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         March 31, 2001

                                       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

Check 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 [ ]

<PAGE>

                   SECURED INVESTMENT RESOURCES FUND, L.P. III

                                      INDEX

                                                                            Page
PART I - FINANCIAL INFORMATION

ITEM 1.  CONSOLIDATED FINANCIAL STATEMENTS:
         Balance Sheets                                                     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 SHEETS

<TABLE>
<CAPTION>
<S>                                                             <C>               <C>
                                                          March 31, 2001     Dec. 31, 2000
                                                            (Unaudited)
ASSETS:

INVESTMENT PROPERTIES                                        $6,513,000        6,567,000

RESTRICTED DEPOSITS                                              82,000           81,000

CASH                                                            852,000          218,000

TEMPORARY INVESTMENT                                            343,000          240,000

OTHER ASSETS
   Rents and other receivables                                   10,000             --
   Prepaid expenses, deposits and other                          26,000          291,000
   Debt issuance costs, net of accumulated
      amortization of $0 in 2001 and $285,000 in 2000            98,000           36,000
                                                             ----------       ----------

           TOTAL ASSETS                                      $7,924,000        7,433,000
                                                             ==========       ==========
</TABLE>

See notes to consolidated financial statements.

                                       3
<PAGE>

                  SECURED INVESTMENT RESOURCES FUND, L.P. III
                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
<S>                                                                 <C>                 <C>
                                                              March 31, 2001       Dec. 31, 2000
                                                                (Unaudited)
LIABILITIES AND PARTNERS' DEFICIT

   Mortgage payable                                             $ 8,350,000          7,820,000
   Accounts payable and accrued expenses                             81,000             65,000
   Accrued management fees - General Partners                        17,000             24,000
   Accrued Interest                                                  48,000             59,000
   Unearned revenue                                                   2,000              3,000
   Tenant security deposits                                          72,000             73,000
                                                                -----------        -----------
     TOTAL LIABILITIES                                            8,570,000          8,044,000
                                                                -----------        -----------


PARTNERS' DEFICIT

   General Partners (4 units authorized and outstanding)
       Capital contributions                                          2,000              2,000
       Partnership deficit                                          (45,000)           (45,000)
                                                                -----------        -----------
                                                                    (43,000)           (43,000)
                                                                -----------        -----------

   Limited Partners (60,000 units authorized;
     9,595 units outstanding)
       Capital contribution                                       3,896,000          3,896,000
       Partnership deficit                                       (4,499,000)        (4,464,000)
                                                                -----------        -----------
                                                                   (603,000)          (568,000)
                                                                -----------        -----------

   TOTAL PARTNERS' DEFICIT                                         (646,000)          (611,000)
                                                                -----------        -----------

   TOTAL LIABILITIES & PARTNERS' DEFICIT                        $ 7,924,000          7,433,000
                                                                ===========        ===========
</TABLE>

See notes to consolidated financial statements.

                                        4
<PAGE>

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

                                              Three Months Ended
                                           March 31,     March 31,
                                              2001         2000

REVENUES
   Rents                                   494,000    $ 496,000
   Other Income                             28,000       25,000
                                         ---------    ---------
                                           522,000      521,000
                                         ---------    ---------

OPERATING AND ADMINISTRATIVE EXPENSES
   Property operating expenses             166,000      132,000
   General and administrative expenses      52,000       45,000
   Professional fees                        13,000       22,000
   Management fees                          44,000       32,000
   Depreciation and amortization           132,000      113,000
                                         ---------    ---------
                                           407,000      344,000
                                         ---------    ---------

   NET OPERATING INCOME                    115,000      177,000
                                         ---------    ---------

NON-OPERATING INCOME (EXPENSES)
   Interest expense                       (160,000)    (178,000)
   Interest income                          10,000        4,000
                                         ---------    ---------
                                          (150,000)    (174,000)
                                         ---------    ---------

NET INCOME (LOSS)                          (35,000)   $   3,000
                                         =========    =========

ALLOCATION OF INCOME (LOSS)
   General Partner                            --           --
   Limited Partners                      $ (35,000)   $   3,000
                                         ---------    ---------

Partnership income (loss) per
   limited partnership unit              $   (3.65)   $     .31
                                         =========    =========


Weighted average LP units outstanding        9,595        9,685
                                         =========    =========


