content: SECURITIES AND EXCHANGE COMMISSION
  
                                Washington, DC 20549
                                    -------------
  
                                      FORM 8-K
  
                                   CURRENT REPORT
                       PURSUANT TO SECTION 13 OR 15(D) OF THE
                           SECURITIES EXCHANGE ACT OF 1934
  
  Date of Report (Date of earliest event reported) August 17, 2000.
  
                        Wilshire Real Estate Investment Inc.
                 (Exact Name of Registrant as Specified in Charter)
  
  
           Maryland                   0-23911                    52-2081138
      (State or Other               (Commission                (IRS Employer
       Jurisdiction                 File Number)             Identification No.)
      of Incorporation)
  
  1631 SW Columbia Street, Portland, OR 97201
  (Address of principal executive offices)  (Zip Code)
  
  Registrant's telephone number, including area code (503) 721-6500
  
  
  <PAGE>
  
  
  Item 5.  Other Events.
  
       On August 28, 2000, Wilshire Real Estate Investment Inc. (the "Company")
  announced that the Company, on behalf of itself and all of its subsidiaries and
  affiliates, Andrew A. Wiederhorn and Lawrence A. Mendelsohn entered into
  settlement agreements, dated as of August 17, 2000, with Wilshire Financial
  Services Group ("WFSG"), on behalf of all of its subsidiaries and affiliates
  other than First Bank of Beverly Hills, F.S.B, (the "Agreement") pursuant to
  which all disputes among the parties have been settled, including those related
  to WFSG's termination of Andrew A. Wiederhorn and Lawrence A. Mendelsohn (the
  "Settlement"). The settlement agreements contain provisions, which provide that,
  except as required for compliance with laws or government requests, the terms of
  the Settlement shall remain confidential.
  
       As of June 30, 2000, the Company had a reserve for disputes with WFSG of
  $2.5 million (which was originally established in September 1999). Based upon
  the terms of the Settlement, the Company believes that this reserve will be
  sufficient and that the Settlement will not have a negative impact on the
  Company's earnings for the third quarter of 2000.
  
       The Company had been engaged in an ongoing dispute with WFSG relating to
  the termination of the extensive contractual and other relationships, which
  formerly existed between the companies. On August 20, 1999, the Company filed a
  lawsuit (the "Lawsuit") against WFSG in the Circuit Court of the State of Oregon
  for Multnomah County and on August 23, 1999, the Company filed an amended
  complaint in the lawsuit adding as additional defendants Wilshire Realty
  Services Corporation ("WRSC"), a wholly-owned subsidiary of WFSG, Wilshire
  Credit Corporation ("WCC"), a 50.01% subsidiary of WFSG, and Wilshire Management
  Leasing Corporation ("WML"), a wholly-owned subsidiary of WFSG alleging: (1)
  WFSG's termination of Messrs. Wiederhorn and Mendelsohn made WFSG and WRSC
  unable and/or unwilling to provide management to the Company as required under
  the management agreement between the Company and WRSC (the "Management
  Agreement"); (2) the inability of WFSG and WRSC to manage the Company's business
  affairs triggered application of a facilities sharing agreement dated February
  19, 1999 among the Company, WFSG, WRSC, WCC, and WML (the "Facilities Sharing
  Agreement"); and (3) WFSG's refusal to allow Messrs. Wiederhorn and Mendelsohn
  access to WFSG's facilities, personnel, and equipment for the Company's business
  violated the terms of the Facilities Sharing Agreement.
  
       On September 22, 1999, WFSG and WRSC filed papers in the above litigation
  alleging various affirmative defenses and counterclaims, including allegations
  that the Facilities Sharing Agreement was not in effect and was unenforceable,
  and that the Company breached the Management Agreement, obligating the Company
  to pay a termination fee.
  
