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 September 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 [ ]

<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)

                                                         September 30,
                                                              2000

ASSETS:

INVESTMENT PROPERTIES                                   $  6,652,000

RESTRICTED DEPOSITS                                          119,000

CASH                                                         622,000

OTHER ASSETS
   Rents and other receivables                                 -----
   Prepaid expenses, deposits and other                       21,000
   Debt issuance costs, net of accumulated
      amortization of $363,000                                53,000
                                                            --------

           TOTAL ASSETS                                 $  7,467,000
                                                           =========

See notes to consolidated financial statements.

                                       3
<PAGE>

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

                                                                   September 30,
                                                                       2000

LIABILITIES AND PARTNERS' DEFICIT

   Mortgage payable                                               $  7,839,000
   Accounts payable and accrued expenses                               101,000
   Accrued management fees - General Partners                           19,000
   Accrued Interest                                                     60,000
   Unearned revenue                                                      2,000
   Tenant security deposits                                             75,000
                                                                   -----------
     TOTAL LIABILITIES                                               8,096,000
                                                                   -----------


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;
     9,595 units outstanding)
       Capital contribution                                          3,879,000
       Partnership deficit                                          (4,465,000)
                                                                   -----------
                                                                      (586,000)
                                                                      --------

   TOTAL PARTNERS' DEFICIT                                            (629,000)
                                                                      --------

   TOTAL LIABILITIES & PARTNERS' DEFICIT                         $   7,467,000
                                                                 =============


See notes to consolidated financial statements.

                                       4

<PAGE>

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

<TABLE>
<CAPTION>
                                              Three Months Ended            Nine Months Ended
                                                  September 30,               September 30,
                                              2000           1999         2000             1999
<S>                                      <C>            <C>            <C>            <C>
REVENUES
   Rents                                 $   504,000    $   488,000    $ 1,503,000    $ 1,377,000
   Other Income                               61,000         39,000        129,000         82,000
                                         -----------    -----------    -----------    -----------
                                             565,000        527,000      1,632,000      1,459,000
                                         -----------    -----------    -----------    -----------

OPERATING AND ADMINISTRATIVE EXPENSES
   Property operating expenses               207,000        150,000        487,000        396,000
   General and administrative expenses        50,000         44,000        140,000        119,000
   Professional fees                           2,000         14,000         34,000         69,000
   Management fees                            30,000         29,000         97,000         86,000
   Depreciation and amortization             112,000        113,000        338,000        338,000
                                         -----------    -----------    -----------    -----------
                                             401,000        350,000      1,096,000      1,008,000
                                         -----------    -----------    -----------    -----------

   NET OPERATING INCOME                      164,000        177,000        536,000        451,000
                                         -----------    -----------    -----------    -----------

NON-OPERATING INCOME (EXPENSES)
   Interest expense                         (176,000)      (178,000)      (531,000)      (535,000)
   Interest income                             6,000          3,000         14,000          8,000
                                         -----------    -----------    -----------    -----------
                                            (170,000)      (175,000)      (517,000)      (527,000)
                                         -----------    -----------    -----------    -----------

NET INCOME (LOSS)                        $    (6,000)   $     2,000    $    19,000    $   (76,000)
                                         ===========    ===========    ===========    ===========

ALLOCATION OF INCOME (LOSS)
   General Partner                              --             --             --           (1,000)
   Limited Partners                      $    (6,000)   $     2,000    $    19,000        (75,000)
                                         -----------    -----------    -----------    -----------

Partnership income (loss) per
   limited partnership unit              $      (.62)   $       .21    $      1.96    $     (7.85)
                                         ===========    ===========    ===========    ===========

Weighted average LP units outstanding          9,655          9,685          9,675          9,685
                                         ===========    ===========    ===========    ===========
</TABLE>

See notes to consolidated financial statements

                                       5

<PAGE>


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

<TABLE>
<CAPTION>
                                                                   Nine Months Ended
                                                           September 30,         September 30,
                                                               2000                   1999