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>
                                                               Three Months Ended
                                                              March 31     March 31
                                                                2001         2000
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income (loss)                                       $ (35,000)   $   3,000
   Adjustments to reconcile net income (loss) to net
     cash provided by operating activities:
       Depreciation and amortization                         132,000      113,000
     Changes in assets and liabilities:
       Rent and other receivables                            (10,000)        --
       Prepaid expenses, deposits and other                     --         (9,000)
       Accounts payable and accrued expenses                   9,000       19,000
       Accrued interest                                      (11,000)       1,000
       Unearned revenue                                       (1,000)      (2,000)
       Tenant security deposits                               (1,000)       1,000
                                                           ---------    ---------
     Net cash provided by operating activities                83,000      126,000
                                                           ---------    ---------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchase of and improvement to investment
     property                                                (42,000)     (15,000)
   Purchase of temporary investment                         (103,000)        --
   Restricted Reserve Funds                                   (1,000)        --
                                                           ---------    ---------
     Net cash used in investing activities                  (146,000)     (15,000)
                                                           ---------    ---------

CASH FLOWS FROM FINANCING ACTIVITIES
   Principal payments on long-term debt                         --        (18,000)
   Net Proceeds from mortgage note payable                   697,000         --
                                                           ---------    ---------
     Net cash provided by (used in) financing activities     697,000      (18,000)
                                                           ---------    ---------

INCREASE IN CASH AND                                         634,000       93,000
   CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS, BEGINNING
   OF PERIOD                                                 218,000      358,000
                                                           ---------    ---------

CASH AND CASH EQUIVALENTS, END OF PERIOD                   $ 852,000    $ 451,000
                                                           =========    =========
</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 MARCH 31, 2001 AND MARCH 31, 2000

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-QSB 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 three month period ended March 31, 2001
are not necessarily  indicative of the results that may be expected for the year
ended December 31, 2001. The consolidated balance sheet of the Partnership as of
December 31, 2000 has been derived from the audited  consolidated  balance sheet
of the  partnership  as of that  date.  For  further  information,  refer to the
financial  statements and footnotes thereto included in the Partnership's annual
report on Form 10-KSB for the year ended December 31, 2000.

NOTE 2--MORTGAGES PAYABLE

Non-recourse mortgage debt consists of the following:

                                               March 31,          December 31,
                                                 2001                2000
Real Estate Mortgages:
Greenhills Bicycle Club Apartments            $8,350,000           $7,820,000

Interest  expense totaled $160,000 and $178,000 during the first three months of
2001 and 2000, respectively.

On February 22, 2001, the Partnership  refinanced the mortgage payable. The term
of the new mortgage loan provide for the  borrowing of $8,350,000  with interest
only at 6.91% for seven years. The monthly interest payment is $48,000.

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

                                       7

<PAGE>

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-QSB and  10-KSB  preparation  and
investor services.

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

                                               Three Months Ended
                                                     March 31,
                                                2001            2000
                                             -----------     ----------

        Property Management Fee                27,000           26,000
        Partnership Management Fee             17,000            6,000

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 partnership  management
fee expense of $17,000 and $6,000 for the three  months ended March 31, 2001 and
March 31, 2000, respectively.

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                      Three Months Ended
                                                             March 31,
                                                        2001              2000
                                                      -------            -------
     Interest Paid                                    171,000            177,000

                                        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  three  months of 2001  increased  slightly  when
compared to the same period in 2000. An increase in rental income of $16,000 was
offset by an increase in vacancy loss of $14,000.

Property operating expenses for the first three months of 2001 increased $34,000
(25.76%)  compared to the same period in 2000.  The increase is primarily due to
an increase in repairs and maintenance  expense of $23,000 and real estate taxes
of $12,000.

General and administrative expenses increased by $7,000 (15.56%) compared to the
same period in 2000.  The  increase  was due to increases in a number of expense
categories, none of which was significant.

Professional  service expense  decreased  $9,000 (40.91%)  compared to the first
three months of 2000. The majority of the decrease in fees was due to a decrease
in accounting fee expense.

Management fee expense for the first three months  increased by $12,000 (37.50%)
compared to the same period in 2000. The increase was due to the increase in the
partnership management fee of $12,000 as described in Note 3 of the accompanying
financial statements - Related Party Transactions.

Depreciation and amortization expense increased by $19,000 primarily as a result
of  accelerated  amortization  of debt  issuance  cost in  connection  with  the
refinancing discussed in Note 2.

Liquidity and Capital Resources

During  the  first  three  months  of  2001,  $83,000  of cash was  provided  by
operations,  a decrease of $43,000  from the three  months ended March 31, 2000.
The decrease is due  primarily to a decrease in net income  (loss),  from $3,000
for the period  ending March 21, 2000 to ($35,000)  for the same period in 2001.
Investing  activities  used $146,000  primarily due to a purchase of a temporary
investment  of  $103,000  and  property  and  equipment  purchases  of  $42,000.
Financing  activities  provided  $697,000  primarily due to the refinance of the
mortgage  note  payable as  described  in Note 2 to the  accompanying  financial
statements - Mortgages Payable.

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  2001 cash flow  from  operations  will  remain
consistent  with  cash flow  from  operations  achieved  during  the year  ended
December 31, 2000 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

                           None.

                   (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: May 10, 2001


                                       11