3)  In October  1999,  the mortgage on Oak Grove  Apartments  was prepaid.  The
     Partnership received net proceeds of approximately  $580,000 and recognized
     a gain of  approximately  $32,000 for the year ended  December  31, 1999. A
     distribution  of $0.06 per Unit related to this  prepayment was declared in
     November 1999 and paid to Unitholders in February 2000.

(4)  In November 1999, the mortgage on Heather Ridge Apartments was prepaid. The
     Partnership  received  net  proceeds  of  approximately  $4.5  million  and
     recognized a gain of approximately $164,000 for the year ended December 31,
     1999.  A  distribution  of $0.49 per Unit  related to this  prepayment  was
     declared in November 1999 and paid to Unitholders in February 2000.



     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 is a nursing home located in
Trenton,  New Jersey.  As of December 31,  1999,  the  Partnership  had received
approximately  $10.2  million  on the  assignment  proceeds,  including  partial
repayment of the outstanding principal and accrued interest.  HUD has disallowed
approximately  $1.65  million of the  assignment  claim,  which is  included  in
Receivables  and Other  Assets.  The General  Partner  retained  counsel in this
matter and is actively pursuing 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 Judgment against Greystone in
the Circuit Court of Fauquier County,  Virginia. The Motion for Judgment alleges
breach of contract and negligence claims and seeks judgment for $1,653,396,  the
amount  disallowed  by HUD, plus  interest,  attorneys'  fees and costs.  In the
Motion for  Judgement,  the General  Partner  alleges as follows.  Pursuant to a
mortgage servicing contract,  the Participation and Servicing Agreement ("PSA"),
Greystone  was  obligated to ensure that the  requirements  for  preserving  HUD
insurance on the loan was satisfied. Specifically, the PSA required Greystone to
prepare a written  notice of default in the event the borrower  defaulted on the
mortgage loan  repayment  obligation and to file notice of such default with HUD
within  thirty  (30)  days  after an  uncured  borrower's  cure  period.  Due to
Greystone's  failure to timely file a notice of default  with HUD, HUD applied a
surcharge  of  $1,653,396  to the  insurance  proceeds  due AIM 88, as permitted
pursuant to the FHA Insurance  Contract.  On February 28, 2000, American Insured
Mortgage  Investors,  L.P.- Series 88 and Greystone Servicing  Corporation, Inc.
presented  oral arguments for summary judgement  before the Court in this matter
and the Court has taken those  Motions under  advisement.  A trial date has been
set for the end of July, 2000 and a ruling on these Motions may be issued at any
time. The Partnership believes that the allowance for loan losses of $375,000 as
of December  31,  1999,  is  sufficient  to provide for amounts  that may not be
recovered from the servicer.

Coinsured Mortgages
-------------------

     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 case, 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, 1999 and 1998, the Partnership  held  investments in one
and three coinsured  FHA-Insured  Certificates  secured by coinsured  mortgages,
respectively.  One of these coinsured mortgage investments,  the mortgage on St.
Charles  Place - Phase  II,  is  coinsured  by The  Patrician  Mortgage  Company
("Patrician"),  an  unaffiliated  third party  coinsurance  lender under the HUD
coinsurance  program.  As  of  December  31,  1999,  the  remaining  FHA-Insured
Certificates was coinsured by Integrated Funding,  Inc. ("IFI"), an affiliate of
the Partnership, and is discussed below.

Coinsured by affiliate
----------------------

     As of December 31, 1999 and 1998, the Partnership  held  investments in one
and two  coinsured  FHA-Insured  Certificates  secured by  coinsured  mortgages,
respectively,  where the coinsurance  lender is IFI. These investments were made
on  behalf  of the  Partnership  by the  former  managing  general  partner.  As
structured  by the  former  managing  general  partner,  with  respect  to these
mortgages, the Partnership bears the risk of loss upon default for IFI's portion
of the coinsurance loss on these mortgage investments.


<TABLE>
<CAPTION>
                                           December 31, 1999                              December 31, 1998
                                           -----------------                              -----------------
                               Amortized         Face          Fair            Amortized         Face          Fair
                                 Cost            Value       Mkt. Value          Cost            Value       Mkt. Value
                               -----------    -----------    -----------       -----------    -----------    -----------
<S>                            <C>            <C>            <C>               <C>            <C>            <C>
Summerwind Apts. - Phase
II(1)(3)                       $ 7,863,659    $ 9,231,460    $ 8,452,851       $ 7,913,874    $ 9,307,962    $ 8,638,778
The Breakers at Golf
Mill(2)(3)                              --             --            --         22,113,145     22,113,146     20,470,263
                               -----------    -----------    -----------        ----------     ----------     ----------
                               $ 7,863,659    $ 9,231,460    $ 8,452,851       $30,027,019    $31,421,108    $29,109,041
                               ===========    ===========    ===========       ===========    ===========    ===========
</TABLE>


(1)  As of March 6, 2000,  the  mortgagor was current with respect to payment of
     principal and interest on this mortgage.

(2)  In May 1999,  the mortgage on The  Breakers at Golf Mill was  prepaid.  The
     Partnership  received  net  proceeds  of  approximately  $22.5  million and
     recognized a gain of approximately $441,000 for the year ended December 31,
     1999.  A  distribution  of  approximately  $2.43  per Unit  related  to the
     prepayment  of this  mortgage  was  declared  in June  1999 and was paid to
     Unitholders in August 1999.

(3)  There were no loan losses recognized for the years ended 1999 and 1998. The
     cumulative  loan losses  recognized  in prior years were  $980,000  for The
     Breakers at Golf Mill, and $1,511,743 for Summerwind Apartments - Phase II.

Coinsured by third party
------------------------

     Listed  below  is  the  Originated   Insured   Mortgage   coinsured  by  an
unaffiliated  third party  coinsurance  lender,  The Patrician  Mortgage Company
("Patrician"), under the HUD coinsurance program.

                                                       December 31,
                                               1999                     1998
                                           ------------             ------------
Amortized Cost                             $         --             $  3,710,287
Face Value                                           --                3,710,287
Fair Value                                           --                3,422,177

     On October 14, 1993,  Patrician filed a foreclosure  action on the property
underlying this coinsured  mortgage,  St. Charles Place-Phase II. 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.  Prior to the sale, the mortgagor had made
payments of principal and interest due on the mortgage  through November 1995 to
the Partnership.  The remaining balance due,  including accrued interest,  as of
December 31, 1999, is approximately $2 million.  The amount of the Partnership's
investment  in  this  mortgage  represents  the  Partnership's  approximate  55%
ownership interest in the mortgage. The remaining 45% ownership interest is held
by AIM 86, an affiliate of the  Partnership.  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.  The  Partnership  does not expect to recognize a
loss related to this disposition,  as it expects to recover all amounts due from
Patrician.

     The  General  Partner  intends to  continue  to oversee  the  Partnership's
interest  in this  liability  to ensure  that  Patrician  meets its  coinsurance
obligations. However, the General Partner does not believe that there would be a
material adverse impact on the Partnership's  financial condition or its results
of  operations  should  Patrician be unable to comply with its full  coinsurance
obligation.

FHA-Insured Loans
-----------------

     Listed below is the  Partnership's  aggregate  investment  in fully insured
Originated Insured Mortgages as of December 31, 1999 and 1998:

                                                        December 31,
                                                1999                     1998
                                            -----------              -----------
Number of Mortgages (1)                               1                        1
Amortized Cost                              $ 5,676,336              $ 5,721,754
Face Value                                    5,676,336                5,721,754
Fair Value                                    5,169,038                5,725,377


(1)  As of March 6, 2000, the  Partnership's  fully insured  originated  Insured
     Loan was current with respect to the payment of principal and interest.

     Listed below is the  Partnership's  aggregate  investment  in fully insured
Acquired Insured Mortgages as of December 31, 1999 and 1998:

                                                         December 31,
                                                1999                     1998
                                             ----------               ----------
Number of Mortgages (1)(2)                            1                        2
Amortized Cost                               $  461,081               $1,055,778
Face Value                                      460,441                1,053,273
Fair Value                                      459,177                1,061,917

(1)  As of March 6, 2000, the Partnership's  fully insured Acquired Insured Loan
     was current with respect to the payment of principal and interest.

(2)  In May  1999,  the  mortgage  on  Kon  Tiki  Apartments  was  prepaid.  The
     Partnership received net proceeds of approximately  $554,000 and recognized
     a loss of  approximately  $400 for the year  ended  December  31,  1999.  A
     distribution of  approximately  $0.06 per Unit related to the prepayment of
     this  mortgage  was  declared in June 1999 and was paid to  Unitholders  in
     August 1999.

     In  addition  to  base  interest  payments  from  FHA-Insured   Loans,  the
Partnership is entitled to additional  interest based on a percentage of the net
cash flow  from the  underlying  development  and of the net  proceeds  from the
refinancing,  sale or other disposition of the underlying  development (referred
to as  "Participations").  During the years ended  December 31,  1999,  1998 and
1997, the Partnership  received additional interest of $0, $69,820 and $134,769,
respectively,  from the FHA-Insured  Loans through these  Participations.  These
amounts,  if any, are included in mortgage investment income on the accompanying
statements of income and comprehensive income.

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

1999 versus 1998
----------------

     Net earnings  decreased  for 1999 as compared to 1998,  primarily  due to a
decrease in mortgage  investment  income caused by the reduction in the mortgage
asset base.  This decrease was  partially  offset by an increase in net gains on
mortgage dispositions.

