8-K

UNITED STATES
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): January 11, 2005

Sunset Financial Resources, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Maryland

(State or Other Jurisdiction of Incorporation)

001-32026	16-1685692
(Commission File Number)	(IRS Employer Identification No.)

10245 Centurion Parkway North, Jacksonville, Florida	32256
(Address of Principal Executive Offices)	(Zip Code)

(904) 425-4099

(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:

     o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

     o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

     o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

     o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

	Item 5.02 Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers.
	Item 9.01 Financial Statements, Pro Forma Financial Information and Exhibits.
SIGNATURE
INDEX TO EXHIBITS
Press Release

Item 5.02 Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers.

Effective January 11, 2005, G. Steven Dawson was elected to the board of directors of Sunset Financial Resources, Inc. (the “Company”). Mr. Dawson was not elected pursuant to any arrangement or understanding. At this time, the Company has not determined on which committees Mr. Dawson will serve in connection with his election to the board of directors.

On January 14, 2005, the Company issued a press release announcing Mr. Dawson’s election, a copy of which is attached hereto as Exhibit 99.1.

Item 9.01 Financial Statements, Pro Forma Financial Information and Exhibits.

(c) Exhibits

99.1     Press Release issued January 14, 2005.

SIGNATURE

     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.

Date: January 14, 2005

SUNSET FINANCIAL RESOURCES, INC.
By:	/s/ Bert Watson
	Bert Watson
	President and Chief Executive Officer

INDEX TO EXHIBITS

Exhibit Number	Description
99.1	Press Release issued January 14, 2005.

EX-99.1

EXHIBIT 99.1

SUNSET FINANCIAL RESOURCES APPOINTS NEW DIRECTOR

JACKSONVILLE, Fla., Jan. 14, 2005. Sunset Financial Resources (NYSE: SFO) is pleased to announce that on January 11, 2005, Mr. G. Steven Dawson accepted the position of director on its board of directors.

Mr. Dawson served as Chief Financial Officer of Camden Property Trust from 1990 to 2003. During that time, he was part of the executive team that was responsible for growing Camden from a small multifamily owner/operator into one of the largest multifamily companies in the United States. Currently, Mr. Dawson serves on the boards of directors of six other companies, including US Restaurant Properties, Inc. (NYSE: USV), a Dallas-based owner of over 800 fast-food and casual dining restaurants and gas station/convenience stores, AmREIT, Inc. (AMEX: AMY), a Houston-based owner and developer of retail properties, NetVersant, Inc., a Houston-based privately-held network cabling contractor, Medical Properties Trust, a Birmingham, Alabama-based REIT specializing in the ownership of acute care facilities, medical office buildings and related medical properties, Desert Capital REIT, a Las Vegas-based mortgage REIT, and American Campus Communities (NYSE: ACC), an Austin-based equity REIT focused on student housing.

“We are pleased to have Steve join our board of directors and look forward to working with him to further the objectives of the Company,” remarked Chairman, President and CEO Bert Watson.

Sunset Financial Resources, Inc. is a self-managed real estate investment trust (REIT) that went public on March 17, 2004. Sunset Financial Resources seeks to deliver attractive dividend income and steady growth to its shareholders through the acquisition and management of a portfolio of high quality residential mortgage loans and well secured commercial mortgage bridge loans in the United States.

Certain statements in this news release may constitute “forward-looking statements” within the meaning of the federal securities laws and involve risks, uncertainties and other factors, which may cause the actual performance of Sunset Financial Resources, Inc. to be materially different from the performance expressed or implied by such statements. These risks include the failure of the Company to successfully execute its business plan, gain access to additional financing, the availability of additional loan portfolios for future acquisition, continued qualification as a REIT, the cost of capital, as well as the additional risks and uncertainties detailed in the Company’s periodic reports and registration statements filed with the Securities and Exchange Commission.