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

                            FORM 10-KSB

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

     For  the  fiscal  year  ended  February 28, 2001

[  ]  TRANSITION  REPORT  UNDER  SECTION  13  OR  15(d)  OF  THE  SECURITIES

                        Commission file number: 000-31017

                              EXCHANGE ACT OF 1934

                   Pinnacle Property Group, Inc.

                 (Name of small business issuer in its Charter)

             Delaware                                        91-2026829
____________________________________              _____________________________
(State  or  other  jurisdiction of                   (I.R.S.  Employer
Incorporation  or  organization)                         Identification  No.)

  2009 Iron Street,  Bellingham WA                                     98225
_________________________________________________________            __________
(Address  of  principal  executive  offices)                         (Zip Code)

                     Issuer's telephone number: (360) 647-3170

Securities  registered  under  Section  12(b)  of  the  Exchange  Act:

                                      NONE

Securities  registered  under  Section  12(g)  of  the  Exchange  Act:

                    COMMON STOCK, PAR VALUE $.0001 PER SHARE
                                 (Title of Class)

     Check  whether  the  issuer  (1)  filed all reports required to be filed by
Section  13  or 15(d) of the Exchange Act during the past 12 months (or for such
shorter  period  that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days. Yes  X     No

     Check  if  there  is no disclosure of delinquent filers in response to Item
405  of  Regulation S-B is not contained in this form, and no disclosure will 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-KSB
or  any  amendment  to  this  Form  10-KSB.  [X]

State  issuer's  revenues  for  its  most  recent  fiscal  year.       $

State  the  aggregate  market  value  of the voting and non-voting common equity
held  by  non-affiliates  computed  by  reference  to  the  price  at  which the
common  equity  was  sold,  or  the  average  bid and asked price of such common
equity,   as  of  a   specified  date  within  60  days.   (See   definition  of
affiliate   in   Rule  12b-2  of   the  Exchange  Act.)   [Amended  in   release
No. 33-7419 (85,938), effective June  13,  1997,  62  F.R.  26387.]    $

<PAGE> 1
                           PINNACLE PROPERTY GROUP, INC.
                                   FORM 10KSB
                       For the year ended February 28, 2001




                                      INDEX
                                      -----


     PART  I                                                               PAGE

ITEM  1.     DESCRIPTION  OF  BUSINESS                                       3
ITEM  2.     DESCRIPTION  OF  PROPERTY                                       3
ITEM  3.     LEGAL  PROCEEDINGS                                              3
ITEM  4.     SUBMISSION  OF  MATTERS  TO  A  VOTE  OF  SECURITY  HOLDERS     4

     PART  II

ITEM  5.     MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED
             STOCKHOLDER MATTERS                                             4

ITEM  6.     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
             AND  RESULTS  OF  OPERATION                                     5

ITEM  7.     FINANCIAL  STATEMENTS                                           5

ITEM  8.     CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
             AND  FINANCIAL  DISCLOSURE                                      16


     PART  III


ITEM  9.     DIRECTORS  AND  EXECUTIVE  OFFICERS  OF  THE  REGISTRANT        16

ITEM  10.    EXECUTIVE  COMPENSATION                                         17

ITEM  11.    SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
             AND MANAGEMENT                                                  17

ITEM  12.    CERTAIN  RELATIONSHIPS  AND  RELATED  TRANSACTIONS              18

     PART  IV


ITEM  13.    EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS
             ON FORM 8-K                                                     18

     SIGNATURES                                                              18











<PAGE> 2
                           PINNACLE PROPERTY GROUP, INC.
                                   FORM 10KSB
                        For the year ended February 28, 2001

                           FORWARD LOOKING STATEMENTS

This  document includes forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934.  These statements are based on the Company's current expectations as to
future  events.  In  the light of the uncertainties in the potential markets for
the  Company's  planned  products,  the forward-looking events and circumstances
discussed  in  this  document  might  not  occur and actual results could differ
materially  from those anticipated or implied in the forward-looking statements.

                                     PART I

ITEM  1.     DESCRIPTION  OF  BUSINESS

GENERAL

Pinnacle  Property  Group,  Inc.  was  incorporated  in the State of Delaware on
August 17, 1999 to  engage in the real estate business  on  the  internet.

Pinnacle Property Group, Inc. owns and operates a web site on the Internet.  The
address is ezproperty.net.  The web site is designed to facilitate sales of real
estate on the internet, both residential and commercial.  As a result it will be
both  a business to business (B2B) model and a business to consumer (B2C) model.