     Mortgage  investment  income  decreased for 1999 as compared to 1998.  This
decrease was primarily due to the  prepayment of five  mortgages and the sale of
one  property  during  1999 for  approximately  $36  million in  proceeds.  Also
contributing to the decrease was the normal amortization of the mortgage base.

     Interest  and other  income  increased  for 1999 as compared to 1998.  This
increase was primarily due to the timing of the temporary investment of proceeds
from mortgage prepayments.

     Asset  management fee expense  decreased for 1999 as compared to 1998. This
decrease  was  due to the  reduction  in the  mortgage  base,  primarily  due to
mortgage prepayments as previously discussed.

     General and administrative expenses increased for 1999 as compared to 1998.
This increase primarily was due to the legal fees related to the mortgage issues
on Water's Edge of New Jersey as previously discussed.

     Net realized gains on mortgage dispositions  increased for 1999 as compared
to 1998.  Gains or  losses on  mortgage  dispositions  are based on the  number,
carrying  amounts and  proceeds of mortgage  investments  disposed of during the
period.  During 1999,  the  partnership  recognized  gains of  approximately  $1
million  related to the prepayment of the mortgages on Seven Spring  Apartments,
The  Breakers  at Golf Mill,  Oak Grove  Apartments,  and  Heather  Ridge.  This
compares to gains  recognized in 1998 of  approximately  $1.1 million related to
the  prepayments  of the  mortgages  on  Northpoint  Apartments,  Olmstead  Park
Apartments,  Water's Edge II Apartments, and Olde Mill Apartments.  During 1999,
the Partnership  incurred a loss of approximately $400 on the disposition of Kon
Tiki Apartments  versus a loss of  approximately  $350,000 on the disposition of
the mortgage on Arbor Village in 1998.

1998 versus 1997
----------------

     Net earnings decreased for 1998 as compared to 1997,  primarily as a result
of a decrease in  mortgage  investment  income  caused by the  reduction  in the
mortgage  asset base.  This decrease was partially  offset by an increase in net
gains on mortgage dispositions.

     Mortgage  investment  income  decreased for 1998 as compared to 1997.  This
decrease was  primarily  due to the  prepayment  of the  mortgages on Northpoint
Apartments, Olmstead Park Apartments, Arbor Village, Water's Edge II Apartments,
and Olde Mill Apartments, as discussed previously.

     Interest  and other  income  increased  for 1998 as compared to 1997.  This
increase was primarily due to the temporary
investment of proceeds from mortgage prepayments.

     Net realized gains on mortgage dispositions  increased for 1998 as compared
to 1997.  Gains or  losses on  mortgage  dispositions  are based on the  number,
carrying  amounts and  proceeds of mortgage  investments  disposed of during the
period.  During 1998, the Partnership  recognized gains on mortgage dispositions
of  approximately  $1.1 million  related to the  prepayment  of the mortgages on
Northpoint Apartments, Olmstead Park Apartments, Water's Edge II Apartments, and
Olde Mill Apartments. This compares to gains recognized in 1997 of approximately
$21,000  related to the prepayment of the mortgage on Parkside  Estates.  During
1998,  the  Partnership  incurred  a  loss  of  approximately  $350,000  on  the
disposition  of the  mortgage on Arbor  Village,  compared to no losses in 1997.
Additionally,  during 1997,  the  Partnership  provided  $375,000 to reserve for
possible  losses in  connection  with a claim filed with HUD for the mortgage on
Water's Edge of New Jersey.

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

     On October 5, 1998,  CRIIMI  MAE,  the parent of the General  Partner,  and
CRIIMI  MAE  Management,  Inc.,  an  affiliate  of CRIIMI  MAE and  provider  of
personnel  and  administrative  services  to the  Partnership,  filed  voluntary
petitions for relief under chapter 11 of title 11 of the United States Code (the
"Bankruptcy  Code").  Such  bankruptcy  filings could result in certain  adverse
effects to the Partnership.  For example, as a debtor-in-possession,  CRIIMI MAE
will not be permitted to provide any available capital to the General Partner or
to the general partner of CMSLP, the Partnership's sub-advisor, without approval
from the bankruptcy court. Even though this restriction or potential loss of the
availability of a potential  capital resource could adversely affect the General
Partner  and the  Partnership,  CRIIMI MAE has not  historically  represented  a
significant  source of capital for the General Partner or the Partnership.  Such
bankruptcy filings could also result in the potential need to replace CRIIMI MAE
Management,  Inc. as a provider of personnel and administrative  services to the
Partnership.  Furthermore,  the bankruptcy filings could negatively impact CMSLP
which could result in the need to obtain  another  party to perform the services
currently  performed  by CMSLP,  as  subadvisor,  pursuant  to the  Sub-Advisory
Agreement.

      On December  23, 1999, CRIIMI MAE and CRIIMI MAE  Management,  Inc.  filed
their Amended Joint Plan of  Reorganization  and proposed  disclosure  statement
with the  United  States  Bankruptcy  Court for the  District  of  Maryland,  in
Greenbelt,  Maryland (the "Bankruptcy  Court"). The filing of such Amended Joint
Plan of Reorganization  and proposed  disclosure  statement on December 23, 1999
was filed with the full  support of the official  committee  of Equity  Security
Holders in the  CRIIMI MAE  Chapter  11 case,  which is a  co-proponent  of such
Amended  Joint  Plan of  Reorganization.  On or about  February  11,  2000,  the
Official  Committee  of  Unsecured  Creditors of CRIIMI MAE filed its own second
amended plan of reorganization and second amended proposed disclosure statement,
which,  in general,  provides for the liquidation of the assets of CRIIMI MAE. A
hearing  has been  scheduled  for April 25 and April  26,  2000 on the  proposed
disclosure statements filed with the Bankruptcy Court. There can be no assurance
at this time that CRIIMI  MAE's  Amended  Joint Plan of  Reorganization  will be
confirmed and consummated.

     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, 1999, 1998 and 1997 to meet
operating  requirements.  The  Partnership  anticipates  its  cash  flows  to be
sufficient to meet operating expense requirements for 2000.

     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 after paying all
expenses  of the  Partnership.  Although  the  Insured  Mortgages  yield a fixed
monthly  mortgage  payment once purchased,  the cash  distributions  paid to the
Unitholders  will vary during each quarter due to (1) the fluctuating  yields in
the  short-term  money market where the monthly  mortgage  payment  receipts are
temporarily  invested prior to the payment of quarterly  distributions,  (2) the
reduction in the asset base, resulting from monthly mortgage payment receipts or
mortgage  dispositions,  (3)  variations  in the cash flow  attributable  to the
delinquency  or  default  of  Insured   Mortgages  and  professional   fees  and
foreclosure  costs incurred in connection  with those Insured  Mortgages and (4)
variations in the Partnership's operating expenses.

     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 size of the Insured Mortgages,  which are prepaid, sold or assigned for
insurance proceeds.

Cash flow - 1999 versus 1998
----------------------------

     Net cash provided by operating activities decreased for 1999 as compared to
1998  primarily  due to a decrease in net  earnings in 1999.  This  decrease was
primarily  the result of a decrease  in  mortgage  investment  income  discussed
previously.  Also contributing to the decrease was a decrease in receivables and
other  assets  during 1999 related to the sale of the  property  underlying  St.
Charles  Place-Phase  II and the  remaining  amounts  due from  the  coinsurance
lender.

     Net cash provided by investing activities increased for 1999 as compared to
1998 due to an increase in mortgage  disposition proceeds from approximately $36
million in 1999 versus approximately $33.8 million received in 1998.

     Net cash used in  financing  activities  decreased  for 1999 as compared to
1998 primarily due to a decrease in distributions paid to partners.


Cash flow - 1998 versus 1997
----------------------------

     Net cash provided by operating activities decreased for 1998 as compared to
1997  primarily  due to a  reduction  in net  earnings,  which  was  caused by a
decrease in the mortgage  asset base.  Additionally,  cash provided by operating
activities  decreased  for  1998  as  compared  to  1997  due to a  decrease  in
receivables and other assets.

     Net cash provided by investing activities increased for 1998 as compared to
1997  primarily  due to the  increase  in the  amount  of  mortgage  disposition
proceeds received in 1998 as compared to 1997.

     Net cash used in  financing  activities  increased  for 1998 as compared to
1997 due to an  increase  in  distributions  paid to partners as a result of the
disposition of the mortgages on Northpoint Apartments, Olmstead Park Apartments,
Arbor  Village,  Water's  Edge II  Apartments  and Olde Mill  Apartments,  and a
principal curtailment made on the mortgage for Olde Mill Apartments prior to the
disposition of the mortgage.


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,  which  coupled with the related  spread to
treasury investors required for the Partnership's  Insured Mortgages, will cause
fluctuations in the market value of the Partnership's assets.

     The  table  below  provides  information  about the  Partnership's  Insured
Mortgages,  all of which were entered into for purposes other than trading.  The
table  presents  anticipated  principal  and interest  cash flows based upon the
assumptions  used in  determining  the fair  value of these  securities  and the
related weighted average interest rates by expected maturity.

<TABLE>
<CAPTION>
                                        2000       2001       2002       2003       2004       Thereafter       Total     Fair Value
                                        ----       ----       ----       ----       ----       ----------       -----     ----------
<S>                                     <C>        <C>        <C>        <C>        <C>        <C>              <C>         <C>
Insured Mortgages
(in millions)                           $11.3      $10.3      $9.4       $8.7       $10.0      $61.5            $111.2      $68.4

Average Interest Rate                    7.81 %     7.81 %     7.80 %     7.80 %     7.81 %     7.91 %              --         --


</TABLE>


ITEM 8.           FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

     The information required by this Item is set forth in this Annual Report on
Form 10-K commencing on page 25.


