TRANSCONTINENTAL REALTY INVESTORS INC, SC 13D/A, 1998-08-31

TRANSCONTINENTAL REALTY INVESTORS INC
SC 13D/A, 1998-08-31
REAL ESTATE INVESTMENT TRUSTS

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<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 13D

Under the Securities Exchange Act of 1934
(AMENDMENT NO. 30)

TRANSCONTINENTAL REALTY INVESTORS, INC.
(Name of Issuer)

COMMON STOCK, $0.01 PAR VALUE
(Title of Class of Securities)

893-617-209
(CUSIP Number)

ROBERT A. WALDMAN, 10670 N. CENTRAL EXPRESSWAY, SUITE 600, DALLAS, TEXAS 75231
(214) 692-4758
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)

AUGUST 5, 1998
(Date of Event which Requires Filing of this Statement)

If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rules 13d-1(b)(3) or (4), check the following box [ ].

<PAGE> 2

CUSIP NO. 893-617-209 PAGE 2
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
1) Names of Reporting Persons S.S. or I.R.S. Identification Nos. of Above Persons
AMERICAN REALTY TRUST, INC. 54-0697989

- -----------------------------------------------------------------------------------------------------------

2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a) .............................................................................................
(b) .............................................................................................

- -----------------------------------------------------------------------------------------------------------

3) SEC Use Only .....................................................................................

- -----------------------------------------------------------------------------------------------------------

4) Source of Funds (See Instructions) ...............................................................

- -----------------------------------------------------------------------------------------------------------

5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items
2(d) or 2(e)
...........................................................................................................

- -----------------------------------------------------------------------------------------------------------

6) Citizenship or Place of Organization GEORGIA

- -----------------------------------------------------------------------------------------------------------

7) Sole Voting Power 1,200,069

Number of -----------------------------------------------------------------------------------------
Shares
Beneficially 8) Shared Voting Power -0-
Owned by -----------------------------------------------------------------------------------------
Each
Reporting 9) Sole Dispositive Power 1,200,069
Person -----------------------------------------------------------------------------------------
With
10) Shared Dispositive Power -0-
- -----------------------------------------------------------------------------------------------------------

11) Aggregate Amount Beneficially Owned by Each Reporting Person 1,200,069
- -----------------------------------------------------------------------------------------------------------

12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)
...........................................................................................................

- -----------------------------------------------------------------------------------------------------------

13) Percent of Class Represented by Amount in Row (11) 31.0%
- -----------------------------------------------------------------------------------------------------------

14) Type of Reporting Person (See Instructions) CO
</TABLE>

<PAGE> 3

CUSIP NO. 893-617-209 PAGE 3
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
1) Names of Reporting Persons S.S. or I.R.S. Identification Nos. of Above Persons
BASIC CAPITAL MANAGEMENT, INC. 75-2261065

- -------------------------------------------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a) .............................................................................................
(b) .............................................................................................

- -------------------------------------------------------------------------------------------------------------------
3) SEC Use Only .....................................................................................

- -------------------------------------------------------------------------------------------------------------------
4) Source of Funds (See Instructions) ...............................................................

- -------------------------------------------------------------------------------------------------------------------
5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items
2(d) or 2(e)
...........................................................................................................

- -------------------------------------------------------------------------------------------------------------------
6) Citizenship or Place of Organization NEVADA

- -------------------------------------------------------------------------------------------------------------------
7) Sole Voting Power 421,277
Number of
Shares -------------------------------------------------------------------------------------------------
Beneficially 8) Shared Voting Power -0-
Owned by
Each -------------------------------------------------------------------------------------------------
Reporting 9) Sole Dispositive Power 421,277
Person
With -------------------------------------------------------------------------------------------------
10) Shared Dispositive Power -0-

- -------------------------------------------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person 421,277

- -------------------------------------------------------------------------------------------------------------------
12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)
...........................................................................................................

