FORM 10-Q


                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

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

For the quarter ended       March 31, 1997               

                                      OR

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

For the transition period                   to                    
Commission File Number                    33-24235                

         SECURED INVESTMENT RESOURCES FUND, L.P. III                 
   (Exact name of registrant as specified in its charter)
 
                Missouri                          48-6291172      
(State or other jurisdiction of              (I.R.S. Employer
 incorporation or organization)               Identification No.)

   5453 W. 61st Place, Mission, Kansas               66205        
(Address of principal executive offices)          (Zip Code)

Registrant's telephone number,                  (913) 384-5700    
including area code

Securities registered pursuant to Section 12(b) of the Act:

                           None  
        
Securities registered pursuant to Section 12(g) of the Act:

          Limited Partnership Interests ("Units")

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 such shorter periods 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       
<PAGE>

               SECURED INVESTMENT RESOURCES FUND, L.P. III


                                        Index


PART I.  FINANCIAL INFORMATION                               Page

Item 1.   Financial Statements (Unaudited):        

          Consolidated Balance Sheets -- March 31, 1997
           and December 31, 1996                               3-4

          Consolidated Statements of Operations -- Three
           Ended March 31, 1997 and 1996                        5        
          Consolidated Statements of Partnership Capital --  
           Three Months Ended March 31, 1997 and
           the Years Ended December 31, 1996 and 1995            6     
                                
          Consolidated Statements of Cash Flows -- Three 
           Months Ended March 31, 1997 and 1996                 7
 
          Notes to Consolidated Financial Statements           8-9

Item 2.   Management's Discussion and Analysis
           of Financial Condition and Results 
           of Operations                                        10    
PART II.  OTHER INFORMATION

Item 1.   Legal Proceedings                                     11

Item 2.   Changes in Securities                                 11

Item 3.   Defaults Upon Senior Securities                       11


Item 4.   Submission of Matters to a Vote of 
           Security Holders                                     11

Item 5.   Other Information                                     11

Item 6.   Exhibits and Reports on Form 8-K                      11

SIGNATURES                                                      12
<PAGE>

PART I.   FINANCIAL INFORMATION

Item 1.   FINANCIAL STATEMENTS

SECURED INVESTMENT RESOURCES FUND, L.P. III

CONSOLIDATED BALANCE SHEETS

                                          March 31,
                                            1997         December 31,
                                         (Unaudited)         1996     
ASSETS

INVESTMENT PROPERTIES                      
  Land and buildings                    $  14,569,699    $  14,569,699
  Furniture, fixtures, and equipment        1,481,980        1,471,943
                                           16,051,679       16,041,642

  Less accumulated depreciation             4,866,480        4,732,073
                                           11,185,199       11,309,569

RESTRICTED DEPOSIT
  Certificate of Accrual on
   Treasury Security                          915,651          898,023
   Restricted Reserve Fund                     48,947           34,490
                                              964,598          932,513

OTHER ASSETS
  Cash                                        160,582           82,985
  Rents and other receivables, less
   allowance of $27,950 in 1997 and 
   $12,000 in 1996                             10,102            5,106
  Prepaid expenses, deposits and other         16,363           29,161
  Due from related parties (Note C) 
    Note Receivable                            80,121           78,345
    Syndication Costs                          21,751           21,751
  Debt issuance costs, net of 
   accumulated amortization of 
   $47,440 in 1997 and $31,647 
   in 1996                                    281,599          289,913
                                              570,518          507,261

      TOTAL ASSETS                      $  12,720,315    $  12,749,343
<PAGE>
SECURED INVESTMENT RESOURCES FUND, L.P. III

CONSOLIDATED BALANCE SHEETS--CONT'D.

                                           March 31,  
                                            1997          December 31,
                                         (Unaudited)          1996    
LIABILITIES AND PARTNERSHIP DEFICIT
 
  Mortgage debt (Note B)                $  12,919,705    $  12,931,003
  Accounts payable and 
   accrued expenses                           231,415          244,253
  Accrued interest                            571,769          527,106
  Unearned revenue                             26,175           30,360
  Tenant security deposits                    104,974          102,050

      TOTAL LIABILITIES                    13,854,038       13,834,772

PARTNERSHIP DEFICIT

  General Partners
    Capital contributions                       2,000            2,000
    Partnership deficit                       (50,492)         (50,009)
                                              (48,492)         (48,009)
  Limited Partners 
    Capital contributions                   3,915,084        3,915,084
    Partnership deficit                    (5,000,315)      (4,952,504)
                                           (1,085,231)      (1,037,420)
      TOTAL PARTNERSHIP DEFICIT            (1,133,723)      (1,085,429)