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

                  None.

                                    PART III

ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

         (a),(b),(c),(e)

     The Partnership has no officers or directors.  CRIIMI, Inc. holds a general
partnership  interest of 4.9%. The affairs of the Partnership are managed by the
General Partner, which is wholly owned by CRIIMI MAE, a corporation whose shares
are listed on the New York Stock Exchange.

     The  general  partner of the  Advisor is AIM  Acquisition  and the  limited
partners  include,  but are not limited to, AIM  Acquisition,  The Goldman Sachs
Group,  L.P., Sun America  Investments,  Inc. and CRI/AIM  Investment,  L.P., an
affiliate  of CRIIMI  MAE.  Pursuant to the terms of certain  amendments  to the
partnership agreement, 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.  CMSLP, an affiliate of
CRIIMI MAE, manages the  Partnership's  portfolio,  pursuant to the Sub-Advisory
Agreement.  The  general  partner  of CMSLP is CRIIMI  MAE  Services,  Inc.,  an
affiliate of CRIIMI MAE.

     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  following  table  sets  forth  information  concerning  the  executive
officers  and  directors  of CRIIMI  MAE,  the sole  shareholder  of the General
Partner as of March 15, 2000:


 Name                             Age             Position
 ----                             ---             --------
William B. Dockser                 63             Chairman of the Board

H. William Willoughby              53             President, Secretary, and
                                                    Director

Cynthia O. Azzara                  40             Senior Vice President,
                                                    Chief Financial Officer and
                                                    Treasurer

David B. Iannarone                 39             Senior Vice President and
                                                    General Counsel

Brian L. Hanson                    38             Senior Vice President

Garrett G. Carlson, Sr.            62             Director

G. Richard Dunnells                62             Director

Robert Merrick                     54             Director

Robert E. Woods                    52             Director


     William B.  Dockser  has  served as  Chairman  of the Board of the  General
Partner  since 1991.  Mr.  Dockser has been  Chairman of the Board of CRIIMI MAE
since 1989 and Chairman of the Board of CRIIMI MAE Financial  Corporation  since
1995.  Mr.  Dockser is also the  founder of C.R.I., Inc. ("CRI"), serving as its
Chairman of the Board since 1974.

     H. William  Willoughby has served as President and Secretary of the General
Partner since 1991.  Mr.  Willoughby has been President of CRIIMI MAE since 1990
and a Director and  Secretary of CRIIMI MAE since 1989.  He has also served as a
director of CRIIMI MAE Financial Corporation since 1995. Mr. Willoughby has been
a director of CRI since 1974,  Secretary of CRI from 1974 to 1990 and  President
of CRI since 1990.

     Cynthia  O.  Azzara has served as Chief  Financial  Officer of the  General
Partner since 1994. Ms. Azzara has served as Chief  Financial  Officer of CRIIMI
MAE since 1994. She has also served as Senior Vice President of CRIIMI MAE since
1995 and Treasurer of CRIIMI MAE since 1997,  Accounting and Finance Departments
of CRI from 1985 to June 1995.

     David B.  Iannarone  has served as Senior  Vice  President  of the  General
Partner since March 1998.  Mr.  Iannarone has served as Senior Vice President of
CRIIMI  MAE since  March  1998;  General  Counsel of CRIIMI MAE since July 1996;
Counsel-Securities     and    Finance    for    Federal    Deposit     Insurance
Corporation/Resolution Trust Corporation from 1991 to July 1996.

     Brian L. Hanson has served as Senior Vice President of the General  Partner
since March 1998.  Mr. Hanson has served as Senior Vice  President of CRIIMI MAE
since March 1998;  Group Vice  President  of CRIIMI MAE from March 1996 to March
1998;  Chief  Operating  Officer,  Director of Asset  Operations  and  Portfolio
Director of JCF Partners, Lanham, Maryland from 1991 to March 1996.

     Garrett G. Carlson, Sr. has served as Director of the General Partner since
1989. Mr. Carlson has served as Director of CRIIMI MAE since 1989;  President of
Can-American  Realty Corp.  and Canadian  Financial  Corp.  since 1979 and 1974,
respectively; President of Garrett Real Estate Development since 1982; President
of the Satellite  Broadcasting  Corporation since 1996; Chairman of the Board of
SCA Realty Holdings Inc. from 1985 to 1995; Vice Chairman of Shelter Development
Corporation  Ltd. from 1983 to 1995 and member of the board of Bank Windsor from
1992 to 1994.

     G.  Richard  Dunnells has served as Director of the General  Partner  since
1991.  Mr.  Dunnells has served as Director of CRIIMI MAE since 1991;  Firm-wide
Hiring  of the law  firm  of  Holland  &  Knight  since  1995;  Chairman  of the
Washington, D.C. law firm of Dunnells & Duvall from 1989 to 1993; Senior Partner
of such law firm from 1973 to 1993; Special Assistant to the Under-Secretary and
Deputy  Assistant  Secretary for Housing and Urban Renewal and Deputy  Assistant
Secretary for Housing  Management with the U.S.  Department of Housing and Urban
Development  from 1969 to 1973;  President's  Commission on Housing from 1981 to
1982.

     Robert J. Merrick has served as Director of the General Partner since 1997.
Mr.  Merrick  has served as  Director  of CRIIMI MAE since  1997;  Chief  Credit
Officer and Director of MCG Credit  Corporation  since February 1998;  Executive
Vice President from 1985 and Chief Credit Officer of Signet Banking  Corporation
through 1997, also served as Chairman of the Credit Policy  Committee and member
of  the  Asset  and  Liability  Committee  and  Management   Committee;   Credit
Officer-Virginia Banking Corporation, an affiliate of Signet Bank/Virginia, from
1980 to 1984; Senior Vice President of Bank of Virginia from 1976 to 1980.

     Robert E. Woods has served as Director of the General  Partner  since 1998.
Mr. Woods has served as Director of CRIIMI MAE since 1998; 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,   Citicorp   from  1991  to  1997,   Head  of  Citicorp's
syndications, private placements, money markets and asset-backed businesses from
1985 to 1990.

               (d)  There is no family relationship  between any of the officers
                    and directors of the General Partner.

               (f)  Involvement in certain legal proceedings.

                    None.

               (g)  Promoters and control persons.

                    Not applicable.

               (h)  Section 16(a) Beneficial  Ownership  Reporting  Compliance -
                    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
                    5s were required for those persons, the Partnership believes
                    that all  reporting  persons  have  filed on a timely  basis
                    Forms  3, 4 and 5 as  required  in  the  fiscal  year  ended
                    December 31, 1999.


ITEM 11. EXECUTIVE COMPENSATION

     The  Partnership  does not  have any  directors  or  officers.  None of the
directors  or officers  of the General  Partner  receive  compensation  from the
Partnership,  and the General  Partner does not receive  reimbursement  from the
Partnership for any portion of their  salaries.  Other  information  required by
Item 11 is hereby  incorporated  by  reference  herein to Note 5 of the Notes to
Financial Statements of the Partnership.


ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

(a)  As of December 31, 1999, 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  February  17,  2000 by 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.

                                     Amount and Nature
                                         of Units            Percentage of Units
     Name                           Beneficially Owned           Outstanding
     ----                           ------------------           -----------
     William B. Dockser                  3,000                        *
     CRIIMI MAE                            744                        *

     * Less than 1%

(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  which
          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.

     (b)  Certain business relationships.

          Other  than as set  forth in Item 11 of this  report  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.

     (c)  Indebtedness of management.

          None.

     (d)  Transactions with promoters.

          Not applicable.
<PAGE>
                                     PART IV

ITEM 14.        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, 1999 and 1998..........................................................................22

Statements of Income and Comprehensive Income for the years ended December 31, 1999,1998 and 1997........................23

Statements of Changes in Partners' Equity for the years ended December 31, 1999, 1998 and 1997...........................24

Statements of Cash Flows for the years ended December 31, 1999, 1998 and 1997............................................25

Notes to Financial Statements............................................................................................26


(a)(2)   Financial Statement Schedules:

         IV - Mortgage Loans on Real Estate..............................................................................36
</TABLE>

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

(a)(3)   Exhibits:

         3.    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.    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 hereinbelow 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.

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

         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.

         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  Mortgagor-Participant Agreement, Mortgage Assignment of Rents and
               Security Agreement and Mortgage Note with respect to The Breakers
               (sometimes  also  referred  to  as  the  Niles  Senior  Lifestyle
               Community)  is  incorporated  by  reference  to Exhibit  10(g) to
               Post-Effective Amendment No. 1.

         10.7  Mortgagor-Mortgagee  Agreement,  Mortgage  Note and Mortgage with
               respect to the Arlington development is incorporated by reference
               to Exhibit 10(h) to Post-Effective Amendment No. 1.

         10.8  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.

         10.9  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.

         10.10 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.

         10.11 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.

         10.12 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.

         10.13 Expense  Reimbursement  Agreement by Integrated  Funding Inc. and
               the AIM Funds,  effective  December  31,  1992,  incorporated  by
               reference to Exhibit 28(f) to the Partnership's  Quarterly Report
               on Form 10-Q for the quarter ended June 30, 1993.

