SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 13D

Under the Securities Exchange Act of 1934

(Amendment No. 9)

AMERICAN REALTY INVESTORS, INC.

(Name of Issuer)

(Title of Class of Securities)

029174-10-9

Louis J. Corna
1800 Valley View Lane, Suite 300
Dallas, Texas 75234
(469) 522-4281
(469) 522-4360 (Facsimile)

Communications)

November 15, 2008

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 o.

NOTE: Six copies of this statement, including all exhibits, should be filed with the Commission. See Rule 13d-1(a) for other parties to whom copies are to be sent.

*The remainder of this cover page shall be filled out for a reporting persons’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

 

 

CUSIP No.		029174-10-9

CUSIP No.		029174-10-9

CUSIP No.		029174-10-9

CUSIP No.		029174-10-9

CUSIP No.		029174-10-9

CUSIP No.		029174-10-9

CUSIP No.		029174-10-9

Item 1. Security and Issuer

     This Amendment No. 9 to Statement on Schedule 13D (this “Amendment No. 9”) relates to shares of Common Stock, par value $0.01 per share (the “Shares”) of American Realty Investors, Inc., a Nevada corporation (the “Issuer” or “ARL”), and further amends the original Statement on Schedule 13D as amended by Amendment Nos. 1 through 8 thereto (the “Amended Statement”) previously filed with the Securities and Exchange Commission (the “Commission”) by the “Reporting Persons” described below. The principal executive offices of the Issuer are located at 1800 Valley View Lane, Suite 300, Dallas, Texas 75234. The Shares are listed and traded on the New York Stock Exchange, Inc. The CUSIP number of the Shares is 029174-10-9.

     This Amendment No. 9 to Schedule 13D is being filed to reflect the transfer by one of the Reporting Persons of 6,703,045 Shares by a dividend to another Reporting Person of such Shares. See Item 5 below.

Item 2. Identity and Background

     Item 2 of the Amended Statement is hereby further amended as follows:

     This Amendment No. 9 is filed on behalf of Basic Capital Management, Inc., a Nevada corporation (“BCM”), the Gene E. Phillips Children’s Trust, a trust formed under the laws of the state of Texas (the “GEP Trust”), Transcontinental Realty Investors, Inc., a Nevada corporation (“TCI”), Realty Advisors, Inc., a Nevada corporation (“RAI”), Realty Advisors, LLC, a Nevada limited liability company (“RALLC”), the sole member of which is RAI, Prime Income Asset Management, Inc., a Nevada corporation (“Prime”) and One Realco Stock Holdings, Inc., a Nevada corporation (“ORS Holdings”), which is a wholly-owned subsidiary of Prime. Each of the Reporting Persons (except ORS Holdings) has its principal executive offices located at 1800 Valley View Lane, Suite 300, Dallas, Texas 75234. ORS Holdings’ principal office is located at 555 Republic Drive, Suite 490, Plano, Texas 75074. All of BCM, GEP Trust, TCI, RAI, Prime and ORS Holdings are collectively referred to as the “Reporting Persons.” The Reporting Persons may be deemed to constitute a “person” within the meaning of Section 13(d) of the Securities Exchange Act of 1934, as amended, because BCM is owned by RALLC, the sole member of which is RAI which is beneficially owned by a trust established for the benefit of Gene E. Phillips’ children. RALLC also owns 80% of the voting equity securities of Prime. Prime owns all of the voting securities of ORS Holdings. The executive officers of TCI are also executive officers of BCM, RAI, RALLC and Prime. Mr. Phillips’ son, Ryan T. Phillips, serves as a director of BCM, Prime and RAI and is a beneficiary of the GEP Trust. The executive officers of ARL are also executive officers of BCM, Prime and TCI. Prime Income Asset Management, LLC, a Nevada limited liability company (“PIAMLLC”), the sole member of which is Prime, also serves as the contractual advisor to ARL and TCI.