The  web site provides a means of selling or purchasing real estate, and a place
for  service providers.  It will have places on the web site for service persons
to  advertise,  such as painters, plumbers, electricians, gardeners, landscapers
and  janitorial  services.

In  addition the web site will have advertisements for real estate professionals
such  as  bankers,  mortgage  brokers,  escrow  agencies,  and insurance agents.

ITEM 2. PLAN OF OPERATION

The Internet has created a new medium for advertising, marketing and sales.  The
ezproperty.net  hopes  to  offer a site that will have widespread consumer brand
appeal  and  recognition.

A person that desires to list a property on the site will pay an initial listing
fee  of $49.99 for the image and description of the property to be posted on the
web site.  When the sale is completed the person will pay a 1% fee calculated on
the  consummated  sale  price.

Management  will develop a database of service persons who will be available for
the  clients  for  both  pre  sale and post sale work.  The service persons will
include  painters, plumbers, electricians, gardeners, landscapers and janitorial
services.  They  will  pay  a  fee of $499.00 per year to be given access to the
buyers  and  sellers.

Management will also develop a database of service professionals, such as banks,
mortgage brokers, escrow agents and insurance agents who desire to be a party to
the  property  transfer and sale.  They will pay a fee of $499.00 per year to be
given  access  to  the  buyers  and  sellers.

ITEM  3.     LEGAL  PROCEEDINGS

There  are  no  material  pending legal proceedings to which the Registrant is a
party  or  of  which  any  of  its  property  is  subject.
<PAGE> 3
                           PINNACLE PROPERTY GROUP, INC.
                                   FORM 10KSB
                        For the year ended February 28, 2001

ITEM  4.     SUBMISSION  OF  MATTERS  TO  A  VOTE  OF  STOCKHOLDERS

No  matter was submitted during the fourth quarter of the fiscal year covered by
this  report  to a vote of security holders, through the solicitation of proxies
or  otherwise.

                                     PART II

ITEM  5.     MARKET  FOR  THE  REGISTRANT'S COMMON STOCK AND RELATED SHAREHOLDER
MATTERS

(A)     MARKET  INFORMATION

There  is  no  established  public  trading  market  for the Registrant's common
equity.  The Company's common stock has not traded at this time.

(B)     HOLDERS

         There are 41 holders of the common stock of  the  Company.

(C)     DIVIDENDS

        The Registrant has never paid any  dividends, cash or  otherwise, on the
common shares  of the  Company.  There is  no  plan  to pay  dividends  for  the
foreseeable future.

(D)     UNREGISTERED  SALES

   During the period covered by this report the Company  has sold no securities.

ITEM  6.     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
             AND  RESULTS  OF  OPERATION

         The Company has not generated any revenue  at this time.

         The  Company  does  not  anticipate  any  expenditures for research and
development.  The  Company has no plans for the purchase of plant or significant
equipment.  There  are  no  plans  for  a  significant  change  in the number of
employees.

         The company will be pursuing various  sources of funding  in the coming
months.
















<PAGE> 4
                           PINNACLE PROPERTY GROUP, INC.
                                   FORM 10KSB
                        For the year ended February 28, 2001

ITEM  7.     FINANCIAL  STATEMENTS

Financial  statements  of the Company meeting the requirements of Regulation S-B
are  filed  on  the  succeeding  pages.






                          PINNACLE PROPERTY GROUP, INC.
                        (A DEVELOPMENT STAGE ENTERPRISE)
                               FINANCIAL STATEMENTS
                                FEBRUARY 28, 2001





                              WILLIAMS & WEBSTER PS
                          CERTIFIED PUBLIC ACCOUNTANTS
                        BANK OF AMERICA FINANCIAL CENTER
                           W 601 RIVERSIDE, SUITE 1940
                                SPOKANE, WA 99201
                                 (509) 838-5111



                          PINNACLE PROPERTY GROUP, INC.
                                TABLE OF CONTENTS
                                February 28, 2001



INDEPENDENT  AUDITOR'S  REPORT                              1

FINANCIAL  STATEMENTS

     Balance  Sheets                                        2

     Statements  of  Operations                             3

     Statement  of  Stockholders'  Equity                   4

     Statements  of  Cash  Flows                            5

NOTES  TO  FINANCIAL  STATEMENTS                            6











<PAGE> 5






Board  of  Directors
Pinnacle  Property  Group,  Inc.
Bellingham,  WA


                          INDEPENDENT AUDITOR'S REPORT
                          ----------------------------

We  have  audited  the  accompanying  balance sheets of Pinnacle Property Group,
Inc., (a development stage enterprise), as of February 28, 2001 and February 29,
2000,  and  the  related statements of operations, stockholders' equity and cash
flows  for the year ended February 28, 2001, for the period from August 17, 1999
(inception)  to  February  29,  2000,  and  for  the period from August 17, 1999
(inception)  to   February  28,  2001.   These  financial  statements   are  the
responsibility of the Company's management.  Our responsibility is to express an
opinion  on  these  financial  statements  based  on  our  audits.

