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)      November 12, 1999


                      Wilshire Real Estate Investment Inc.
             (Exact name of registrant as specified in its charter)


Maryland                           0-23911              52-2081138
(State or other jurisdiction       (Commission          (I.R.S. Employer
of incorporation)                  File Number)         Identification Number)


                     1310 SW 17th Street, Portland, OR 97201
               (Address of principal executive offices)(Zip Code)

                                 (503) 721-6500
              (Registrant's telephone number, including area code)






Item 4.  Changes in Registrant's Certifying Accountant.

     On November  12,  1999,  the Board of  Directors  of  Wilshire  Real Estate
Investment Inc., a Maryland  corporation  (the "Company")  appointed the firm of
Ernst & Young LLP to replace Arthur Andersen LLP as the principal  accountant to
audit the Company's financial  statements.  Arthur Andersen LLP was replaced due
to a potential  conflict of interest  with the services it performs for Wilshire
Realty Services Corporation ("WRSC"), the Company's former manager, and Wilshire
Financial Services Group Inc. ("WFSG"), the parent of WRSC.

     The Company recently decided to become internally  managed and has resulted
in disputes  between the  Company,  on the one hand,  and WRSC and WFSG,  on the
other.  The Company's  business and investment  affairs had been managed by WRSC
pursuant to a management  agreement and the Company had received  managerial and
administrative services from WRSC thereunder.

     The  report of  Arthur  Andersen  LLP on the  financial  statements  of the
Company for the past year (the Company was formed on October 24, 1997, commenced
operations on April 6, 1998 and was audited for the one year ended  December 31,
1998) did not contain an adverse opinion or a disclaimer of opinion,  nor was it
qualified or modified as to uncertainty,  audit scope or accounting  principles,
except that, in its report dated March 19, 1999,  Arthur Andersen LLP included a
matter-of-emphasis  paragraph  stating "As discussed in Note 1, Wilshire  Realty
Services  Corporation,  a wholly owned subsidiary of Wilshire Financial Services
Group Inc. ("WFSG"), is the manager of the Company. Furthermore, Wilshire Credit
Corporation  ("WCC"),  an affiliate of WFSG,  provides  loan  servicing and real
property  management  services to the  Company.  On March 3, 1999,  WFSG filed a
voluntary  prepackaged  petition  for  relief  under  Chapter  11  of  the  U.S.
Bankruptcy  Code.  The WFSG plan of  reorganization  includes  the  transfer  of
servicing  operations  conducted by WCC to a newly formed subsidiary of WFSG. As
discussed in Note 12, the Company has also  entered  into  several  transactions
with these affiliated entities." During the period from the Company's inception,
October 24, 1997,  through  November 12, 1999 there were no  disagreements  with
Arthur  Andersen  LLP on any  matter  of  accounting  principles  or  practices,
financial  statement   disclosure,   or  auditing  scope  or  procedure,   which
disagreements, if not resolved to the satisfaction of Arthur Andersen LLP, would
have caused it to make  reference to the subject matter of the  disagreement  in
connection with its report on the financial statements of the Company.

Item 7.    Financial Statements, Pro Forma Financial Information and Exhibits

     Exhibits.

     99.1  Letter dated November 12, 1999 from Arthur Andersen LLP.





                                   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.


                                            WILSHIRE REAL ESTATE INVESTMENT INC.



Date:  November 12, 1999                    By:/s/ Lawrence Mendelsohn
                                               Lawrence Mendelsohn
                                               President


                                            By:/s/ Chris Tassos
                                               Chris Tassos
                                               Executive Vice President and
                                               Chief Financial Officer







                                                                  Exhibit 99.1

November 12, 1999

Office of the Chief Accountant
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C.  20549

Dear Sir/Madam:

We have read Item 4 included in the Form 8-K dated November 12, 1999 of Wilshire
Real  Estate  Investment  Inc.  to be filed  with the  Securities  and  Exchange
Commission and are in agreement with the statements contained therein.

Very truly yours,




ARTHUR ANDERSEN LLP

cc:  Chris Tassos, CFO, Wilshire Real Estate Investment Inc.