- -------------------------------------------------------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11) 10.9%
- -------------------------------------------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions) CO
- -------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE> 4

CUSIP NO. 893-617-209 PAGE 4
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
1) Names of Reporting Persons S.S. or I.R.S. Identification Nos. of Above Persons
CONTINENTAL MORTGAGE AND EQUITY TRUST 94-2738844

- -------------------------------------------------------------------------------------------------------------------
6) Citizenship or Place of Organization CALIFORNIA

- -------------------------------------------------------------------------------------------------------------------
7) Sole Voting Power 79,500
Number of
Shares -------------------------------------------------------------------------------------------------
Beneficially 8) Shared Voting Power -0-
Owned by
Each -------------------------------------------------------------------------------------------------
Reporting 9) Sole Dispositive Power 79,500
Person
With -------------------------------------------------------------------------------------------------
10) Shared Dispositive Power -0-

- -------------------------------------------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person 79,500

- -------------------------------------------------------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11) 2.1%
- -------------------------------------------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions) OO
- -------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE> 5

CUSIP NO. 893-617-209 PAGE 5
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
1) Names of Reporting Persons S.S. or I.R.S. Identification Nos. of Above Persons
SYNTEK ASSET MANAGEMENT, L.P. 75-2311348

- -------------------------------------------------------------------------------------------------------------------
6) Citizenship or Place of Organization DELAWARE

- -------------------------------------------------------------------------------------------------------------------
7) Sole Voting Power 26,475
Number of
Shares -------------------------------------------------------------------------------------------------
Beneficially 8) Shared Voting Power -0-
Owned by
Each -------------------------------------------------------------------------------------------------
Reporting 9) Sole Dispositive Power 26,475
Person
With -------------------------------------------------------------------------------------------------
10) Shared Dispositive Power -0-

- -------------------------------------------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person 26,475

- -------------------------------------------------------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11) 0.7%

- -------------------------------------------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions) PN
- -------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE> 6

CUSIP NO. 893-617-209 PAGE 6
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
1) Names of Reporting Persons S.S. or I.R.S. Identification Nos. of Above Persons
THE GENE E. PHILLIPS CHILDREN'S TRUST 13-6599759

- -------------------------------------------------------------------------------------------------------------------
5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e)
...........................................................................................................

- -------------------------------------------------------------------------------------------------------------------
6) Citizenship or Place of Organization TEXAS

- -------------------------------------------------------------------------------------------------------------------
7) Sole Voting Power 46,500
Number of
Shares -------------------------------------------------------------------------------------------------
Beneficially 8) Shared Voting Power -0-
Owned by
Each -------------------------------------------------------------------------------------------------
Reporting 9) Sole Dispositive Power 46,500
Person
With -------------------------------------------------------------------------------------------------
10) Shared Dispositive Power -0-

- -------------------------------------------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person 46,500

- -------------------------------------------------------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11) 1.2%

- -------------------------------------------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions) OO
- -------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE> 7

TRANSCONTINENTAL REALTY INVESTORS, INC.
CUSIP NO. 893 617 209

ITEM 1. SECURITY AND ISSUER

Item 1 is hereby amended to read as follows:

This statement relates to the Common Shares, $.01 par value (the "Shares"),
of Transcontinental Realty Investors, Inc. ("TCI"), a Nevada corporation (the
"Corporation"), and amends the amended statement on Schedule 13D filed on
January 9, 1997. The principal executive offices of TCI are located at 10670
North Central Expressway, Suite 600, Dallas, Texas 75231.

ITEM 2. IDENTITY AND BACKGROUND

Item 2 is hereby amended to read as follows:

This statement is being filed on behalf of American Realty Trust,
Inc. ("ART"), Basic Capital Management, Inc. ("BCM"), Continental
Mortgage and Equity Trust ("CMET"), Syntek Asset Management, L.P.
("SAMLP") and The Gene E. Phillips Children's Trust (the "GEP Trust")
(collectively the "Reporting Persons").

