UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                                                           
                                    FORM 10K

[X]   ANNUAL REPORT  PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES  EXCHANGE
      ACT OF 1934 For the Fiscal Year Ended December 31, 1998
                                                                                
                                       OR
                                                                                
[ ]   TRANSITION  REPORT  PURSUANT  TO  SECTION  13 OR 15(d)  OF THE  SECURITIES
      EXCHANGE ACT OF 1934

                         Commission File Number 0-16856

                   RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)

Delaware                                                              13-3368726
-------------------------------                                 ----------------
(State or other jurisdiction of                                 (I.R.S. Employer
incorporation or organization)                               Identification No.)
                                                            
411 West Putnam Avenue, Suite 270, Greenwich, CT                           06830
------------------------------------------------                    ------------
(Address or principal executive offices)                              (Zip Code)
                         
               Registrant's telephone number, including area code
                 203-862-7444 Securities registered pursuant to
                            Section 12(b) of the Act:

                                                        Name of each exchange on
Title of Each Class                                          which registered
-------------------                                        --------------------
      None                                                         None

           Securities registered pursuant to Section 12(g) ofthe Act:

              Units of Limited Partnership Interest, $250 per Unit
              ----------------------------------------------------
                                (Title of Class)

                  Indicate by check mark  whether  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
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]
                                                                                
                                                             Exhibit Index set
                                                             forth on page IV-1.
<PAGE>
Item  1.   Business

General

Registrant  is a Delaware  limited  partnership  formed on August 14, 1986.  RAM
Funding,  Inc., a Delaware  corporation  that is a  wholly-owned  subsidiary  of
Presidio Capital Corp.  ("Presidio"),  is Registrant's  managing general partner
("Managing  General  Partner").  RAM Funding Inc.,  was until November 3, 1994 a
wholly-owned subsidiary of Integrated Resources Inc. (Integrated").

Registrant offered 400,000 units of limited  partnership  interest (the "Units")
pursuant to the Prospectus dated April 12, 1988 (the "Prospectus") of Registrant
which  was  filed  with  the  Securities  and  Exchange  Commission  as  part of
Post-Effective  Amendment No. 2 to Registrant's  Registration  Statement on Form
S-11,  Commission File No. 33-9705,  as amended (the "Registration  Statement").
The Prospectus was supplemented by supplements  dated August 12, 1988,  February
8,  1989,  March 10,  1989,  April 28,  1989 and June 26,  1989.  In June  1988,
Registrant  had its initial  admission  of limited  partners,  and its  offering
terminated on September 20, 1989. As of its final  admission on October 1, 1989,
Registrant had accepted  subscriptions  for 187,919 Units (including Units owned
by the initial limited partner) resulting in total gross proceeds of $46,979,750
of which  $18,405,847 of the offering  proceeds was not invested or committed by
April 12, 1990 and was  returned in  accordance  with the terms of  Registrant's
partnership agreement ("Partnership Agreement").

Registrant  invested  primarily in "zero coupon" first and junior mortgage loans
("Mortgage Loans") on properties owned or acquired  principally by privately and
publicly syndicated limited  partnerships  originally sponsored by affiliates of
Integrated.  The Mortgage Loans had original terms of approximately twelve years
with all interest and principal due and payable at the maturity or prepayment of
the Mortgage Loan.

On November 3, 1994, as a result of the consummation of the reorganization  plan
relating to Integrated's bankruptcy,  indirect ownership of the Managing General
Partner and the Associate  General  Partner was purchased by Presidio.  Presidio
was also party to an Administrative  Services  Agreement with Wexford Management
LLC  ("Wexford")  pursuant to which Wexford was  responsible  for the day to day
management  of Presidio  and,  among other  things,  had  authority to designate
officers and/or directors of the General Partners.

In December  1994,  Z Square G Partners  II, the  Associate  General  Partner of
Registrant whose partners were previously  associated with Integrated,  notified
Registrant of its withdrawal as the Associate  General  Partner.  The withdrawal
became  effective,  after 60 days prior written notice to Limited  Partners,  on
February 28, 1995.  Upon the  effective  date of such  withdrawal,  Presidio AGP
Corp. ("Presidio AGP"), which is a wholly-owned  subsidiary of Presidio,  became
the  Associate  General  Partner.  (The Managing  General  Partner and Associate
General  Partner  are  hereinafter  collectively  referred  to as  the  "General
Partners").

On August 28, 1997, an affiliate of NorthStar  Capital Partners  acquired all of
the Class B shares of Presidio,  the corporate  parent of the General  Partners.
This acquisition,  when aggregated with previous acquisitions,  caused NorthStar
Capital Partners to acquire indirect control of the General Partners.
<PAGE>
On November 2, 1997, the Administrative  Services Agreement between Presidio and
Wexford expired. Effective November 3, 1997, Wexford and Presidio entered into a
new Administrative Services Agreement (the "ASA"), which expired on May 3, 1998.
Under the  terms of the ASA,  Wexford  provided  consulting  and  administrative
services to Presidio  and its  affiliates,  including  the General  Partners and
Registrant.  Presidio also entered into a management  agreement  with  NorthStar
Presidio Management Company, LLC ("NorthStar Presidio").  Under the terms of the
management  agreement,  NorthStar Presidio provides the day-to-day management of
Presidio and its direct and indirect subsidiaries and affiliates.

Effective July 31, 1998, Presidio is indirectly  controlled by NorthStar Capital
Investment Corp. ("NorthStar"), a Maryland corporation.

For the years  ended  December  31,  1998,  1997 and  1996,  the  percentage  of
Registrant's  revenue  attributable  to interest on short-term  investments  was
86.0%, 88.0% and 6.6%,  respectively.  For the year ended December 31, 1996, the
Sierra Loan accounted for  approximately  91.1%,  of Registrant's  revenue.  The
Sierra Loan did not account  for any  revenue for the years ended  December  31,
1998 and 1997.

Investments of Registrant

Registrant  originally  invested 100% of its net proceeds in four Mortgage Loans
in the original amount of $23,323,513,  including  interest of $23,513.  In June
1992,  the  senior  mortgage  lender  on one of  Registrant's  investments,  the
Promenade Loan, foreclosed on the property securing its loan and Registrant lost
its entire  investment.  As of March 30, 1999  Registrant had investments in the
remaining two Mortgage Loans in the original amounts of $7,700,000. All interest
and  principal is due and payable at maturity and there are no current  payments
due on any of the Mortgage  Loans.  Following is a description  of the status of
Registrant's investments:

Sierra Marketplace Loan

A $6,500,000 first Mortgage Loan (the "Sierra Loan") to High Cash Partners, L.P.
(the "Sierra Borrower"),  a public limited partnership  originally  sponsored by
Integrated,  which is secured by a shopping  center commonly known as the Sierra
Marketplace located in Reno, Nevada (the "Sierra Property"). The Sierra Property
consists of approximately 233,000 square feet of net rentable area. The shopping
center  occupies 18.67 acres,  consisting of two main buildings and three anchor
tenant buildings with surface parking for 1,184 automobiles.

The Sierra Loan was funded on February 10, 1989 and bears  interest at a rate of
11.22% per annum,  compounded  monthly and is due on February 28, 2001, at which
time a balloon  payment of $24,966,653,  together with  additional  interest (as
described below) if any, will be due and payable.  Under the terms of the Sierra
Loan, the Sierra Borrower must provide,  on request,  a current appraisal of the
Sierra Property. If the sum of (i) the principal balance of the Sierra Loan plus
all other then outstanding indebtedness secured by the Sierra Property plus (ii)
all  accrued  and  unpaid  interest  in excess of 5% per annum of the  principal
balance of such mortgages, exceed 85% of the current appraised value, the Sierra
Borrower  shall be immediately  obligated to pay such excess.  In the event that
such excess becomes due, the Sierra Borrower may not have  sufficient  liquidity
to satisfy its obligation to Registrant.  The Sierra Borrower could be forced to
sell  its  property  or  seek  other  relief,  including  protection  under  the
bankruptcy  laws.  Management has prepared a valuation of the Property and based
on that valuation,  no additional amounts are presently due. However, it appears
possible  that  the  Sierra  loan  could  accrue  to a value  in  excess  of the
property's market at some point in the future.
<PAGE>
During the first quarter of 1997, the Sierra  Borrower wrote the Sierra Property
down on its  books to what its  management  believed  to be its  estimated  fair
market value of $15,875,000. The balance of the Sierra Loan at December 31, 1996
was approximately  $15,979,000 and it was unlikely that any additional  interest
accrued on the Sierra Loan would  ultimately be recovered  from the value of the
underlying  property.  Consequently,  as of January 1, 1997,  Registrant  ceased
accruing interest on the Sierra Loan.

Registrant  is  entitled  to  additional  interest  equivalent  to  23.9% of the
appreciation  in the value of the Sierra  Property  after payment of a specified
return to the Sierra  Borrower.  The maximum annual rate of interest,  including
the additional interest,  cannot exceed 16% compounded annually.  It is unlikely
that  Registrant will realize any additional  interest from the  appreciation of
the property.

The total amount,  including  fees,  allocated to the Sierra Loan from the gross
proceeds  of  Registrant's  offering  was  $7,715,134  including  payment to the
Managing General Partner of a mortgage placement fee of $385,757.

Harborista Loan

A  $10,000,000  second  Mortgage  Loan (the  "Harborista  Loan")  to  Harborista
Associates  L.P. (the  "Harborista  Borrower"),  a private  limited  partnership
originally  sponsored by Integrated,  is secured by an office building  commonly
known as the Harbor Plaza,  located in Boston,  Massachusetts  ("Harbor Plaza").
Harbor  Plaza  consists of a 13-story  office  building on .88 acres  containing
approximately  334,000 square feet of rentable space,  located in the Fort Point
Channel  section of downtown  Boston.  Harbor Plaza is 100% leased pursuant to a
master  net  lease  (the  "Master  Lease")  which,  subject  to a right of early
termination by the Harborista Borrower, expired on November 30, 1998.

The Harborista Loan was funded on February 13, 1989 and bears interest at a rate
of 13.307% per annum,  compounded  monthly and was originally due on December 1,
1998 at which time a balloon payment of $36,568,146 would have been payable.

The total amount,  including fees, allocated to the loan from the gross proceeds
of  Registrant's  offering  was  $11,897,345  including  payment to the Managing
General Partner of a mortgage placement fee of $594,867.

Harbor  Plaza is also  encumbered  by a first  mortgage  loan in the  amount  of
$24,475,000  (the  "Northwestern  Mortgage")  held by  Northwestern  Mutual Life
Insurance Co.  ("Northwestern").  The Northwestern Mortgage was due to mature on
December 1, 1995,  but was extended  until January 1, 1999. On February 8, 1999,
Northwestern filed a motion for foreclosure of the Northwestern Mortgage.

During 1993  management  determined  that interest on the Harborista Loan should
cease to accrue and that an  allowance  for loan  losses was  necessary  for the
entire  carrying  value  of  the  Harborista  Loan  which,  at  that  time,  was
$10,618,380.