         10.14 Non-negotiable  promissory  note from American  Insured  Mortgage
               Investors  L.P.  - Series 85 in the amount of  $319,074.67  dated
               April 1, 1994,  incorporated by reference to Exhibit 10(p) to the
               Partnership's  Annual  Report  on Form  10-K for the  year  ended
               December 31, 1994.

         10.15 Non-negotiable  promissory  note from American  Insured  Mortgage
               Investors  L.P.  - Series 86 in the amount of  $478,612.00  dated
               April 1, 1994,  incorporated by reference to Exhibit 10(q) to the
               Partnership's  Annual  Report  on Form  10-K for the  year  ended
               December 31, 1994.

         10.16 Amendment to Reimbursement  Agreement by Integrated Funding, Inc.
               and the AIM  Funds,  effective  April 1,  1994,  incorporated  by
               reference to Exhibit 10(r) to the Partnership's  Annual Report on
               Form 10-K for the year ended December 31, 1994.

         10.17 Second  Amendment  to   Reimbursement   Agreement  by  Integrated
               Funding,  Inc.  and the  AIM  Funds,  effective  April  1,  1997,
               incorporated  by reference to Exhibit 10.17 to the  Partnership's
               Annual Report on Form 10-K for the year ended December 31, 1997.

         10.18 Non-negotiable  promissory  note from American  Insured  Mortgage
               Investors,  L.P.  - Series 86, in the  amount of  $658,486  dated
               April 1, 1997,  incorporated by reference to Exhibit 10.18 to the
               Partnership's  Annual  Report  on Form  10-K for the  year  ended
               December 31, 1997.

         27.0  Financial Data Schedule (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>


                                   SIGNATURES

     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


/s/ March 1, 2000                                   /s/ William B. Dockser
DATE                                                William B. Dockser
                                                    Chairman of the Board


/s/ March 1, 2000                                   /s/ H. William Willoughby
DATE                                                H. William Willoughby
                                                    President and Secretary


/s/ March 1, 2000                                    /s/ Cynthia O. Azzara
DATE                                                 Cynthia O. Azzara
                                                     Senior Vice President,
                                                     Chief Financial Officer and
                                                     Treasurer


/s/ March 1, 2000                                    /s/ Garrett G. Carlson, Sr.
DATE                                                 Garrett G. Carlson, Sr.
                                                     Director


/s/ March 1, 2000                                    /s/ G. Richard Dunnells
DATE                                                 G. Richard Dunnells
                                                     Director


/s/ March 1, 2000                                    /s/ Robert J. Merrick
DATE                                                 Robert J. Merrick
                                                     Director


/s/ March 1, 2000                                    /s/ Robert E. Woods
DATE                                                 Robert E. Woods
                                                     Director

<PAGE>















              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88



                              Financial Statements

                        as of December 31, 1999 and 1998


                             and for the Years Ended

                        December 31, 1999, 1998 and 1997

<PAGE>

                    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, 1999
and 1998, and the related statements of income and comprehensive income, changes
in partners'  equity and cash flows for the years ended December 31, 1999,  1998
and 1997. 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, 1999 and 1998, and the results of its operations and its cash flows
for the years  ended  December  31,  1999,  1998 and 1997,  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,  1999 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.



Arthur Andersen LLP
Vienna, VA
March 15, 2000
<PAGE>


              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88

                                 BALANCE SHEETS


<TABLE>
<CAPTION>
                                                                   December 31,       December 31,
                                                                       1999               1998
                                                                   ------------       ------------
<S>                                                                <C>                <C>
                                     ASSETS

Investment in FHA-Insured Certificates and GNMA
   Mortgage-Backed Securities, at fair value:
      Acquired insured mortgages                                   $ 54,329,225       $ 67,018,830
      Originated insured mortgages                                    8,452,851         32,531,218
                                                                   ------------       ------------
                                                                     62,782,076         99,550,048

Investment in FHA-Insured Loans, at amortized cost,
   net of unamortized discount and premium:
      Originated insured mortgages                                    5,676,336          5,721,754
      Acquired insured mortgages                                        461,081          1,055,778
                                                                   ------------       ------------
                                                                      6,137,417          6,777,532

Cash and cash equivalents                                             9,412,244          5,524,324

Investment in affiliates                                              1,250,860          1,266,971

Notes receivable from affiliates and due from affiliates                658,493            705,507

Receivables and other assets                                          3,213,483          2,639,242
                                                                   ------------       ------------
      Total assets                                                 $ 83,454,573       $116,463,624
                                                                   ============       ============



                        LIABILITIES AND PARTNERS' EQUITY

Distributions payable                                              $  9,625,841       $  1,943,679

Accounts payable and accrued expenses                                   126,648             77,729
                                                                   ------------       ------------

      Total liabilities                                               9,752,489          2,021,408
                                                                   ------------       ------------

Partners' equity:
   Limited partners' equity, 15,000,000 Units authorized,
      8,802,091 Units issued and outstanding                         80,173,264        118,004,167
   General partner's deficit                                         (5,007,111)        (3,057,885)
   Less:  Repurchased Limited Partnership
      Units - 50,000 Units                                             (618,750)          (618,750)
  Accumulated other comprehensive (loss) income                        (845,319)           114,684
                                                                   ------------       ------------

      Total Partners' equity                                         73,702,084        114,442,216
                                                                   ------------       ------------
      Total liabilities and partners' equity                       $ 83,454,573       $116,463,624
                                                                   ============       ============




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


              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88

                  STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

<TABLE>
<CAPTION>                                                      For the years ended December 31,
                                                           1999              1998              1997
                                                        -----------       -----------       -----------
<S>                                                     <C>               <C>               <C>
Income:
  Mortgage investment income                            $ 6,848,840       $ 9,606,555       $11,892,090
  Interest and other income                                 444,944           391,565           274,652
                                                        -----------       -----------       -----------

                                                          7,293,784         9,998,120        12,166,742
                                                        -----------       -----------       -----------

Expenses:
  Asset management fee to related parties                   942,910         1,287,672         1,469,320
  General and administrative                                369,751           287,395           245,921
                                                        -----------       -----------       -----------
                                                          1,312,661         1,575,067         1,715,241
                                                        -----------       -----------       -----------

Earnings before gains (losses) on
  mortgage dispositions                                   5,981,123         8,423,053        10,451,501

Mortgage dispositions:
  Gains                                                   1,072,589         1,106,588            20,746
  Losses                                                       (422)         (350,159)              --
Provision for loss                                               --                --          (375,000)
                                                        -----------       -----------       -----------

Net earnings                                            $ 7,053,290       $ 9,179,482       $10,097,247
                                                        ===========       ===========       ===========

Other comprehensive income                                 (960,003)       (1,545,152)        1,801,409
                                                        -----------       -----------       -----------

Comprehensive income                                    $ 6,093,287       $ 7,634,330       $11,898,656
                                                        ===========       ===========       ===========

Net earnings allocated to:
  Limited partners - 95.1%                              $ 6,707,679       $ 8,729,687       $ 9,602,482
  General Partner -   4.9%                                  345,611           449,795           494,765
                                                        -----------       -----------       -----------

                                                        $ 7,053,290       $ 9,179,482       $10,097,247
                                                        ===========       ===========       ===========

Net earnings per Limited Partnership
  Unit outstanding - Basic                                   $ 0.76            $ 0.99            $ 1.09
                                                        ===========       ===========       ===========


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



              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88

                    STATEMENTS OF CHANGES IN PARTNERS' EQUITY

              For the years ended December 31, 1999, 1998, and 1997

<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, 1997                    $   (977,432)    $158,381,944     $   (618,750)    $   (141,573)    $156,644,189

  Net Earnings                                   494,765        9,602,482               --               --       10,097,247
  Adjustment to unrealized gains (losses)
   on investments in insured mortgages              --               --                 --        1,801,409        1,801,409
  Distributions paid or accrued of $2.23
   per Unit, including return of capital
   of $1.24 per Unit                          (1,056,713)     (20,508,872)              --               --      (21,565,585)
                                            ------------     ------------     ------------     ------------     ------------
Balance, December 31, 1997                    (1,539,380)     147,475,554         (618,750)       1,659,836      146,977,260

  Net Earnings                                   449,795        8,729,687               --               --        9,179,482
  Adjustment to unrealized gains (losses) on
   investments in insured mortgages                 --               --                 --       (1,545,152)      (1,545,152)
  Distributions paid or accrued of $4.34
   per Unit, including return of capital of
   $3.35 per Unit                             (1,968,300)     (38,201,074)              --               --      (40,169,374)
                                            ------------     ------------     ------------     ------------      -----------
Balance, December 31, 1998                    (3,057,885)     118,004,167         (618,750)         114,684      114,442,216

  Net Earnings                                   345,611        6,707,679               --               --        7,053,290
  Adjustment to unrealized gains (losses) on
   investments in insured mortgages                 --               --                 --         (960,003)        (960,003)
  Distributions paid or accrued of $5.06
   per Unit, including return of capital of
   $4.30 per Unit                             (2,294,837)     (44,538,582)              --               --      (46,833,419)
                                            ------------     ------------     ------------     -----------      ------------
Balance, December 31, 1999                  $ (5,007,111)    $ 80,173,264     $   (618,750)    $   (845,319)    $ 73,702,084
                                            ============     ============     ============     ============     ============

Limited Partnership Units outstanding -
   basic, as of December 31, 1999, 1998,
   and 1997                                                     8,802,091
                                                             ============

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

              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88

                            STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                           For the years ended December 31,
                                                                        1999            1998             1997
                                                                    -----------     -----------      -----------
<S>                                                                 <C>             <C>              <C>
Cash flows from operating activities:                               $ 7,053,290     $ 9,179,482      $10,097,247
   Net earnings

