Exhibit (a)4

                           OFFER TO PURCHASE FOR CASH

                 ANY OR ALL OUTSTANDING SHARES OF COMMON STOCK
                                       OF

                    TRANSCONTINENTAL REALTY INVESTORS, INC.

                                       AT
                              $17.50 NET PER SHARE
                                       BY

                TRANSCONTINENTAL REALTY ACQUISITION CORPORATION
                          A WHOLLY-OWNED SUBSIDIARY OF
                        AMERICAN REALTY INVESTORS, INC.

         THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT 12:00 MIDNIGHT,
     NEW YORK CITY TIME, ON DECEMBER 13, 2002, UNLESS THE OFFER IS EXTENDED

Dated: November 15, 2002

To Brokers, Dealers, Banks,
Trust Companies and Other Nominees:

     We have been engaged by Transcontinental Realty Acquisition Corporation, a
Nevada corporation (the "Purchaser") and wholly-owned subsidiary of American
Realty Investors, Inc., a Nevada corporation (the "Parent"), to act as
Information Agent in connection with the Purchaser's offer to purchase any or
all outstanding shares of common stock, par value $.01 per share (the "Shares"),
of Transcontinental Realty Investors, Inc., a Nevada corporation (the
"Company"), at $17.50 per Share (the "Offer Price"), net to the seller in cash,
without interest thereon, upon the terms and subject to the conditions set forth
in the Purchaser's Offer to Purchase dated November 15, 2002 (the "Offer to
Purchase"), and in the related Letter of Transmittal (which, together with any
supplements or amendments thereto, collectively constitute the "Offer").

     Please furnish copies of the enclosed materials to those of your clients
for whom you hold Shares registered in your name or in the name of your nominee.
Enclosed herewith are copies of the following documents:

     1. Offer to Purchase, dated November 15, 2002;

     2. Letter of Transmittal to be used by stockholders of the Company in
accepting the Offer;

     3. A printed form of letter that may be sent to your clients for whose
account you hold Shares in your name or in the name of a nominee, with space
provided for obtaining such client's instructions with regard to the Offer;

     4. Notice of Guaranteed Delivery;

     5. Guidelines for Certification of Taxpayer Identification Number on
Substitute Form W-9; and

     6. Return envelope addressed to the Depositary.

     WE URGE YOU TO CONTACT YOUR CLIENTS PROMPTLY. PLEASE NOTE THAT THE OFFER
AND WITHDRAWAL RIGHTS WILL EXPIRE AT 12:00 MIDNIGHT, NEW YORK CITY TIME, ON
DECEMBER 13, 2002, UNLESS EXTENDED.
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     In all cases, payment for Shares accepted for payment pursuant to the Offer
will be made only after timely receipt by the Depositary of (a) certificates for
(or a timely Book-Entry Confirmation (as defined in the Offer to Purchase) with
respect to) such Shares, (b) a Letter of Transmittal (or a facsimile thereof),
properly completed, and duly executed, with any required signature guarantees,
or, in the case of a book-entry transfer effected pursuant to the procedure set
forth in Section 3 of the Offer to Purchase, an Agent's Message (as defined in
the Offer to Purchase) and (c) any other documents required by the Letter of
Transmittal. Accordingly, tendering stockholders may be paid at different times
depending upon when certificates for Shares or Book-Entry Confirmations with
respect to Shares are actually received by the Depositary. Under no
circumstances will interest be paid on the purchase price of the Shares to be
paid by the Purchaser, regardless of any extension of the Offer or any delay in
making such payment.

     NEITHER THE PURCHASER NOR PARENT WILL PAY ANY FEES OR COMMISSIONS TO ANY
BROKER OR DEALER OR OTHER PERSON (OTHER THAN THE INFORMATION AGENT AS DESCRIBED
IN THE OFFER TO PURCHASE) IN CONNECTION WITH THE SOLICITATION OF TENDERS OF
SHARES PURSUANT TO THE OFFER. YOU WILL NOT BE REIMBURSED BY THE PURCHASER OR
PARENT FOR ANY MAILING AND HANDLING EXPENSES INCURRED BY YOU IN FORWARDING THE
ENCLOSED OFFERING MATERIALS TO YOUR CUSTOMERS.

     Questions and requests for additional copies of the enclosed material may
be directed to the Information Agent at the address and telephone numbers set
forth on the back cover of the enclosed Offer to Purchase.

                                          Very truly yours,

                                          GEORGESON SHAREHOLDER
                                          COMMUNICATIONS, INC.

     NOTHING CONTAINED HEREIN OR IN THE ENCLOSED DOCUMENTS SHALL RENDER YOU OR
ANY OTHER PERSON THE AGENT OF THE PURCHASER, THE DEPOSITARY OR THE INFORMATION
AGENT OR ANY AFFILIATE OF ANY OF THEM, OR AUTHORIZE YOU OR ANY OTHER PERSON TO
GIVE ANY INFORMATION OR MAKE ANY REPRESENTATION ON BEHALF OF ANY OF THEM WITH
RESPECT TO THE OFFER NOT CONTAINED IN THE OFFER TO PURCHASE OR THE LETTER OF
TRANSMITTAL.

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