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, 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 -- September 30, 1997
           and December 31, 1996                               3-4

          Consolidated Statements of Operations -- Three
           and Nine Months Ended September 30, 1997
           and 1996                                              5 
      
          Consolidated Statements of Partnership Capital --  
           Nine Months Ended September 30, 1997 and
           the Years Ended December 31, 1996 and 1995            6 
                                 
          Consolidated Statements of Cash Flows -- Nine 
           Months Ended September 30, 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

                                         September 30,
                                            1997         December 31,
                                         (Unaudited)         1996     

ASSETS

INVESTMENT PROPERTIES                      
  Land and buildings                    $  14,587,617    $  14,569,699
  Furniture, fixtures, and equipment        1,502,974        1,471,943
                                           16,090,591       16,041,642

  Less accumulated depreciation             5,135,292        4,732,073
                                           10,955,299       11,309,569

RESTRICTED DEPOSIT
  Certificate of Accrual on
   Treasury Security                          950,908          898,023
   Restricted Reserve Fund                     78,481           34,490
                                            1,029,389          932,513

OTHER ASSETS
  Cash                                        263,551           82,985
  Rents and other receivables, less
   allowance of $39,200 in 1997 and 
   $12,000 in 1996                             10,710            5,106
  Prepaid expenses, deposits and other         42,810           29,161
  Due from related parties (Note C) 
    Note Receivable                            83,794           78,345
    Syndication Costs                          21,751           21,751
  Debt issuance costs, net of 
   accumulated amortization of 
   $79,067 in 1997 and $31,627 
   in 1996                                    258,972          289,913
                                              681,588          507,261

      TOTAL ASSETS                      $  12,666,276    $  12,749,343
<PAGE>
SECURED INVESTMENT RESOURCES FUND, L.P. III

CONSOLIDATED BALANCE SHEETS--CONT'D.

                                        September 30, 
                                            1997          December 31,
                                         (Unaudited)          1996    

LIABILITIES AND PARTNERSHIP DEFICIT
 
  Mortgage debt (Note B)                $  12,888,368    $  12,931,003
  Accounts payable and 
   accrued expenses                           331,658          244,253
  Accrued interest                            622,168          527,106
  Unearned revenue                             20,991           30,360
  Tenant security deposits                    107,390          102,050

      TOTAL LIABILITIES                    13,970,575       13,834,772

PARTNERSHIP DEFICIT

  General Partners
    Capital contributions                       2,000            2,000
    Partnership deficit                       (52,198)         (50,009)
                                              (50,198)         (48,009)
  Limited Partners 
    Capital contributions                   3,915,084        3,915,084
    Partnership deficit                    (5,169,185)      (4,952,504)
                                           (1,254,101)      (1,037,420)
      TOTAL PARTNERSHIP DEFICIT            (1,304,299)      (1,085,429)

                                        $  12,666,276    $  12,749,343



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,     
                           1997           1996          1997         1996   
     
REVENUES
  Rents                 $ 2,070,788   $ 2,072,300    $ 675,599   $  716,511
  Interest                   60,398        70,994       21,047       23,580
                          2,131,186     2,143,294      696,646      740,091
                         
OPERATING AND 
 ADMINISTRATIVE EXPENSES
  Property operating
   expenses                 847,451       894,770      302,760      299,016
  General and 
   administrative
   expenses                  38,919        54,883       15,043       18,106
  Professional services      58,368        89,710       14,498       16,313
  Management Fees           101,934       102,890       33,470       35,453
                          1,046,672     1,142,253      365,771      368,888

  NET OPERATING INCOME    1,084,514     1,001,041      330,875      371,203

NON-OPERATING EXPENSES
  Interest                  852,725       849,473      280,085      401,548
  Depreciation and 
   amortization             450,659       408,177      150,220      145,421
                          1,303,384     1,257,650      430,305      546,969
    

PARTNERSHIP LOSS         $ (218,870)   $  256,609    $ (99,430)   $(175,766)

Allocation of loss:
  General Partners           (2,189)       (2,566)        (994)      (1,758)
  Limited Partners         (216,681)     (254,043)     (98,436)    (174,008) 
                         
