SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                   FORM 10-QSB

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES  EXCHANGE
    ACT OF 1934

For the quarter period ended      June 30, 2000

                                       OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

For the transition period from _____________________ To  _____________________

Commission file number              33-24235


                   SECURED INVESTMENT RESOURCES FUND, L.P. III
        (Exact name of small business issuer as specified in its charter)


         Missouri                                      48-6291172
(State or other jurisdiction of            (I.R.S. Employer Identification No.)
incorporation or organization)

104 Armour Road, North Kansas City, Missouri             64116
(Address of principal executive offices)               (Zip Code)


Registrant's telephone number, including area code        (816) 303-4500


Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  Registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.
Yes [X]   No [ ]

                                       1
<PAGE>
                   SECURED INVESTMENT RESOURCES FUND, L.P. III

                                      INDEX

                                                                            Page
PART I - FINANCIAL INFORMATION

ITEM 1.  CONSOLIDATED FINANCIAL STATEMENTS:
         Balance Sheet                                                       3-4
         Statements of Operations                                              5
         Statements of Cash Flows                                              6

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
            OF OPERATIONS                                                      9

PART II - OTHER INFORMATION                                                   10

ITEM 1.  LEGAL PROCEEDINGS                                                    10
ITEM 2.  CHANGES IN SECURITIES                                                10
ITEM 3.  DEFAULTS UPON SENIOR SECURITIES                                      10
ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                  10
ITEM 5.  OTHER INFORMATION                                                    10
ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K                                     10


SIGNATURES                                                                    11


                                      2

<PAGE>
PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                   SECURED INVESTMENT RESOURCES FUND, L.P. III
                           CONSOLIDATED BALANCE SHEET
                                   (UNAUDITED)

                                                                   June 30, 2000


ASSETS:

INVESTMENT PROPERTIES                                               $  6,723,000

RESTRICTED DEPOSITS                                                      119,000

CASH                                                                     550,000

OTHER ASSETS
   Rents and other receivables                                          --------
   Prepaid expenses, deposits and other                                   44,000
   Debt issuance costs, net of accumulated
      amortization of $347,000                                            68,000
                                                                        --------

           TOTAL ASSETS                                             $  7,504,000
                                                                     ===========

See notes to consolidated financial statements.

                                        3

<PAGE>
                   SECURED INVESTMENT RESOURCES FUND, L.P. III
                CONSOLIDATED BALANCE SHEETS (UNAUDITED) - CONT'D

                                                                  June 30, 2000

LIABILITIES AND PARTNERS' DEFICIT

   Mortgage payable                                                $  7,858,000
   Accounts payable and accrued expenses                                 92,000
   Accrued management fees - General Partners                            13,000
   Accrued Interest                                                      60,000
   Unearned revenue                                                       5,000
   Tenant security deposits                                              80,000
                                                                    -----------
     TOTAL LIABILITIES                                                8,108,000
                                                                    -----------

PARTNERS' DEFICIT

   General Partners (4 units authorized and outstanding)
       Capital contributions                                              2,000
       Partnership deficit                                              (45,000)
                                                                       --------
                                                                        (43,000)
                                                                       --------
   Limited Partners (60,000 units authorized;
     9,685 units outstanding)
       Capital contribution                                           3,915,000
       Partnership deficit                                           (4,476,000)
                                                                    -----------
                                                                       (561,000)
                                                                    -----------
   TOTAL PARTNERS' DEFICIT                                             (604,000)
                                                                    -----------
   TOTAL LIABILITIES & PARTNERS' DEFICIT                          $   7,504,000
                                                                    ===========


See notes to consolidated financial statements.



                                       4

<PAGE>
                   SECURED INVESTMENT RESOURCES FUND, L.P. III
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
<S>                                          <C>            <C>             <C>             <C>
                                                 Three Months Ended             Six Months Ended
                                                June 30,     June 30,        June 30,        June 30
                                                 2000          1999            2000            1999
REVENUES
   Rents                                     $  503,000    $  448,000      $   999,000    $   890,000
   Other Income                                  43,000        24,000           68,000         43,000
                                              ---------     ---------      -----------      ---------
                                                546,000       472,000        1,067,000        933,000
                                               --------      --------        ---------       --------
OPERATING AND ADMINISTRATIVE EXPENSES
   Property operating expenses                  148,000       129,000          280,000        246,000
   General and administrative expenses           45,000        37,000           90,000         75,000
   Professional fees                             10,000        26,000           32,000         55,000
   Management fees                               35,000        27,000           67,000         57,000
   Depreciation and amortization                113,000       113,000          226,000        225,000
                                              ---------      --------          -------        -------
                                                351,000       332,000          695,000        658,000
                                              ---------      --------          -------        -------
   NET OPERATING INCOME                         195,000       140,000          372,000        275,000
                                              ---------      --------          -------        -------
NON-OPERATING INCOME (EXPENSES)
   Interest expense                            (177,000)     (179,000)        (355,000)      (357,000)
   Interest income                                4,000         3,000            8,000          4,000
                                              ---------     ---------        ---------       --------
                                               (173,000)     (176,000)        (347,000)      (353,000)
                                              ---------     ---------        ---------       --------
NET INCOME (LOSS)                         $      22,000    $  (36,000)     $    25,000     $  (78,000)
                                              ==========    ==========       =========       ========
ALLOCATION OF INCOME (LOSS)
   General Partner                                  --         (1,000)             --          (1,000)
   Limited Partners                           $  22,000    $  (35,000)     $    25,000        (77,000)
                                               --------    ----------        ---------       --------
Partnership income (loss) per
   limited partnership unit                      $ 2.27       $ (3.61)          $ 2.58       $ (7.95)
                                                 ======       =======           ======        =======