Item 3. Source and Amount of Funds or Other Consideration

     On November 15, 2008, pursuant to a dividend distribution, RALLC received from BCM 6,703,045 Shares at a value of $9.25 per Share, the closing price on the NYSE on November 14, 2008, a total of $62,003,166.25. RALLC did not pay any funds for such stock, but instead received the Shares in payment of a dividend from BCM.

Item 5. Interest in Securities of Issuer

     The Amended Statement is hereby further amended as follows:

     (a) According to the latest information available from the Issuer, as of October 15, 2008, the total number of issued and outstanding Shares was 11,233,672 Shares. As of November 15, 2008, the Reporting Persons own and hold directly and beneficially the following Shares:

Name		No. of Shares Owned Directly				Approximate Percent of Class
BCM			-0-				0.00	%
GEP Trust			27,602				0.25	%
TCI			276,972				2.47	%
RALLC			6,703,045				59.67	%
RAI			-0-				0.00	%
Prime			1,437,208				12.79	%
ORS Holdings			234,450				2.09	%
			8,679,277				77.26	%

     Pursuant to Rule 13d-3 under the Exchange Act, each of the directors of BCM may be deemed to beneficially own the number of Shares owned by BCM described above; each of the directors of ORS Holdings may be deemed to beneficially own the number of Shares owned by ORS Holdings described above; each of the directors of Prime may be deemed to beneficially own the number of Shares owned by Prime by ORS Holdings described above; each of the managers of RALLC may be deemed to beneficially own the number of Shares beneficially owned by RALLC; each of the directors of RAI may be deemed to beneficially own the number of Shares owned by BCM, Prime and ORS Holdings described above; each of the directors of TCI may be deemed to beneficially own the number of Shares owned by TCI described above; Ryan T. Phillips as a beneficiary of the GEP Trust may be deemed to beneficially own the Shares held directly by the GEP Trust. Those individuals and the number of Shares deemed beneficially owned pursuant to Rule 13d-3, and the approximate percent of the class, as well as the relationship, are set forth in the following table:

				No. of Shares
Name of Director		Entity		Beneficially Owned				Percent of Class
Ryan T. Phillips		BCM, ORS Holdings, Prime, RAI and GEP Trust			8,679,277				77.26	%
Donald W. Phillips		GEP Trust			27,602				0.25	%
Mickey Ned Phillips		BCM, ORS Holdings, Prime and RAI			8,651,675				77.02	%
Ted P. Stokely		TCI			267,972				2.47	%
Henry A. Butler		TCI			267,972				2.47	%
Sharon Hunt		TCI			267,972				2.47	%
Robert A. Jakuszewski		TCI			267,972				2.47	%
Ted R. Munselle		TCI			267,972				2.47	%
Gene S. Bertcher		RALLC			6,703,045				59.67	%
Daniel J. Moos		RALLC			6,703,045				59.67	%
Total Shares beneficially owned by Reporting Persons and individuals listed above:					8,679,277				77.26	%

     (b) Each of the managers of RALLC share voting and dispositive power over the 6,703,045 Shares held by RALLC. Each of the directors of Prime share voting and dispositive power over the

1,870,125 Shares held by Prime. Each of the directors of ORS Holdings share voting and dispositive power over the 234,450 Shares held by ORS Holdings. Each of the directors of TCI share voting and dispositive power over the 276,972 Shares held by TCI. The Trustee of the GEP Trust has complete voting and dispositive power over the 27,602 Shares held by the GEP Trust.

     (c) During the sixty calendar days ended November 15, 2008, the Reporting Persons and their respective executive officers and directors did not engage in any transaction involving the Shares or any other equity interests derivative thereof, except for BCM’s dividend distribution of 6,703,045 Shares as a single block to RALLC as payment of a dividend in the aggregate of $62,003,166.25 which was based on the closing price of the Shares of $9.25 on November 14, 2008 and by the delivery to RALLC by BCM of the 6,703,045 Shares. After giving effect to the transfer of 6,703,045 Shares from BCM to RALLC, BCM holds no Shares.

