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       September 30, 1996               

                                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 -- September 30, 1996
           and December 31, 1995                               3-4

          Consolidated Statements of Operations -- Three
           and Nine Months Ended September 30, 1996 
           and 1995                                              5 
      
          Consolidated Statements of Partnership Capital --  
           Nine Months Ended September 30, 1996 and
           the Years Ended December 31, 1995 and 1994            6 
                                 
          Consolidated Statements of Cash Flows -- Nine 
           Months Ended September 30, 1996 and 1995              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

                                        September 30,
                                            1996         December 31,
                                         (Unaudited)         1995     

ASSETS

INVESTMENT PROPERTIES                      
  Land and buildings                    $  14,565,907    $  14,561,536
  Furniture, fixtures, and equipment        1,450,808        1,377,961
                                           ----------       ----------
                                           16,016,715       15,939,497

  Less accumulated depreciation            (4,592,967)       4,202,665
                                           ----------       ----------
                                           11,423,748       11,736,832
                                           ----------       ----------

RESTRICTED DEPOSIT
  Certificate of Accrual on
   Treasury Security                          880,394          827,509
   Restricted Reserve Fund                     15,225                 
                                           ----------       ----------
                                              895,619          827,509


OTHER ASSETS
  Cash                                        140,887          486,886
  Rents and other receivables, less
   allowance of $12,700 in 1996 and 
   $7,150 in 1995                              11,136            3,785
  Prepaid expenses, deposits and other         40,118           27,169
  Due from related parties--Note C 
    Note Receivable                            76,621           74,643
    Syndication Costs                          21,751           21,751
  Debt issuance costs, net of 
   accumulated amortization of 
   $48,917 in 1996 and $31,042 
   in 1995                                    349,497           44,193
                                           ----------       ----------
                                              640,010          658,427
                                           ----------       ----------

      TOTAL ASSETS                      $  12,959,377    $  13,222,768
                                           ----------       ----------
<PAGE>

SECURED INVESTMENT RESOURCES FUND, L.P. III

CONSOLIDATED BALANCE SHEETS--CONT'D.


                                        September 30,
                                            1996          December 31,
                                         (Unaudited)          1995    

LIABILITIES AND PARTNERSHIP DEFICIT
 
  Mortgage debt--Note B                 $  12,946,957    $  12,851,382
  Accounts payable and 
   accrued expenses                           327,823          583,739
  Accrued interest                            518,813          385,380
  Unearned revenue                             26,633           27,479
  Tenant security deposits                    103,182           82,210
                                           ----------       ----------
      TOTAL LIABILITIES                    13,923,408       13,930,190
                                           ----------       ----------
PARTNERSHIP DEFICIT

  General Partners
    Capital contributions                       2,000            2,000
    Partnership deficit                       (48,795)         (46,229)
                                           ----------       ----------
                                              (46,795)         (44,229)
                                           ----------       ----------
  Limited Partners 
    Capital contributions                   3,915,084        3,915,084
    Partnership deficit                    (4,832,320)      (4,578,277)
                                           ----------       ----------
                                             (917,236)        (663,193)
                                           ----------       ----------
      TOTAL PARTNERSHIP DEFICIT              (964,031)        (707,422)
                                           ----------       ----------
                                        $  12,959,377    $  13,222,768
                                           ----------       ----------


See notes to consolidated financial statements.
<PAGE>

SECURED INVESTMENT RESOURCES FUND, L.P. III

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

          
                           Nine Months Ended           Three Months Ended
                             September 30,                September 30,     
                           1996           1995          1996         1995   
         
     
REVENUES
  Rents                 $ 2,072,300   $ 1,931,677    $  716,511   $  653,131 
  Interest                   70,994        69,531        23,580       19,707
                          ---------     ---------     ---------    ---------
                          2,143,294     2,001,208       740,091      672,838
                          ---------     ---------     ---------    ---------
                        
OPERATING AND 
 ADMINISTRATIVE EXPENSES
  Property operating
   expenses                 894,770       929,181       299,016      307,147
  General and 
   administrative
   expenses                  54,883        51,895        18,106       16,640
  Professional services      89,710        46,994        16,313       25,747
  Management Fees           102,890        96,358        35,453       32,567
                          ---------     ---------     ---------    ---------
                          1,142,253     1,124,428       368,888      382,101
                          ---------     ---------     ---------    ---------

  NET OPERATING INCOME    1,001,041       876,780       371,203      290,737

NON-OPERATING EXPENSES
  Interest                  849,473       708,447       401,548      233,383
  Depreciation and 
   amortization             408,177       374,655       145,421      124,885
                          ---------     ---------     ---------    ---------
                          1,257,650     1,083,102       546,969      358,268 
                          ---------     ---------     ---------    ---------
     
PARTNERSHIP LOSS         $ (256,609)   $ (206,322)    $(175,766)   $ (67,531)
                          ---------     ---------     ---------    ---------
Allocation of loss:
  General Partners           (2,566)       (2,063)       (1,758)        (675)
  Limited Partners         (254,043)     (204,259)     (174,008)     (66,856) 
                          ---------     ---------     ---------    ---------
                         $  256,609)   $ (206,322)    $(175,766)   $ (67,531) 
                          ---------     ---------     ---------    ---------
Partnership loss per
 limited partnership 
  unit                   $   (26.23)   $   (21.09)    $  (17.97)   $   (6.90)
                          ---------     ---------     ---------    ---------