</TABLE>

See notes to consolidated financial statements

                                        5
<PAGE>

                   SECURED INVESTMENT RESOURCES FUND, L.P. III
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
<S>                                                         <C>          <C>
                                                                Six Months Ended
                                                              June 30,     June 30,
                                                               2000         1999
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income (loss)                                       $  25,000    $ (78,000)
   Adjustments to reconcile net income (loss) to net
     cash provided by (used in) operating activities:
       Depreciation and amortization                         226,000      225,000
     Changes in assets and liabilities:
       Rent and other receivables                               --        (13,000)
       Prepaid expenses, deposits and other                  (17,000)      10,000
       Accounts payable and accrued expenses                  20,000       22,000
       Accrued interest                                        1,000         --
       Unearned revenue                                        1,000      (18,000)
       Tenant security deposits                                7,000        7,000
                                                           ---------    ---------
     Net cash provided by operating activities               263,000      155,000
                                                           ---------    ---------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchase of and improvement to investment
     property                                                (32,000)     (22,000)
   Restricted Reserve Funds                                   (2,000)      40,000
                                                           ---------    ---------
     Net cash provided by (used in) investing activities     (34,000)      18,000
                                                           ---------    ---------

CASH FLOWS FROM FINANCING ACTIVITIES
   Principal payments on long-term debt                      (37,000)     (34,000)
                                                           ---------    ---------
     Net cash used in financing activities                   (37,000)     (34,000)
                                                           ---------    ---------

INCREASE IN CASH AND                                         192,000      139,000
   CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS, BEGINNING
   OF PERIOD                                                 358,000      130,000
                                                           ---------    ---------

CASH AND CASH EQUIVALENTS, END OF PERIOD                   $ 550,000    $ 269,000
                                                           =========    =========

</TABLE>

See notes to consolidated financial statements.

                                       6

<PAGE>
                   SECURED INVESTMENT RESOURCES FUND, L.P. III
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
               THREE MONTHS ENDED JUNE 30, 2000 AND JUNE 30, 1999



NOTE 1 - BASIS OF PRESENTATION

The accompanying  unaudited consolidated financial statements have been prepared
in  accordance  with  generally  accepted  accounting   principles  for  interim
financial  information and with the instructions for Form 10-Q and Article 10 of
Regulation  S-X.  Accordingly,  they do not include all of the  information  and
disclosures  required by generally accepted  accounting  principles for complete
financial statements. In the opinion of management,  all adjustments (consisting
of normal recurring accruals)  considered necessary for a fair presentation have
been  included.  Operating  results for the six month period ended June 30, 2000
are not necessarily  indicative of the results that may be expected for the year
ended  December  31,  2000.  For  further  information,  refer to the  financial
statements and footnotes thereto included in the Partnership's  annual report on
Form 10-K for the year ended December 31, 1999.

NOTE 2--MORTGAGES PAYABLE

Non-recourse mortgage debt consists of the following:

                                                June 30,
                                                 2000
Real Estate Mortgages:
Greenhills Bicycle Club Apartments            $7,858,000


Interest  expense  totaled  $355,000 and $357,000 during the first six months of
2000 and 1999, respectively.


                                       7

<PAGE>

SECURED INVESTMENT RESOURCES FUND, L.P. III
NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 2--MORTGAGES PAYABLE--CONT'D.

Mortgage  payable,  bank,  original  balance  of  $8,100,000  payable in monthly
installments of $65,000 including  principal and interest.  Due August 2001 with
interest at 9%; collateralized by investment property.

The carrying value for the above mortgage payable approximates fair value.