We conducted our audits in accordance with auditing standards generally accepted
in  the  United  States  of  America.  Those  standards require that we plan and
perform  the  audits  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 Pinnacle Property Group, Inc.,
as of February 28, 2001 and February 29, 2000, and the results of its operations
and  its  cash  flows  for the year ended February 28, 2001, for the period from
August 17, 1999 (inception) to February 29, 2000, and for the period from August
17,  1999  (inception)  to  February  28,  2001,  in  conformity with accounting
principles  generally  accepted  in  the  United  States  of  America.

The  accompanying  financial  statements  have  been prepared in conformity with
accounting  principles generally accepted in the United States of America, which
contemplates  continuation  of  the Company as a going concern.  As discussed in
Note  2,  the  Company  has been in the development stage since its inception on
August  17, 1999. The Company has recognized a loss of $16,610 from inception to
the  year  ended February 28, 2001.  These factors raise substantial doubt about
the  Company's  ability  to continue as a going concern.  Management's plans are
also  discussed  in  Note  2.  The  financial  statements  do  not  include  any
adjustments  relating  to  the  recoverability  and  classification  of recorded
assets, or the amounts and classification of liabilities that might be necessary
in  the  event  the  Company  cannot  continue  in  existence.

Williams  &  Webster,  P.S.
Certified  Public  Accountants
Spokane,  Washington
June  7,  2001





<PAGE> 6

PINNACLE  PROPERTY  GROUP,  INC.
(A  DEVELOPMENT  STAGE  ENTERPRISE)
BALANCE  SHEETS


                                                  February  28,   February  29,
                                                      2001            2000
                                                 --------------  --------------
ASSETS

CURRENT  ASSETS
  Cash                                           $         355   $      18,374
  Prepaid  expenses                                        -             1,500
                                                 --------------  --------------
             Total  Current  Assets                        355          19,874
                                                 --------------  --------------

OTHER  ASSETS
  Website  development                                   6,120             -
  Accumulated  amortization                             (3,085)            -
                                                 --------------  --------------
             Total  Other  Assets                        3,035             -
     -------------------
          TOTAL  ASSETS                          $       3,390   $      19,874
                                                 ==============  ===============

LIABILITIES  &  STOCKHOLDERS'  EQUITY

CURRENT  LIABILITIES                             $         -               -
                                                 --------------  --------------

COMMITMENTS  AND  CONTINGENCIES                            -               -
                                                 --------------  --------------

STOCKHOLDERS'  EQUITY
  Preferred stock, 20,000,000 shares authorized,
    $0.0001 par value; no shares issued and
    outstanding                                            -               -
  Common stock, 80,000,000 shares authorized,
    $0.0001 par value; 4,655,000 shares issued
    and  outstanding                                       465             465
  Additional  paid-in  capital                          19,535          19,535
  Deficit accumulated during development stage         (16,610)           (126)
                                                 --------------  --------------
         TOTAL  STOCKHOLDERS' EQUITY                     3,390          19,874
                                                 --------------  --------------
TOTAL  LIABILITIES  AND  STOCKHOLDERS'  EQUITY   $       3,390   $      19,874
                                                 ==============  ===============











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

<PAGE> 7
PINNACLE  PROPERTY  GROUP,  INC.
(A  DEVELOPMENT  STAGE  ENTERPRISE)
STATEMENTS  OF  OPERATIONS

                                                    From            From
                                                  August 17,      August 17,
                                                     1999            1999
                                     Year  Ended  (Inception) to  Inception) to
                                     February 28,  February 29,   February 28,
                                         2001          2000          2001
                                     ------------  -------------  -------------
REVENUES                             $       -     $        -     $        -
                                     ------------  -------------  -------------