See notes to consolidated financial statements.
<PAGE>

SECURED INVESTMENT RESOURCES FUND, L.P. III

CONSOLIDATED STATEMENTS OF PARTNERSHIP DEFICIT 

Nine Months Ended September 30, 1996 (Unaudited) 
and the Years Ended December 31, 1995 and 1994

     
                                     General       Limited
                                     Partners      Partners        Total   


Balances at January 1, 1994         $   (36,230)  $   128,741   $    92,511

Partnership loss                         (6,284)     (622,090)     (628,374)
                                      ---------      ---------    ---------
Balances at December 31, 1994           (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                         (2,566)     (254,043)     (256,609)
                                      ---------      ---------    ---------
Balances at September 30, 1996      $   (46,795)  $  (917,236)  $  (964,031)
                                      ---------      ---------    ---------



See notes to consolidated financial statements.
<PAGE>

SECURED INVESTMENT RESOURCES FUND, L.P. III

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
                                                  Nine Months Ended
                                                    September 30,      
                                                1996            1995   
OPERATING ACTIVITIES
  Partnership loss                            $ (256,609)   $ (206,322)
  Adjustments to reconcile partnership 
   loss to net cash provided by      
   operating activities:
     Depreciation and amortization               408,176       374,654   
     Provision for losses on rents 
      and other receivables                        5,550           686 
  Changes in assets and liabilities:
    Rent and other receivables                   (12,900)      (23,879)
    Prepaid expenses, deposits, and other        (12,948)       15,614 
    Note Payable-Insurance                          (791)       (9,833)
    Accounts payable and 
     accrued expenses                           (255,125)      339,890
    Accrued interest                             133,433        73,951  
    Unearned revenue                                (846)        8,284 
    Tenant security deposits                      20,971         6,907
                                                 -------       -------
NET CASH PROVIDED BY OPERATING ACTIVITIES         28,911       579,952
                                                 -------       -------
INVESTING ACTIVITIES
  Purchase of and improvements to
   investment properties                         (77,218)     (121,407)
  Restricted Reserve Funds                       (15,225)          ---
  Interest earned on certificate                                      
   of accrual on Treasury Security               (52,886)      (48,733)
                                                 -------       -------
NET CASH USED IN INVESTING ACTIVITIES           (145,329)     (170,140)
                                                 -------       -------
FINANCING ACTIVITIES  
  Note Receivable from Related Party              (1,978)       20,919 
  Principal payments on long-term debt        (8,404,424)      (43,650)
  Proceeds from issuance of debt               8,500,000           ---
  Debt issuance costs                           (323,179)          ---
                                                 -------       -------
NET CASH USED IN FINANCING ACTIVITIES           (229,581)      (22,731)
                                                 -------       -------
INCREASE (DECREASE) IN CASH AND 
 CASH EQUIVALENTS                               (345,999)      387,081
 
CASH AND CASH EQUIVALENTS BEGINNING 
 OF PERIOD                                       486,886       144,737
                                                 -------       -------
CASH AND CASH EQUIVALENTS END 
 OF PERIOD                                   $   140,887   $   531,818  
                                                 -------       -------
See notes to consolidated financial statements.
<PAGE>
SECURED INVESTMENT RESOURCES FUND, L.P. III

NOTES TO FINANCIAL STATEMENTS (Unaudited)

September 30, 1996    

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 nine month period ended September 30, 1996 are
not necessarily indicative of the results that may be expected for the
year ended December 31, 1996.  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, 1995.

NOTE B--MORTGAGE DEBT

Mortgage debt consists of the following:

                                   September 30,  December 31,
                                       1996          1995    
Collateralized by Investment 
  Property:

  First Mortgages:
    Greenhills Bicycle Club
      Apartments                   $ 8,095,576    $ 8,400,000
    KC Club Apartments               4,451,382      4,451,382
  Second Mortgage:
    Greenhills Bicycle Club
      Apartments                       400,000            ---
                                    ----------     ----------
                                   $12,946,958    $12,851,382
                                    ----------     ----------


Interest expense totaled $849,473 and $708,447 during the first nine
months of 1996 and 1995, respectively.

On July 8, 1965 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:

                                           September 30,      
                                      1996            1995    

Property management fees           $  102,890     $     96,358
                                     --------        ---------        
Amounts due from related parties consist of the following:

                                   September 30,  December 31,
                                       1996           1995    

SIR Partners III                   $     21,751   $     21,751 
Secured Investment Resources
  Fund, L.P.                             76,621         74,643
                                       --------      ---------        
                                   $     98,372   $     96,394
                                       --------      ---------        


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 nine months increased $142,000 (7.1%)
     when compared to the same period in 1995.  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 1996.

     General and administrative expenses increased $3,000 (5.8%) and
     property operating expenses decreased $34,400 (3.7%) when compared to
     the first nine months of last year.  

     Interest expense increased $141,000 (19.9%) and depreciation and
     amortization increased $34,000 (8.9%) when compared to the first nine
     months of last year.

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

     Liquidity and Capital Resources

     During the first nine months of 1996, $28,900 of working capital was
     provided by operations, $145,000 was consumed in investing activities
     and $230,000 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 1996. 

     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 1996 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 September 30, 1996.    
<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: November 15, 1996

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

                    By:                                     
                             James R. Hoyt
                         as Individual General Partner


                    Date: November 15, 1996
<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: November 15, 1996


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

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

                    
                    Date: November 15, 1996