<SUBMISSION>
<ACCESSION-NUMBER>0000950134-05-000767
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20050111
<ITEMS>5.02
<ITEMS>9.01
<FILING-DATE>20050114
<DATE-OF-FILING-DATE-CHANGE>20050114
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>SUNSET FINANCIAL RESOURCES INC
<CIK>0001270436
<ASSIGNED-SIC>6798
<IRS-NUMBER>161685692
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-32026
<FILM-NUMBER>05530707
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>10245 CENTURION PARKWAY
<STREET2>3RD FLOOR
<CITY>JACKSONVILLE
<STATE>FL
<ZIP>32256
<PHONE>9044254099
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>10245 CENTURION PARKWAY
<STREET2>3RD FLOOR
<CITY>JACKSONVILLE
<STATE>FL
<ZIP>32256
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>d21735e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">



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<P align="center" style="font-size: 14pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>

<DIV align="center" style="font-size: 12pt"><B>WASHINGTON, DC 20549</B>
</DIV>

<P align="center" style="font-size: 18pt"><B>FORM 8-K</B>


<P align="center" style="font-size: 12pt"><B>CURRENT REPORT PURSUANT<BR>
TO SECTION 13 OR 15(D) OF THE<BR>
SECURITIES EXCHANGE ACT OF 1934</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date of report (Date of earliest event reported): <U>January&nbsp;11, 2005</U>

<P align="center" style="font-size: 24pt"><B>Sunset Financial Resources, Inc.</B>


<DIV align="center" style="font-size: 10pt"><HR size="1" noshade width="100%" align="center" color="#000000">
(Exact Name of Registrant as Specified in Its Charter)</DIV>



<P align="center" style="font-size: 10pt">Maryland


<DIV align="center" style="font-size: 10pt"><HR size="1" noshade width="100%" align="center" color="#000000">
(State or Other Jurisdiction of Incorporation)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
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<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">001-32026
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">16-1685692</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><HR size="1" noshade width="100%" align="center" color="#000000"></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(Commission File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(IRS Employer Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
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<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">10245 Centurion Parkway North, Jacksonville, Florida
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">32256</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><HR size="1" noshade width="100%" align="center" color="#000000"></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(Address of Principal Executive Offices)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Zip Code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">(904)&nbsp;425-4099


<DIV align="center" style="font-size: 10pt"><HR size="1" noshade width="100%" align="center" color="#000000">
(Registrant&#146;s Telephone Number, Including Area Code)</DIV>



<P align="center" style="font-size: 10pt"><HR size="1" noshade width="100%" align="center" color="#000000">


<DIV align="center" style="font-size: 10pt">(Former Name or Former Address, if Changed Since Last Report)</DIV>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-family: Wingdings">&#111;</FONT> Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-family: Wingdings">&#111;</FONT> Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-family: Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-family: Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


<P>
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<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
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<TR><TD></TD><TD colspan="8"><A HREF="#000">Item&nbsp;5.02 Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers.</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#001">Item&nbsp;9.01 Financial Statements, Pro Forma Financial Information and Exhibits.</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002"> SIGNATURE</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003"> INDEX TO EXHIBITS</A></TD></TR>
<TR><TD colspan="9"><A HREF="d21735exv99w1.htm">Press Release</A></TD></TR>
</TABLE>
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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>




<!-- link2 "Item&nbsp;5.02 Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers." -->
<DIV align="left"><A NAME="000"></A></DIV>

<P align="left" style="font-size: 10pt"><B>Item&nbsp;5.02 Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers.</B>


<P align="left" style="font-size: 10pt">Effective January&nbsp;11, 2005, G. Steven Dawson was elected to the board of directors of Sunset
Financial Resources, Inc. (the &#147;<U>Company</U>&#148;). Mr.&nbsp;Dawson was not elected pursuant to any
arrangement or understanding. At this time, the Company has not determined on which committees Mr.
Dawson will serve in connection with his election to the board of directors.


<P align="left" style="font-size: 10pt">On January&nbsp;14, 2005, the Company issued a press release announcing Mr.&nbsp;Dawson&#146;s election, a copy of
which is attached hereto as Exhibit&nbsp;99.1.