   Adjustments to reconcile net earnings to net cash provided by
     operating activities:
     Gain on mortgage dispositions                                   (1,072,589)     (1,106,588)         (20,746)
     Loss on mortgage dispositions                                          422         350,159                --
     Changes in assets and liabilities:
       Decrease (increase) in investment in affiliate, note
        receivable from affiliates and due from affiliates               63,125          38,090          (35,107)
       Decrease in receivables and other assets                         132,524         354,296        2,255,203
       Increase (decrease) in accounts payable and accrued expense       48,919         (43,602)         (12,153)
     Provision for loss                                                      --              --          375,000
                                                                    -----------     -----------      -----------
       Net cash provided by operating activities                      6,225,691       8,771,837       12,659,444
                                                                    -----------     -----------      -----------
Cash flows used in investing activities:
   Proceeds from dispositions of Insured mortgages                   35,966,462      33,845,966        7,016,157
                                                                    -----------     -----------      -----------
   Receipt of mortgage principal from scheduled payments                847,024       1,928,044        1,952,500
                                                                    -----------     -----------      -----------
       Net cash provided by investing activities                     36,813,486      35,774,010        8,968,657
                                                                     ----------     -----------      -----------
Cash flows used by financing activities:
   Distributions paid to partners                                   (39,151,257)    (41,742,829)     (20,825,136)
                                                                    -----------     -----------      -----------
       Net cash used in financing activities:                       (39,151,257)    (41,742,829)     (20,825,136)
                                                                    -----------     -----------      -----------
Net increase in cash and cash equivalents                             3,887,920       2,803,018          802,965
                                                                    -----------     -----------      -----------
Cash and cash equivalents, beginning of year                          5,524,324       2,721,306        1,918,341
                                                                    -----------     -----------      -----------
Cash and cash equivalents, end of year                              $ 9,412,244     $ 5,524,324      $ 2,721,306
                                                                    ===========     ===========      ===========

Non cash investing activity:

     Increased  receivable due from Patrician as
     a result of the forclosure and sale of the
     property unerlying the mortgage on
     St. Charles Place-Phase II                                     $   706,765     $        --       $        --
                                                                    ===========     ===========       ===========

                   The accompanying notes are an integral part
                         of these financial statements.
</TABLE>

<PAGE>

              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 under the Uniform Limited Partnership Act of the state of Delaware on
February 13, 1987.

     CRIIMI,  Inc. (the "General Partner") holds a partnership  interest of 4.9%
and is a  wholly-owned  subsidiary  of  CRIIMI  MAE  Inc.  ("CRIIMI  MAE").  AIM
Acquisition  Partners,  L.P.  (the  "Advisor")  serves  as  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,
AIM Acquisition,  The Goldman Sachs Group, L.P., Sun America Investments,  Inc.,
(successor to Broad, Inc.) and CRI/AIM Investment,  L.P., an affiliate of CRIIMI
MAE. AIM  Acquisition is a Delaware  corporation  that is primarily owned by Sun
America Investments, Inc. and The Goldman Sachs Group, L.P.

     Under the  Advisory  Agreement,  the Advisor  will  render  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  will be 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.  The  Advisor is  permitted  to
delegate the performance of services  pursuant to a sub-advisory  agreement (the
"Sub-Advisory Agreement").  The delegation of such services will not relieve the
Advisor of its obligation to perform such services.  CRIIMI MAE Services Limited
Partnership  ("CMSLP"),  an affiliate of CRIIMI MAE,  manages the  Partnership's
portfolio,  pursuant to the Sub-Advisory Agreement. The general partner of CMSLP
is CRIIMI MAE Services, Inc., an affiliate of CRIIMI MAE.

     Prior  to  the  expiration  of the  Partnership's  reinvestment  period  in
December 1996, the Partnership was in the business of originating mortgage loans
("Originated Insured Mortgages") and acquiring mortgage loans ("Acquired Insured
Mortgages", and together with "Originated Insured Mortgages", referred to herein
as "Insured  Mortgages").  In  accordance  with 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 or guaranteed, in whole or in part, by the
Federal Housing  Administration  ("FHA") or Acquired Insured Mortgages which are
fully insured (as more fully described below). The partnership  agreement states
that the  Partnership  will  terminate on December 31, 2021,  unless  previously
terminated under the provisions of the partnership agreement.

     On October 5, 1998,  CRIIMI  MAE,  the parent of the General  Partner,  and
CRIIMI  MAE  Management,  Inc.,  an  affiliate  of CRIIMI  MAE and  provider  of
personnel  and  administrative  services  to the  Partnership,  filed  voluntary
petitions for relief under chapter 11 of title 11 of the United States Code (the
"Bankruptcy  Code").  Such  bankruptcy  filings could result in certain  adverse
effects to the Partnership.  For example, as a debtor-in-possession,  CRIIMI MAE
will not be permitted to provide any available capital to the General Partner or
to the general partner of CMSLP, the Partnership's sub-advisor, without approval
from the bankruptcy court. Even though this restriction or potential loss of the
availability of a potential  capital resource could adversely affect the General
Partner  and the  Partnership,  CRIIMI MAE has not  historically  represented  a
significant  source of capital for the General Partner or the Partnership.  Such
bankruptcy filings could also result in the potential need to replace CRIIMI MAE
Management,  Inc. as a provider of personnel and administrative  services to the
Partnership.  Furthermore,  the bankruptcy filings could negatively impact CMSLP
which could result in the need to obtain  another  party to perform the services
currently  performed  by CMSLP,  as  subadvisor,  pursuant  to the  Sub-Advisory
Agreement.

     On December  23, 1999,  CRIIMI MAE and CRIIMI MAE  Management,  Inc.  filed
their Amended Joint Plan of  Reorganization  and proposed  disclosure  statement
with the  United  States  Bankruptcy  Court for the  District  of  Maryland,  in
Greenbelt,  Maryland (the "Bankruptcy  Court"). The filing of such Amended Joint
Plan of Reorganization  and proposed  disclosure  statement on December 23, 1999
was filed with the full  support of the official  committee  of Equity  Security
Holders in the  CRIIMI MAE  Chapter  11 case,  which is a  co-proponent  of such
Amended  Joint  Plan of  Reorganization.  On or about  February  11,  2000,  the
Official  Committee  of  Unsecured  Creditors of CRIIMI MAE filed its own second
amended plan of reorganization and second amended proposed disclosure statement,
which,  in general,  provides for the liquidation of the assets of CRIIMI MAE. A
hearing  has been  scheduled  for April 25 and April  26,  2000 on the  proposed
disclosure statements filed with the Bankruptcy Court. There can be no assurance
at this time that CRIIMI  MAE's  Amended  Joint Plan of  Reorganization  will be
confirmed and consummated.


2.       SIGNIFICANT ACCOUNTING POLICIES

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

     The Partnership's financial statements are prepared on the accrual basis of
accounting in accordance  with generally  accepted  accounting  principles.  The
preparation  of financial  statements  in  conformity  with  generally  accepted
accounting principles requires management to make estimates and assumptions that
affect  the  reported  amounts  of  assets  and  liabilities  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.

Reclassifications
-----------------

     Certain  amounts in the financial  statements  for the years ended December
31, 1997 have been reclassified to conform to the 1999 and 1998 presentation.

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 FHA programs
("FHA-Insured  Certificates"),  mortgage-backed  securities  guaranteed  by 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 non-recourse first liens on
multifamily residential development.

     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,  1999,  the  weighted  average  remaining  term of the
Partnership's  investments in GNMA  Mortgage-Backed  Securities and  FHA-Insured
Certificates is  approximately  29 years.  However,  the  partnership  agreement
states  that the  Partnership  will  terminate  in  approximately  21 years,  on
December 31, 2021,  unless  previously  terminated  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 included
in the Available for Sale category.  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 intend to  voluntarily  sell these assets other than those which may be sold
as a result of a default.

     In connection with this  classification,  as of December 31, 1999 and 1998,
the Partnership's investments in GNMA Mortgage-Backed Securities and FHA-Insured
Certificates  are  recorded at fair  value,  with the net  unrealized  gains and
losses on these assets reported as other comprehensive  income 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 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.  The  amortized  cost  of the  investments  in  GNMA
Mortgage-Backed  Securities  and  FHA-Insured  Certificates  in this category is
adjusted  for   amortization  of  discounts  and  premiums  to  maturity.   Such
amortization is included in mortgage investment income.

     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,  time and demand
deposits,  commercial paper, and repurchase  agreements with original maturities
of three months or less.

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 they are the
personal responsibility of the Unitholders.

Statements of Cash Flows
------------------------

     No cash  payments  were made for  interest  expense  during the years ended
December  31,  1999,  1998,  and 1997.  Since the  statements  of cash flows are
intended to reflect only cash receipt and cash payment activity,  the statements
of cash flows do not reflect operating  activities that affect recognized assets
and liabilities while not resulting in cash receipts or cash payments.

Provision for Loss
------------------

     The  Partnership  assesses  the  realizability  of  its  investments  on an
investment by investment basis. As a result, the Partnership  provided a reserve
of  $375,000  for the year ended  December  31,  1997,  related to a  particular
investment  discussed  in Note 5. No  provision  was  made for the  years  ended
December 31, 1998 and 1999.