NOTE 3--RELATED PARTY TRANSACTIONS

Maxus  Properties, Inc. receives  property management fees  of 5% of the monthly
gross receipts for providing property  management  services.  Maxus  Properties,
Inc. also performs various professional services for the Partnership,  primarily
tax accounting, audit preparation, SEC  10-Q  and  10-K preparation and investor
services.

Amounts paid by the Partnership to Maxus Properties, Inc. are as follows:

                                               Six Months Ended
                                                  June 30,
                                            2000           1999
                                            ----           ----

        Property Management Fee         $  54,000         50,000
        Partnership Management Fee         13,000          7,000


The General Partners are entitled to receive a Partnership  management fee equal
to 5% of total  operating  cash  flows (as  defined)  for  managing  the  normal
operations  of the  Partnership.  The  Partnership  incurred $13,000 of  expense
through  June 30, 2000 for the  partnership  management  fees.  The  Partnership
incurred  partnership  management fee expense of $7,000 for the six months ended
June 30, 1999.

NOTE 4--CASH DISTRIBUTIONS

No distributions have been made since July 1990. Future  distributions,  if any,
will be made from excess cash flow not needed for working capital purposes.

NOTE 5 -- ADDITIONAL CASH FLOW INFORMATION

Additional Cash Payment Information
                                                   Six Months Ended
                                                        June 30,
                                                2000              1999
                                               ------            ------
     Interest Paid                      $     354,000           358,000


                                        8

<PAGE>

Item 2.   Management's Discussion and Analysis of Financial
          Condition and Results of Operations

This  10-QSB  contains  forward-looking  information  (as defined in the Private
Securities  Litigation  Reform Act of 1995) that involves risk and  uncertainty,
including trends in the real estate  investment  market,  projected  leasing and
sales,  and future  prospects for the  Partnership.  Actual results could differ
materially from those contemplated by such statements.


Results of Operations

Total  revenues  for the first six  months  ended  June 30,  2000  increased  by
$134,000  (14.4%)  when  compared  to the same period in 1999.  The  increase is
primarily due to an increase in rental income of $37,000,  a decrease in vacancy
loss of $64,000, and a increase in other income of $20,000.

Property  operating  expenses for the first six months of 2000 increased $34,000
(13.8%) compared to the same period in 1999. The increase is primarily due to an
increase in repairs and maintenance of $25,000 and real estate taxes of $8,000.

General and administrative expenses increased by $15,000 (20.0%) compared to the
first six months of 1999. Of the total increase,  $10,000 relates to an increase
in office  payroll and the remainder was due to increases in a number of expense
categories, none of which was significant.

Professional  service  expenses  for the first six months  ended  June 30,  2000
decreased  $23,000 (41.8%)  compared to the same period in 1999. The majority of
the  decrease  in fees was due to a  decrease  in  accounting  and legal fees of
$13,000 and $8,000, respectively. Accounting and legal fees were higher in 1999,
due to the final  transition in management of the  Partnership,  which  occurred
during 1998 and 1999.


Liquidity and Capital Resources

During  the  first  six  months  of  2000,  $263,000  of cash  was  provided  by
operations,  $34,000  was used for  investing  activities,  which  consisted  of
purchases  of and  improvements  to  investment  property.  $37,000 was used for
financing activities, which consisted of principal payments on long term debt.

Based upon the above, the General Partners feel that adequate working capital is
available  to maintain the  solvency of this  entity.  In addition,  the General
Partners  also  anticipate  that  2000 cash flow  from  operations  will  remain
consistent because of strong occupancy and stabilized expenses.

The General  Partners  have  determined it prudent not to  reestablish  the cash
distributions  until  such  time  that  adequate  working  capital  and  capital
improvements reserves are in place.

                                        9

<PAGE>

PART II. OTHER INFORMATION


  Item 1.   LEGAL PROCEEDINGS

            None

  Item 2.   CHANGES IN SECURITIES

            None

  Item 3.   DEFAULTS UPON SENIOR SECURITIES

            None.

  Item 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY
            HOLDERS

            None.

  Item 5.   OTHER INFORMATION

            None

  Item 6.   EXHIBIT AND REPORTS ON FORM 8-K

           (a)   Exhibits

                 Exhibit 27 Financial Data Schedule

           (b)   Reports on Form 8-K

                 None.



                                       10

<PAGE>

                                   SIGNATURES


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, thereunto duly authorized.


                                     SECURED INVESTMENT RESOURCES FUND, L.P. III
                                     A Missouri Limited Partnership
                                     (Registrant)


                                     By: Nichols Resources, Ltd.
                                         as General Partner

                                     /s/ Christine A. Robinson
                                         Christine A. Robinson
                                         President (Principal Financial and
                                         Chief Accounting Officer)

                                     Date: August 14, 2000


                                       11