EXPENSES
     Filing  fees                            324             56            380
     Accounting  and  legal               11,250            -           11,250
     Web  site  maintenance                  136            -              136
     Stock  transfer  agent                1,044            -            1,044
     Amortization                          3,085            -            3,085
     Office  and  administrative             645             70            715
                                     ------------  -------------  -------------
          TOTAL  EXPENSES                 16,484            126         16,610
                                     ------------  -------------  -------------

LOSS  FROM  OPERATIONS                   (16,484)          (126)       (16,610)

INCOME  TAXES                                -              -              -
                                     ------------  -------------  -------------

NET  LOSS                            $   (16,484)  $       (126)  $    (16,610)
                                     ============  =============  =============

NET  LOSS  PER  COMMON  SHARE,
  BASIC  AND  DILUTED                $      nil    $     nil      $     nil
                                     ============  =============  =============

WEIGHTED AVERAGE NUMBER OF BASIC
  AND DILUTED COMMON STOCK SHARES
  OUTSTANDING                          4,655,000      4,655,000      4,655,000
                                     ============  =============  =============



















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

<PAGE> 8
PINNACLE  PROPERTY  GROUP,  INC.
(A  DEVELOPMENT  STAGE  ENTERPRISE)
STATEMENT  OF  STOCKHOLDERS'  EQUITY


                                                         Deficit
                                                         Accum-
                          Common  Stock      Addi-        ulated      Total
                     ----------------------   tional     During       Stock-
                     Number                  Paid-in     Development   holders'
                     of Shares   Amount      Capital     Stage        Equity
                     ----------  ----------  ----------  -----------  ----------

Issuance of common
  stock from private
  placement for cash
  at $0.001 per share 4,500,000  $     450   $   4,050   $      -     $   4,500

Issuance of common
  stock from private
  placement for cash
  at $0.10 per share   155,000          15      15,485          -        15,500

Loss for period
  ending,
  February 29, 2000        -           -           -           (126)       (126)
                     ----------  ----------  ----------  -----------  ----------
Balance,
  February 29, 2000   4,655,000        465      19,535         (126)     19,874

Loss for year ended
  February 28, 2001         -          -           -        (16,484)    (16,484)
                     ----------  ----------  ----------  -----------  ----------
Balance,
  February 28, 2001   4,655,000  $     465   $  19,535   $  (16,610)  $   3,390
                     ==========  ==========  ==========  ===========  ==========
























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

<PAGE> 9
PINNACLE  PROPERTY  GROUP,  INC.
(A  DEVELOPMENT  STAGE  ENTERPRISE)
STATEMENTS  OF  CASH  FLOWS



                                                    From            From
                                                  August 17,      August 17,
                                                     1999            1999
                                     Year  Ended  (Inception) to  Inception) to
                                     February 28,  February 29,   February 28,
                                         2001          2000          2001
                                     ------------  -------------  -------------
CASH FLOWS FROM OPERATING ACTIVITIES
  Net  loss                          $   (16,484)  $       (126)  $    (16,610)
  Amortization                             3,085            -            3,085
  Adjustments to reconcile net loss
    to net cash used by operating
    activities:
      (Increase) in website
       development                        (6,120)           -           (6,120)
      (Increase) decrease in
       prepaid  expenses                   1,500         (1,500)          -
                                     ------------  -------------  -------------
Net cash used in operating activities    (18,019)        (1,626)       (19,645)
                                     ------------  -------------  -------------

CASH FLOWS FROM INVESTING ACTIVITIES         -              -              -
                                     ------------  -------------  -------------

CASH FLOWS FROM FINANCING ACTIVITIES
  Proceeds from sale of common stock         -           20,000         20,000
                                     ------------  -------------  -------------
Net cash provided by financing
  Activities                                 -           20,000         20,000
                                     ------------  -------------  -------------

Change  in  cash                         (18,019)        18,374            355

Cash,  beginning  of  period              18,374            -              -
                                     ------------  -------------  -------------

Cash,  end  of  period               $       355   $     18,374   $        355
                                     ============  =============  =============

SUPPLEMENTAL CASH FLOW DISCLOSURES:

  Interest  paid                     $       -     $        -     $        -
                                     ============  =============  =============

  Income  taxes  paid                $       -     $        -     $        -
                                     ============  =============  =============








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

<PAGE> 10
                           PINNACLE PROPERTY GROUP, INC.
                         (A DEVELOPMENT STAGE ENTERPRISE)
                        NOTES TO THE FINANCIAL STATEMENTS
                                FEBRUARY 28, 2001

NOTE  1  -  ORGANIZATION  AND  DESCRIPTION  OF  BUSINESS

Pinnacle  Property  Group,  Inc. (hereinafter "the Company") was incorporated on
August  17,  1999  under  the  laws  of the State of Delaware for the purpose of
assisting private sellers to sell commercial real estate over the internet.  The
Company  maintains  offices  in Bellingham, Washington and in Vancouver, British
Columbia.  The  Company's  fiscal year end is the last calendar day of February.