       The Company, on behalf of itself and all of its subsidiaries and
  affiliates, Andrew A. Wiederhorn, and Lawrence A. Mendelsohn entered into a
  partial settlement agreement dated as of December 10, 1999 with WFSG, on behalf
  of all of its subsidiaries and affiliates other than First Bank of Beverly
  Hills, F.S.B., (the "Partial Settlement Agreement"). Under the terms of the
  Partial Settlement Agreement, the Company repurchased 992,687 shares of its
  common stock (the "Shares"), representing approximately 8.7% of shares
  outstanding, in a non-cash transaction from WFSG. The Shares, as well as
  1,112,500 of options and cumulative dividends payable on the Shares, were
  received in exchange for a reduction in the amount of a pay-in-kind ("PIK") note
  owed by WFSG to the Company. The Shares and options represented WFSG's entire
  ownership interest in the Company.
  
       On February 18, 2000, after the Company received permission from the court
  to do so, the Company filed a second amended complaint which added claims
  against WFSG and its affiliated companies as follows: claims for declaratory
  relief that WFSG is entitled to no termination fee under the Management
  Agreement; seeking an accounting from WCC regarding the use of funds from
  lockbox accounts used to service assets which the Company owns or in which the
  Company has a beneficial interest; declaring the Company's entitlement to use
  prepaid service fees for the servicing of assets serviced under pooling and
  servicing agreements; and declaring WFSG to be in default of its
  Debtor-in-Possession ("DIP") loan agreement with the
  
  
  <PAGE>
  
  Company and declaring that the balance of $5.0 million is immediately due and
  payable.
  
       On March 2, 2000, WFSG filed an answer disputing each of the counterclaims
  added by the second amended complaint and realleging the counterclaims included
  in WFSG's original answer and counterclaim.
  
       As part of the Settlement, the Company and WFSG agreed to dismiss with
  prejudice, and without costs or attorney fees to any party, their claims,
  including counterclaims, in the Lawsuit and WFSG agreed that the termination of
  Messrs. Wiederhorn and Mendelsohn was without cause.
  
  
  Item 7.  Financial Statements, Pro Forma Financial Information and Exhibits.
  
  (c)  Exhibits
  
       The following exhibits are filed as part of this report:
  
          99.1     Press Release, dated as of August 28, 2000.
  
  
  <PAGE>
  
  
  
                                     SIGNATURES
  
  
       Pursuant to the requirements of the Securities Exchange Act of 1934,
  Wilshire Real Estate Investment Inc. has duly caused this report to be signed on
  its behalf by the undersigned hereunto duly authorized.
  
  Date:  August 31, 2000
  
                                            WILSHIRE REAL ESTATE
                                               INVESTMENT INC.
  
                                            By: /s/ Lawrence A. Mendelsohn
                                                --------------------------
                                                Lawrence A. Mendelsohn
                                                President
  
  
                                            By: /s/ Chris Tassos
                                                ----------------
                                                Chris Tassos
                                                Executive Vice President and Chief
                                                Financial Officer
  
  
  <PAGE>
  
  
                                                                      Exhibit 99.1
  
  Press Release
  
  Portland, Oregon--August 28, 2000--Wilshire Financial Services Group Inc. and
  its founders and former officers Andrew Wiederhorn and Larry Mendelsohn today
  announced settlement of all disputes between them, including those related to
  the company's termination of the former executives last year. As part of the
  settlement, Wilshire Financial agreed that the termination of Wiederhorn and
  Mendelsohn was without cause.
  
  On September 3, 1999, Wilshire Financial terminated Wiederhorn and Mendelsohn,
  who then sued Wilshire and its outside directors. This settlement resolves all
  disputes between the parties.
  
  Wilshire Real Estate Investment Inc. and Wilshire Financial also announced
  settlement of all disputes and pending litigation between them relating to the
  termination of various agreements and other business relationships between the
  companies.
  
  Contact:
  
           Stoll Stoll Berne Lokting & Shlachter
           Robert A. Schlacter, Esq., 503/227-1600
              for Messrs. Wiederhorn and Mendelsohn
                             or
           Irell & Manella
           Ken Heitz, Esq., 310/203-7980
              for Wilshire Financial Services Group Inc.
                             or
           Ater Wynne
           Dan Skerritt, Esq., 503/226-8421
              for Wilshire Real Estate Investment Inc.
  