<!-- link2 "Item&nbsp;9.01 Financial Statements, Pro Forma Financial Information and Exhibits." -->
<DIV align="left"><A NAME="001"></A></DIV>

<P align="left" style="font-size: 10pt"><B>Item&nbsp;9.01 Financial Statements, Pro Forma Financial Information and Exhibits.</B>



<P align="left" style="font-size: 10pt">(c)&nbsp;Exhibits



<P align="left" style="font-size: 10pt">99.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Press Release issued January&nbsp;14, 2005.



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<!-- link1 " SIGNATURE" -->
<DIV align="left"><A NAME="002"></A></DIV>

<P align="center" style="font-size: 10pt"><B>SIGNATURE</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


<P align="left" style="font-size: 10pt">Date: January&nbsp;14, 2005



<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
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    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">SUNSET FINANCIAL RESOURCES, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Bert Watson
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Bert Watson&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">President and Chief Executive Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV align="left"><A NAME="003"></A></DIV>

<P align="center" style="font-size: 10pt">INDEX TO EXHIBITS


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">Exhibit Number</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">Description</TD>
</TR>

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<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press Release issued January&nbsp;14, 2005.</TD>
</TR>
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</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>d21735exv99w1.htm
<DESCRIPTION>PRESS RELEASE
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt">EXHIBIT 99.1



<P align="center" style="font-size: 10pt">SUNSET FINANCIAL RESOURCES APPOINTS NEW DIRECTOR


<P align="left" style="font-size: 10pt">JACKSONVILLE, Fla., Jan. 14, 2005. Sunset Financial Resources (NYSE: SFO) is pleased to announce
that on January&nbsp;11, 2005, Mr.&nbsp;G. Steven Dawson accepted the position of director on its board of
directors.


<P align="left" style="font-size: 10pt">Mr.&nbsp;Dawson served as Chief Financial Officer of Camden Property Trust from 1990 to 2003. During
that time, he was part of the executive team that was responsible for growing Camden from a small
multifamily owner/operator into one of the largest multifamily companies in the United States.
Currently, Mr.&nbsp;Dawson serves on the boards of directors of six other companies, including US
Restaurant Properties, Inc. (NYSE: USV), a Dallas-based owner of over 800 fast-food and casual
dining restaurants and gas station/convenience stores, AmREIT, Inc. (AMEX: AMY), a Houston-based
owner and developer of retail properties, NetVersant, Inc., a Houston-based privately-held network
cabling contractor, Medical Properties Trust, a Birmingham, Alabama-based REIT specializing in the
ownership of acute care facilities, medical office buildings and related medical properties, Desert
Capital REIT, a Las Vegas-based mortgage REIT, and American Campus Communities (NYSE: ACC), an
Austin-based equity REIT focused on student housing.


<P align="left" style="font-size: 10pt">&#147;We are pleased to have Steve join our board of directors and look forward to working with him to
further the objectives of the Company,&#148; remarked Chairman, President and CEO Bert Watson.


<P align="left" style="font-size: 10pt">Sunset Financial Resources, Inc. is a self-managed real estate investment trust (REIT)&nbsp;that went
public on March&nbsp;17, 2004. Sunset Financial Resources seeks to deliver attractive dividend income
and steady growth to its shareholders through the acquisition and management of a portfolio of high
quality residential mortgage loans and well secured commercial mortgage bridge loans in the United
States.


<P align="left" style="font-size: 10pt">Certain statements in this news release may constitute &#147;forward-looking statements&#148; within the
meaning of the federal securities laws and involve risks, uncertainties and other factors, which
may cause the actual performance of Sunset Financial Resources, Inc. to be materially different
from the performance expressed or implied by such statements. These risks include the failure of
the Company to successfully execute its business plan, gain access to additional financing, the
availability of additional loan portfolios for future acquisition, continued qualification as a
REIT, the cost of capital, as well as the additional risks and uncertainties detailed in the
Company&#146;s periodic reports and registration statements filed with the Securities and Exchange
Commission.




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