NOTE  2  -  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES

This  summary  of  significant  accounting  policies  is  presented to assist in
understanding  the financial statements.  The financial statements and notes are
representations  of  the  Company's  management  which  is responsible for their
integrity  and  objectivity.  These  accounting  policies  conform to accounting
principles  generally  accepted  in  the United States of America, and have been
consistently  applied  in  the  preparation  of  the  financial  statements.

Accounting  Method
------------------
The  Company's  financial  statements  are  prepared using the accrual method of
accounting.

Development  Stage  Activities
------------------------------
The Company has been in the development stage since its formation in August 1999
and  has not yet realized any revenues from its planned operations.  The Company
is  presently  in  the  process  of  building its website, which will be used to
assist  private  sellers  of  commercial  real  estate  via  the  internet.

Use  of  Estimates
------------------
The  process  of  preparing  financial  statements in conformity with accounting
principles  generally  accepted in the United States of America requires the use
of  estimates  and  assumptions  regarding certain types of assets, liabilities,
revenues,   and  expenses.   Such  estimates   primarily  relate   to  unsettled
transactions   and  events  as   of  the  date  of   the  financial  statements.
Accordingly,  upon settlement, actual results may differ from estimated amounts.

Cash  and  Cash  Equivalents
----------------------------
For  purposes  of  the  Statement  of  Cash  Flows,  the  Company  considers all
short-term  debt securities purchased with a maturity of three months or less to
be  cash  equivalents.

Fair  Value  of  Financial  Instruments
---------------------------------------
The carrying amounts for cash and prepaid expenses approximate their fair value.









<PAGE> 11
                           PINNACLE PROPERTY GROUP, INC.
                         (A DEVELOPMENT STAGE ENTERPRISE)
                        NOTES TO THE FINANCIAL STATEMENTS
                                FEBRUARY 28, 2001

NOTE  2  -  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONTINUED)

Derivative  Instruments
-----------------------
The  Financial  Accounting   Standards  Board  issued  Statement   of  Financial
Accounting  Standards  ("SFAS")  No. 133, "Accounting for Derivative Instruments
and  Hedging Activities," as amended by SFAS No. 137, "Accounting for Derivative
Instruments  and Hedging Activities - Deferral of the Effective Date of FASB No.
133",  and  SFAS  No.  138,  "Accounting  for Certain Derivative Instruments and
Certain Hedging Activities", which is effective for the Company as of January 1,
2001.   This  standard  establishes  accounting  and   reporting  standards  for
derivative  instruments,  including  certain  derivative instruments embedded in
other  contracts,  and  for  hedging  activities.  It  requires  that  an entity
recognize  all  derivatives  as either assets or liabilities in the consolidated
balance  sheet  and  measure  those  instruments  at  fair  value.

If  certain conditions are met, a derivative may be specifically designated as a
hedge, the objective of which is to match the timing of gain or loss recognition
on  the  hedging  derivative with the recognition of (i) the changes in the fair
value  of the hedged asset or liability that are attributable to the hedged risk
or  (ii)  the  earnings  effect  of  the  hedged  forecasted  transaction. For a
derivative  not  designated  as  a  hedging  instrument,  the  gain  or  loss is
recognized  in  income  in  the  period  of  change.

Historically,  the  Company  has not entered into derivatives contracts to hedge
existing  risks  or  for  speculative  purposes.

At February 28, 2001, the Company has not engaged in any transactions that would
be  considered  derivative  instruments  or  hedging  activities.

Revenue  Recognition
--------------------
The  Company  will recognize revenue from internet-based programs when funds are
earned,  measurable  and  recognizable.

Compensated  Absences
---------------------
Currently,  the  Company  has  no  employees;  therefore,  no  policy  regarding
compensated  absences has been established.  The Company will establish a policy
to  recognize the costs of compensated absences at the point in time that it has
employees.

Provision  for  Taxes
---------------------
Income taxes are provided based upon the liability method of accounting pursuant
to  SFAS  No.  109 "Accounting for Income Taxes."  Under this approach, deferred
income  taxes  are  recorded  to reflect the tax consequences on future years of
differences  between the tax basis of assets and liabilities and their financial
reporting  amounts  at each year end.  A valuation allowance is recorded against
deferred tax assets if management does not believe the Company has met the "more
likely  than  not" standard imposed by SFAS No. 109 to allow recognition of such
an  asset.