  
  <PAGE>
metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "0001.txt", "secsgml_size_bytes": 8733}]
metadata_filer: {"company-data": {"conformed-name": "WILSHIRE REAL ESTATE INVESTMENT TRUST INC", "cik": "0001048566", "assigned-sic": "6798", "irs-number": "522081138", "state-of-incorporation": "MD", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-23911", "film-number": "715389"}, "business-address": {"street1": "1310 S W 17TH ST", "city": "PORTLAND", "state": "OR", "zip": "97201", "phone": "5037216500"}, "mail-address": {"street1": "1310 S W 17TH ST", "city": "PORTLAND", "state": "OR", "zip": "97201"}}
text: SECURITIES AND EXCHANGE COMMISSION
  
                                Washington, DC 20549
                                    -------------
  
                                      FORM 8-K
  
                                   CURRENT REPORT
                       PURSUANT TO SECTION 13 OR 15(D) OF THE
                           SECURITIES EXCHANGE ACT OF 1934
  
  Date of Report (Date of earliest event reported) August 17, 2000.
  
                        Wilshire Real Estate Investment Inc.
                 (Exact Name of Registrant as Specified in Charter)
  
           Maryland                   0-23911                    52-2081138
      (State or Other               (Commission                (IRS Employer
       Jurisdiction                 File Number)             Identification No.)
      of Incorporation)
  
  1631 SW Columbia Street, Portland, OR 97201
  (Address of principal executive offices)  (Zip Code)
  
  Registrant's telephone number, including area code (503) 721-6500
  Item 5.  Other Events.
  
       On August 28, 2000, Wilshire Real Estate Investment Inc. (the "Company")
  announced that the Company, on behalf of itself and all of its subsidiaries and
  affiliates, Andrew A. Wiederhorn and Lawrence A. Mendelsohn entered into
  settlement agreements, dated as of August 17, 2000, with Wilshire Financial
  Services Group ("WFSG"), on behalf of all of its subsidiaries and affiliates
  other than First Bank of Beverly Hills, F.S.B, (the "Agreement") pursuant to
  which all disputes among the parties have been settled, including those related
  to WFSG's termination of Andrew A. Wiederhorn and Lawrence A. Mendelsohn (the
  "Settlement"). The settlement agreements contain provisions, which provide that,
  except as required for compliance with laws or government requests, the terms of
  the Settlement shall remain confidential.
  
       As of June 30, 2000, the Company had a reserve for disputes with WFSG of
  $2.5 million (which was originally established in September 1999). Based upon
  the terms of the Settlement, the Company believes that this reserve will be
  sufficient and that the Settlement will not have a negative impact on the
  Company's earnings for the third quarter of 2000.
  
       The Company had been engaged in an ongoing dispute with WFSG relating to
  the termination of the extensive contractual and other relationships, which
  formerly existed between the companies. On August 20, 1999, the Company filed a
  lawsuit (the "Lawsuit") against WFSG in the Circuit Court of the State of Oregon
  for Multnomah County and on August 23, 1999, the Company filed an amended
  complaint in the lawsuit adding as additional defendants Wilshire Realty
  Services Corporation ("WRSC"), a wholly-owned subsidiary of WFSG, Wilshire
  Credit Corporation ("WCC"), a 50.01% subsidiary of WFSG, and Wilshire Management
  Leasing Corporation ("WML"), a wholly-owned subsidiary of WFSG alleging: (1)
  WFSG's termination of Messrs. Wiederhorn and Mendelsohn made WFSG and WRSC
  unable and/or unwilling to provide management to the Company as required under
  the management agreement between the Company and WRSC (the "Management
  Agreement"); (2) the inability of WFSG and WRSC to manage the Company's business
  affairs triggered application of a facilities sharing agreement dated February
  19, 1999 among the Company, WFSG, WRSC, WCC, and WML (the "Facilities Sharing
  Agreement"); and (3) WFSG's refusal to allow Messrs. Wiederhorn and Mendelsohn
  access to WFSG's facilities, personnel, and equipment for the Company's business
  violated the terms of the Facilities Sharing Agreement.
  
       On September 22, 1999, WFSG and WRSC filed papers in the above litigation
  alleging various affirmative defenses and counterclaims, including allegations
  that the Facilities Sharing Agreement was not in effect and was unenforceable,
  and that the Company breached the Management Agreement, obligating the Company
  to pay a termination fee.
  