ART, BCM, CMET, SAMLP, and the GEP Trust may be deemed to constitute a
"person" within the meaning of Section 13 (d) of the Securities Exchange Act of
1934, as amended, because Gene E. Phillips is a general partner of Syntek Asset
Management, L.P. BCM is beneficially owned by a trust established for the
benefit of Mr. Phillips' children, BCM serves as advisor to CMET and ART, and
Mr. Phillips' son, Ryan T. Phillips, serves as a director of BCM and is a
beneficiary of the GEP Trust.

(I) ART is a real estate investment company organized and existing as a
Georgia corporation engaged in the business of investing in and originating
mortgage loans and investing in real estate. ART's principal business activities
include investments in real estate and in other business ventures. The principal
place of business and principal office of ART is located at 10670 North Central
Expressway, Suite 600, Dallas, Texas 75231.

The following is a list of each executive officer and director of ART:

<TABLE>
<CAPTION>
Name Position(s) with ART
- ---- --------------------
<S> <C>
Oscar W. Cashwell Director
Al Gonzalez Director
Roy E. Bode Director
Cliff Harris Director
</TABLE>

<PAGE> 8

<TABLE>
<CAPTION>
Name Position(s) with ART
- ---- --------------------
<S> <C>
Karl L. Blaha Director\President

Thomas A. Holland Executive Vice President and
Chief Financial Officer
Bruce A. Endendyk Executive Vice President

Randall M. Paulson Executive Vice President

Steven K. Johnson Executive Vice President -
Residential Asset Management

Robert A. Waldman Senior Vice President, Secretary
and General Counsel

Drew D. Potera Vice President and Treasurer
</TABLE>

Mr. Cashwell's business address is 10670 North Central Expressway,
Suite 600, Dallas, Texas 75231. Mr. Cashwell is a real estate
consultant for BCM. Mr. Cashwell is a citizen of the United States of
America.

Mr. Gonzalez' business address is 4455 Alpha Road, Building 2,
Dallas, Texas 75244. Mr. Gonzalez' present principal occupation is
President of Age Refining, Inc. Mr. Gonzalez is a citizen of the
United States of America.

Mr. Bode's business address is 2435 E. FM 879, Palmer, Texas 75152.
Mr. Bode's present principal occupation is Vice President for Public
Affairs at University of Texas Southwestern Medical Center at Dallas.
Mr. Bode is a citizen of the United States of America.

Mr. Harris' business address is 2838 Woodside Street, Dallas, Texas
75204. Mr. Harris' present principal occupation is President of Energy
Transfer Group, L.L.C. Mr. Harris is a citizen of the United States
of America.

Mr. Blaha's business address is 10670 North Central Expressway, Suite
600, Dallas, Texas 75231. Mr. Blaha's present principal occupation is
President of BCM. Mr. Blaha is a citizen of the United States of
America.

Mr. Holland's business address is 10670 North Central Expressway,
Suite 600, Dallas, Texas 75231. Mr. Holland's present principal
occupation is Executive Vice President and Chief Financial Officer of
BCM. Mr. Holland is a citizen of the United States of America.

Mr. Endendyk's business address is 10670 North Central Expressway,
Suite 600, Dallas, Texas 75231. Mr. Endendyk's present principal
occupation is Executive Vice President of BCM. Mr. Endendyk is a
citizen of the United States of America.

Mr. Paulson's business address is 10670 North Central Expressway,
Suite 600, Dallas, Texas 75231. Mr. Paulson's present principal
occupation is President of BCM. Mr. Paulson is a citizen of the United
States of America.

<PAGE> 9

Mr. Johnson's business address is 10670 North Central Expressway,
Suite 600, Dallas, Texas 75231. Mr. Johnson's present principal
occupation is Executive Vice President-Residential Asset Management of
BCM. Mr. Johnson is a citizen of the United States of America.

Mr. Waldman's business address is 10670 North Central Expressway,
Suite 600, Dallas, Texas 75231. Mr. Waldman's present principal
occupation is Senior Vice President, Secretary and General Counsel of
BCM. Mr. Waldman is a citizen of the United States of America.