On March 30, 1999,  Registrant  sold its interest in the  Harborista  Loan to an
unaffiliated  third  party  for  gross  proceeds  of  approximately  $1,000,000,
exclusive of legal and other costs related to the  transaction of  approximately
$200,000.  As of December 31, 1998,  Registrant recorded $800,000 of recovery of
loan losses with respect to this sale.
<PAGE>
Twin Oak Loan

Registrant holds a $1,200,000 second Mortgage Loan (the "Twin Oak Loan") to Twin
Oak Plaza Associates (the "Twin Oak Borrower"), a limited partnership originally
sponsored  by  Integrated,  which is  secured by the Twin Oak  Shopping  Center,
located in Fort Lauderdale, Florida (the "Twin Oak Property").

The Twin Oak Property is a 113,217 square foot community  retail shopping center
which  includes a 15,000  square foot  addition  built by the Twin Oak Borrower,
which had been fully  leased to McCrory  until March 1995 at which time  McCrory
vacated.  McCrory filed a voluntary petition for reorganization under Chapter 11
of the United  States  Bankruptcy  Code in  February  1992.  In July  1993,  the
Bankruptcy  Court approved  McCrory's  application  for a Lease  Amendment which
allowed for a reduction in its rental rates to current market levels. The tenant
had been current with its rent  payments  since the  Bankruptcy  Court  hearing,
however,  McCrory had petitioned the Bankruptcy Court to terminate its Lease and
vacated the premises on March 31, 1995.  During 1996,  1997 and 1998 the McCrory
space was leased to  Scotty's  Hardware,  who began  paying rent to the Twin Oak
Borrower in April 1997.

The Twin Oak  Property is also  encumbered  by a first  mortgage in the original
amount of  $4,250,000,  held by Southern Life  Assurance  Company (the "Southern
Life  Mortgage").  The Southern Life Mortgage bore interest at a rate of 10% per
annum  plus  contingent   interest,   and  was  payable  in  119  equal  monthly
installments  of $36,550.  The  maturity  date of the  Southern  Life  Mortgage,
originally  July 1, 1993, was extended by three years to July 1, 1996. The terms
and conditions of the extension were  essentially the same as the original loan.
During  October  1997,  the Twin Oak  borrower  and its  first  mortgage  lender
formally  agreed  to  extend  the  maturity  date to July  1,  1998.  It was the
intention of the general  partners of Twin Oak to sell the property prior to the
July 1, 1998 extended maturity date.

The property was marketed for sale during the first and second quarters of 1998,
and Twin Oak  entered  into a formal  contract of sale  ("Contract  #1") with an
unaffiliated  third  party in May of 1998.  The  purchaser  failed to perform on
Contract #1 in August of 1998. The property was again marketed for sale.  During
this period,  the Southern Life Mortgage  matured on July 1, and was not repaid.
On October 20, 1998, a formal agreement was executed in which the first mortgage
lender  again  agreed  to  extend  the  maturity  of the loan to July 1, 1999 in
exchange for a  modification  to the  interest  rate and payment of an extension
fee. On October 15, 1998, a new contract for sale  ("Contract  #2") was executed
with Emmes Ventures ("Emmes"),  an affiliate of NorthStar,  also an affiliate of
the general partners of the Twin Oak Borrower and Registrant. 

On March 1, 1999,  the Twin Oak Property was sold to Emmes for a gross  purchase
price of approximately $4,150,000 (subject to customary adjustments at closing).
The Twin  Oak  Borrower  used the  proceeds  from  the sale to repay  the  first
mortgage to Southern  Life  Mortgage  and the  remainder of the net proceeds are
expected  to be used to repay a  portion  of the  Twin  Oak  Loan  approximating
$237,000.
<PAGE>
Employees

Registrant  does not have any employees.  Certain  services are performed by the
General Partners and/or their affiliates in connection with the servicing of the
Mortgage Loans pursuant to a mortgage  servicing  agreement.  NorthStar Presidio
currently performs accounting, secretarial, transfer and administrative services
for  Registrant  and  Registrant  pays for its pro rata amount of such services.
NorthStar  Presidio also performs  similar  services for other affiliates of the
General Partners. See Item 10, "Directors and Executive Officers of Registrant,"
Item 11, "Executive Compensation" and Item 13, "Certain Relationship and Related
Transactions."


Item 2.       Properties

None.


Item 3.       Legal Proceedings

None.


Item 4.       Submission of Matters to a Vote of Security Holders None.

<PAGE>
PART II

Item 5.       Market for  Registrant's  Securities and Related  Security  Holder
              Matters

There is no established public trading market for the Units of Registrant.

There are  restrictions  set forth in the Partnership  Agreement which may limit
the ability of a limited  partner to transfer  units.  Such  restrictions  could
impair the ability of a limited partner to liquidate its investment in the event
of an emergency or for any other reason.

As of  March  1,  1999  there  were  approximately  3,700  holders  of  Units of
Registrant,  owning an aggregate of 187,919 Units  (including  Units held by the
initial limited partner).

There are no material legal restrictions set forth in the Partnership  Agreement
upon  Registrant's   present  or  future  ability  to  make  distributions.   No
distributions  were made in 1998, 1997 and 1996. No distributions from cash flow
are  anticipated to be made in as much as all payments due from borrowers  under
the Mortgage  Loans are deferred and payable upon  maturity or prepayment of the
respective  Mortgage  Loans.  Where deemed  appropriate,  the  Managing  General
Partner will consider accepting prepayments on a negotiated basis.

Item 6.       Selected Financial Data.
<PAGE>

<TABLE>
<CAPTION>
                                                             Year ended December 31,
                          ----------------------------------------------------------------------------------------------------
                              1998                   1997                 1996                  1995                 1994     
                          -------------          -------------        -------------         -------------        -------------
                                                                                                                
<S>                       <C>                    <C>                  <C>                   <C>                  <C>         
Revenues                  $     168,888          $     165,064        $   1,794,213         $   1,946,240        $  1,885,747
Net Income                $     481,315 (2)      $      72,682        $     123,888 (1)     $   1,765,545        $  1,723,537
Net Income                                                                                                      
     Per Unit             $        2.50 (2)      $         .38        $         .64 (1)     $        9.16        $       8.94
Total Assets              $  20,019,207          $  19,537,040        $  19,501,016         $  19,346,908        $ 17,554,159
</TABLE>
                                                                                
(1)   Net of provision for loan losses of $1,515,000 or $7.86 per Unit.
(2)   Net of provision for loan losses of $400,000 or $2.08 per Unit on the Twin
      Oak loan and  recovery of loan losses of $800,000 or $4.15 per Unit on the
      Harborista loan.


Item 7.       Management's  Discussion  and Analysis of Financial  Condition and
              Results of Operations

Liquidity and Capital Resources

Registrant has invested the net proceeds of its public offering in "zero coupon"
first and junior  mortgage  loans secured by  properties  owned  principally  by
privately and publicly syndicated limited  partnerships  originally sponsored by
affiliates of Integrated.  The initial admission of limited partners occurred on
June 1, 1988 and as of the  termination  of its offering on  September  20, 1989
Registrant  had raised gross proceeds of  $46,979,750.  Since all gross proceeds
that were raised had not been invested or committed for  investment,  Registrant
was obligated under the terms of the Prospectus to return such uninvested funds.
The  Managing  General  Partner  distributed  these  proceeds  in the  amount of
$19,263,445  (including interest of $857,598) in August 1990. This represented a
return of capital of $90.06 per unit and an  allocation  of  interest  earned on
uninvested  gross  proceeds,  ranging  from  $6.42 per unit to  $17.90  per unit
depending  on the  date of  admission.  Additionally,  Registrant  made a second
related distribution of $606,978, or $3.23 per unit, on October 30, 1990.

Registrant   had  originally   invested  in  four  Mortgage  Loans   aggregating
approximately  $23,300,000  in  principal.  In June,  1992  Registrant  lost its
investment in the  Promenade  Loan which  represented  original loan proceeds of
$5,600,000  leaving  an  aggregate  of  original  investments  of  approximately
$17,700,000.
<PAGE>
During October 1997, the Twin Oak Borrower and the first mortgage  lender agreed
to extend the maturity  date of the Twin Oak Loan until July 1, 1998. It was the
intention of the general  partners of the Twin Oak Borrower to sell the property
prior to the July 1, 1998 extended  maturity date.  Registrant agreed to consent
on the condition that the Twin Oak Borrower either  refinance both the first and
Registrant's  mortgage,  or give Registrant a deed-in-lieu of foreclosure to the
Twin Oak property. On October 20, 1998, a formal agreement was executed in which
the first  mortgage  lender  again  agreed to extend the maturity of the loan to
July 1, 1999 in exchange for a modification  to the interest rate and payment of
an  extension  fee. On October 15, 1998,  the Twin Oak  Borrower  entered into a
contract of sale with Emmes Ventures, an affiliate of NorthStar.

On March 1, 1999,  the Twin Oak Property was sold to Emmes for a gross  purchase
price of approximately $4,150,000 (subject to customary adjustments at closing).
The Twin  Oak  Borrower  used the  proceeds  from  the sale to repay  the  first
mortgage to Southern  Life  Mortgage  and the  remainder of the net proceeds are
expected  to be used to repay a  portion  of the  Twin  Oak  Loan  approximating
$237,000.

On March 30, 1999,  Registrant  sold its interest in the  Harborista  Loan to an
unaffiliated  third  party  for  gross  proceeds  of  approximately  $1,000,000,
exclusive of legal and other costs related to the  transaction of  approximately
$200,000.  As of December 31, 1998,  Registrant recorded $800,000 of recovery of
loan losses with respect to this sale.

Registrant  uses  working  capital  reserves  provided  from the proceeds of its
public offering and subsequent  settlement amounts,  and interest earned thereon
as its primary measure of liquidity.  Registrant does not anticipate  making any
distributions  from cash flow during its first 8 to 12 years of  operations,  or
until such time as the Mortgage  Loans mature or are  prepaid.  Working  capital
reserves  are  invested  in  short-term  instruments  and  are  expected  to  be
sufficient to pay administrative  expenses during the term of Registrant.  As of
December 31, 1998,  Registrant  had working  capital  reserves of  approximately
$2,908,000.

Except as discussed  above,  management  is not aware of any other known trends,
events,  commitments,  or uncertainties  that will have a significant  impact on
liquidity.

Real Estate Market

The real estate market in Reno,  Nevada has begun to recover from the effects of
the  recession  which  included a  substantial  decline  in the market  value of
existing  properties.   However,   due  to  increased   competition  from  newly
constructed  retail  properties,  Registrant's  potential for realizing the full
value of its investment in Sierra Marketplace is considered unlikely.

