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, 1999
                           ----------------------------------------------------
|_|  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 Inc.
Former name if applicable Wilshire Real Estate Investment Trust Inc.
Address of principal executive office (Street and number):1310 SW 17th Street
City, state and zip code: Portland, OR  97201

                                     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   |X|
________________________  day following the  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


     Wilshire Real Estate  Investment Inc. (the "Company")  recently  decided to
become internally  managed and has resulted in disputes between the Company,  on
the one hand, and Wilshire  Realty  Services  Corporation  ("WRSC") and Wilshire
Financial Services Group Inc. ("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.

     On November 12, 1999,  the Board of Directors of 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 WRSC, the Company's former manager, and WFSG, the parent of WRSC.

     Due to the  significant  amount  of time that it will  require  for Ernst &
Young LLP to  complete  their  review  of the  accounting  and  other  financial
documents,  the  Company  will be unable to file by November  15,  1999  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)           721-6500
- -------------------------------------------------------------------------------
                (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).
________________________________________________________________________________
                                                                   |X|Yes |_| No

     (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?
                                                                  |X| Yes |_| 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.

     In response to adverse market conditions in the second half of 1998 and the
resulting effect on the Company's operations,  the Company refocused its efforts
on  stabilizing  its  existing  asset  base  and  greatly  reduced   acquisition
activities  during the nine months  ended  September  30, 1999.  General  market
conditions and the  availability of financing for certain of the Company's asset
categories,  especially  subordinated  mortgage-backed  securities and mezzanine
loans,  continue to be uncertain.  The Company's  results of operations  for the
three and nine months  ended  September  30, 1999 will  reflect  this  continued
difficult   marketplace,   which  include  further  impairment  write  downs  of
mortgage-backed securities.

     Due to the replacement of its principal accountant,  the Company is unable,
at this time,  to provide a  reasonable  estimate of results for the nine months
ended September 30, 1999.

                      Wilshire Real Estate Investment 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 12, 1999                     By:/s/ Lawrence Mendelsohn
                                                -----------------------
                                                Lawrence Mendelsohn
                                                President


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