AMERICAN INCOME 7
                             LIMITED PARTNERSHIP 
                          98 North Washington Street 
                          Boston, Massachusetts 02114
 
                                                                August 18, 1995
 
Dear Unitholder:
 
  Enclosed is a copy of the Schedule 14D-9 which was filed by American Income
7 Limited Partnership (the "Partnership") with the Securities and Exchange
Commission in connection with the offer by Atlantic Acquisition Limited
Partnership (the "Purchaser") to purchase Units of limited partnership
interest in the Partnership.
 
  The Purchaser is related to the general partner of the Partnership, to
American Finance Group ("AFG"), which is the sponsor of the Partnership, and
to parties related to AFG. Accordingly, the Partnership is making no
recommendation and is remaining neutral as to whether Unitholders should
tender their Units pursuant to the offer.
 
  Unitholders are advised to read carefully the enclosed Schedule 14D-9.
 
                                                             AMERICAN INCOME 7
                                                             LIMITED PARTNERSHIP
 
D