Allowance for Loan Losses

An allowance for loan losses is established based upon a periodic review of each
of the mortgage  loans in  Registrant's  portfolio.  In  performing  the review,
management  considers  the  estimated  net  realizable  value of the property or
collateral as well as other factors,  such as the current occupancy,  the amount
and status of senior  debt,  if any,  the  prospects  for the  property  and the
economic  situation in the region  where the  property is located.  Because this
determination  of net  realizable  value  is based  upon  projection  of  future
economic events which are inherently subjective, the amounts ultimately realized
at disposition may differ materially from the carrying values as of December 31,
1998.
<PAGE>
For the quarter ended June 30, 1996, a $1,515,000  allowance for loan losses was
recorded on the Twin Oak Loan. As a result of the vacancy of the former  McCrory
space and  uncertainties  regarding  its lease up, a decline in the  standard of
living in the surrounding  area of the Twin Oak Shopping Center and negotiations
with the first mortgage lender  regarding an extension of its loan which was due
July 1, 1996, cash flow projections were performed which indicated the estimated
fair value of the Twin Oak property to be  approximately  $4,530,000 at June 30,
1996.  The  contractual  balance  of the  first  mortgage  at June 30,  1996 was
approximately  $3,890,000,  necessitating a write-down of $1,515,000. A $300,000
allowance  for loan  losses was  recorded  on the Twin Oak Loan for the  quarter
ended  September 30, 1998 and an additional  $100,000  allowance for loan losses
was recorded at December  31, 1998 to reduce the  carrying  value of the loan to
approximately  $237,000,  which is the  estimated  amount to be  received by the
Registrant.

Additionally,  during 1993 management of Registrant determined that any recovery
from the  Harborista  Loan would be unlikely and recorded an allowance  for loan
losses of $10,618,380, of which $800,000 was recovered during 1998.

The  allowance  is  inherently  subjective  and is  based on  management's  best
estimate of current conditions and assumptions about expected future conditions.
Registrant may provide additional losses in subsequent years and such provisions
could be material.

Year 2000 compliance

The  Year  2000   compliance   issue  concerns  the  inability  of  computerized
information systems and equipment to accurately  calculate,  store or use a date
after  December  31,  1999,  as a result of the year being stored as a two digit
number.  This  could  result  in a system  failure  or  miscalculations  causing
disruptions  of  operations.  Registrant  and NorthStar  Presidio  recognize the
importance  of ensuring  that its  business  operations  are not  disrupted as a
result of Year 2000 related computer system and software issues.

NorthStar  Presidio  is in  the  process  of  assessing  its  internal  computer
information systems and is taking the steps necessary to remediate these systems
so that they will be Year 2000  compliant.  In connection  therewith,  NorthStar
Presidio has installed a new fully  compliant  accounting and reporting  system.
NorthStar  Presidio is also reviewing its other  internal  systems and programs,
along with those of its unaffiliated third party service providers,  in order to
ensure compliance.

Because this  assessment is ongoing,  the total cost of bringing all systems and
equipment into Year 2000  compliance has not been fully  quantified.  Based upon
available information, NorthStar Presidio does not believe that these costs will
have a material adverse effect on Registrant's business,  financial condition or
results.  However,  it is possible that there could be adverse  consequences  to
Registrant  as a  result  of Year  2000  issues  that are  outside  Registrant's
control.  NorthStar  Presidio is in the preliminary  stages of evaluating  these
issues and will be developing contingency plans.
<PAGE>
Results of Operations

1998 as compared to  1997

Net income  increased for the year ended December 31, 1998 compared to 1997. The
increase  was  primarily  due to the  recognition  of  recovery  of loan  losses
recorded on the second  mortgage  relating to the  Harborista  Loan and a slight
decrease  in  general  and  administrative  expenses  offset  by the  additional
provisions for loan losses recorded on the second mortgage  relating to the Twin
Oak Loan.

Revenue  increased  slightly  in 1998 as  compared  to the same  period  in 1997
primarily due to an increase in other income.

Costs and expenses decreased for the year ended December 31, 1998 as compared to
the year ended  December 31, 1997.  The decrease was due to the recovery of loan
losses  recorded  on the  Harborista  Loan and a slight  decrease in general and
administrative  expenses,  offset by the provisions for loan losses  recorded in
1998 on the Twin Oak Loan, while no allowance was recorded in 1997.  General and
administrative  expenses  decreased  primarily  due to a  decrease  in legal and
investor relations cost.

1997 as compared to 1996

Net income  decreased  for the year  December  31, 1997  compared  to 1996.  The
decrease  was due to a greater  decrease in revenues  than the decrease in costs
and expenses.

Revenues  decreased  compared  to the same  period  in 1996  primarily  due to a
decrease in mortgage interest income.  Mortgage interest income decreased due to
the  cessation  of the  interest  accrual on the Sierra  Loan.  During the first
quarter of 1997,  High Cash Partners,  L.P. the owner of the Sierra property and
the  borrower  under  the  Sierra  loan  wrote  the  property  down to what  its
management  believed to be its estimated fair market value of  $15,875,000.  The
balance of the Sierra loan at December  31, 1996 was  approximately  $15,979,000
and it was  unlikely  that any  additional  interest  accrued on the Sierra loan
would  ultimately  be  recovered  from  the  value of the  underlying  property.
Consequently, as of January 1, 1997, the Partnership ceased accruing interest on
the Sierra loan.

Costs and expenses  decreased  compared to the year ended December 31, 1996. The
decrease  was due to an allowance  for loan losses  recorded in 1996 on the Twin
Oak loan,  while no allowance  was recorded in 1997,  coupled with a decrease in
general  and  administrative  expenses.   General  and  administrative  expenses
decreased primarily due to a decrease in payroll costs in 1997.

Item 7a.      Quantitative and Qualitative Disclosure About Market Risk

Not applicable
<PAGE>
Item 8.       Financial Statements and Supplementary Data

                   RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.

                              FINANCIAL STATEMENTS

                  YEARS ENDED DECEMBER 31, 1998, 1997, AND 1996


                                      INDEX

<TABLE>
<CAPTION>
                                                                                                       Page
                                                                                                      Number

<S>                                                                                            <C>
Independent Auditor's Report                                                                           F - 1

Financial Statements - Years ended
  December 31, 1998, 1997 and 1996


       Balance sheets                                                                                  F - 2


       Statements of operations                                                                        F - 3


       Statement of partners' equity                                                                   F - 4


       Statements of cash flows                                                                        F - 5


       Notes to financial statements                                                           F - 6 through F - 14
</TABLE>
All financial statement schedules are omitted because they are not applicable or
the required information is shown in the financial statements or notes thereto.
<PAGE>
To the Partners of
Resources Accrued Mortgage Investors 2 L.P.
Greenwich, Connecticut


                          INDEPENDENT AUDITOR'S REPORT

We have audited the  accompanying  balance sheets of Resources  Accrued Mortgage
Investors 2 L.P. (a limited  partnership)  as of December 31, 1998 and 1997, and
the related  statements of operations,  partners' equity and cash flows for each
of the three  years in the period  ended  December  31,  1998.  These  financial
statements  are  the  responsibility  of  the  Partnership's   management.   Our
responsibility  is to express an opinion on these financial  statements based on
our audits.

We  conducted  our  audits  in  accordance  with  generally   accepted  auditing
standards.  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 Resources  Accrued  Mortgage
Investors  2 L.P.  as of  December  31,  1998 and 1997,  and the  results of its
operations  and its cash flows for each of the three  years in the period  ended
December 31, 1998 in conformity with generally accepted accounting principles.




/s/ Hays & Company
------------------
    Hays & Company
February 16, 1999, except for Note 4
  which is dated March 30, 1999
New York, New York

                                      F-1
<PAGE>
                   RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.

                                 BALANCE SHEETS
<TABLE>
<CAPTION>
                                                                                             December 31,
                                                                                    -----------------------------
                                                                                        1998             1997
                                                                                    ------------     ------------
<S>                                                                                 <C>              <C>         
ASSETS
     Investments in mortgage loans (net of allowance
        for loan losses of $11,733,380 and $12,133,380 at
        December 31, 1998 and 1997, respectively)                                   $ 17,016,033     $ 16,616,033
     Cash and cash equivalents                                                         2,992,413        2,908,425
     Other receivables                                                                    10,761           12,582
                                                                                    ------------     ------------

                                                                                    $ 20,019,207     $ 19,537,040
                                                                                    ============     ============
LIABILITIES AND PARTNERS' EQUITY

Liabilities
     Accounts payable and accrued expenses                                              $ 94,992         $ 94,140
                                                                                    ------------     ------------
Commitments and contingencies (Notes 3 and 4)

Partners' equity
     Limited partners' equity (187,919 units issued
        and outstanding)                                                              19,426,135       18,956,853
     General partners' equity                                                            498,080          486,047
                                                                                    ------------     ------------

        Total partners' equity                                                        19,924,215       19,442,900
                                                                                    ------------     ------------

                                                                                    $ 20,019,207     $ 19,537,040
                                                                                    ============     ============
</TABLE>
                                      F-2
<PAGE>
                   RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.

                            STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
                                                                               Year ended December 31,
                                                                     ----------------------------------------------
                                                                       1998               1997              1996
                                                                     ---------          ---------         ---------
<S>                                                                  <C>                <C>               <C>      
Revenues
     Short-term investment interest                                  $ 145,513          $ 145,249         $ 144,945
     Other income                                                       23,375             19,815            29,388
     Interest income on mortgage loans                                      -                  -          1,619,880
                                                                     ---------          ---------         ---------

                                                                       168,888            165,064         1,794,213
                                                                     ---------          ---------         ---------
Costs and expenses
     General and administrative expenses                                87,573             92,382           155,325
     (Recovery of) provision for loan losses, net                     (400,000)                -          1,515,000
                                                                     ---------          ---------         ---------

                                                                      (312,427)            92,382         1,670,325
                                                                     ---------          ---------         ---------

Net income                                                           $ 481,315           $ 72,682         $ 123,888
                                                                     =========          =========         =========

Net income attributable to
     Limited partners                                                $ 469,282          $  70,865         $ 120,791
     General partners                                                   12,033              1,817             3,097
                                                                     ---------          ---------         ---------

                                                                     $ 481,315          $  72,682         $ 123,888
                                                                     =========          =========         =========

Net income per unit of limited partnership
     interest (187,919 units outstanding)                            $    2.50          $     .38         $     .64
                                                                     =========          =========         =========
</TABLE>
                                      F-3
<PAGE>
                   RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.

                          STATEMENT OF PARTNERS' EQUITY

                  YEARS ENDED DECEMBER 31, 1996, 1997 AND 1998


<TABLE>
<CAPTION>
                                                                    General            Limited            Total
                                                                   Partners'          Partners'         Partners'
                                                                    Equity             Equity            Equity
                                                                 ------------       ------------      ------------
<S>                                                              <C>                <C>               <C>         
 Balance, January 1, 1996                                        $    481,133       $ 18,765,197      $ 19,246,330

 Net income - 1996                                                      3,097            120,791           123,888
                                                                 ------------       ------------      ------------

 Balance, December 31, 1996                                           484,230         18,885,988        19,370,218

 Net income - 1997                                                      1,817             70,865            72,682
                                                                 ------------       ------------      ------------

 Balance, December 31, 1997                                           486,047         18,956,853        19,442,900

 Net income - 1998                                                     12,033            469,282           481,315
                                                                 ------------       ------------      ------------

 Balance, December 31, 1998                                      $    498,080       $ 19,426,135      $ 19,924,215
                                                                 ============       ============      ============
</TABLE>

                                      F-4
<PAGE>
                   RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.