3.       FAIR VALUE OF FINANCIAL INSTRUMENTS

     The  following  estimated  fair  values  of  the  Partnership's   financial
instruments  are  presented in accordance  with  generally  accepted  accounting
principles which define 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, 1999               As of December 31, 1998
                                         Amortized          Fair               Amortized          Fair
                                           Cost             Value                Cost             Value
                                       ------------      ------------        ------------      ------------
 <S>                                    <C>              <C>                 <C>               <C>
Investment in FHA-Insured
  Certificates and GNMA
  Mortgage-Backed Securities:
  Originated Insured Mortgages         $ 55,763,736      $ 54,329,225        $ 65,698,059      $ 67,018,830
  Acquired Insured Mortgages              7,863,659         8,452,851          33,737,306        32,531,218
                                       ------------      ------------        ------------      ------------

                                       $ 63,627,395      $ 62,782,076        $ 99,435,365      $ 99,550,048
                                       ============      ============        ============      ============

Investment in FHA-Insured Loans:
  Acquired Insured Mortgages           $  5,676,336      $   5,169,038       $  5,721,754      $  5,725,377
  Originated Insured Mortgage               461,081            459,177          1,055,778         1,061,917
                                       ------------      -------------       ------------      ------------

                                       $  6,137,417      $   5,628,215       $  6,777,532      $  6,787,294
                                       ============      =============       ============      ============

Cash and cash equivalents              $  9,412,244      $   9,412,244       $  5,524,324      $  5,524,324

Accrued interest receivable            $    466,974      $     466,974       $    670,406      $    670,406

</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  value  of  the  fully  insured  FHA-Insured  Certificates,  GNMA
Mortgage-Backed  Securities  and  FHA-Insured  Loans is based on  quoted  market
prices from an investment banking  institution which trades these instruments as
part of its day-to-day  activities.  In order to determine the fair value of the
coinsured  FHA-Insured  Certificates,   the  Partnership  valued  the  coinsured
FHA-Insured  Certificates  as though they were fully insured (in the same manner
fully  insured  FHA-Insured  Certificates  were valued).  From this amount,  the
Partnership  deducted a discount  factor  from the face value of the loan.  This
discount  factor  is  based  on the  Partnership's  historical  analysis  of the
difference in fair value between  coinsured  FHA-Insured  Certificates and fully
insured FHA-Insured Certificates.

Cash and cash equivalents and accrued interest receivable
---------------------------------------------------------

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


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  is changes in unrealized  gains and losses  related to the
Partnership's  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 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  gain or loss related to those  investments
that were not disposed of during the period.
<TABLE>
<CAPTION>

                                                                   1999           1998            1997
                                                                   ----           ----            ----

<S>                                                           <C>            <C>             <C>
Reclassification adjustment for losses
  included in net income                                      $  1,577,427   $    146,033    $         --
Unrealized holding (losses) gains arising during
  the period                                                    (2,537,430)    (1,691,185)      1,801,409
                                                              ------------   ------------    ------------

Net adjustment to unrealized (losses) gains on mortgages      $   (960,003)  $ (1,545,152)   $  1,801,409
                                                              ============   ============    ============
</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 Originated Insured Mortgages and Acquired Insured Mortgages
-------------------------------------------------------------------------

     Listed below is the  Partnership's  aggregate  investment  in Fully Insured
Mortgages as of December 31, 1999 and 1998:





<TABLE>
<CAPTION>                                                                  December 31,
                                                                    1999                    1998

<S>                                                            <C>                      <C>
Number of:
  GNMA Mortgage-Backed Securities(1)(2)(3)                               20                       22
  FHA-Insured Certificates(1)(4)                                          2                        3
Amortized Cost                                                 $ 55,763,736             $ 65,698,059
Face Value                                                       55,736,170               65,930,408
Fair Value                                                       54,329,225               67,018,830

(1)      As of March 6, 2000, all of the Partnership's fully insured mortgage investments are current with respect to the payment of
         principal and interest.

(2)      In April 1999, the mortgage on Seven Springs Apartments was prepaid.  The Partnership received net proceeds of
         approximately $4.9 million and recognized a gain of approximately $436,000 for the year ended December 31, 1999.  A
         distribution of approximately $0.53 per Unit related to the prepayment of this mortgage was declared in May 199 and was
         paid to Unitholders in August 1999.

(3)      In October 1999, the mortgage on Oak Grove Apartments was prepaid.  The Partnership received net proceeds of approximately
         $580,000 and recognized a gain of approximately $32,000 for the year ended December 31, 1999.  A distribution of $0.06 per
         Unit related to this prepayment was declared in November 1999 and paid to Unitholders in February 2000.

(4)      In November 1999, the mortgage on Heather Ridge Apartments was prepaid.  The Partnership received net proceeds of
         approximately $4.5 million and recognized a gain of approximately $164,000 for the year ended December 31, 1999.  A
         distribution of $0.49 per Unit related to this prepayment was declared in November 1999 and paid to Unitholders in February
         2000.

</TABLE>

     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 is a nursing home located in
Trenton,  New Jersey.  As of December 31,  1999,  the  Partnership  had received
approximately  $10.2  million  on the  assignment  proceeds,  including  partial
repayment of the outstanding principal and accrued interest.  HUD has disallowed
approximately  $1.65  million of the  assignment  claim,  which is  included  in
Receivables  and Other  Assets.  The General  Partner  retained  counsel in this
matter and is actively pursuing litigation against the loan servicer,  Greystone
Servicing  Contract,  Inc.  ("Greystone"),  for the amount disallowed by HUD. On
July 30, 1998, the Partnership  filed a Motion for Judgment against Greystone in
the Circuit Court of Fauquier County,  Virginia. The Motion for Judgment alleges
breach of contract and negligence claims and seeks judgment for $1,653,396,  the
amount  disallowed  by HUD, plus  interest,  attorneys'  fees and costs.  In the
Motion for  Judgement,  the General  Partner  alleges as follows.  Pursuant to a
mortgage servicing contract,  the Participation and Servicing Agreement ("PSA"),
Greystone  was  obligated to ensure that the  requirements  for  preserving  HUD
insurance on the loan was satisfied. Specifically, the PSA required Greystone to
prepare a written  notice of default in the event the borrower  defaulted on the
mortgage loan  repayment  obligation and to file notice of such default with HUD
within  thirty  (30)  days  after an  uncured  borrower's  cure  period.  Due to
Greystone's  failure to timely file a notice of default  with HUD, HUD applied a
surcharge  of  $1,653,396  to the  insurance  proceeds  due AIM 88, as permitted
pursuant to the FHA Insurance  Contract.  On February 28, 2000, American Insured
Mortgage  Investors,  L.P.- Series 88 and Greystone Servicing  Corporation, Inc.
presented  oral arguments for summary judgement  before the Court in this matter
and the Court has taken those  Motions under  advisement.  A trial date has been
set for the end of July, 2000 and a ruling on these Motions may be issued at any
time. The Partnership believes that the allowance for loan losses of $375,000 as
of December  31,  1999,  is  sufficient  to provide for amounts  that may not be
recovered from the servicer.

Coinsured FHA-Insured Certificates
----------------------------------

     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, 1999 and 1998, the Partnership  held  investments in one
and three coinsured  FHA-Insured  Certificates  secured by coinsured  mortgages,
respectively.  One of these coinsured mortgage investments,  the mortgage on St.
Charles  Place - Phase  II,  is  coinsured  by The  Patrician  Mortgage  Company
("Patrician"),  an  unaffiliated  third party  coinsurance  lender under the HUD
coinsurance  program.  As of  December  31,  1999 and 1998,  the  remaining  one
FHA-Insured  Certificate  is coinsured by IFI, an affiliate of the  Partnership.
The following is a discussion of actual and potential  performance problems with
respect to the Partnership's coinsured mortgage investments.

Coinsured by affiliate
----------------------

     As of December 31, 1999 and 1998, the Partnership  held  investments in one
and two  coinsured  FHA-Insured  Certificates  secured by  coinsured  mortgages,
respectively,  where the coinsurance  lender is IFI. These investments were made
on  behalf  of the  Partnership  by the  former  managing  general  partner.  As
structured  by the  former  managing  general  partner,  with  respect  to these
mortgages, the Partnership bears the risk of loss upon default for IFI's portion
of the coinsurance loss on these mortgage investments.

<TABLE>
<CAPTION>
                                                    December 31, 1999                            December 31, 1998
                                         Amortized        Face          Fair          Amortized        Face           Fair
                                           Cost           Value       Mkt. Value        Cost           Value        Mkt. Value
                                        -----------    -----------    -----------    -----------    -----------     -----------
 <S>                                     <C>           <C>            <C>            <C>            <C>             <C>
Summerwind Apts. - Phase
II(1)(3)                                $ 7,863,659    $ 9,231,460    $ 8,452,851    $ 7,913,874    $ 9,307,962     $ 8,638,778
The Breakers at Golf Mill (2)(3)                 --             --            --      22,113,145     22,113,146      20,470,263
                                        -----------    -----------    -----------     ----------     ----------      ----------
                                        $ 7,863,659    $ 9,231,460    $ 8,452,851    $30,027,019    $31,421,108     $29,109,041
                                        ===========    ===========    ===========    ===========    ===========     ===========

(1)      As of March 6, 1999, the mortgagor was current with respect to payment of principal and interest on this mortgage.

(2)      In May 1999, the mortgage on The Breakers at Golf Mill was prepaid.  The Partnership received net proceeds of approximately
         $22.5 million and recognized a gain of approximately $441,000 for the year ended December 31, 1999.  A distribution of
         approximately $2.43 per Unit related to the prepayment of this mortgage was declared in June 1999 and was paid to
         Unitholders in August 1999.