Mr. Potera's business address is 10670 North Central Expressway,
Suite 600, Dallas, Texas 75231. Mr. Potera's present principal
occupation is Vice President and Treasurer of BCM. Mr. Potera is a
citizen of the United States of America.

(II) BCM is a corporation organized and existing under the laws of the
State of Nevada. BCM's principal business activity is the provision of advisory
services for real estate investment trusts. Its principal place of business and
principal office is located at 10670 North Central Expressway, Suite 600,
Dallas, Texas 75231.

BCM is owned by Realty Advisors, Inc., a Nevada corporation. Realty
Advisors, Inc. is owned by a trust established for the benefit of the
children of Gene E. Phillips. The directors and executive officers of
BCM are as follows:

<TABLE>
<CAPTION>
Name Position(s) with BCM
- ---- --------------------
<S> <C>
Ryan T. Phillips Director

Mickey Ned Phillips Director

Randall M. Paulson President

Thomas A. Holland Executive Vice President and
Chief Financial Officer

Clifford C. Towns, Jr. Executive Vice President -
Finance

Karl L. Blaha Executive Vice President -
Commercial Asset Management

Steven K. Johnson Executive Vice President -
Residential Asset Management

Bruce A. Endendyk Executive Vice President

A. Cal Rossi, Jr. Executive Vice President

Cooper B. Stuart Executive Vice President

Dan S. Allred Senior Vice President -
Land Development

Robert A. Waldman Senior Vice President, General
Counsel and Secretary
</TABLE>

<PAGE> 10

<TABLE>
<CAPTION>
Name Position(s) with BCM
- ---- --------------------
<S> <C>
Drew D. Potera Vice President, Treasurer
and Securities Manager
</TABLE>

Information with respect to Messrs. Paulson, Holland, Blaha, Johnson,
Endendyk, Waldman and Potera is disclosed in (I) above.

Mr. R. Phillips' business address is 10670 North Central Expressway,
Suite 600, Dallas, Texas 75231. Mr. Phillips' present principal
occupation is an independent real estate investor. Mr. Phillips is a
citizen of the United States of America.

Mr. M. Phillips' business address is 264 Rolling Hills Circle,
Gaffney, South Carolina 29340. Mr. Phillips' present principal
occupation is owner of Phillips Remodeling Co. Mr. Phillips is a
citizen of the United States of America.

Mr. Towns' business address is 10670 North Central Expressway, Suite
600, Dallas, Texas 75231. Mr. Towns' present principal occupation is
Executive Vice President of BCM. Mr. Towns is a citizen of the United
States of America.

Mr. Rossi's business address is 10670 North Central Expressway, Suite
600, Dallas, Texas 75231. Mr. Rossi's present principal occupation is
Executive Vice President of BCM. Mr. Rossi is a citizen of the United
States of America.

Mr. Stuart's business address is 10670 North Central Expressway,
Suite 600, Dallas, Texas 75231. Mr. Stuart's present principal
occupation is Executive Vice President of BCM. Mr. Stuart is a citizen
of the United States of America.

Mr. Allred's business address is 10670 North Central Expressway,
Suite 600, Dallas, Texas 75231. Mr. Allred's present principal
occupation is Senior Vice President of BCM. Mr. Allred is a citizen
of the United States of America.

(III) CMET is a real estate investment trust organized and existing under
the law of the State of California. CMET's principal business activity is
investments in real estate. The principal place of business and principal office
of CMET is located at 10670 North Central Expressway, Suite 600, Dallas, Texas
75231.

The following is a list of each executive officer and trustee of CMET:

<TABLE>
<CAPTION>
Name Position(s) with CMET
- ---- ---------------------
<S> <C>
Richard W. Douglas Trustee

Larry E. Harley Trustee

R. Douglas Leonhard Trustee

Murray Shaw Trustee

Ted P. Stokely Trustee
</TABLE>

<PAGE> 11

<TABLE>
<CAPTION>
Name Position(s) with CMET
- ---- ---------------------
<S> <C>
Martin L. White Trustee

Edward G. Zampa Trustee

Randall M. Paulson President

Thomas A. Holland Executive Vice President, Chief
Financial Officer and Secretary

Karl L. Blaha Executive Vice President -
Commercial Asset Management

Steven K. Johnson Executive Vice President -
Residential Asset Management

Bruce A. Endendyk Executive Vice President

Robert A. Waldman Senior Vice President
and General Counsel

Drew D. Potera Vice President and Treasurer
</TABLE>

Information with respect to Messrs. Paulson, Holland, Blaha, Johnson,
Endendyk, Waldman and Potera is disclosed in (I) and (II) above.