                            STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
                                                                      Year ended December 31,
                                                          ---------------------------------------------
                                                              1998             1997            1996
                                                          -----------      -----------      -----------
<S>                                                       <C>              <C>              <C>        
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS

Cash flows from operating activities

     Net income                                           $   481,315      $    72,682      $   123,888

     Adjustments to reconcile net (loss) income to
       net cash provided by operating activities
        (Recovery of) provision for loan losses, net         (400,000)            --          1,515,000
        Non-cash interest earned
            on mortgage loans                                    --               --         (1,619,880)

     Changes in assets and liabilities
        Other receivables                                       1,821             (683)         (11,899)
        Accounts payable and accrued expenses                     852          (36,658)          30,220
                                                          -----------      -----------      -----------

            Net cash provided by operating activities          83,988           35,341           37,329
                                                          -----------      -----------      -----------

Net increase in cash and cash equivalents                      83,988           35,341           37,329

Cash and cash equivalents, beginning of year                2,908,425        2,873,084        2,835,755
                                                          -----------      -----------      -----------

Cash and cash equivalents, end of year                    $ 2,992,413      $ 2,908,425      $ 2,873,084
                                                          ===========      ===========      ===========
                                      F-5
</TABLE>

<PAGE>
                   RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.

                          NOTES TO FINANCIAL STATEMENTS

                  YEARS ENDED DECEMBER 31, 1998, 1997 AND 1996


1      ORGANIZATION

       Resources Accrued Mortgage Investors 2 L.P.  (formerly  Resources Accrued
       Mortgage  Investors  L.P.  - Series  87 and  Resources  Accrued  Mortgage
       Investors  L.P.  -  Series  88),  a  Delaware  limited  partnership  (the
       "Partnership"),  was  formed in August  1986 under the  Delaware  Revised
       Uniform Limited Partnership Law for the purpose of investing primarily in
       senior and junior accrued interest  mortgage loans on properties owned or
       acquired   principally  by  publicly  or  privately   syndicated  limited
       partnerships  sponsored  by  affiliates  of  Integrated  Resources,  Inc.
       ("Integrated"), the former parent of the General Partners.

       The Partnership  originally offered 400,000 units of limited  partnership
       interest (the "Units")  pursuant to the  Prospectus  dated April 12, 1988
       (the  "Prospectus").  Since all gross  proceeds  that were raised had not
       been invested or committed for investment, the Partnership was obligated,
       under the terms of the Prospectus,  to return such uninvested  funds. The
       Partnership  distributed  these  funds  in  the  amount  of  $19,263,445,
       including  interest  of  $857,598,  in August,  1990.  Additionally,  the
       Partnership made a second related distribution of $606,978 on October 30,
       1990.

       In August 1986, the Partnership  admitted  Resources Capital Corp. as the
       Administrative  General  Partner;  RAM  Funding,  Inc. as the  Investment
       General  Partner;  and Z Square G Partners  II as the  Associate  General
       Partner (collectively,  the "General Partners"). In September,  1986, the
       General  Partners made capital  contributions to the Partnership of $960,
       $20, and $20, respectively. The General Partners were originally entitled
       to receive  4.8%,  .1% and .1%,  respectively,  of the Adjusted Cash From
       Operations,  Disposition Proceeds and Allocations of Net Income and Loss,
       each as  defined in the  Prospectus.  The  initial  limited  partner  was
       admitted in August,  1986, and made a capital  contribution of $2,500 for
       ten Units.  In May 1987,  RAM  Funding,  Inc.  purchased  from  Resources
       Capital Corp. its 4.8% general  partner  interest in the  Partnership for
       $960. RAM Funding,  Inc. then became the Managing  General Partner of the
       Partnership.  All of the  undertakings  and  responsibilities  originally
       assumed by Resources  Capital Corp. were assumed by RAM Funding,  Inc. as
       the  Managing  General  Partner.  Integrated,  the parent of the Managing
       General Partner until November 3, 1994, agreed to such changes.

       In December  1987,  RAM Funding,  Inc. and Z Square G Partners II reduced
       their general partner interests from 4.9% and .1%, respectively, to 2.45%
       and .05%,  respectively;  accordingly,  RAM Funding,  Inc. and Z Square G
       Partners II were then entitled to receive  2.45% and .05%,  respectively,
       of Adjusted Cash From Operations, Disposition Proceeds and Allocations of
       Net Income and Loss.  In  addition,  the  Limited  Partners'  interest in
       Adjusted Cash from  Operations,  Disposition  Proceeds and Allocations of
       Net Income and Loss had increased from 95% to 97.5%.
 
                                     F-6
<PAGE>
                   RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.

                          NOTES TO FINANCIAL STATEMENTS

                  YEARS ENDED DECEMBER 31, 1998, 1997 AND 1996

2      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

       Investments in mortgage loans

       The Partnership  principally  invested in "zero coupon" senior and junior
       mortgage  loans on properties  owned or acquired by limited  partnerships
       originally  sponsored by affiliates of the General Partners.  These loans
       generally contain  provisions  whereby the Partnership may be entitled to
       additional  interest  represented by participation in the appreciation of
       the underlying property.

       The Partnership  accounts for its investments in mortgage loans under the
       following methods:

           Investment method

           Mortgage loans representing  transactions in which the Partnership is
           considered to have substantially the same risks and potential rewards
           as the  borrower  are  accounted  for as  investments  in real estate
           rather than as loans.  Although the  transactions  are  structured as
           loans,  due to the  terms  of the  zero  coupon  mortgage,  it is not
           readily  determinable at inception that the borrower will continue to
           maintain a minimum  investment in the property.  Under this method of
           accounting,  the Partnership  will recognize as revenue the lesser of
           the amount of interest as contractually  provided for in the mortgage
           loan,  or its pro rata share of the actual cash flow from  operations
           of the underlying  property  inclusive of  depreciation  and interest
           expense on any senior indebtedness.

           Interest method

           Under this method of accounting,  the Partnership  recognizes revenue
           as  interest  income  over  the  term of the  mortgage  loan so as to
           produce a constant periodic rate of return.  Interest income will not
           be  recognized  as revenue  during  periods  where there are concerns
           about the ultimate realization of the interest or loan principal.

      Allowance for loan losses

      An allowance for loan losses is established  based upon a periodic  review
      of  each  of  the  mortgage  loans  in  the  Partnership's  portfolio.  In
      performing this review,  management considers the estimated net realizable
      value of the mortgage loan or collateral as well as other factors, such as
      the  current  occupancy,  the amount and  status of any senior  debt,  the
      prospects for the property and the economic  situation in the region where
      the property is located.  Because  this  determination  of net  realizable
      value is based  upon  projections  of  future  economic  events  which are
      inherently subjective,  the amounts ultimately realized at disposition may
      differ materially from the carrying value at each year end.
   
                                   F-7
<PAGE>
                   RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.

                          NOTES TO FINANCIAL STATEMENTS

                  YEARS ENDED DECEMBER 31, 1998, 1997 AND 1996

2      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

      The allowance is inherently subjective and is based upon management's best
      estimate of current  conditions  and  assumptions  about  expected  future
      conditions.   The  Partnership  may  provide  for  additional   losses  in
      subsequent periods and such provisions could be material.

      Financial statements

      The  financial  statements  include  only those  assets,  liabilities  and
      results of operations which relate to the business of the Partnership.

      Cash and cash equivalents

      For the purpose of the statements of cash flows, the Partnership considers
      all short-term  investments which have original maturities of three months
      or less to be cash equivalents.

      Substantially all of the Partnership's cash and cash equivalents are  held
      at one financial institution.

      Fair value of financial instruments

      The fair value of  financial  instruments  is  determined  by reference to
      market  data  and  other   valuation   techniques  as   appropriate.   The
      Partnership's  financial instruments include cash and cash equivalents and
      investments in mortgage loans. Unless otherwise disclosed,  the fair value
      of financial instruments approximates their recorded values.

      Net (loss) income per unit of limited partnership interest

      Net (loss)  income per unit of limited  partnership  interest  is computed
      based upon the number of units outstanding (187,919) during the year.

      Income taxes

      No  provisions  have been made for federal,  state and local income taxes,
      since they are the personal responsibility of the partners.

      The income tax returns of the  Partnership  are subject to  examination by
      federal,  state and local  taxing  authorities.  Such  examinations  could
      result in adjustments to  Partnership  income,  which changes could effect
      the income tax liability of the individual partners.

      Estimates

      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 and
      disclosure  of  contingent  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.
                                      F-8
<PAGE>
                   RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.

                          NOTES TO FINANCIAL STATEMENTS

                  YEARS ENDED DECEMBER 31, 1998, 1997 AND 1996

3     CONFLICTS OF INTEREST AND TRANSACTIONS WITH RELATED PARTIES

      The Managing  General Partner of the Partnership,  RAM Funding,  Inc., was
      until November 3, 1994 a wholly-owned  subsidiary of Integrated Resources,
      Inc. ("Integrated").  On November 3, 1994, as a result of the consummation
      of the reorganization plan relating to Integrated's  bankruptcy,  indirect
      ownership  of the  Managing  General  Partner  was  purchased  by Presidio
      Capital Corp. ("Presidio"). As of February 28, 1995, the Associate General
      Partner of the  Partnership  is Presidio  AGP Corp.  ("Presidio  AGP"),  a
      wholly-owned  subsidiary of Presidio,  which  replaced Z Square G Partners
      II, a New York general partnership  comprised of a general partnership and
      individuals  who were  all  former  officers,  directors  and  significant
      shareholders of Integrated. The General Partners and certain affiliates of
      the General  Partners,  are  general  partners  in several  other  limited
      partnerships  which  are also  affiliated  with  Presidio,  and  which are
      engaged  in  businesses  that  are,  or may be in the  future,  in  direct
      competition with the Partnership.

      Subject  to  the  rights  of  the  Limited   Partners  under  the  Limited
      Partnership  Agreement,  Presidio  controls  the  Partnership  through its
      indirect  ownership  of the  General  Partners.  On August  28,  1997,  an
      affiliate of NorthStar Capital Partners acquired all of the Class B shares
      of Presidio. This acquisition, when aggregated with previous acquisitions,
      caused  NorthStar  Capital  Partners  to acquire  indirect  control of the
      General  Partners.   Effective  July  31,  1998,  Presidio  is  indirectly
      controlled by NorthStar Capital Investment Corp. ("NorthStar"), a Maryland
      Corporation.

      Presidio  was also  party to an  Administrative  Services  Agreement  with
      Wexford   Management  LLC  ("Wexford")   pursuant  to  which  Wexford  was
      responsible  for the  day-to-day  management of Presidio and,  among other
      things, had authority to designate directors of the General Partners.