(3)      There were no loan losses recognized for the years ended 1999 and 1998.  The cumulative loan losses recognized in prior
         years were $980,000 for the Breakers at Golf Mill, and $1,511,743 for Summerwind Apartments - Phase II.

</TABLE>

Coinsured by third party
------------------------

     Listed  below  is  the  Originated   Insured   Mortgage   coinsured  by  an
unaffiliated  third party  coinsurance  lender,  The Patrician  Mortgage Company
("Patrician"), under the HUD coinsurance program.

<TABLE>
<CAPTION>                                               December 31,
                                               1999                     1998
                                            -----------              -----------
<S>                                         <C>                      <C>
Amortized Cost                              $        --              $ 3,710,287
Face Value                                           --                3,710,287
Fair Value                                           --                3,422,177
</TABLE>

     On October 14, 1993,  Patrician filed a foreclosure  action on the property
underlying this coinsured  mortgage,  St. Charles Place-Phase II. 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.  Prior to the sale, the mortgagor had made
payments of principal and interest due on the mortgage  through November 1995 to
the Partnership.  The remaining balance due,  including accrued interest,  as of
December 31, 1999, is approximately $2 million.  The amount of the Partnership's
investment  in  this  mortgage  represents  the  Partnership's  approximate  55%
ownership interest in the mortgage. The remaining 45% ownership interest is held
by AIM 86, an affiliate of the  Partnership.  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.  The  Partnership  does not expect to recognize a
loss related to this disposition,  as it expects to recover all amounts due from
Patrician.

     The  General  Partner  intends to  continue  to oversee  the  Partnership's
interest  in this  liability  to ensure  that  Patrician  meets its  coinsurance
obligation. However, the General Partner does not believe  that there would be a
material adverse impact on the Partnership's  financial condition or its results
of  operations  should  Patrician be unable to comply with its full  coinsurance
obligation.


6.      INVESTMENT IN FHA-INSURED LOANS

     Listed below is the  Partnership's  aggregate  investment  in fully insured
Originated Insured Mortgages as of December 31, 1999 and 1998:

                                                       December 31,
                                               1999                     1998
                                           ------------             ------------
Number of Mortgages(1)                                1                        1
Amortized Cost                             $  5,676,336             $  5,721,754
Face Value                                    5,676,336                5,721,754
Fair Value                                    5,169,038                5,725,377

(1)  As of March 6, 2000, the  Partnership's  FHA-Insured  Loan was current with
     respect to payment of principal and interest.

     Listed below is the  Partnership's  aggregate  investment  in fully insured
Acquired Insured Mortgages as of December 31, 1999 and 1998:

                                                       December 31,
                                               1999                     1998
                                           ------------             ------------
Number of Mortgages(1)(2)                             1                        2
Amortized Cost                             $    461,081             $  1,055,778
Face Value                                      460,441                1,053,273
Fair Value                                      459,177                1,061,917

(1)  As of March 6, 2000, the Partnership's fully  insured acquired insured Loan
     was current with respect to the payment of principal and interest.

(2)  In May  1999,  the  mortgage  on  Kon  Tiki  Apartments  was  prepaid.  The
     Partnership received net proceeds of approximately  $554,000 and recognized
     a loss of  approximately  $400 for the year  ended  December  31,  1999.  A
     distribution of  approximately  $0.06 per Unit related to the prepayment of
     this  mortgage  was  declared in June 1999 and was paid to  Unitholders  in
     August 1999.

     In  addition  to  base  interest  payments  from  FHA-Insured   Loans,  the
Partnership is entitled to additional  interest based on a percentage of the net
cash flow  from the  underlying  development  and of the net  proceeds  from the
refinancing,  sale or other disposition of the underlying  development (referred
to as  "Participations").  During the years ended  December 31,  1999,  1998 and
1997, the Partnership  received additional interest of $0, $69,820 and $134,769,
respectively,  from the FHA-Insured Loans, through these  Participations.  These
amounts,  if any, are included in mortgage investment income on the accompanying
statements of income and comprehensive income.


7.       TRANSACTIONS WITH RELATED PARTIES

     The General  Partner,  and certain  affiliated  entities,  during the years
ended December 31, 1999, 1998 and 1997, have 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                     1999              1998              1997
-----------------                ----------------                   ----              ----              ----

<S>                        <C>                                  <C>               <C>               <C>
CRIIMI, Inc.(1)            General Partner/Distribution         $ 2,294,837       $ 1,968,300       $ 1,056,713

AIM Acquisition            Advisor/Asset Management Fee             942,910         1,287,672         1,469,320
  Partners, L.P.(2)

CRIIMI MAE                 Affiliate of General Partner/             45,757            68,010            53,474
  Management, Inc.          Expense Reimbursement


(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, pursuant to the partnership agreement is entitled to an Asset Management Fee equal to 0.95% of Total Invested
         Assets (as defined in the partnership agreement).  The Sub-advisor to the Partnership is entitled to a fee of 0.28% of
         Total Invested Assets of the Advisor's Asset Management Fee.  Of the amounts paid to the Advisor, CMSLP, the Sub-advisor,
         earned a fee equal to $277,888, $379,506 and $433,040 for the years ended December 31, 1999, 1998 and 1997, respectively.
         The limited partner of CMSLP is a wholly-owned subsidiary of CRIIMI MAE Inc., which filed for protection under Chapter 11
         of the U.S. Bankruptcy Code.

</TABLE>


8.       DISTRIBUTIONS TO UNITHOLDERS

     The  distributions  paid or accrued to  Unitholders on a per Unit basis for
the years ended December 31, 1999, 1998 and 1997 are as follows:
<TABLE>
<CAPTION>
                                              1999                   1998                   1997
                                              ----                   ----                   ----
<S>                                        <C>                    <C>                    <C>
Quarter ended March 31                     $  0.61(1)             $  1.21(8)(9)          $  0.59(13)*
Quarter ended June 30,                        3.26(2)(3)(4)          1.50(10)(11)           0.30
Quarter ended September 30,                   0.15                   1.42(12)               1.06(14)
Quarter ended December 31,                    1.04(5)(6)(7)          0.21                   0.38(15)(16)
                                           -------                -------                -------
                                           $  5.06                $  4.34                $  2.33
                                           =======                =======                =======
</TABLE>


          The following  disposition  proceeds are included in the distributions
     listed above:
<TABLE>
<CAPTION>
                                                                                         Net
                                                                Type of              Distribution
              Complex Name                                    Disposition              Per Unit
          ------------------------                            -----------              --------
<S>                                                          <C>                         <C>
(1)       Olde Mill Apartments                                Prepayment                 $ 0.37
(2)       Seven Springs Apartments                            Prepayment                   0.53
(3)       Kon Tiki Apartments                                 Prepayment                   0.06
(4)       The Breakers Golf Mill                              Prepayment                   2.43
(5)       Oak Grove Apartments                                Prepayment                   0.06
(6)       Heather Ridge Apartments                            Prepayment                   0.49
(7)       St. Charles Place - Phase II                        Sale                         0.32
(8)       Northpoint Apartments                               Prepayment                   0.19
(9)       Olmstead Apartments                                 Prepayment                   0.73
(10)      Olde Mill Apartments                                Curtailment                  0.08
(11)      Arbor Village                                       Prepayment                   1.18
(12)      Water's Edge II Apartments                          Prepayment                   1.19
(13)      Water's Edge of New Jersey                          Assignment                 * 0.27
(14)      Parkside Estates                                    Prepayment                   0.76
(15)      Olde Mills Apartments                               Curtailment                  0.08
                                                              Previously Undistributed
(16)      St. Charles Place - Phase II                        Accrued Interest             0.01

*   This amount also includes approximately $0.02 per Unit representing proceeds from the mortgage dispositions not reinvested
    prior to the expiration of the reinvestment period.
</TABLE>

     The basis for paying  distributions  to  Unitholders  is net proceeds  from
mortgage  dispositions  and cash flow from  operations,  which includes  regular
interest income and principal from Insured Mortgages. Although Insured Mortgages
yield a fixed monthly  mortgage payment once purchased,  the cash  distributions
paid to the Unitholders will vary during each quarter due to (1) the fluctuating
yields in the  short-term  money  market  where  the  monthly  mortgage  payment
receipts   are   temporarily   invested   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  and
professional  fees and  foreclosure  costs  incurred  in  connection  with those
Insured Mortgages and (4) variations in the Partnership's operating expenses.


9.       INVESTMENT IN AFFILIATE, NOTES RECEIVABLE FROM AFFILIATES, DUE FROM
         AFFILIATES AND NOTE PAYABLE AND DUE TO 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.  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,  with a current balance of $1.9 million, 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.  Interest income on these
notes,  which are based on an annual  interest rate of 7.25%  (representing  the
interest  rate  on  the  GNMA   Mortgage-Backed   Security  transferred  by  the
Partnership),  was $47,470,  $47,740 and $50,263 during the years ended December
31,  1999,  1998 and 1997,  respectively,  and is included in interest and other
income on the accompanying statements of income and comprehensive income.


     As of December 31, 1999, the Partnership  owns a 66% ownership  interest in
AIM Mortgage,  Inc. The remaining 34% ownership  interest is held by AIM 86. AIM
Mortgage,  Inc. owns all of the outstanding  preferred stock and common stock of
IFI.

     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  Funds 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.


10.      PARTNERS' EQUITY

     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 and received 125 Units in exchange therefor,  and the former general
partners  contributed  a total of $1,000 to the  Partnership.  During 1994,  the
Partnership repurchased 50,000 Units.