                                        $  12,720,315    $  12,749,343


See notes to consolidated financial statements.
<PAGE>

SECURED INVESTMENT RESOURCES FUND, L.P. III

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
          
                                        Three Months Ended
                                            March 31,      
                                      1997         1996             
REVENUES
  Rents                            $  698,950    $ 681,634    
  Interest                             19,476       24,259
                                      718,426      705,893
OPERATING AND 
 ADMINISTRATIVE EXPENSES
  Property operating
   expenses                           258,960      284,376
  General and 
   administrative
   expenses                            13,074       14,929
  Professional services                20,968       39,525
  Management Fees                      34,298       33,581
                                      327,300      372,411

  NET OPERATING INCOME                391,126      333,482

NON-OPERATING EXPENSES
  Interest                            289,200      233,255
  Depreciation and 
   amortization                       150,220      131,459
                                      439,420      364,714       

PARTNERSHIP LOSS                    $ (48,294)   $ (31,232)

Allocation of loss:
  General Partners                       (483)        (312)
  Limited Partners                    (47,811)     (30,920) 
                         
                                    $ (48,294)   $ (31,232)  

Partnership loss per
 limited partnership 
  unit                              $   (4.94)   $   (3.19)

See notes to consolidated financial statements.
<PAGE>

SECURED INVESTMENT RESOURCES FUND, L.P. III

CONSOLIDATED STATEMENTS OF PARTNERSHIP DEFICIT 

Three Months Ended March 31, 1997 (Unaudited) 
and the Years Ended December 31, 1996 and 1995
     
                                     General       Limited
                                     Partners      Partners        Total   

Balances at January 1, 1995         $   (42,514)  $  (493,349)  $ (535,863)

Partnership loss                         (1,715)     (169,844)     (171,559)

Balances at December 31, 1995           (44,229)     (663,193)     (707,422)

Partnership loss                         (3,780)     (374,227)     (378,007)

Balances at December 31, 1996           (48,009)   (1,037,420)   (1,085,429)

Partnership loss                           (483)      (47,811)      (48,294)

Balances at March 31, 1997         $    (48,492) $ (1,085,231)  $(1,133,723)



See notes to consolidated financial statements.
<PAGE>
SECURED INVESTMENT RESOURCES FUND, L.P. III

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
                                                  Three Months Ended
                                                       March 31,       
                                                1997            1996   
OPERATING ACTIVITIES
  Partnership loss                            $  (48,294)   $  (31,232)
  Adjustments to reconcile partnership 
   loss to net cash provided by      
   operating activities:
     Depreciation and amortization               150,218       131,459   
     Provision for losses on rents 
      and other receivables                       15,950          (250)
  Changes in assets and liabilities:
    Rent and other receivables                   (20,946)          735 
    Prepaid expenses, deposits, and other         12,798         9,989 
    Accounts payable and 
     accrued expenses                            (12,837)         (868)
    Accrued interest                              44,663       (15,339) 
    Unearned revenue                              (4,184)       (5,680)
    Tenant security deposits                       2,924         1,484
 
NET CASH PROVIDED BY OPERATING ACTIVITIES        140,292        90,298

INVESTING ACTIVITIES
  Purchase of and improvements to
   investment properties                         (10,036)      (26,813)
  Restricted Reserve Funds                       (14,457)            0
  Interest earned on certificate                                      
   of accrual on Treasury Security               (17,629)      (17,629)

NET CASH USED IN INVESTING ACTIVITIES            (42,122)      (44,442)

FINANCING ACTIVITIES  
  Note Receivable from Related Party              (1,776)        2,440 
  Principal payments on long-term debt           (11,297)            0 
  Debt issuance costs                             (7,500)      (57,500)

NET CASH USED IN FINANCING ACTIVITIES            (20,573)      (55,060)

INCREASE (DECREASE) IN CASH AND 
 CASH EQUIVALENTS                                 77,597        (9,204)
 
CASH AND CASH EQUIVALENTS BEGINNING 
 OF PERIOD                                        82,985       486,886

CASH AND CASH EQUIVALENTS END 
 OF PERIOD                                   $   160,582   $   477,682  

See notes to consolidated financial statements.
<PAGE>
SECURED INVESTMENT RESOURCES FUND, L.P. III

NOTES TO FINANCIAL STATEMENTS (Unaudited)

March 31, 1997

NOTE A--BASIS OF PRESENTATION

The accompanying unaudited 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
footnotes 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 three month period
ended March 31, 1997 are not necessarily indicative of the results that may be
expected for the year ended December 31, 1997.  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, 1996.

NOTE B--MORTGAGE DEBT

Mortgage debt consists of the following:

                                     March 31,    December 31,
                                       1997          1996    
Collateralized by Investment 
  Property:

  First Mortgages:
    Greenhills Bicycle Club
      Apartments                   $ 8,068,323    $ 8,082,102
    KC Club Apartments               4,451,382      4,451,382
  Second Mortgage:
    Greenhills Bicycle Club
      Apartments                       400,000        397,519

                                   $12,919,705    $12,931,003


Interest expense totaled $289,200 and $233,255 during the first quarter of
1997 and 1996, respectively.