Mr. Douglas' business address is 3030 McKinney Avenue, #1201,
Dallas, Texas 75204. Mr. Douglas' present principal occupation is
President of Dallas Chamber of Commerce. Mr. Douglas is a citizen of
the United States of America.

Mr. Harley's business address is 8520 Breakers Point, Dallas, Texas
75243. Mr. Harley is retired. Mr. Harley is a citizen of the United
States of America.

Mr. Leonhard's business address is 13230 Hunters Lark, San Antonio,
Texas 78230. Mr. Leonhard is retired. Mr. Leonhard is a citizen of
the United States of America.

Mr. Shaw's business address is 3713 Ebony, Hollow Pass, Austin,
Texas 78739. Mr. Shaw's present principal occupation is Chairman of
the Board of Stephen F. Austin University. Mr. Shaw is a citizen of
the United States of America.

Mr. Stokely's business address is 10670 North Central Expressway,
Suite 515, Dallas, Texas 75231. Mr. Stokely's present principal
occupation is General Manager of Minority and Elderly Housing
Assistance Foundation, Inc. Mr. Stokely is a citizen of the United
States of America.

Mr. White's business address is 8051 Coach Drive, Oakland,
California 94605. Mr. White's present principal occupation is
Chairman and Chief Executive Officer of Community Based Developers,
Inc. Mr. White is a citizen of the United States of America.

<PAGE> 12

Mr. Zampa's business address is Number Fifty Osgood Place, Suite
110, San Francisco, California 94133. Mr. Zampa is General Partner
of Edward G. Zampa and Company. Mr. Zampa is a citizen of the United
States of America.

(IV) SAMLP is a Delaware limited partnership engaged in the business of
investing in real estate and real estate related assets. The principal place of
business and principal office of SAMLP is located at 10670 North Central
Expressway, Suite 600, Dallas, Texas 75231.

SAMLP has no officers or directors. The general partners of SAMLP
are Gene E. Phillips and Syntek Asset Management, Inc. ("SAMI"). SAMI
is a corporation organized and existing under the laws of the State
of Texas. SAMI is a wholly-owned subsidiary of BCM. SAMI's principal
business activities include investment in real estate and in other
business ventures. Its principal place of business and principal
office is located 10670 North Central Expressway, Suite 600, Dallas,
Texas 75231.

Information with respect to Mr. Phillips is disclosed in (III) above.

(V) The GEP Trust is a trust formed under the laws of Texas for the benefit
of the children of Mr. Gene E. Phillips. The trustee of GEP Trust is Mr. Gene E.
Phillips' brother, Donald W. Phillips. Information with respect to Mr. Gene E.
Phillips is disclosed in (III) above.

Donald W. Phillips' business address is 10670 North Central
Expressway, Suite 515, Dallas, Texas 75231. Mr. D. Phillips' present
principal occupation is President and owner of Big D Oil Field
Equipment Sales. Mr. D. Phillips is a citizen of the United States
of America.

During the last five (5) years, (i) none of the persons enumerated in (I)
through (III) above has been convicted in a criminal proceeding (excluding
traffic violations and similar misdemeanors) and (ii) none of such persons was a
party to a civil proceeding of a judicial or administrative body of competent
jurisdiction and as a result of such proceeding was or is subject to a judgment,
decree or final order enjoining future violations of, or prohibiting or
mandating activities subject to, federal or state securities laws or finding any
violation with respect to such laws.