      On  November  2,  1997,  the  Administrative  Services  Agreement  between
      Presidio  and Wexford  expired.  Effective  November 3, 1997,  Wexford and
      Presidio entered into a new Administrative Services Agreement (the "ASA"),
      which expired on May 3, 1998. Under the terms of the ASA, Wexford provided
      consulting  and  administrative  services to Presidio and its  affiliates,
      including the General Partners and the Partnership.  Presidio also entered
      into a management agreement with NorthStar Presidio Management Company LLC
      ("NorthStar  Presidio").  Under  the  terms of the  management  agreement,
      NorthStar Presidio provides the day-to-day  management of Presidio and its
      direct and indirect  subsidiaries  and affiliates.  During the years ended
      December 31, 1998 and 1997, the  Partnership  paid NorthStar  Presidio and
      Wexford an aggregate of $1,000 and $24,153,  respectively,  for management
      and administrative services rendered.

                                      F-9
<PAGE>
                   RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.

                          NOTES TO FINANCIAL STATEMENTS

                  YEARS ENDED DECEMBER 31, 1998, 1997 AND 1996

3     CONFLICTS OF INTEREST AND TRANSACTIONS WITH RELATED PARTIES

      Effective November 3, 1997, the officers and employees of Wexford that had
      served as officers and/or directors of the General Partners tendered their
      resignations.  On the same  date,  The  Board  of  Directors  of  Presidio
      appointed new  individuals  to serve as officers  and/or  directors of the
      General Partners.

      As of December  31, 1998,  an  affiliate  of Presidio has acquired  17,385
      units of limited  partnership  interest  of the  Partnership.  These units
      represent 9.3% of the issued and outstanding limited partnership units.

4      INVESTMENTS IN MORTGAGE LOANS AND ALLOWANCE FOR LOAN LOSSES

      The  Partnership  invested in zero-coupon,  nonrecourse  senior and junior
      mortgage  loans.  Collection  of the  amounts  due  on  the  Partnership's
      mortgage  loans is solely  dependent  upon the sale or  refinancing of the
      underlying  properties at amounts  sufficient to satisfy the Partnership's
      mortgage  notes  after  payment  of the  senior  mortgage  notes  owned by
      unaffiliated third parties.

      Certain of the  Partnership's  mortgage  notes  contain a provision  which
      require the  borrowers to provide  current  appraisals  based upon certain
      conditions or in some cases upon request.

      The Partnership has prepared an internal  valuation for the property owned
      by High Cash Partners,  L.P. ("High Cash"). This loan contains a provision
      which  requires  that  if  the  appraisal   indicates  the  value  of  all
      indebtedness  senior to and including the Partnership's  loan, taking into
      account principal plus accrued interest in excess of 5% per annum, exceeds
      85%  of  the  then  current   appraisal,   the  borrower  must  repay  the
      indebtedness to a point where the 85% loan to value ratio is restored.

      Based upon this  valuation,  management  does not believe that the loan to
      value ratio has been exceeded.

      While there are risks  inherent  in a  zero-coupon  nonrecourse  senior or
      junior  mortgage  loan  portfolio,  the above  described  provisions  were
      intended to provide some mitigation of these risks.  However, in the event
      a borrower is required to make a payment under such loan provisions, there
      can be no assurance that the borrower will be able to make such payments.

      Harborista Loan

      A $10,000,000  second mortgage loan (`the Harborista  Loan") to Harborista
      Associates,  L.P. is secured by an office building,  commonly known as the
      Harbor Plaza,  located in Boston,  Massachusetts (the "Harbor Plaza"). The
      Harborista  Loan was funded on February 13, 1989 and bears interest at the
      rate of 13.307% per annum,  compounded  monthly and was  originally due to
      mature  on  December  1,  1998,  at  which  time  a  balloon   payment  of
      approximately $36,000,000 would have been due and payable. Harbor Plaza is
      also  encumbered  by a first  mortgage  loan  in the  original  amount  of
      $24,475,000    held   by   Northwestern    Mutual   Life   Insurance   Co.
      ("Northwestern").  The first  mortgage  was due to mature on  December  1,
      1995, but was extended until January 1, 1999.
 
                                      F-10
<PAGE>
                   RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.

                          NOTES TO FINANCIAL STATEMENTS

                  YEARS ENDED DECEMBER 31, 1998, 1997 AND 1996

4      INVESTMENTS IN MORTGAGE LOANS AND ALLOWANCE FOR LOAN LOSSES (continued)

      During 1993 management  determined  that interest on the  Harborista  Loan
      should cease to accrue and that an allowance for loan losses was necessary
      for the entire  carrying  value of the  Harborista  Loan which amounted to
      $10,618,380.

      On February 9, 1999,  Northwestern  filed a motion for  foreclosure on its
      mortgage.

      On March 30, 1999,  the  Partnership  sold its interest in the  Harborista
      Loan to an  unaffiliated  third party for gross proceeds of  approximately
      $1,000,000,  exclusive of legal and other costs related to the transaction
      of  approximately  $200,000.  As of December  31,  1998,  the  Partnership
      recorded $800,000 of recovery of loan losses with respect to this sale.

      Twin Oak Loan

      The  Partnership  holds a  $1,200,000  second  mortgage  on the  Twin  Oak
      property.  The  first  mortgage  on  this  property,  which  is held by an
      unaffiliated  third  party,  was due to mature on July 1,  1993.  However,
      during 1993,  the mortgage loan was extended for three years until July 1,
      1996.  For the period  between  July 1996 and October  1997,  the Twin Oak
      borrower continued to make reduced mortgage payments to the first mortgage
      lender in anticipation of a loan extension or modification. During October
      1997, the Twin Oak borrower and its first mortgage  lender formally agreed
      to extend the maturity date of the first  mortgage  until July 1, 1998. In
      order for the Twin Oak borrower to  consummate  this loan  extension,  the
      consent of the Partnership was required. The Partnership agreed to consent
      on the  condition  that the Twin Oak borrower  either  refinance  both the
      first mortgage and the Partnership's mortgage on or before July 1, 1998 or
      give  the  Partnership  a  deed-in-lieu  of  foreclosure  to the  Twin Oak
      property. It was the intention of the general partners of Twin Oak to sell
      the property prior to the July 1, 1998 extended maturity date.

      The  property  was  marketed  for sale and Twin Oak entered  into a formal
      contract of sale ("Contract  #1") with an unaffiliated  third party in May
      of 1998. The purchaser failed to perform on Contract #1 in August of 1998.
      The property was again  marketed for sale.  However,  on July 1, the first
      mortgage  matured  and was not  repaid.  On  October  20,  1998,  a formal
      agreement was executed in which the first mortgage  lender again agreed to
      extend  the  maturity  of the  loan  to July 1,  1999  in  exchange  for a
      modification  to the  interest  rate and payment of an  extension  fee. On
      October 15, 1998, a new  contract  for sale  ("Contract  #2") was executed
      with  Emmes  Ventures  ("Emmes"),  an  affiliate  of  NorthStar,  also  an
      affiliate of the general partners of Twin Oak and the Partnership.

                                      F-11
<PAGE>

                   RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.

                          NOTES TO FINANCIAL STATEMENTS

                  YEARS ENDED DECEMBER 31, 1998, 1997 AND 1996

4      INVESTMENTS IN MORTGAGE LOANS AND ALLOWANCE FOR LOAN LOSSES (continued)

      On March 1,  1999,  the Twin Oak  property  was sold to Emmes  for a gross
      purchase  price  of   approximately   $4,150,000   (subject  to  customary
      adjustments at closing).  The Twin Oak borrower used the proceeds from the
      sale to repay the  first  mortgage  holder  and the  remainder  of the net
      proceeds  are  expected to be used to repay a portion of the Twin Oak loan
      approximating $237,000.

      During the year ended 1996, a provision for loan losses of $1,515,000  was
      recorded on the Twin Oak loan.  A $400,000  allowance  for loan losses was
      recorded  during  1998 to  reduce  the  carrying  value of the loan to the
      estimated amount  anticipated to be received by the Partnership  under the
      terms outlined in Contract #2.

      Sierra Loan

      A  $6,500,000  first  mortgage  loan to High Cash is secured by a shopping
      center located in Reno,  Nevada.  Interest on the loan accrues at the rate
      of 11.22% per annum with no payments  due until  maturity on February  28,
      2001.

      During the first  quarter of 1997,  High Cash wrote the  property  down to
      what its  management  believed to be its  estimated  fair market  value of
      $15,875,000.  Management of the  Partnership  performed its own evaluation
      and determined that this amount was a fair estimate of the property value.
      The outstanding balance of the loan at December 31, 1996 was approximately
      $15,979,000  and it was unlikely that any additional  interest  accrued on
      the  Sierra  loan  would  ultimately  be  recovered  from the value of the
      underlying property.  Consequently,  as of January 1, 1997 the Partnership
      ceased accruing interest on the Sierra loan.

      On June 13, 1997,  the general  partners of High Cash,  who were  formerly
      affiliated with the General Partners, sold their general partner interests
      to Pembroke HCP LLC and Pembroke AGP Corp., unaffiliated third parties.
 
                                    F-12

<PAGE>
4     INVESTMENTS IN MORTGAGE LOANS AND ALLOWANCE FOR LOAN LOSSES (continued)


        Information  with  respect  to  the   Partnership's  mortgage  loans is
summarized as follows: 
<TABLE>
<CAPTION>
                                                                                                       Original       
                              Interest          Compound                               Loan            Maturity       
 Description                    Rate %           Period              Type              Date              Date         
                            --------------    --------------    --------------    --------------    --------------    
<S>                                <C>           <C>                 <C>             <C>               <C>               
Office Building
   Harbor Plaza                     13.307       Monthly             2nd             13-Feb-89          1-Dec-98        
   Boston, Mass (a) (e)

Shopping Centers
   Sierra Marketplace (b)(c)        11.220       Monthly             1st             10-Feb-89         28-Feb-01       
   Reno, Nevada 
   Twin Oak (b)                     12.230       Annually            2nd              3-Apr-90          1-May-02       
   Ft. Lauderdale, Florida
                                                                                                                      
 (continued                                                                                                                     
</TABLE>

        Information  with  respect  to  the   Partnership's   mortgage loans  is
summarized as follows: 
<TABLE>
<CAPTION>
                                                                                          Interest recognized        
                                                                                   --------------------------------  
                                Mortgage          Mortgage          Mortgage                  Year ended             
                                 Amount          Purchased          Placement       December 31,        1997 and     
 Description                    Advanced          Interest            Fees              1998             Prior       
                             --------------    --------------    --------------    --------------    --------------  
<S>                          <C>               <C>               <C>               <C>               <C>             
Office Building
   Harbor Plaza              $   10,000,000    $       23,513    $      594,867    $            -    $            -  
   Boston, Mass (a) (e)

Shopping Centers
   Sierra Marketplace (b)(c) $    6,500,000                 -           385,757                 -         9,093,598  
   Reno, Nevada 
   Twin Oak (b)                   1,200,000                 -            71,218                             880,460  
                             --------------    --------------    --------------    --------------    --------------  
   Ft. Lauderdale, Florida
                             $   17,700,000   $       23,513     $    1,051,842    $            -    $   $9,974,058  
                             ==============   ==============     ==============    ==============    ==============  
(continued)
</TABLE>

<PAGE>
        Information  with  respect  to  the   Partnership's  mortgage  loans  is
summarized as follows: 
<TABLE>
<CAPTION>
                                                                                               (d)
                                                      Carrying value                   Contractual balance
                                              -------------------------------    -------------------------------- 
                                               December 31,     December 31,      December 31,      December 31,
 Description                   Reserves            1998              1997            1998               1997
                            --------------    --------------   --------------    --------------    --------------   
<S>                         <C>               <C>              <C>               <C>               <C>     
Office Building
   Harbor Plaza             $   (9,818,380)   $      800,000  $            -    $   36,985,751    $   32,401,302
   Boston, Mass (a) (e)

Shopping Centers
   Sierra Marketplace (b)(c)             -        15,979,355       15,979,355        19,600,802        17,529,616
   Reno, Nevada 
   Twin Oak (b)                 (1,915,000)          236,678          636,678         3,293,255         2,934,380
                            --------------    --------------   --------------    --------------    --------------   
   Ft. Lauderdale, Florida
                            $  (11,733,380)   $   17,016,033   $   16,616,033    $   59,879,808    $   52,865,298
                            ==============    ==============   ==============    ==============    ==============
</TABLE>

(a) This loan is accounted for under the investment method.