On July 8, 1996 the partnership refinanced the matured $8,400,000 first 
mortgage on Greenhills Bicycle Club Apartments.  The terms of the new mortgage
are $8,100,000 at 9.0% interest with monthly principal and interest payments
in the amount of $65,000 through the loan maturity date of August 1, 2001
(5 years).
<PAGE>
SECURED INVESTMENT RESOURCES FUND, L.P. III

NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE B--MORTGAGE DEBT--CONT'D.

In addition, a second mortgage note was signed by the Partnership.  The terms
of the new note are $400,000 with interest paid monthly at the rate of 9% with
a maturity date of July 31, 2001 at which time the principal shall be due.  
The past due real estate taxes on Greenhills Bicycle Club Apartments were paid
in full from a portion of the proceeds of this note.

NOTE C--RELATED PARTY TRANSACTIONS

SPECS, Inc., a Kansas Corporation in which the individual General Partner has
a minority interest, receives property management fees for providing property
management services.  SPECS, Inc. also performs various professional services
for the Partnership, primarily tax accounting, audit preparation, SEC 10Q and
10K preparation, and investor services.  Property management fees paid by the
Partnership to SPECS, Inc. are as follows:

                                           March 31,          
                                      1997            1996    

Property management fees           $   34,298     $     33,581
                                             
Amounts due from related parties consist of the following:

                                     March 31,    December 31,
                                       1997           1996    
General Partners -- Excess
 Syndication Costs                 $     21,751   $     21,751 
Secured Investment Resources
  Fund, L.P.                             80,871         78,345
                                   $    101,872   $    100,096


NOTE D--CASH DISTRIBUTIONS

No distributions have been made since July 1990.  Future distributions will
only be made from excess cash flow not needed for working capital reserves.




(The remainder of this page intentionally left blank.)
<PAGE>
Item 2.   Management's Discussion and Analysis of Financial 
          Condition and Results of Operations

     Results of Operations

     Total revenues for the first three months increased $13,000 (1.8%)
     when compared to the same period in 1996.  This increase is due to a
     stronger rental market, which allowed the Partnership to increase
     rental rates upon lease renewals.  These higher market rates are
     being achieved, with fewer rent concessions, and should continue
     through the remainder of 1997.

     General and administrative expenses decreased $2,000 (0.1%) and
     property operating expenses decreased $25,000 (8.9%) when compared to
     the first three months of last year.  

     Interest expense increased $56,000 (24.0%) and depreciation and
     amortization increased $19,000 (14.3%) when compared to the first
     three months of last year.

     The Partnership anticipates that the operating results for the first
     three months will be representative of the results for the remaining
     portion of the year.

     Liquidity and Capital Resources

     During the first three months of 1997, $140,300 of working capital
     was provided by operations, $42,000 was consumed in investing
     activities and $20,600 was used for financing activities.

     The Partnership is currently past due on the mortgage secured by
     K C Club Apartments.  Cash generated by increased occupancy will be
     used to service this mortgage.  The Partnership is engaged in
     negotiations related to the restructure of this debt and it is
     anticipated that a restructure will be completed in 1997. 

     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 1997 cash flow
     from operations will continue to improve because of strong occupancy,
     rental rate increases, and stabilized expenses.

     The General Partners have determined it prudent to discontinue cash
     distributions until such time that adequate working capital and
     capital improvements reserves are in place.
<PAGE>
PART II. OTHER INFORMATION


          Item 1.   LEGAL PROCEEDINGS
          
                    None.

          Item 2.   CHANGES IN SECURITIES
     
                    Inapplicable.
          
          Item 3.   DEFAULTS UPON SENIOR SECURITIES
     
                    None.

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

                    Inapplicable.

          Item 5.   OTHER INFORMATION

                    Inapplicable.

          Item 6.   EXHIBIT AND REPORTS ON FORM 8-K
               
                   (a)   Exhibits
     
                         None.

                   (b)   Reports on Form 8-K

                         The Partnership filed no report on Form 8-K
                         during the quarter ended March 31, 1997.    
<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:                                    
                             James R. Hoyt
                        as Individual General Partner


                    Date: May 15, 1997

                    
                    
                    By:  Hoyt Partners III, L.P.
                         as General Partner
                                        

                    By:                                     
                             James R. Hoyt
                         as Individual General Partner


                    Date: May 15, 1997
<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:        /s/ James R. Hoyt           
                             James R. Hoyt
                        as Individual General Partner


                    Date: May 15, 1997


                                        
                    By:  Hoyt Partners III, L.P.
                         as General Partner
     

                    By:        /s/ James R. Hoyt            
                             James R. Hoyt 
                         as Individual General Partner

                    
                    Date: May 15, 1997