<PAGE> 12
                           PINNACLE PROPERTY GROUP, INC.
                         (A DEVELOPMENT STAGE ENTERPRISE)
                        NOTES TO THE FINANCIAL STATEMENTS
                                FEBRUARY 28, 2001


NOTE  2  -  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONTINUED)

Provision  for  Taxes  (continued)
----------------------------------
At  February  28, 2001, the Company had net deferred tax assets of approximately
$2,400, principally arising from net operating loss carryforwards for income tax
purposes.  As  management of the Company cannot determine that it is more likely
than  not  that  the  Company  will  realize the benefit of the net deferred tax
asset,  a  valuation  allowance  equal  to  the  net deferred tax asset has been
established  at  February  28,  2001.

At  February  28,  2001,  the  Company  has  net operating loss carryforwards of
approximately  $16,000,  which  expire  in  the  years  2020  through  2021.

Basic  and  Diluted  Loss  Per  Share
-------------------------------------
Loss  per  share  was  computed by dividing the net loss by the weighted average
number  of shares outstanding during the period.  The weighted average number of
shares  was  calculated by taking the number of shares outstanding and weighting
them  by  the amount of time that they were outstanding.  Basic and diluted loss
per  share were the same, as there were no common stock equivalents outstanding.

Reclassifications
-----------------
Certain  amounts  from  prior periods have been reclassified to conform with the
current  period  presentation.  This reclassification has resulted in no changes
to  the  Company's  accumulated  deficit  or  net  losses  presented.

Going  Concern
--------------
The  accompanying  financial  statements  have  been  prepared assuming that the
Company  will  continue  as  a  going  concern.

As  shown  in  the  accompanying  financial  statements,   the  Company  had  an
accumulated  deficit  of  $16,610  for the period August 17, 1999 (inception) to
February  28, 2001 and had no sales. The future of the Company is dependent upon
successful  and profitable operations from its internet commerce enterprise. The
Company  is presently in the process of building its website, which will be used
to  assist  private  sellers  of  commercial  real estate via the internet.  The
financial   statements  do  not   include  any   adjustments   relating  to  the
recoverability  and  classification  of  recorded  assets,  or  the  amounts and
classification  of  liabilities that might be necessary in the event the Company
cannot  continue  in  existence.

Management  plans  to  seek  additional  capital through a private placement and
public  offering  of  its common stock.  The financial statements do not include
any  adjustments  relating  to the recoverability and classification of recorded
assets, or the amounts and classification of liabilities that might be necessary
in  the  event  the  Company  cannot  continue  in  existence.







<PAGE> 13
                           PINNACLE PROPERTY GROUP, INC.
                         (A DEVELOPMENT STAGE ENTERPRISE)
                        NOTES TO THE FINANCIAL STATEMENTS
                                FEBRUARY 28, 2001

NOTE  2  -  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONTINUED)

Recent  Accounting  Pronouncements
----------------------------------
In  June  1997,  the  Financial  Accounting  Standards Board issued Statement of
Financial  Accounting Standards No. 130, "Reporting Comprehensive Income" ("SFAS
No. 130"), and No. 131, "Disclosures about Segments of an Enterprise and Related
Information"  ("SFAS No. 131"). SFAS 130 establishes standards for reporting and
displaying  comprehensive  income, its components and accumulated balances. SFAS
131  establishes  standards  for the way that companies report information about
operating  segments  in  annual  financial  statements and requires reporting of
selected  information  about operating segments in interim financial statements.
Both  SFAS  130  and SFAS 131 are effective for periods beginning after December
15, 1997. The Company adopted these new accounting standards, and their adoption
had  no  effect  on  the  Company's  financial  statements  and  disclosures.

In  September  2000,  the FASB issued SFAS No. 140 "Accounting for Transfers and
Servicing  of  Financial  Assets  and  Extinguishment  of   Liabilities."   This
statement  provides  accounting   and  reporting  standards  for  transfers  and
servicing  of  financial  assets  and  extinguishment  of  liabilities  and also
provides  consistent  standards for distinguishing transfers of financial assets
that  are  sales  from  transfers  that are secured borrowings.  SFAS No. 140 is
effective for recognition and reclassification of collateral and for disclosures
relating  to  securitization transactions and collateral for fiscal years ending
after  December  15,  2000,  and  is  effective  for  transfers and servicing of
financial  assets  and  extinguishments of liabilities occurring after March 31,
2001.  The  Company  believes that the adoption of this standard will not have a
material  effect  on  the Company's results of operations or financial position.