(b) These loans are accounted for under the interest method.
    
(c) The Partnership  may  be entitled to additional interest in the appreciation
    of the property which is subordinated to a specified return to the borrower.
    It is  unlikely  that the Partnership  will realize any additional  interest
    from this loan.

(d) Contractual  balance represents the amount that would be required to be paid
    by the borrower if the loan was liquidated (principal plus accrued  interest
    earned to date).

(e) This mortgage loan was extended until January 1, 1999.

                                      F-13

<PAGE>
                   RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.

                          NOTES TO FINANCIAL STATEMENTS

                  YEARS ENDED DECEMBER 31, 1998, 1997 AND 1996

4      INVESTMENTS IN MORTGAGE LOANS AND ALLOWANCE FOR LOAN LOSSES (continued)
<TABLE>
<CAPTION>
      A summary of mortgage loan activity is as follows:
                                                         Investment       Interest
                                                           Method          Method          Total
                                                       -------------   -------------   -------------
<S>                                                    <C>            <C>             <C>          
         Balance, January 1, 1996                      $         -    $  16,511,153   $  16,511,153
  
         Interest recognized                                     -        1,619,880       1,619,880

         Provision for loan losses                               -       (1,515,000)     (1,515,000)
                                                       -------------   -------------   -------------

         Balance, December 31, 1996                              -       16,616,033      16,616,033

         Interest recognized                                     -               -               -

         Provision for loan losses                               -               -               -
                                                       ------------   -------------   -------------

         Balance, December 31, 1997                              -       16,616,033      16,616,033
  
         Interest recognized                                     -                -               -

         Recovery of (provision for) loan losses            800,000        (400,000)        400,000
                                                       ------------   -------------   -------------
         Balance, December 31, 1998                    $    800,000   $  16,216,033   $  17,016,033
                                                       ============   =============   =============
 </TABLE>
      Unaudited financial information for Harbor Plaza, which is a mortgage loan
      accounted  for  under  the  investment  method  which  exceeds  10% of the
      Partnership's original capital contributions, is not presently available.

5      ACCOUNTS PAYABLE AND ACCRUED EXPENSES
<TABLE>
<CAPTION>
     Accounts payable and accrued expenses consist of the following:
                       
                                              December 31,
                                        ------------------------
                                          1998          1997
                                        ----------    ----------
<S>                                     <C>           <C>       
         Expense reimbursements         $   25,680    $   37,888
         Professional fees                  48,263        39,244
         Printing charges                    9,649        11,204
         Investor services                  11,400         5,804
                                        ----------    ----------
                                        $   94,992    $   94,140
                                        ==========    ==========
</TABLE>
                                      F-14
<PAGE>
                   RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.

                          NOTES TO FINANCIAL STATEMENTS

                  YEARS ENDED DECEMBER 31, 1998, 1997 AND 1996

6     RECONCILIATION  OF   NET  (LOSS)  INCOME  AND  NET  ASSETS  PER  FINANCIAL
      STATEMENTS TO TAX BASIS

      The  Partnership  presently  recognizes  interest  income  on  all  of its
      investments in mortgage loans using the interest  method for tax purposes.
      For financial statement  purposes,  mortgage loans accounted for under the
      investment method recognize income as described in Note 2.

      A reconciliation of net (loss) income per financial  statements to the tax
      basis of accounting is as follows:
<PAGE>
<TABLE>
<CAPTION>
                                                             Year ended December 31
                                                 --------------------------------------------
                                                     1998             1997            1996
                                                 -----------      -----------     -----------
<S>                                              <C>              <C>             <C>        
Net income per financial
statements                                       $   481,315      $    72,682     $   123,888

Interest income recognized for tax
purposes in excess of amounts
recognized for financial statements                6,383,499        5,974,947       3,682,033

(Recovery of) provision for loan losses, net        (400,000)            --         1,515,000
                                                 -----------      -----------     -----------

Net income per tax basis                         $ 6,464,814      $ 6,047,629     $ 5,320,921
                                                 ===========      ===========     ===========
</TABLE>

  The  differences  between  the  Partnership's  net  assets  per  financial
      statements and tax basis of accounting are as follows:
<TABLE>
<CAPTION>
                                                                            December 31
                                                                 -----------------------------------
                                                                       1998                1997
                                                                 ---------------     ---------------
<S>                                                              <C>                 <C>            
Net assets per financial statements                              $    19,924,215     $    19,442,900

Interest income recognized for tax purposes
  in excess of amounts recognized for financial
  statements                                                          30,960,559          24,577,060

Allowance for loan losses                                             11,733,380          12,133,380

Syndication costs                                                      2,230,944           2,230,944
                                                                 ---------------     ---------------

Net assets per tax basis                                         $    64,849,098     $    58,384,284
                                                                 ===============     ===============
</TABLE>
                                      F-15
<PAGE>

Item 9.       Changes in and  Disagreements  with  Accountants on Accounting and
              Financial Disclosure.

None.
<PAGE>
PART III

Item 10.      Directors and Executive Officers of Registrant.

There are no officers or directors of Registrant.  The Managing  General Partner
has overall  administrative  responsibility for Registrant's  operations and for
the selection,  evaluation,  negotiation and disposition of Mortgage Loans.  The
Associate  General  Partner will not devote any material  amount of its business
time and attention to the affairs of Registrant. The Managing General Partner is
a  wholly-owned  subsidiary  of  Presidio  and was  incorporated  in Delaware in
September  1985.  The Managing  General  Partner  also serves as the  investment
general partner of Resources  Accrued Mortgage  Investor L.P. -- Series 86 ("RAM
86"), an indirect subsidiary of Presidio.

Based  on a  review  of  Forms  3 and  4 and  amendments  thereto  furnished  to
Registrant  pursuant to Rule 16a-3(e) under the Securities Exchange Act of 1934,
as amended (the "Exchange Act"),  during its most recent fiscal year and Forms 5
and amendments  thereto  furnished to Registrant with respect to its most recent
fiscal year and written  representations  received pursuant to Item 405(b)(2)(i)
of Regulation S-K, none of the directors or officers of the General Partners, or
beneficial owners of more than 10% of the Units failed to file on a timely basis
reports  required by Section  16(a) of the  Exchange  Act during the most recent
fiscal or prior fiscal years. However, no written  representations were received
from the partners of the former Associate General Partner.

As of March 1, 1999 the names and ages of, as well as the positions held by, the
officers and  directors of the Managing and Associate  General  Partners were as
follows:
<PAGE>
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
         Name                Age       Position Held                               Has served as a
                                                                                   Director and/or
                                                                                    Officer of the
                                                                                   Managing General
                                                                                    Partner since
-------------------------------------------------------------------------------------------------------
<S>                           <C>      <C>                                      <C> 
W. Edward Scheetz             34       Director                                 November 1997
-------------------------------------------------------------------------------------------------------
David Hamamoto                39       Director                                 November 1997
-------------------------------------------------------------------------------------------------------
Dallas E. Lucas               36       Director                                 August 1998
-------------------------------------------------------------------------------------------------------
David King                    36       Executive Vice President and Assistant   November 1997
                                       Treasurer, Director
-------------------------------------------------------------------------------------------------------
Lawrence R. Schachter         42       Senior Vice President and Chief          January 1998
                                       Financial Officer
-------------------------------------------------------------------------------------------------------
J. Peter Paganelli            40       Senior Vice President, Secretary and     March 1998
                                       Treasurer
-------------------------------------------------------------------------------------------------------
Allan B. Rothschild           37       President and Director                   December 1997
-------------------------------------------------------------------------------------------------------
Marc Gordon                   34       Vice President                           November 1997
-------------------------------------------------------------------------------------------------------
Charles Humber                25       Vice President                           November 1997
-------------------------------------------------------------------------------------------------------
Adam Anhang                   25       Vice President                           November 1997
-------------------------------------------------------------------------------------------------------
Gregory Peck                  24       Assistant Secretary                      November 1997
-------------------------------------------------------------------------------------------------------
</TABLE>
There are no family  relationships  between or among any of the directors and/or
executive officers of the General Partner.

W. Edward Scheetz co-founded  NorthStar Capital Partners LLC with David Hamamoto
in July 1997,  From 1993 through 1997,  Mr. Scheetz was a partner at Apollo Real
Estate  Advisors  L.P.  From 1989 to 1993,  Mr.  Scheetz  was a  principal  with
Trammell Crow Ventures.

David Hamamoto co-founded  NorthStar Capital Partners LLC with W. Edward Scheetz
in July 1997.  From 1988 to 1997, Mr Hamamoto was a partner and a co-head of the
real estate principal investment area at Goldman, Sachs & Co.

Dallas E. Lucas joined Northstar  Capital Partners LLC in August 1998. From 1994
until then he was the Chief  Financial  Officer of Crescent Real Estate Equities
Company.  Prior to that he was a financial  consulting  and audit manager in the
real estate services group of Arthur Anderson LLP.

David King joined NorthStar  Capital Partners LLC in November 1997. From 1990 to
1997, Mr. King was associated  with Olympia & York Companies (USA) where he held
the  position of Senior Vice  President  of Finance.  Prior to that Mr. King was
employed with Bankers Trust in its real estate finance group.
<PAGE>
Lawrence R.  Schachter  joined  NorthStar  Presidio in January 1998 From 1996 to
1998, Mr. Schachter was Controller at CB Commercial/Hampshire  LLC. From 1995 to
1996, Mr.  Schachter was Controller at Goodrich  Associates.  From 1992 to 1995,
Mr. Schachter was Controller at Greenthal/Harlan Realty Services Co.