<PAGE>


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, 1999, 1998 and 1997:

<TABLE><CAPTION>
                                                                    1999
                                                               Quarter ended
                                     March 31          June 30        September 30     December 31
                                     --------          -------        ------------     -----------
<S>                                  <C>              <C>              <C>              <C>
Income                               $  2,091         $  2,004         $  1,671         $  1,528
Net earnings                            1,657            2,550            1,398            1,448
Net gains from mortgage
  dispositions                             --              877               --              195
Net earnings per
  Limited Partnership Unit - Basic       0.18             0.27             0.16             0.15

</TABLE>
<TABLE><CAPTION>
                                                                    1998
                                                               Quarter ended
                                     March 31          June 30        September 30     December 31
                                     --------          -------        ------------     -----------

<S>                                  <C>               <C>             <C>              <C>
Income                               $  2,812          $  2,625        $  2,342         $  2,219
Net earnings                            3,170             1,778           2,174            2,057
Net gains (losses) from
  mortgage dispositions                   786              (350)            223               97
Net earnings per
  Limited Partnership Unit - Basic       0.34              0.19            0.24             0.22

</TABLE>
<TABLE><CAPTION>
                                                                    1997
                                                               Quarter ended
                                     March 31          June 30        September 30     December 31
                                     --------          -------        ------------     -----------
<S>                                  <C>               <C>             <C>              <C>
Income                               $  3,122          $  3,104        $  2,982         $  2,959
Net earnings                            2,696             2,629           2,588            2,184
Net gains (losses) from mortgage
  dispositions                             --                --              21             (375)
Net earnings per
 Limited Partnership Unit - Basic        0.29              0.28            0.28             0.24

</TABLE>

<PAGE>

              AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 88
              NOTES TO SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE
                                DECEMBER 31, 1999
<TABLE>
<CAPTION>
                                                                  Interest                                            Annual Payment
                                                                  Rate on           Face                 Net          Principal and
                                                    Maturity      Mortgage        Value of          Carrying Value      Interest
Development Name/Location                            Date          (5)(6)         Mortgage          (3)(8)(9)(11)      (5)(6)(10)
-------------------------                         -----------   ------------   -------------        --------------    --------------
<S>                                                 <C>           <C>          <C>                   <C>                <C>
ACQUIRED INSURED MORTGAGES:
---------------------------
FHA-Insured Certificates
  (carried at fair value)

Park Avenue Plaza, Omaha, NE                         9/29          9.000%      $  1,941,988          $  1,923,644       $   187,923
Sylvan Manor, Silver Spring, MD                      5/21          7.500%         3,023,893             2,756,093           284,523
                                                                               -------------         ------------
  Total Investment in FHA-Insured
    Certificates - Acquired Insured
    Mortgages                                                                      4,965,881            4,679,737
                                                                               -------------         ------------
GNMA Mortgage-Backed Securities
  (carried at fair value)

Beauvoir Manor Apts, Biloxi, MS                      9/18         8.875%          1,203,698             1,199,768           127,640
Burlwood Apts., Portland, OR                         8/15         9.000%            593,180               576,791            61,888
Collin Care Centers, Plano, TX                       9/30         8.125%          1,674,664             1,625,419           144,255
Garden Terrace, Douglasville, GA                     1/20         7.125%          2,587,034             2,514,140           236,477
Greenview Garden, Butler, PA                         7/33         9.000%            873,213               869,181            78,282
Hewitt Gardens Apts., Wheaton, MD                   10/29         8.750%          4,399,473             4,380,036           405,012
Holton Manor, Elkhorn, WI                           11/21         8.250%            979,703               951,605            94,456
Lamplighter Apts., Port Arthur, TX                  10/29         9.000%          2,199,393             2,189,612           207,195
Linville Manor Shelby, NC                            7/31         8.750%          1,966,988             1,958,125           178,980
Lioncrest Towers, Richton Park, IL                  10/28         7.000%          6,343,859             6,159,086           497,092
Lorenzo Carolina Apts, Tampa, FL                     6/26         8.250%          1,000,083               970,926            89,266
Oaklawn Apts., Boise, ID                             8/24         9.000%            468,692               455,051            40,342
Oakwood Gardens, San Jose, CA                       10/23         7.750%          1,120,197             1,087,916            97,665
Orchard Creek Apts., Farmington Hills, MI            1/30         8.625%          1,263,741             1,258,159           113,194
San Jose South, San Jose, CA                        10/23         7.750%          8,010,336             7,779,499           698,388
Silver Lake Plaza Apts, Los Angeles, CA             11/35         7.950%          5,269,199             5,113,212           431,705
Stoney Creek, Washington Township, MI                2/29         7.500%          5,285,191             5,130,719           427,305
Tehama Estates, Sacramento, CA                       7/29         8.750%          1,330,968             1,325,106           122,752
Westview Terrace Apts., Tacoma, WA                   4/30         8.550%          1,129,292             1,124,299           101,094
Woodcrest Townhomes, Chaska, MN                      8/31         8.375%          3,071,385             2,980,838           269,378

Total Investment in GNMA Mortgage-
  Backed Securities, carried at fair value                                       50,770,289            49,649,488
                                                                               ------------         -------------
Total Investment in Acquired Insured
  Mortgages, carried at fair value                                               55,736,170            54,329,225
                                                                              ------------         -------------
ORIGINATED INSURED MORTGAGES:
-----------------------------
Coinsured Mortgages
-------------------
FHA-Insured Certificates
  (carried at fair value)

Summerwind Apartments-Phase II, Naples, FL(1)(4)(7)  6/30         8.500%       $  9,231,460          $  8,452,851       $   865,175

Total Investment in coinsured
  FHA-Insured Certificates,
  carried at fair value                                                           9,231,460             8,452,851
                                                                               ------------          ------------
Total Investment in FHA-Insured Certificates
  and GNMA Mortgage-Backed Securities,
  carried at fair value                                                          64,967,630            62,782,076
                                                                               ------------          ------------

ACQUIRED INSURED MORTGAGES:
---------------------------
FHA-Insured Loans
  (carried at amortized cost)(2)

Kingsway Apts.
  Monroe, Louisiana                                  8/07         10.000%      $    460,441          $    461,081(2)    $    86,862

Total Investment in FHA-Insured
       Loans - Acquired Insured Mortgages,                                     ------------          ------------
       carried at amortized cost                                                    460,441               461,081
                                                                               ------------          ------------

ORIGINATED INSURED MORTGAGES:
-----------------------------
Fully Insured Mortgages
-----------------------
FHA-Insured Loans
  (carried at amortized cost)(2)

The Turn at Gresham
  Gresham, Oregon(1)                                 8/29         8.000%       $  5,676,336          $  5,676,336(2)    $   501,516

    Total Investment in FHA-Insured
      Loans - Originated Insured
      Mortgages, carried at amortized cost                                        5,676,336             5,676,336
                                                                               ------------          ------------
    Total Investment in FHA-Insured Loans                                         6,136,777             6,137,417
                                                                               ------------          ------------
    TOTAL INVESTMENT IN INSURED MORTGAGES                                      $ 71,104,407         $  68,919,493
                                                                               ============         =============
</TABLE>


(1)  Two  Insured  Mortgages,  Summerwind  Apartments  and The Turn at  Gresham,
     possess  a  special  assignment   option,   pursuant  to  certain  mortgage
     documents,  which allows the Partnership,  anytime after a certain date, to
     require payment of the unpaid principal  balance of the mortgages.  At such
     time, the borrowers must make payment to the Partnership or the Partnership
     may cancel the FHA insurance 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)  In connection  with  Summerwind  Apartments, the Partnership has recorded a
     cumulative  loan loss of  $1,511,743  in prior  years,  no loan losses were
     recognized for the years ended 1999 and 1998.

(5)  This  represents the base interest rate during the permanent  phase of this
     Insured  Mortgage  loan.  Additional  interest  measured as a percentage of
     surplus cash (as defined in the Participation  agreements) and a percentage
     of the proceeds from the sale or refinancing of the development (as defined
     in the  Participation  agreements) will also be due. During the years ended
     1999,  1998 and 1997,  additional  interest was recognized in the amount of
     $0, $69,820 and $134,769, respectively. These amounts, if any, are included
     in mortgage investment income on the accompanying  statements of income and
     comprehensive income.

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

(7)  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.

(8)  A reconciliation of the carrying value of the  Partnership's  investment in
     Insured  Mortgages,  for the years ended  December 31, 1999 and 1998, is as
     follows:

<TABLE>
<CAPTION>
                                                             1999                     1998
                                                             ----                     ----
<S>                                                     <C>                      <C>
Beginning balance                                       $ 106,327,580            $ 142,890,313

Principal receipts on mortgages                              (847,024)              (1,928,044)

Proceeds from mortgages assigned
  or sold                                                 (35,966,462)             (33,845,966)

Net gains on mortgage
  dispositions                                              1,072,167                  756,429

Coinsurance claims due from HUD                              (706,765)                      --

Net unrealized (losses) on investment in FHA-Insured
  Certificates and GNMA Mortgage-Backed Securities           (960,003)              (1,545,152)
                                                         ------------             ------------

Ending balance                                           $ 68,919,493             $106,327,580
                                                         ============             ============
</TABLE>

(9)  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.

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

(11) As of December  31, 1999 and 1998,  the tax basis of the Insured  Mortgages
     was approximately $71 million and $109 million, respectively.