<PAGE> 13

ITEM 5. INTEREST IN SECURITIES OF THE ISSUER

Item 5 is hereby amended to read as follows:

(a) Share Ownership

The following tables show the Shares owned directly and beneficially by the
Reporting Persons on the date of this statement:

<TABLE>
<CAPTION>
Shares owned Directly
------------------------
Number of Percent of
Name Shares Class (1)
- ---- --------- ----------
<S> <C> <C>
ART 1,200,069 31.0%
BCM 421,277 10.9%
CMET 79,500 2.1%
SAMLP 26,475 0.7%
GEP TRUST 46,500 1.2%

TOTAL 1,773,821 45.9%
</TABLE>

<TABLE>
<CAPTION>
Shares owned Beneficially
----------------------------
Number of Percent of
Name Shares Class (1)
- ---- --------- ----------
<S> <C> <C>
ART 1,200,069 31.0%
BCM 421,277 10.9%
CMET 79,500 2.1%
SAMLP 26,475 0.7%
GEP Trust 46,500 1.2%
Gene E. Phillips 46,500 1.2%
Ryan T. Phillips (3) (5) 421,277 10.9%
Al Gonzalez (2) 1,200,069 31.0%
Roy E. Bode (2) 1,200,069 31.0%
Oscar W. Cashwell (2) 1,200,069 31.0%
Cliff Harris (2) 1,200,069 31.0%
Karl L. Blaha (2) 1,200,069 31.0%
Richard W. Douglas (4) 79,500 2.1%
Larry E. Harley (4) 79,500 2.1%
R. Douglas Leonhard (4) 79,500 2.1%
Murray Shaw (4) 79,500 2.1%
Martin L. White (4) 79,500 2.1%
Ted P. Stokely (4) 79,500 2.1
Edward G. Zampa (4) 79,500 2.1%

Total Shares beneficially
owned by Reporting Persons 1,773,821 45.9%
</TABLE>

(1) Percentage calculations are based upon 3,872,505 Shares outstanding at July
31, 1998. Total and addends may not match due to rounding.

(2) May be deemed to be a beneficial owner of the Shares held directly by ART by
virtue of the relationship to ART described in Item 2.

<PAGE> 14

(3) May be deemed to be a beneficial owner of the Shares held directly by BCM
by virtue of the relationship to BCM described in Item 2.

(4) May be deemed to be a beneficial owner of the Shares held directly by CMET
by virtue of the relationship to CMET described in Item 2.

(5) May be deemed to be a beneficial owner of the Shares held directly by SAMLP
by virtue of the relationship to SAMLP as described in Item 2.

(6) May be deemed to be a beneficial owner of the Shares held directly by GEP
Trust by virtue of the relationship to GEP Trust as described in Item 2.

(b) Voting and Dispositive Power

Each of the directors of ART share voting and dispositive power over the
1,200,069 Shares held by ART. The directors of BCM have voting and dispositive
power over the 421,277 Shares held by BCM. Each of the trustees of CMET share
voting and disposition power over the 79,500 Shares held by CMET. The General
Partner of SAMLP has complete voting and dispositive power over the 26,475
Shares held by SAMLP. The Trustee of GEP Trust has complete voting and
dispositive power over all of the Shares owned by the GEP Trust.

The following table lists the purchase transactions in the Shares that were
effected by the Reporting Persons during the past 60 days.

<TABLE>
<CAPTION>
Reporting Number Price Type of
Person Date of Shares Per Share Transaction
- --------- -------- --------- --------- -----------
<S> <C> <C> <C> <C>
BCM 06/05/98 500 $ 15.250 Open Market
BCM 06/08/98 2,200 $ 15.250 Open Market
BCM 06/09/98 300 $ 15.250 Open Market
BCM 06/29/98 586 $ 14.6418 Open Market
ART 06/29/98 479 $ 14.6418 Open Market
BCM 08/05/98 600 $ 14.50 Open Market
</TABLE>

<PAGE> 15

ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR
RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER.