J. Peter Paganelli  joined  NorthStar  Presido in March 1998. From 1997 to 1998,
Mr. Paganelli was Director of Asset Management at Argent Ventures LLC, a private
real estate  company.  From 1994 to 1997, Mr.  Paganelli was a Vice President at
Starwood Capital Group, LLC in its Asset  Management  Group.  From 1986 to 1994,
Mr.  Paganelli  was an Associate  Director at Cushman &  Wakefield,  Inc. in its
Financial Services and Asset Services Groups.

Allan B.  Rothschild  joined  NorthStar  Presidio in December 1997. From 1995 to
1997, Mr.  Rothschild  was Senior Vice President and General  Counsel of Newkirk
Limited  Partnership.  From 1987 to 1995, Mr. Rothschild was associated with the
law firm of Proskauer, Rose LLP in its real estate group.

Marc Gordon joined NorthStar  Capital Partners LLC in October 1997. From 1993 to
1997, Mr. Gordon was Vice President in the real estate investment  banking group
at Merrill Lynch.  Prior to that, Mr. Gordon was associated with the law firm of
Irell & Manella in its real estate and banking group.

Charles Humber joined  NorthStar  Capital  Partners LLC in September  1997. From
1996 to 1997,  Mr Humber was  employed  with  Merrill  Lynch in its real  estate
investment  banking  group.  Prior to that,  Mr.  Humber  was a student at Brown
University.

Adam Anhang joined  NorthStar  Capital Partners LLC in August 1997. From 1996 to
1997,  Mr.  Anhang was  employed  by The Athena  Group as part of its Russia and
former Soviet Union development team. Prior to that, Mr. Anhang was a student at
the Wharton School of the University of Pennsylvania.

Gregory Peck joined  NorthStar  Capital  Partners LLC in July 1997. From 1996 to
1997,  Mr. Peck was employed by Morgan  Stanley as part of Morgan Stanley Realty
Real Estate Funds (MSREF) and Morgan  Stanley's Real Estate  Investment  Banking
Group.  From 1994 to 1996,  Mr. Peck  worked for Lazard  Freres & Co. LLC in the
Real Estate Investment Banking Group.

Many of the above  officers and  directors of the Managing  General  Partner and
Associate  General  Partner are also  officers  and/or  directors of the general
partners of other public  partnerships  affiliated  with  Presidio or of various
subsidiaries of Presidio.


Item 11.      Executive Compensation.

Registrant is not required to and did not pay  remuneration  to the officers and
directors of the Managing  General Partner or the general partners of the former
Associate  General  Partner.  Certain  officers  and  directors  of the Managing
General Partner  receive  compensation  from affiliates of the Managing  General
Partner and/or its affiliates (but not from  Registrant) for services  performed
for various  affiliated  entities,  which may  include  services  performed  for
Registrant; however, the Managing General Partner believes that any compensation
attributable to services performed for Registrant is not material.  See Item 13,
"Certain Relationships and Related Transactions."
<PAGE>

Item 12.      Security Ownership of Certain Beneficial Owners and Management.

As of March 1, 1999, only the following entity was known by Registrant to be the
beneficial owner of more than 5% of the Units of Registrant.
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------
                                                   Number of Units             Percentage of Units
Limited Partner                                          Owned                     Outstanding
------------------------------------------------------------------------------------------------------
<S>                                                       <C>                         <C> 
Presidio Partnership II Corp.                             17,385                      9.3%
411 West Putnam Avenue
Greenwich, CT 06830
------------------------------------------------------------------------------------------------------
</TABLE>
As of March 1,  1999,  neither  the  General  Partners  nor their  officers  and
directors  was  known by  Registrant  to  beneficially  own  Units or  shares of
Presidio, the parent of the General Partners.

To the knowledge of the Registrant, the following sets forth certain information
regarding  ownership  of the  Class A shares  of  Presidio  as of March 1,  1999
(except as otherwise  noted) by: (i) each person or entity who owns of record or
beneficially five percent or more of the Class A shares,  (ii) each director and
executive officer of Presidio, and (iii) all directors and executive officers of
Presidio as a group. To the knowledge of Presidio, each of such shareholders has
sole voting and investment power as to the shares shown unless otherwise noted.

All  outstanding  shares of Presidio  are owned by Presidio  Capital  Investment
Company,  LLC ("PCIC"),  a Delaware limited liability company.  The interests in
PCIC (and beneficial ownership in Presidio) are held as follows:
<TABLE>
<CAPTION>

                                                            Percentage Ownership in PCIC
                                                              and Percentage Beneficial
                                                                      Ownership
    Name of Beneficial Owner                                         In Presidio
    ------------------------                                         -----------
<S>                                                                      <C>   
    Five Percent Holders:
    NorthStar Presidio Capital Holding Corp. (1)                         71.93%
    AG Presidio Investors, LLC (2)                                       14.12%
    DK Presidio Investors, LLC (3)                                        8.45%
    Stonehill Partners, L.P. (4)                                          5.50%
</TABLE>
<PAGE>
    The  holdings of the  directors  and  executive  officers of Presidio are as
    follows:
<TABLE>
<CAPTION>
                                                            Percentage Ownership in PCIC
                                                              and Percentage Beneficial
                                                                      Ownership
    Name of Beneficial Owner                                         In Presidio
    ------------------------                                         -----------
    Directors and Officers:
    -----------------------
<S>                                                                   <C>   

    Adam Anhang (5)                                                       0%
    Marc Gordon (5)                                                       0%
    David Hamamoto (5)                                                71.93%
    Charles Humber (5)                                                    0%
    David King (5)                                                        0%
    Gregory Peck (5)                                                      0%
    Dallas Lucas (5)                                                      0%
    Allan Rothschild (5)                                                  0%
    J. Peter Paganelli (5)                                                0%
    Lawrence Schachter (5)                                                0%
    W. Edward Scheetz (5)                                             71.93%

    Directors and Officers as a group:                                71.93%
    ----------------------------------
</TABLE>

(1)      NorthStar  Presidio Capital Holding Corp. ("NS Presidio") is a Delaware
         corporation  whose address is c/o NorthStar  Capital  Investment Corp.,
         527 Madison Avenue,  16th Floor,  New York, New York 10022. NS Presidio
         has three  shareholders:  (i) NorthStar  Partnership,  L.P., a Delaware
         limited  partnership whose address is c/o NorthStar Capital  Investment
         Corp., 527 Madison Avenue,  16th Floor, New York, New York 10022, holds
         99% of the common Stock (non-voting); (ii) David T. Hamamoto holds 0.5%
         of the common stock (voting); and (iii) W. Edward Scheetz holds 0.5% of
         the common stock (voting).

(2)      Each of Angelo,  Gordon & Co.,  L.P.,  as sole  manager of AG  Presidio
         Investors,  LLC and John M.  Angelo and Michael L.  Gordon,  as general
         partners of the general  partner of Angelo,  Gordon & Co., L.P., may be
         deemed to  beneficially  own for purposes of Rule 13d-3 of the Exchange
         Act the securities  beneficially owned by AG Presidio  Investors,  LLC.
         Each of John M. Angelo and Michael L. Gordon  disclaims such beneficial
         ownership.  The business address for such persons is c/o Angelo, Gordon
         & Co., L.P., 245 Park Avenue, 26th Floor, New York, New York 10167.

(3)      M.H. Davidson & Company, as sole manager of DK Presidio Investors, LLC,
         may be deemed to  beneficially  own for  purposes  of Rule 13d-3 of the
         Exchange  Act  the  securities   beneficially   owned  by  DK  Presidio
         Investors,  LLC.  The  business  address  for such  persons is c/o M.H.
         Davidson & Company, 885 Third Avenue, New York, New York 10022.
<PAGE>
(4)      Includes  shares  of PCIC  beneficially  owned  by  Stonehill  Offshore
         Partners  Limited and Stonehill  Institutional  Partners,  L.P. John A.
         Motulsky is a managing general partner of Stonehill  Partners,  L.P., a
         managing  member  of  the  investment  advisor  to  Stonehill  Offshore
         Partners  Limited  and a general  partner  of  Stonehill  Institutional
         Partners,  L.P. John A. Motulsky disclaims  beneficial ownership of the
         shares held by these entities. The business address for such persons is
         c/o Stonehill Investment  Corporation,  110 East 59th Street, New York,
         New York 10022.

(5)      The business address for such person is 527 Madison Avenue, 16th Floor,
         New York, New York 10022.

Item 13.      Certain Relationships and Related Transactions.

The General Partners,  during  Registrant's year ended December 31, 1998, earned
or  received  compensation  or payments  for  services  from or with  respect to
Registrant (or Integrated or Presidio) as follows:
<TABLE>
<CAPTION>

---------------------------------------------------------------------------------------------------
                                     Capacity in Which Served or Services
       Name of Recipient                          Performed                       Compensation
---------------------------------------------------------------------------------------------------
<S>                              <C>                                                   <C>
RAM Funding, Inc.                Managing General Partner                              (1)
---------------------------------------------------------------------------------------------------
Presidio AGP Corp.               Associate General Partner                             (1)
---------------------------------------------------------------------------------------------------
</TABLE>

(1)      The General Partners were not entitled to any payment for services from
         or with respect to  Registrant,  Integrated or Presidio.  However,  the
         General Partners,  pursuant to the Partnership Agreement,  are entitled
         to receive 2.5% of Registrant's income, loss, capital and distributions
         (2.45%  to the  Managing  General  Partner  and  .05% to the  Associate
         General Partner)  including without  limitation  Registrant's cash flow
         from operations and disposition proceeds. No distributions are expected
         to be made from  operations  inasmuch as all interest and principal due
         on the  Mortgage  Loans is deferred  until  maturity,  unless there are
         prepayments  of Mortgage  Loans.  For the year ended December 31, 1998,
         the General Partners were allocated an aggregate of $161,620 of taxable
         income  ($158,388  to the  Managing  General  Partner and $3,232 to the
         Associate General Partner).

In addition,  certain  officers and  directors of the General  Partners  receive
compensation  from the General  Partners  and/or their  affiliates (but not from
Registrant) for services  performed for various affiliated  entities,  which may
include services performed for Registrant.
<PAGE>
PART IV

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

(a)(1)   Financial Statements
         See Item 8, "Financial Statements and Supplementary Data."


(a)(2)   Financial Statement Schedules
         None.

         All  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 filed August 14, 1986 (incorporated
         by reference to Exhibit 3B as filed as part of Pre-Effective  Amendment
         No.  1  filed  on  May  14,  1987  ("Pre-Effective  Amendment")  to the
         Registration  Statement)  and  Amendments  to  Certificate  of  Limited
         Partnership  filed on March  12,  1987,  May 7, 1987  (incorporated  by
         reference  as  filed  as  part  of   Pre-Effective   Amendment  to  the
         Registration Statement) and February 5, 1988 (incorporated by reference
         to Post-Effective Amendment No. 2 to the Registration Statement).

4.

(A)      Amended and Restated Agreement of Limited Partnership  (incorporated by
         reference  to Exhibit 3A as filed as part of  Post-Effective  Amendment
         No. 2 filed on March 23, 1988 ("Post-Effective Amendment No. 2") to the
         Registration Statement).