     (d) No person other than the Reporting Persons or their respective Board of Directors, Managers or Trustees is known to have the right to receive or the power to direct receipt of dividends from, or proceeds of sale of, the Shares of ARL Common Stock held by RALLC, TCI, Prime and the GEP Trust.

     (e) BCM ceased to be the owner of any Shares after its sale of 6,703,045 Shares to RALLC and BCM therefore ceases to be a Reporting Person after giving effect to such sale.

Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer

     Item 6 of the Amended Statement is hereby further amended to read as follows:

     BCM previously pledged 1,872,486 Shares, TCI pledged 50,000 Shares, ORS Holdings has pledged 39,450 Shares (a total of 3,399,144 Shares including 1,437,208 Shares previously dividended to RAI and contributed to the capital of Prime) to Consolidated National Corporation pursuant to loan agreements with such lender.

     BCM has also previously made accommodation pledges, for loans to others, to Bob Shaw, an individual (1,250,000 Shares), Caddo Estates (150,000 Shares) and Barbara and Anita Laken (100,000 Shares).

     Of the 6,703,045 Shares transferred by BCM to RALLC, a total of 3,372,486 Shares were, and remain, subject to the prior pledges described in the two preceding paragraphs.

     Of the balance of the Shares now owned by RALLC, 2,764,504 are held in bank and brokerage accounts along with other securities owned by RALLC. As such, those 2,764,504 Shares may be deemed to be “collateral” for any borrowings made from time to time pursuant to the customary margin or other account arrangements with such banks and/or brokers. Such arrangements are standard involving margin securities of up to a specified percentage of market value of the Shares, as well as other securities in such account, bear interest at varying rates and contain only standard default and similar provisions, the operation of which should not give any other person immediate voting power or investment power over the Shares.

     Each of the loans pursuant to which Shares have been previously pledged by BCM bear interest at varying rates and contain only standard default and similar provisions, the operation of which should not give any other person immediate voting power or investment power over the Shares.

     All 276,972 Shares owned by TCI may be deemed to be “collateral” for borrowings pursuant to margin or other account arrangements with Sinex Securities LLC relating to a brokerage account of TCI, which is a stock margin account maintained by TCI with such broker pursuant to customary brokerage account arrangements. Such standard arrangements involve margin securities of up to a specified percentage of the market value of the Shares, as well as other securities in such account, bear interest at varying rates and contain only standard default and similar provisions, the operation of which should not give any other person immediate voting power or investment power over the Shares.

     Except as set forth in the preceding paragraphs, the Reporting Persons do not have any contracts, arrangements, understandings or relationships (legal or otherwise) with any person with respect to any securities of the Issuer, including but not limited to, transfer or voting of any of the securities, finders’ fees, joint ventures, loan or option arrangements, puts or calls, guaranties of profits, divisions of profits, divisions of profits or loss, or the giving or withholding of proxies.

SIGNATURES

     After reasonable inquiry and to the best of its knowledge and belief, the undersigned certify that the information set forth in this Amendment No. 9 to Statement on Schedule 13D is true, complete and correct.

     Dated: November 18, 2008

REALTY ADVISORS, INC.				BASIC CAPITAL MANAGEMENT, INC.
By:		/s/ Louis J. Corna		By:		/s/ Louis J. Corna
		Louis J. Corna, Vice President and Secretary				Louis J. Corna, Executive Vice President and Secretary
GENE E. PHILLIPS CHILDREN’S TRUST				TRANSCONTINENTAL REALTY INVESTORS, INC.
By:		/s/ Donald W. Phillips		By:		/s/ Louis J. Corna
		Donald W. Phillips, Trustee				Louis J. Corna, Executive Vice President and Secretary
ONE REALCO STOCK HOLDINGS, INC.				PRIME INCOME ASSET MANAGEMENT, INC.
By:		/s/ Louis J. Corna		By:		/s/ Louis J. Corna
		Louis J. Corna, Executive Vice President and Secretary				Louis J. Corna, Executive Vice President and Secretary
REALTY ADVISORS, LLC
By:		/s/ Louis J. Corna
		Louis J. Corna, Vice President and Secretary