Item 6 is hereby amended to read as follows:

ART has pledged 7,500 shares to Arnold Securities, pledged 22,692 shares to
BA Investment Services, pledged 248,805 shares to Bear Stearns, pledged 7,350
shares to Brown & Company, pledged 38,875 shares to CJ Lawrence\DM, pledged
6,000 shares to Chase Securities, pledged 76,500 shares to Dain Rauscher,
pledged 169,230 shares to Dean Witter (CA), pledged 57,000 shares to First
Southwest, pledged 22,500 shares to First Union Brokerage, pledged 18,000 shares
to Hambrecht & Quist, pledged 35,000 shares to J.C. Bradford, pledged 30,307
shares to Legg Mason (TX), pledged 3,000 shares to Marsh Block, pledged 14,650
shares to May Financial, pledged 46,800 shares to McDonald & Company, pledged
73,891 shares to Morgan Keegan, pledged 24,000 shares to Mutual Securities,
pledged 22,000 shares to Raymond James, pledged 33,500 shares to Regions
Investment, pledged 3,786 shares to Roney & Co., pledged 15,825 shares to
Securities America, pledged 36,040 shares to Southland Securities, pledge 24,000
shares to Southwest Securities, pledged 37,250 shares to Tucker Anthony, pledged
11,000 shares to Wachovia and pledged 38,662 shares to Wedbush Morgan in stock
margin accounts maintained by it with such brokers.

ART has also pledged 75,406 shares to United Pacific Bank pursuant to a
loan agreement with such lender.

BCM has pledged 10,700 shares to American Express Financial, pledged 15,350
shares to BA Investment Services, pledged 88,539 shares to Bear Stearns, pledged
6,000 shares to Brown & Co., pledged 6,000 shares to CJ Lawrence\DM, pledged
5,100 shares to Cutter & Co., pledged 39,000 shares to Dain Rauscher, pledged
22,617 shares to Dean Witter (CA), pledged 22,250 shares to First Southwest,
pledged 10,250 shares to First Union Brokerage, pledged 6,550 shares to Gruntal
& Co., pledged 6,450 shares to Hambrecht & Quist, pledged 16,913 shares to J.C.
Bradford, pledged 9,092 shares Legg Mason (TX), pledged 10,500 shares to
McDonald & Company, pledged 44,872 shares to Morgan Keegan, pledged 19,500
shares to Raymond James, ledged 3,000 shares to Regions Investment, pledged
14,750 shares to Pobb,Peck,McCooey, pledged 9,350 shares to Robert Baird,
pledged 744 shares to Southland Securities, pledged 11,700 shares to Wachovia,
pledged 38,050 shares to Wedbush Morgan and pledged 4,000 shares to Wheatfirst
in stock margin accounts maintained by it with such brokers.

CMET has pledged 79,500 shares to Dean Witter (CA) in stock margin accounts
maintained by it with such broker.

SAMLP has pledged 26,475 shares to Bear Stearns in stock margin accounts
maintained by it with such broker.

The GEP Trust has pledged 46,500 shares to Dean Witter (NY) in stock margin
accounts maintained by it with such broker.

<PAGE> 16

SIGNATURES

After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.

Dated: August 28, 1998.

AMERICAN REALTY TRUST, INC.

By: /s/Karl L. Blaha
-------------------------------------
Karl L. Blaha
President

BASIC CAPITAL MANAGEMENT, INC.

By: /s/Drew D. Potera
-------------------------------------
Drew D. Potera
Vice President and Treasurer

CONTINENTAL MORTGAGE AND EQUITY TRUST

By: /s/Drew D. Potera
-------------------------------------
Drew D. Potera
Vice President and Treasurer

SYNTEK ASSET MANAGEMENT, L.P.
By: SYNTEK ASSET MANAGEMENT, INC.,
its general partner

By: /s/Drew D. Potera
-------------------------------------
Drew D. Potera
Vice President and Treasurer

GENE E. PHILLIPS CHILDREN'S TRUST

By: /s/Donald W. Phillips
-------------------------------------
Donald W. Phillips
Trustee