(B)      Amendment No. 1 to Amended and Restated Partnership  Agreement dated as
         of June 1, 1988,  incorporated by reference to Exhibit 4(B) of the 1988
         10-K.

(C)      Amendment  No.  2  to  Amended  and  Restated   Partnership   Agreement
         (incorporated by reference to Supplement No. 1 dated August 12, 1988 to
         the Prospectus as filed pursuant to Rules 424(b)(3) and 424(c).

10.

(A)      Agreement with Associate General Partner dated as of May 17, 1988 among
         Integrated,  RAM Funding, Inc. and Z Square G Partners II, incorporated
         by reference to Exhibit 10(B) of the 1988 10-K.

(B)      Mortgage  Services  Agreement  dated  as  of  April  12,  1988  between
         Registrant and RAM Funding, Inc.,  incorporated by reference to Exhibit
         10(C) of the 1988 10-K.

(C)      Deed of  Trust,  Assignment  of  Rents,  Fixture  Filing  and  Security
         Agreement among High Cash Partners,  L.P.,  Truster;  First  Commercial
         Title,  Inc.,  Trustee and Resources Accrued Mortgage Investors 2 L.P.,
         Beneficiary,  dated  February  10, 1989  (incorporated  by reference to
         Exhibit 10(a) of Registrant's Current Report on Form 8-K dated February
         13, 1989 (hereinafter referred to as the February 13, 1989 Form 8-K)).
<PAGE>
(D)      Registered  Note among High Cash Partners  L.P. and  Resources  Accrued
         Mortgage  Investors 2 L.P.,  dated February 10, 1989  (incorporated  by
         reference to Exhibit 10(b) of the February 13, 1989 Form 8-K).

(E)      Assignment  of Leases  and Rents  among  High Cash  Partners  L.P.  and
         Resources  Accrued  Mortgage  Investors 2 L.P., dated February 10, 1989
         (incorporated  by reference  to Exhibit  10(c) of the February 13, 1989
         Form 8-K).

(F)      Power of Sale  Mortgage,  Assignment  of Rents and  Security  Agreement
         (also  constituting a financing  statement) from Harborista  Associates
         Limited Partnership Mortgagor,  to Resources Accrued Mortgage Investors
         2 L.P. Mortgagee,  dated January 31, 1989 (incorporated by reference to
         Exhibit 10(d) of the February 13, 1989 Form 8-K).

(G)      Note among  Harborista  Associates  Limited  Partnership  and Resources
         Accrued Mortgage  Investors 2 L.P. dated January 31, 1989 (incorporated
         by reference to Exhibit 10(e) of the February 13, 1989 Form 8-K).

(H)      Assignment  of Leases  and Rents  from  Harborista  Associates  Limited
         Partnership  Assigns to Resources  Accrued  Mortgage  Investors 2 L.P.,
         Assignee,  dated January 31, 1989 (incorporated by reference to Exhibit
         10(f) of the February 13, 1989 Form 8-K).

(I)      Mortgage,  Assignment of Rents and Security Agreement dated as of April
         1, 1990 between Twin Oak Plaza  Associates,  L.P. and Resources Accrued
         Mortgage  Investors 2 L.P.  (incorporated by reference to Exhibit 10(A)
         of the April 3, 1990 Form 8-K).

(J)      Note as of April 3, 1990  between Twin Oak Plaza  Associates,  L.P. and
         Resources Accrued Mortgage Investors 2 L.P.  (incorporated by reference
         to Exhibit 10(B) of the April 3, 1990 Form 8-K).

(K)      Loan  Commitment  dated as of April  11,  1990  between  Twin Oak Plaza
         Associates,  L.P.  and  Resources  Accrued  Mortgage  Investors  2 L.P.
         (incorporated  by reference to Exhibit  10(D) of the April 3, 1990 Form
         8-K).

(L)      Amendment to Agreement dated as of June 20, 1990 among Registrant,  the
         Managing   General   Partner  and   Rosenberg   and   Rosenberg,   Ltd.
         (incorporated  by reference  to Exhibit  10(O) to  Registrant's  Annual
         Report on Form 10-K for the fiscal year ended December 31, 1990.)

(M)      Amended and Restated  Intercreditor  Agreement between The Northwestern
         Mutual Life Insuance  Company and  Registrant,  dated as of November 1,
         1994.

(N)      Amendment of Mortgage, Note and Other Loan Documents between Harborista
         Associates Limited Partnership and Registrant,  dated as of November 1,
         1994.


(b)      Reports on Form 8-K
         None.
<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, on the 13th day of April 1999.

RESOURCES ACCRUED MORTGAGE
INVESTORS 2 L.P.


By:     RAM FUNDING, INC.,
        Managing General Partner                 
                                                                      Date
                                                                      ----

By:     /s/ Allan B. Rothschild                                   April 13, 1999
        --------------------------------
        Allan B. Rothschild
        President

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following  persons on behalf of  Registrant  and in
their  capacities  as directors  and/or  officers  (with respect to the Managing
General Partner) and on the dates indicated.

       Signature                 Title                                Date
       ---------                 -----                                ----


/s/ Dallas Lucas             Director                             April 13, 1999
-------------------------    
Dallas Lucas

/s/ Lawrence R. Schachter    Senior Vice President,               April 13, 1999
-------------------------    (Principal Financial Officer     
Lawrence R. Schachter        and Principal Accounting Officer)
                             

/s/ Allan B. Rothschild      Director and President               April 13, 1999
-------------------------
Allan B. Rothschild

/s/ David King               Director, Executive Vice President   April 13, 1999
-------------------------    and Assistant Treasurer
David King                   

<PAGE>
                                  EXHIBIT INDEX
Exhibit                                                                         

3.       Certificate of Limited  Partnership filed August 14, 1986 (incorporated
         by reference to Exhibit 3B as filed as part of Pre-Effective  Amendment
         No.  1  filed  on  May  14,  1987  ("Pre-Effective  Amendment")  to the
         Registration  Statement)  and  Amendments  to  Certificate  of  Limited
         Partnership  filed on March  12,  1987,  May 7, 1987  (incorporated  by
         reference  as  filed  as  part  of   Pre-Effective   Amendment  to  the
         Registration Statement) and February 5, 1988 (incorporated by reference
         to Post-Effective Amendment No. 2 to the Registration Statement).

4.

(A)      Amended and Restated Agreement of Limited Partnership  (incorporated by
         reference  to Exhibit 3A as filed as part of  Post-Effective  Amendment
         No. 2 filed on March 23, 1988 ("Post-Effective Amendment No. 2") to the
         Registration Statement).

(B)      Amendment No. 1 to Amended and Restated Partnership  Agreement dated as
         of June 1, 1988,  incorporated by reference to Exhibit 4(B) of the 1988
         10-K.

(C)      Amendment  No.  2  to  Amended  and  Restated   Partnership   Agreement
         (incorporated by reference to Supplement No. 1 dated August 12, 1988 to
         the Prospectus as filed pursuant to Rules 424(b)(3) and 424(c).

10.

(A)      Agreement with Associate General Partner dated as of May 17, 1988 among
         Integrated,  RAM Funding, Inc. and Z Square G Partners II, incorporated
         by reference to Exhibit 10(B) of the 1988 10-K.

(B)      Mortgage  Services  Agreement  dated  as  of  April  12,  1988  between
         Registrant and RAM Funding, Inc.,  incorporated by reference to Exhibit
         10(C) of the 1988 10-K.

(C)      Deed of  Trust,  Assignment  of  Rents,  Fixture  Filing  and  Security
         Agreement among High Cash Partners,  L.P.,  Truster;  First  Commercial
         Title,  Inc.,  Trustee and Resources Accrued Mortgage Investors 2 L.P.,
         Beneficiary,  dated  February  10, 1989  (incorporated  by reference to
         Exhibit 10(a) of Registrant's Current Report on Form 8-K dated February
         13, 1989 (hereinafter referred to as the February 13, 1989 Form 8-K)).

(D)      Registered  Note among High Cash Partners  L.P. and  Resources  Accrued
         Mortgage  Investors 2 L.P.,  dated February 10, 1989  (incorporated  by
         reference to Exhibit 10(b) of the February 13, 1989 Form 8-K).

(E)      Assignment  of Leases  and Rents  among  High Cash  Partners  L.P.  and
         Resources  Accrued  Mortgage  Investors 2 L.P., dated February 10, 1989
         (incorporated  by reference  to Exhibit  10(c) of the February 13, 1989
         Form 8-K).

(F)      Power of Sale  Mortgage,  Assignment  of Rents and  Security  Agreement
         (also  constituting a financing  statement) from Harborista  Associates
         Limited Partnership Mortgagor,  to Resources Accrued Mortgage Investors
         2 L.P. Mortgagee,  dated January 31, 1989 (incorporated by reference to
         Exhibit 10(d) of the February 13, 1989 Form 8-K).
<PAGE>
(G)      Note among  Harborista  Associates  Limited  Partnership  and Resources
         Accrued Mortgage  Investors 2 L.P. dated January 31, 1989 (incorporated
         by reference to Exhibit 10(e) of the February 13, 1989 Form 8-K).

(H)      Assignment  of Leases  and Rents  from  Harborista  Associates  Limited
         Partnership  Assigns to Resources  Accrued  Mortgage  Investors 2 L.P.,
         Assignee,  dated January 31, 1989 (incorporated by reference to Exhibit
         10(f) of the February 13, 1989 Form 8-K).

(I)      Mortgage,  Assignment of Rents and Security Agreement dated as of April
         1, 1990 between Twin Oak Plaza  Associates,  L.P. and Resources Accrued
         Mortgage  Investors 2 L.P.  (incorporated by reference to Exhibit 10(A)
         of the April 3, 1990 Form 8-K).

(J)      Note as of April 3, 1990  between Twin Oak Plaza  Associates,  L.P. and
         Resources Accrued Mortgage Investors 2 L.P.  (incorporated by reference
         to Exhibit 10(B) of the April 3, 1990 Form 8-K).

(K)      Loan  Commitment  dated as of April  11,  1990  between  Twin Oak Plaza
         Associates,  L.P.  and  Resources  Accrued  Mortgage  Investors  2 L.P.
         (incorporated  by reference to Exhibit  10(D) of the April 3, 1990 Form
         8-K).

(L)      Amendment to Agreement dated as of June 20, 1990 among Registrant,  the
         Managing   General   Partner  and   Rosenberg   and   Rosenberg,   Ltd.
         (incorporated  by reference  to Exhibit  10(O) to  Registrant's  Annual
         Report on Form 10-K for the fiscal year ended December 31, 1990.)

(M)      Amended and Restated  Intercreditor  Agreement between The Northwestern
         Mutual Life Insuance  Company and  Registrant,  dated as of November 1,
         1994.

(N)      Amendment of Mortgage, Note and Other Loan Documents between Harborista
         Associates Limited Partnership and Registrant,  dated as of November 1,
         1994.


*        Filed herewith