UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C. 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)  July 23, 2008


            AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
     (Exact name of registrant as specified in its charter)


      State of Minnesota             000-18289         41-1622463
(State or other jurisdiction   (Commission File      (IRS Employer
      of incorporation)               Number)      Identification No.)


      30 East 7th Street, Suite 1300, St. Paul, Minnesota, 55101
             (Address of Principal Executive Offices)


                            (651) 227-7333
       (Registrant's telephone number, including area code)



  (Former name or former address, if changed since last report)

Check  the  appropriate  box below if  the  Form  8-K  filing  is
intended to simultaneously satisfy the filing obligation  of  the
registrant under any of the following provisions:

[  ]  Written  communication  pursuant  to  Rule  425  under  the
      Securities Act (17 CFR 230.425)
[  ]  Soliciting  material  pursuant to  Rule  14a-12  under  the
      Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to  Rule  14d-2(b)
      under the Exchange Act
      (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to  Rule  13e-4(c)
      under the Exchange Act
      (17 CFR 240.13e-4(c))


Section 2 - Financial Information

Item 2.01 Completion of Acquisition or Disposition of Assets.

      On July 23, 2008, the Partnership sold a KinderCare daycare
center  in  Blue Springs, Missouri to Norfleet, LLC, an unrelated
third  party.   The  Partnership received net  cash  proceeds  of
approximately $550,000 for the property, which resulted in a  net
gain of approximately $132,000.

       In the third quarter of 2008, the Managing General Partner
plans to solicit by mail a proxy statement seeking the consent of
the   Limited  Partners,  as  required  by  Section  6.1  of  the
Partnership   Agreement,  to  initiate  the  final   disposition,
liquidation   and  distribution  of  all  of  the   Partnership's
properties and assets within the next year.  If a majority of the
voting  Units  are voted in favor of the proposal,  the  Managing
General Partner will proceed with the planned liquidation of  the
Partnership.

Section 9 - Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits.

      (a) Financial  statements  of  businesses  acquired  -   Not
          Applicable.

      (b) Pro  forma financial information - Not Applicable.   The
          Partnership is in the process of liquidating.

      (c) Shell company transactions - Not Applicable.

      (d) Exhibits.

          Exhibit 10.1  -Purchase Agreement dated June  13,  2008
          between  the Partnership and Norfleet, LLC relating  to
          the  Property  at 2100 North Highway 7,  Blue  Springs,
          Missouri.


                           SIGNATURES

      Pursuant to the requirements of the Securities Exchange Act
of  1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.

                              AEI REAL ESTATE FUND XVIII LIMITED
                              PARTNERSHIP

                              By: AEI Fund Management XVIII, Inc.
                                 Its:  Managing General Partner


Date:  July 28, 2008          /s/ Patrick W Keene
                              By: Patrick W. Keene
                                 Its:  Chief Financial Officer
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UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C. 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)  July 23, 2008

            AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
     (Exact name of registrant as specified in its charter)

      State of Minnesota             000-18289         41-1622463
(State or other jurisdiction   (Commission File      (IRS Employer
      of incorporation)               Number)      Identification No.)

      30 East 7th Street, Suite 1300, St. Paul, Minnesota, 55101
             (Address of Principal Executive Offices)

                            (651) 227-7333
       (Registrant's telephone number, including area code)

  (Former name or former address, if changed since last report)

Check  the  appropriate  box below if  the  Form  8-K  filing  is
intended to simultaneously satisfy the filing obligation  of  the
registrant under any of the following provisions:

[  ]  Written  communication  pursuant  to  Rule  425  under  the
      Securities Act (17 CFR 230.425)
[  ]  Soliciting  material  pursuant to  Rule  14a-12  under  the
      Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to  Rule  14d-2(b)
      under the Exchange Act
      (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to  Rule  13e-4(c)
      under the Exchange Act
      (17 CFR 240.13e-4(c))

Section 2 - Financial Information

Item 2.01 Completion of Acquisition or Disposition of Assets.

      On July 23, 2008, the Partnership sold a KinderCare daycare
center  in  Blue Springs, Missouri to Norfleet, LLC, an unrelated
third  party.   The  Partnership received net  cash  proceeds  of
approximately $550,000 for the property, which resulted in a  net
gain of approximately $132,000.

       In the third quarter of 2008, the Managing General Partner
plans to solicit by mail a proxy statement seeking the consent of
the   Limited  Partners,  as  required  by  Section  6.1  of  the
Partnership   Agreement,  to  initiate  the  final   disposition,
liquidation   and  distribution  of  all  of  the   Partnership's
properties and assets within the next year.  If a majority of the
voting  Units  are voted in favor of the proposal,  the  Managing
General Partner will proceed with the planned liquidation of  the
Partnership.

Section 9 - Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits.

      (a) Financial  statements  of  businesses  acquired  -   Not
          Applicable.

      (b) Pro  forma financial information - Not Applicable.   The
          Partnership is in the process of liquidating.

      (c) Shell company transactions - Not Applicable.

      (d) Exhibits.

          Exhibit 10.1  -Purchase Agreement dated June  13,  2008
          between  the Partnership and Norfleet, LLC relating  to
          the  Property  at 2100 North Highway 7,  Blue  Springs,
          Missouri.

                           SIGNATURES

      Pursuant to the requirements of the Securities Exchange Act
of  1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.

                              AEI REAL ESTATE FUND XVIII LIMITED
                              PARTNERSHIP

                              By: AEI Fund Management XVIII, Inc.
                                 Its:  Managing General Partner

Date:  July 28, 2008          /s/ Patrick W Keene
                              By: Patrick W. Keene
                                 Its:  Chief Financial Officer