<S>                                                       <C>                   <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income (loss)                                      $    19,000           $   (76,000)
   Adjustments to reconcile net income (loss) to net
     cash provided by operating activities:
       Depreciation and amortization                          338,000               338,000
     Changes in assets and liabilities:
       Rent and other receivables                                 --                  2,000
       Prepaid expenses, deposits and other                     6,000                13,000
       Accounts payable and accrued expenses                   16,000                91,000
       Unearned revenue                                        (3,000)              (23,000)
       Tenant security deposits                                 3,000                 8,000
                                                             --------            ----------
     Net cash provided by operating activities                379,000               353,000
                                                             --------            ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchase of and improvement to investment
     property                                                 (57,000)              (40,000)
   Restricted Reserve Funds                                    (3,000)              (48,000)
                                                           ----------            ----------
     Net cash used in investing activities                    (60,000)              (88,000)
                                                           ----------            ----------
CASH FLOWS FROM FINANCING ACTIVITIES
   Principal payments on long-term debt                       (55,000)              (51,000)
                                                           ----------            ----------
     Net cash used in financing activities                    (55,000)              (51,000)
                                                           ----------            ----------
INCREASE IN CASH AND                                          264,000               214,000
   CASH EQUIVALENTS

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

CASH AND CASH EQUIVALENTS, END OF PERIOD                    $ 622,000             $ 344,000
                                                           ==========            ==========
</TABLE>

See notes to consolidated financial statements.

                                       6

<PAGE>
                   SECURED INVESTMENT RESOURCES FUND, L.P. III
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
           NINE MONTHS ENDED SEPTEMBER 30, 2000 AND SEPTEMBER 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-QSB and Item 310(b)
of Regulation S-B.  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 nine month period ended September 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:

                                                         September 30,
                                                             2000
Real Estate Mortgages:
Greenhills Bicycle Club Apartments                        $7,839,000


Interest  expense totaled  $531,000 and $535,000 during the first nine 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:

                                                         Nine Months Ended
                                                           September 30,
                                                         2000          1999
                                                         ----          ----

        Property Management Fee                      $  78,000        76,000
        Partnership Management Fee                      19,000        10,000

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  $19,000 of expense
through September 30, 2000 for the partnership  management fees. The Partnership
incurred partnership management fee expense of $10,000 for the nine months ended
September 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                    Nine Months Ended
                                                          September 30,
                                                      2000              1999
                                                      ----              ----

     Interest Paid                                $  531,000          535,000

Noncash Financing Activities

     Repurchase of 90 Limited Partnership Units
       included in accounts payable               $   19,000            ---

                                       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  nine  months  ended  September  30, 2000  increased  by
$173,000  (11.9%)  when  compared  to the same period in 1999.  The  increase is
primarily  due to an increase in rental  income rates of $54,000,  a decrease in
vacancy loss of $51,000,  a decrease in concessions of $21,000,  and an increase
in other income of $47,000. Of the $47,000 increase, $27,000 is due to insurance
proceeds,  for the repair of siding damaged in a storm, exceeding the expense of
the repairs.

Property  operating expenses for the first nine months of 2000 increased $91,000
(23.0%) compared to the same period in 1999. The increase is primarily due to an
increase in repairs and maintenance of $36,000 and real estate taxes of $42,000.

General and administrative expenses increased by $21,000 (17.6%) compared to the
first nine months of 1999. Of the total increase, $13,000 relates to an increase
in office  payroll and bonus.  The remainder was due to increases in a number of
expense categories, none of which was significant.

Professional  service  expenses for the  nine  months  ended  September 30, 2000
decreased  $35,000 (50.7%)  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
$22,000 and $9,000, 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  nine  months  of  2000,  $379,000  of cash was  provided  by
operations, $60,000 was used for investing activities, which consisted primarily
of purchases of and  improvements to investment  property.  $55,000 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.

Effective August 31, 2000, the Partnership purchased 90 units of the Partnership
for  $211 per unit, in accordance with the Partnership Agreement.  This  reduced
the total number of units outstanding from 9,685 to 9,595.

                                       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: November 1, 2000

                                       11