       The Company, on behalf of itself and all of its subsidiaries and
  affiliates, Andrew A. Wiederhorn, and Lawrence A. Mendelsohn entered into a
  partial settlement agreement dated as of December 10, 1999 with WFSG, on behalf
  of all of its subsidiaries and affiliates other than First Bank of Beverly
  Hills, F.S.B., (the "Partial Settlement Agreement"). Under the terms of the
  Partial Settlement Agreement, the Company repurchased 992,687 shares of its
  common stock (the "Shares"), representing approximately 8.7% of shares
  outstanding, in a non-cash transaction from WFSG. The Shares, as well as
  1,112,500 of options and cumulative dividends payable on the Shares, were
  received in exchange for a reduction in the amount of a pay-in-kind ("PIK") note
  owed by WFSG to the Company. The Shares and options represented WFSG's entire
  ownership interest in the Company.
  
       On February 18, 2000, after the Company received permission from the court
  to do so, the Company filed a second amended complaint which added claims
  against WFSG and its affiliated companies as follows: claims for declaratory
  relief that WFSG is entitled to no termination fee under the Management
  Agreement; seeking an accounting from WCC regarding the use of funds from
  lockbox accounts used to service assets which the Company owns or in which the
  Company has a beneficial interest; declaring the Company's entitlement to use
  prepaid service fees for the servicing of assets serviced under pooling and
  servicing agreements; and declaring WFSG to be in default of its
  Debtor-in-Possession ("DIP") loan agreement with the
  Company and declaring that the balance of $5.0 million is immediately due and
  payable.
  
       On March 2, 2000, WFSG filed an answer disputing each of the counterclaims
  added by the second amended complaint and realleging the counterclaims included
  in WFSG's original answer and counterclaim.
  
       As part of the Settlement, the Company and WFSG agreed to dismiss with
  prejudice, and without costs or attorney fees to any party, their claims,
  including counterclaims, in the Lawsuit and WFSG agreed that the termination of
  Messrs. Wiederhorn and Mendelsohn was without cause.
  
  Item 7.  Financial Statements, Pro Forma Financial Information and Exhibits.
  
  (c)  Exhibits
  
       The following exhibits are filed as part of this report:
  
          99.1     Press Release, dated as of August 28, 2000.
  SIGNATURES
  
       Pursuant to the requirements of the Securities Exchange Act of 1934,
  Wilshire Real Estate Investment Inc. has duly caused this report to be signed on
  its behalf by the undersigned hereunto duly authorized.
  
  Date:  August 31, 2000
  
                                            WILSHIRE REAL ESTATE
                                               INVESTMENT INC.
  
                                            By: /s/ Lawrence A. Mendelsohn
                                                --------------------------
                                                Lawrence A. Mendelsohn
                                                President
  
                                            By: /s/ Chris Tassos
                                                ----------------
                                                Chris Tassos
                                                Executive Vice President and Chief
                                                Financial Officer
  Exhibit 99.1
  
  Press Release
  
  Portland, Oregon--August 28, 2000--Wilshire Financial Services Group Inc. and
  its founders and former officers Andrew Wiederhorn and Larry Mendelsohn today
  announced settlement of all disputes between them, including those related to
  the company's termination of the former executives last year. As part of the
  settlement, Wilshire Financial agreed that the termination of Wiederhorn and
  Mendelsohn was without cause.
  
  On September 3, 1999, Wilshire Financial terminated Wiederhorn and Mendelsohn,
  who then sued Wilshire and its outside directors. This settlement resolves all
  disputes between the parties.
  
  Wilshire Real Estate Investment Inc. and Wilshire Financial also announced
  settlement of all disputes and pending litigation between them relating to the
  termination of various agreements and other business relationships between the
  companies.
  
  Contact:
  
           Stoll Stoll Berne Lokting & Shlachter
           Robert A. Schlacter, Esq., 503/227-1600
              for Messrs. Wiederhorn and Mendelsohn
                             or
           Irell & Manella
           Ken Heitz, Esq., 310/203-7980
              for Wilshire Financial Services Group Inc.
                             or
           Ater Wynne
           Dan Skerritt, Esq., 503/226-8421
              for Wilshire Real Estate Investment Inc.