                         $ (218,870)   $ (256,609)  $  (99,430)   $(175,766)  
Partnership loss per
 limited partnership 
  unit                   $   (22.37)   $   (26.23)  $   (10.16)    $ (17.97)

See notes to consolidated financial statements.
<PAGE>

SECURED INVESTMENT RESOURCES FUND, L.P. III

CONSOLIDATED STATEMENTS OF PARTNERSHIP DEFICIT 

Nine months Ended September 30, 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                         (2,189)     (216,681)     (218,870)

Balances at September 30, 1997      $   (50,198)  $(1,254,101)  $(1,304,299)



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,      
                                                  1997          1996   
OPERATING ACTIVITIES
  Partnership loss                            $ (218,870)   $ (256,609)
  Adjustments to reconcile partnership 
   loss to net cash provided by      
   operating activities:
     Depreciation and amortization               450,659       408,176   
     Provision for losses on rents 
      and other receivables                       27,200         5,550 
  Changes in assets and liabilities:
    Rent and other receivables                   (32,803)      (12,900)
    Prepaid expenses, deposits, and other        (13,649)      (12,948)
    Accounts payable and 
     accrued expenses                             87,405      (255,916)
    Accrued interest                              95,062       133,433  
    Unearned revenue                              (9,369)         (846)
    Tenant security deposits                       5,340        20,971

NET CASH PROVIDED BY OPERATING ACTIVITIES        390,975        28,911

INVESTING ACTIVITIES
  Purchase of and improvements to
   investment properties                         (48,948)      (77,218)
  Restricted Reserve Funds                       (43,991)      (15,225)
  Interest earned on certificate                                      
   of accrual on Treasury Security               (52,886)      (52,886)

NET CASH USED IN INVESTING ACTIVITIES           (145,825)     (145,329)

FINANCING ACTIVITIES  
  Note Receivable from Related Party              (5,450)       (1,978)
  Principal payments on long-term debt           (42,634)   (8,404,424)
  Proceeds from issuance of debt                       0     8,500,000
  Debt issuance costs                            (16,500)     (323,179)

NET CASH USED IN FINANCING ACTIVITIES            (64,584)     (229,581)

INCREASE (DECREASE) IN CASH AND 
 CASH EQUIVALENTS                                180,566      (345,999)
 
CASH AND CASH EQUIVALENTS BEGINNING 
 OF PERIOD                                        82,985       486,886

CASH AND CASH EQUIVALENTS END 
 OF PERIOD                                   $   263,551   $   140,887  

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

NOTES TO FINANCIAL STATEMENTS (Unaudited)

September 30, 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 nine month period ended September 30, 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:

                                   September 30,  December 31,
                                       1997          1996    
Collateralized by Investment 
  Property:

  First Mortgages:
    Greenhills Bicycle Club
      Apartments                   $ 8,039,822    $ 8,082,102
    KC Club Apartments               4,451,382      4,451,382
  Second Mortgage:
    Greenhills Bicycle Club
      Apartments                       397,164        397,519

                                   $12,888,368    $12,931,003


Interest expense totaled $852,725 and $849,473 during the first nine
months 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:

                                         September 30,        
                                      1997            1996    

Property management fees           $  101,934     $    102,890
                                             
Amounts due from related parties consist of the following:

                                   September 30,  December 31,
                                       1997           1996    

General Partners -- Excess
 Syndication Costs                 $     21,751   $     21,751 
Secured Investment Resources
  Fund, L.P.                             83,794         78,345
                                   $    105,545   $    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 nine months decreased $12,100 (0.6%)
     when compared to the same period in 1996.  This decrease is due to a
     weaker rental market. 

     General and administrative expenses decreased $16,000 (29.1%) and
     property operating expenses decreased $47,300 (5.3%) when compared to
     the first nine months of last year.  

     Interest expense increased $3,300 (0.4%) and depreciation and
     amortization increased $42,500 (10.4%) 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 1997, $391,000 of working capital was
     provided by operations, $146,000 was consumed in investing activities
     and $65,000 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 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 September 30, 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: November 15, 1997

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

                    By:                                     
                             James R. Hoyt
                         as Individual General Partner


                    Date: November 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: November 15, 1997


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

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

                    
                    Date: November 15, 1997