NOTE  3  -  CASH

At  February  28,  2001,  the  Company  had a cash balance of $355 in a Canadian
financial  institution  maintained  in US dollars.  This account is not insured.

NOTE  4  -  PREPAID  EXPENSES

At February 29, 2000, the Company prepaid $1,500 for professional services.  The
total  amount  was  expensed  during  the  year  ended  February  28,  2001.

NOTE  5  -  PREFERRED  STOCK

The  Company  is  authorized  to  issue  20,000,000  shares of $0.0001 par value
preferred stock.  The preferred shares have not been designated any preferences.
As of February 28, 2001, the Company did not have any preferred shares issued or
outstanding.












<PAGE> 14
                           PINNACLE PROPERTY GROUP, INC.
                         (A DEVELOPMENT STAGE ENTERPRISE)
                        NOTES TO THE FINANCIAL STATEMENTS
                                FEBRUARY 28, 2001


NOTE  6  -  COMMON  STOCK

The Company is authorized to issue 80,000,000 shares of $0.0001 par value common
stock.  Each  holder  of  common stock has one, non-cumulative vote per share on
all  matters  voted upon by the shareholders.  There are no preemptive rights or
other  rights  of  subscription.

On  September  1,  1999,  4,500,000  shares  of common stock were sold through a
private  placement  at  a  price  of  $0.001  per  share.  The offering was made
pursuant  to  exemptions afforded by Sections (4)2 or 3(b) of the Securities Act
of  1933  and  Rule  504  of  Regulation  D.  On February 9, 2000, an additional
155,000  shares of common stock were sold through a similar private placement at
a  price  of $0.10 per share.  The private placements raised $4,500 and $15,500,
respectively.  All  proceeds from both offerings were used for general corporate
purposes.  Of  the total shares issued, 1,055,000 shares were issued to officers
and  directors  of  the  Company.

NOTE  7  -  WEBSITE  DEVELOPMENT

In  August  2000,  the  Company  revised  and expanded its website.  The cost of
development  was  $6,120  and  will  be  amortized  over  a period of 12 months.
Amortization  expense  for  the  year  ended  February  28,  2001  was  $3,085.

NOTE  8  -  COMMITMENTS  AND  CONTINGENCIES

The  Company  is engaged in internet-based commerce.  At present, the Company is
unaware  of  any  pending  litigation  or  of  any  specific past or prospective
matters,  which  could  impair  its  ability  to  proceed  in  the  marketplace.


NOTE  9  -  RELATED  PARTIES

The  Company  occupies office space provided by Mr. Paul Hayward, its president,
at  no charge.  The value of this space is not considered materially significant
for  financial  reporting  purposes.





















<PAGE> 15
                           PINNACLE PROPERTY GROUP, INC.
                                   FORM 10KSB
                        For the year ended February 28, 2001

ITEM  8.     CHANGES  IN  AND  DISAGREEMENT  WITH  ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL  DISCLOSURES

Since  the  registrant's inception, no independent accountant who was previously
engaged  as  the  principal  accountant  to  audit  the  registrant's  financial
statements,  or  independent  accountant  who  was previously engaged to audit a
significant  subsidiary  and on whom the principal accountant expressed reliance
in  its  report,  has  resigned  (or  indicated  it  has  declined  to stand for
re-election  after  the  completion  of  the  current  audit) or was  dismissed.

The  Registrant has  engaged Williams & Webster, P.S. as Independent Auditor for
the fiscal year  ended  February 28, 2001.

                                    PART III

ITEM 9.     DIRECTORS  AND  EXECUTIVE  OFFICERS  OF  THE  REGISTRANT

(A)     IDENTIFICATION  OF  DIRECTORS

Set  forth below is the name, age and length of service of the Company's present
officers and directors:

NAME  (AGE)                    POSITION               LENGTH  OF  SERVICE
--------------------------     -------------------    -------------------

Paul Hayward     (  )          President, Secretary   Since inception
                               Director

Kali Palmer      (30)          Director               Since inception


        Executive Officers are appointed to serve until the meeting of the Board
of Directors following the next  annual  meeting of shareholders and until their
successors  have  been  elected  and  qualified.  There  are  no arrangements or
understandings  between  any  of  the  directors,  officers,  and  other persons
pursuant  to  which  such  person  was  selected  as  an  Executive  Officer.

