SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a)of the securities Exchange Act of 1934
                                (Amendment No. )

Filed by the Registrant [  ]
Filed by a Party other than the Registrant [X]

Check the appropriate box:
[  ] Preliminary Proxy Statement          [   ]    Confidential, For Use of  the
                                                   Commission Only (as permitted
                                                           by Rule 14a-6 (e)(2))
[  ] Definitive Proxy Statement
[X ] Definitive Additional Materials
[  ] Soliciting Material Under Rule 14a-12

                           DSI Realty Income Fund VII
                (Name of Registrant as Specified in Its Charter)

                           Millenium Investors 2, LLC
                            Everest Investors 3, LLC
                            Everest Investors 12, LLC
                               KM Investments, LLC
                   (Name of Person(s) Filing Proxy Statement)

Payment of Filing Fee (Check the appropriate box):

[X]  No fee required.

[ ]  Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
     (1) Title of each class of securities to which transaction applies:

          ......................................................................
     (2)  Aggregate number of securities to which transaction applies:

          ......................................................................
     (3)  Per unit  price  or other  underlying  value of  transaction  computed
          pursuant to Exchange Act Rule 0-11.

          ......................................................................
     (4)  Proposed maximum aggregate value of transaction:

          ......................................................................
     (5)  Total fee paid:

          ......................................................................
[  ] Fee paid previously with preliminary materials:

          ......................................................................

[  ] Check box if any part of the fee is offset as provided by Exchange Act Rule
     0-11(a)(2)  and identify the filing for which the  offsetting  fee was paid
     previously.  Identify the previous filing by registration statement number,
     or the form or schedule and the date of its filing.  (1) Amount  previously
     paid: (2) Form,  Schedule or Registration  Statement no.: (3) Filing Party:
     (4) Date Filed:


Everest
155 N. Lake Avenue
Suite 1000
Pasadena, CA 91101
Phone: 626-585-5920
Fax: 626-585-5929


                                 April 23, 2003


TO THE LIMITED PARTNERS OF
DSI REALTY INCOME FUND VII

         Re:      PROTECT YOUR INVESTMENT AND
                  VOTE AGAINST THE GENERAL PARTNER'S PROPOSALS

Dear Limited Partner:

     We own over $150,000 worth of the limited  partnership  units in DSI REALTY
INCOME FUND VII (the "Partnership"),  and we are professional  investors. As one
of the largest  unaffiliated  investors  in the  Partnership,  we are writing to
recommend  strongly  that you VOTE AGAINST THE  PROPOSALS  by the  Partnership's
general partner ("general  partner"),  for the following  reasons:

     o    The general  partner's consent  solicitation  totally fails to explain
          the  significance  of the amendments it is asking you to approve;  and
          totally  fails to  disclose  its  conflicts  of interest in making the
          proposals.

     o    If Proposal No. 1 is  approved,  it is highly  likely the  Partnership
          will  continue  for many years and  substantially  put off the day our
          investment is cashed out by a sale of the Partnership's properties and
          a distribution of the net proceeds to the limited partners.

     o    If Proposal No.1 is approved,  the limited  partners (you and us) will
          lose significant  voting rights and protections  regarding  whether or
          not  the  Partnership  should  be  dissolved  or  continued  upon  the
          occurrence of certain dissolution events.

     o    If Proposal No. 2 is approved, the value of our Partnership units will
          decrease  because they will become harder,  or impossible,  to sell to
          anyone but the general partner.

     o    If Proposal No. 2 is  approved,  we believe you will no longer be able
          to sell your  Partnership  units on secondary market services like the
          American  Partnership  Board.  One such service has advised us it will
          cease to effect transfers if Proposal No. 2 passes.

     o    If Proposal No. 2 is approved,  you will be giving the general partner
          an  effective  monopoly on buying your units if you try to sell them -
          no one is likely to bother  making an offer to purchase  your units if
          the general partner has a right of first refusal.

     o    The  combined  effect of the  Proposals  is to leave you stuck in this
          Partnership for a much longer time, while at the same time effectively
          removing  all ways for you to get out of this  investment  other  than
          selling out to the general partner, probably at low prices.

     We  recommend  strongly  that you VOTE  AGAINST THE  PROPOSALS  made by the
general partner.  We would be pleased to answer any questions you may have about
our  recommendation;  please call and ask for Stacey McClain or David Lesser, at
(626) 585-5920.

                                     Very truly yours,
                                     MILLENIUM INVESTORS 2, LLC
                                     EVEREST INVESTORS 3, LLC
                                     EVEREST INVESTORS 12, LLC
                                     KM INVESTMENTS, LLC


P.S. Vote  against  both of theses  unfair  proposals.  You can change your vote
     until May 15,  2003.  Do not be tricked by the general  partner into voting
     against your own interests!