SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                   FORM 12B-25

                                                  Commission File Number 0-23911

                           NOTIFICATION OF LATE FILING

     (Check One):  |_| Form 10-K  |_| Form 11-K  |_| Form 20-F  |X| Form 10-Q
|_|  Form N-SAR

     For Period Ended: SEPTEMBER 30, 1998
|_|  Transition Report on Form 10-K         |_|  Transition Report on Form 10-Q
|_|  Transition Report on Form 20-F         |_|  Transition Report on From N-SAR
|_|  Transition Report on Form 11-K
     For the Transition Period Ended: __________________________________________

     READ ATTACHED  INSTRUCTION  SHEET BEFORE  PREPARING  FORM.  PLEASE PRINT OR
TYPE.

     Nothing in this form shall be  construed to imply that the  Commission  has
verified any information contained herein.

     If the  notification  related  to a portion of the  filing  checked  above,
identify the item(s) to which the notification relates: ________________________

                                     PART I
                             REGISTRANT INFORMATION

Full name of registrant: WILSHIRE REAL ESTATE INVESTMENT TRUST INC.
Former name if applicable ______________________________________________________
Address of principal executive office (STREET AND NUMBER):1776 SW MADISON ST.
City, state and zip code: PORTLAND, OR  97205

                                     PART II
                             RULE 12B-25 (B) AND (C)

     If the subject  report could not be filed  without  unreasonable  effort or
expense  and  the  registrant  seeks  relief  pursuant  to Rule  12b-25(b),  the
following should be completed. (Check box if appropriate.)
          (a)  The reasons  described in  reasonable  detail in Part III of this
               form  could  not be  eliminated  without  unreasonable  effort or
               expense;

          (b)  The subject annual report,  semi-annual report, transition report
               on Form 10-K,  20-F,  11-K or Form N-SAR, or portion thereof will
               be filed  on or  before  the  15th  calendar  day  following  the
|X|            prescribed  due  date;  or  the  subject   quarterly   report  on
               transition  report on Form 10-Q, or portion thereof will be filed
               on or before the fifth  calendar day following the prescribed due
               date;  and
          (c)  The  accountant's  statement  or other  exhibit  required by Rule
               12b-25(c) has been attached if applicable.








                                    PART III
                                    NARRATIVE

     The market for mortgage-backed  securities and, in particular,  subordinate
credit  related  tranches  of  these  securities  has  experienced  dramatically
widening spreads  throughout the last ten weeks.  Liquidity  problems  affecting
certain Wall Street firms, hedge funds and other financial instruments investors
have exacerbated  this market  phenomenon  through forced  liquidations of their
assets.  This has led to an increased  need for liquidity at the Company both to
meet  collateral  calls and as a preemptive  measure to protect  against  future
mortgage-backed  securities'  spread distortions that the Company expects may be
experienced by markets in general.

     Between  October 14 and October 16,  1998,  the Company  sold  certain real
estate related assets to various unrelated third parties for $525.2 million. The
assets sold  consisted of 45 classes of subordinate  mortgage-backed  securities
representing interests in 39 securitizations by 11 different issuers which had a
carrying  value at the date of sale of $152.9  million and a $372.3 million pool
of one-to-four family fully amortizing loans secured by first liens.

     Due to the significant  amount of time that management spent addressing the
need for increased liquidity at the Company both to meet collateral calls and as
a  preemptive  measure to protect  against  future  mortgage-backed  securities'
spread distortions,  the Company was unable to complete their review by November
16, 1998 without unreasonable effort and expense.







                                     PART IV
                                OTHER INFORMATION

     (1) Name and  telephone  number  of  person  to  contact  in regard to this
notification
         CHRIS TASSOS                   (503)     223-5600
            (Name)                   (Area Code) (Telephone Number)

     (2) Have all other periodic  reports  required under Section 13 or 15(d) of
the Securities  Exchange Act of 1934 or Section 30 of the Investment Company Act
of 1940  during the  preceding  12 months or for such  shorter  period  that the
registrant was required to file such report(s) been filed?  If the answer is no,
identify report(s).
                                                                 |_| Yes |X| No

          (i)     Current Report on Form 8-K filed September 29, 1998;
          (ii)    Current Report on Form 8-K filed September 29, 1998;
          (iii)   Current Report on Form 8-K filed September 29, 1998;
          (iv)    Current Report on Form 8-K filed September 29, 1998;
          (v)     Current Report on Form 8-K filed October 14, 1998; and
          (vi)    Current Report on Form 8-K filed November 5, 1998.

     (3) Is it anticipated that any significant  change in results of operations
from the corresponding  period for the last fiscal year will be reflected by the
earnings  statements  to be included in the subject  report or portion  thereof?
                                                                 |_| Yes |X| No

     If so: attach an explanation of the anticipated  change,  both  narratively
and  quantitatively,  and, if  appropriate,  state the reasons why a  reasonable
estimate of the results cannot be made.

                   WILSHIRE REAL ESTATE INVESTMENT TRUST INC.
- --------------------------------------------------------------------------------
                  (Name of Registrant as Specified in Charter)

Has  caused  this  notification  to be signed on its  behalf by the  undersigned
thereunto duly authorized.

Date:  November 13, 1998                   By  /S/  LAWRENCE MENDELSOHN
                                               ------------------------
                                           Lawrence Mendelsohn
                                           President



                                           By  /S/  CHRIS TASSOS
                                           Chris Tassos
                                           Chief Financial Officer