        Set forth  below is  certain  biographical  information  regarding  each
Director and Executive  Officer  of  the  Company.

Paul  Hayward:  Mr.  Hayward  is  the President, Secretary and a Director of the
Company.  From  1990  to  1994  he  served  as  manager  of Cityview Real Estate
Management  Services,  Ltd.  of Vancouver, British Columbia. He is presently the
President  of  5 Starliving Online, Inc. Mr. Hayward will work part time for the
Company  until  it  is  fully  operational.

Kali  Palmer:  Ms  Palmer  is  a Director.  She worked for Facilicom Educational
Products  in  Austin,  Texas  from  1993 to 1998 in marketing.  From 1999 to the
present  she has been a director of the company and in the real estate portfolio
business  in  Seattle,  Washington.

(C)     IDENTIFICATION  OF  CERTAIN  SIGNIFICANT  EMPLOYEES

The Registrant has no employees.




<PAGE> 16
                           PINNACLE PROPERTY GROUP, INC.
                                   FORM 10KSB
                        For the year ended February 28, 2001

(D)     FAMILY  RELATIONSHIPS

There  is  no  family  relationship  between any Director, Executive Officer, or
person  nominated  or chosen by the Registrant to become a Director or Executive
Officer.

(E)      INVOLVEMENT  IN  CERTAIN  LEGAL  PROCEEDINGS

No  Director, or person nominated to become a Director or Executive Officer, has
been  involved  in  any legal proceedings during the past five years.

(F)     PROMOTERS  AND  CONTROL  PERSONS

Not  Applicable

COMPLIANCE  WITH  SECTION  16(A)  OF  THE  EXCHANGE  ACT

So far as the Registrant is able to ascertain, all officers and directors of the
Company are in compliance with  information required  under Section 16(a) of the
Securities Exchange Act  of  1934, as amended.

ITEM  10.     EXECUTIVE  COMPENSATION

         There are no officers or directors that received compensation in excess
of $60,000 or more during the last year.

ITEM  11.     SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
              AND MANAGEMENT

         There are presently  4,655,000 shares  of the company's  common shares
outstanding. The following table sets forth the information as to the ownership
of each person who, as of this date, owns of record, or is known by the company
to own beneficially, more than five per cent of the company's common stock, and
the officers and directors of the company.


                                    Shares of             Percent of
Name                             Common Stock             ownership
-------------------------------------------------------------------------------

Paul Hayward                        1,055,000                  22%
10-1917 West 4th Avenue
Vancouver, BC


Directors and Officers              1,055,000                  22%
as a group


CHANGES  IN  CONTROL

There  are  no  arrangements  that  may  result  in  a  change in control of the
Registrant.





<PAGE> 17
                           PINNACLE PROPERTY GROUP, INC.
                                   FORM 10KSB
                        For the year ended February 28, 2001

ITEM  12.     CERTAIN  RELATIONSHIPS  AND  RELATED  TRANSACTIONS

          The  Company  occupies office  space provided by its  President at  no
charge.

PART  IV

ITEM  13.     EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS
              ON FORM 8-K

(A)     Exhibits  required  by  Item  601                               (1)

        (3)(i)     Articles  of  Incorporation                          (2)
        (3)(ii)    Bylaws.                                              (2)
        (13)       Annual report to security holders, Form 10Q
                   or  quarterly  report  to  security  holders.        (2)


                  (1)  Omitted  Exhibits  not  applicable
                  (2)  Incorporated  by  reference  to  previous  filing

(B)     REPORTS  ON  FORM  8-K:

     The  Company  did not file any reports on Form 8-K in the fiscal year ended
February 28, 2000.

                                   SIGNATURES

In  accordance  with  Section  13  or  15(d) of the Exchange Act, the registrant
caused  this  report  to  be  signed on its behalf the undersigned, thereto duly
authorized.

Dated:  June 19, 2001

Pinnacle Property Group, Inc.
Registrant

                    /s/ Paul Haywood
                    _____________________________
                    President,  Secretary  and  Director

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has  been  signed below by the following persons on behalf of the registrant and
in  the  capacities  indicated  on  June 19, 2001.

                    /s/ Paul Haywood
                    _____________________________
                    Paul Haywood
                    President,  Secretary  and  Director

                    /s/ Kali Palmer
                    _____________________________
                    Kali Palmer, Director