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, 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)


100 Main St., Ste 2100 Kansas City, Missouri                             64105
(Address of principal executive offices)                              (Zip Code)

Registrant's telephone number, including area code               (816) 421-4670

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

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)

                                                                  March 31, 2000

ASSETS:

INVESTMENT PROPERTIES                                              $  6,802,000

RESTRICTED DEPOSITS                                                     117,000

CASH                                                                    451,000

OTHER ASSETS
   Rents and other receivables                                               --
   Prepaid expenses, deposits and other                                  36,000
   Debt issuance costs, net of accumulated
      amortization of $332,000 in 2000                                   84,000
                                                                         ------

           TOTAL ASSETS                                            $  7,490,000
                                                                      =========

See notes to consolidated financial statements.

                                      -3-

<PAGE>

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

                                                                  March 31, 2000

LIABILITIES AND PARTNERS' DEFICIT

   Mortgage payable                                                $  7,876,000
   Accounts payable and accrued expenses                                 82,000
   Accrued management fees - General Partners                            22,000
   Accrued Interest                                                      60,000
   Unearned revenue                                                       2,000
   Tenant security deposits                                              74,000
                                                                         ------
     TOTAL LIABILITIES                                                8,116,000
                                                                      ---------


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                                           (4,498,000)
                                                                     ----------
                                                                       (583,000)
                                                                       --------

   TOTAL PARTNERS' DEFICIT                                             (626,000)
                                                                       --------

   TOTAL LIABILITIES & PARTNERS' DEFICIT                           $  7,490,000
                                                                      =========

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,
                                                2000               1999

REVENUES
   Rents                                  $   496,000         $   442,000
   Other Income                                25,000              19,000
                                               ------              ------
                                              521,000             461,000
                                             --------             -------

OPERATING AND ADMINISTRATIVE EXPENSES
   Property operating expenses                132,000             117,000
   General and administrative expenses         45,000              38,000
   Professional fees                           22,000              29,000
   Management fees                             32,000              30,000
   Depreciation and amortization              113,000             112,000
                                            ---------            --------
                                              344,000             326,000
                                            ---------            --------

   NET OPERATING INCOME                       177,000             135,000
                                              -------            --------

NON-OPERATING INCOME (EXPENSES)
   Interest expense                         (178,000)           (178,000)
   Interest income                             4,000               1,000
                                          ------------        ----------
                                            (174,000)           (177,000)
                                           ----------          ---------

NET INCOME (LOSS)                         $     3,000         $  (42,000)
                                          ===========          ==========

ALLOCATION OF INCOME (LOSS)
   General Partner                               ----               ----
   Limited Partners                       $     3,000         $  (42,000)
                                             --------         ----------

Partnership income (loss) per
   limited partnership unit                     $ .31            $ (4.34)
                                                =====           =========

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
                                                                2000          1999
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income (loss)                                        $   3,000    $ (42,000)
   Adjustments to reconcile net income (loss) to net
     cash provided by (used in) operating activities:
       Depreciation and amortization                          113,000      112,000
     Changes in assets and liabilities:
       Rent and other receivables                                  --        2,000
       Prepaid expenses, deposits and other                    (9,000)      (7,000)
       Accounts payable and accrued expenses                   19,000       44,000
       Accrued interest                                         1,000         --
       Unearned revenue                                        (2,000)     (21,000)
       Tenant security deposits                                 1,000       (2,000)
                                                            ---------    ---------
     Net cash provided by operating activities                126,000       86,000
                                                            ---------    ---------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchase of and improvement to investment
     property                                                 (15,000)     (15,000)
   Restricted Reserve Funds                                      --         41,000
                                                            ---------    ---------
     Net cash provided by (used in) investing activities      (15,000)      26,000
                                                            ---------    ---------

CASH FLOWS FROM FINANCING ACTIVITIES
   Principal payments on long-term debt                       (18,000)     (16,000)
                                                            ---------    ---------
     Net cash (used in) financing activities                  (18,000)     (16,000)
                                                            ---------    ---------

INCREASE IN CASH AND                                           93,000       96,000
   CASH EQUIVALENTS

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

CASH AND CASH EQUIVALENTS, END OF PERIOD                    $ 451,000    $ 226,000
                                                            =========    =========
</TABLE>


See notes to consolidated financial statements.



                                       -6-
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                   SECURED INVESTMENT RESOURCES FUND, L.P. III
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
              THREE MONTHS ENDED MARCH 31, 2000 AND MARCH 31, 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 three month period ended March 31, 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:

                                                          March 31,
                                                            2000
Real Estate Mortgages:
Greenhills Bicycle Club Apartments                       $7,876,000


Interest  expense totaled $178,000 and $178,000 during the first three 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:

                                                            Three Months Ended
                                                                 March 31,
                                                            2000         1999
                                                            ----         ----
        Property Management Fee                            26,000       25,000
        Partnership Management Fee                          6,000        5,000

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  $6,000 of  expense
through March 31, 2000 for the  partnership  management  fees.  The  Partnership
incurred partnership management fee expense of $5,000 for the three months ended
March 31, 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                         Three Months Ended
                                                                March 31,
                                                          2000             1999
                                                          ----             ----

     Interest Paid                                      177,000          179,000


                                       -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 2000 increased $60,000 (13.1%) when
compared to the same period in 1999.  The  majority of the increase is due to an
increase  in rental  income of $54,000.  The  increase  is  primarily  due to an
increase  in  occupancy that resulted in $29,000 of increased rental revenue. An
additional  $27,000  was  due to  increased  rental  rates  and  decreased  rent
concessions.

Property operating expenses for the first three months of 2000 increased $15,000
(12.7%) compared to the same period in 1999. Of the total increase,  $13,000 was
due to an increase in repairs and maintenance expense.

Professional  service  expense  decreased  $7,000 (23.7%)  compared to the first
three months of 1999. The majority of the decrease in fees was due to a decrease
in accounting and legal fees. Accounting and legal fees were higher in 1999, due
to the final transition in management of the Partnership, which occurred  during
1998 and 1999.

Management  fee expense for the first three months  increased  by $2,000  (5.5%)
compared  to the same  period in 1999.  The increase was due to increased rental
revenue.

Liquidity and Capital Resources

During  the  first  three  months  of 2000,  $126,000  of cash was  provided  by
operations and $15,000 was used for investing  activities,  which  consisted  of
purchases  of and  improvements  to  investment  property.  $18,000 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: May 5, 2000


                                      -11-

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