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         June 30, 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

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 Sheets                                                3-4
             Statements of Operations                                        5
             Statements of Cash Flows                                        6

ITEM 2.      MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
             CONDITION AND 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 SHEETS


                                                June 30, 200      Dec. 31, 2000
                                                 (Unaudited)
ASSETS:

INVESTMENT PROPERTIES                          $  6,433,000           6,567,000

RESTRICTED DEPOSITS                                  82,000              81,000

CASH                                                998,000             218,000

TEMPORARY INVESTMENT                                346,000             240,000

OTHER ASSETS
   Rents and other receivables                          --                  --
   Prepaid expenses, deposits and other              34,000             291,000
   Debt issuance costs, net of accumulated
      amortization of $4,000                         94,000              36,000
                                                -----------         -----------

           TOTAL ASSETS                        $  7,987,000           7,433,000
                                                ===========         ===========

See notes to consolidated financial statements.

                                       3
<PAGE>

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



<TABLE>
<CAPTION>
<S>                                                       <C>            <C>
                                                          June 30, 2001  Dec. 31, 2000
                                                           (Unaudited)
LIABILITIES AND PARTNERS' DEFICIT

   Mortgage payable                                        $ 8,350,000      7,820,000
   Accounts payable and accrued expenses                        93,000         65,000
   Accrued management fees - General Partners                   17,000         24,000
   Accrued Interest                                             48,000         59,000
   Unearned revenue                                              4,000          3,000
   Tenant security deposits                                     76,000         73,000
                                                           -----------    -----------
     TOTAL LIABILITIES                                       8,588,000      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                                  (4,454,000)    (4,464,000)
                                                           -----------    -----------
                                                              (558,000)      (568,000)
                                                           -----------    -----------

   TOTAL PARTNERS' DEFICIT                                    (601,000)      (611,000)
                                                           -----------    -----------

   TOTAL LIABILITIES & PARTNERS' DEFICIT                   $ 7,987,000      7,433,000
                                                           ===========    ===========
</TABLE>

See notes to consolidated financial statements.

                                       4
<PAGE>


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

<TABLE>
<CAPTION>
<S>                                        <C>             <C>             <C>         <C>
                                               Three Months Ended           Six Months Ended
                                             June 30,      June 30,      June 30,       June 30,
                                              2001           2000          2001           2000
REVENUES
   Rents                                 $   486,000    $   503,000    $   980,000    $   999,000
   Other Income                               37,000         43,000         65,000         68,000
                                         -----------    -----------    -----------    -----------
                                             523,000        546,000      1,045,000      1,067,000
                                         -----------    -----------    -----------    -----------

OPERATING AND ADMINISTRATIVE EXPENSES
   Property operating expenses               165,000        148,000        331,000        280,000
   General and administrative expenses        46,000         45,000         98,000         90,000
   Professional fees                           8,000         10,000         21,000         32,000
   Management fees                            27,000         35,000         71,000         67,000
   Depreciation and amortization              99,000        113,000        231,000        226,000
                                         -----------    -----------    -----------    -----------
                                             345,000        351,000        752,000        695,000
                                         -----------    -----------    -----------    -----------

   NET OPERATING INCOME                      178,000        195,000        293,000        372,000
                                         -----------    -----------    -----------    -----------

NON-OPERATING INCOME (EXPENSES)
   Interest expense                         (144,000)      (177,000)      (304,000)      (355,000)
   Interest income                            11,000          4,000         21,000          8,000
                                         -----------    -----------    -----------    -----------
                                            (133,000)      (173,000)      (283,000)      (347,000)
                                         -----------    -----------    -----------    -----------

NET INCOME                               $    45,000    $    22,000    $    10,000    $    25,000
                                         ===========    ===========    ===========    ===========

ALLOCATION OF INCOME
   General Partner                              --             --             --             --
   Limited Partners                      $    45,000    $    22,000    $    10,000         25,000
                                         -----------    -----------    -----------    -----------

Partnership income per
   limited partnership unit              $      4.69    $      2.27    $      1.04    $      2.58
                                         ===========    ===========    ===========    ===========


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


See notes to consolidated financial statements
</TABLE>
                                       5

<PAGE>

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

<TABLE>
<CAPTION>
<S>                                                          <C>          <C>
                                                               Six Months Ended
                                                             June 30,     June 30,
                                                               2001         2000
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income                                              $  10,000    $  25,000
   Adjustments to reconcile net income to net
     cash provided by operating activities:
       Depreciation and amortization                         231,000      226,000
     Changes in assets and liabilities:
       Rent and other receivables                               --           --
       Prepaid expenses, deposits and other                   (8,000)     (17,000)
       Accounts payable and accrued expenses                  21,000       20,000
       Accrued interest                                      (11,000)       1,000
       Unearned revenue                                        1,000        1,000
       Tenant security deposits                                3,000        7,000
                                                           ---------    ---------
     Net cash provided by operating activities               247,000      263,000
                                                           ---------    ---------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchase of and improvement to investment
     property                                                (57,000)     (32,000)
   Purchase of temporary investment                         (106,000)        --
   Restricted Reserve Funds                                   (1,000)      (2,000)
                                                           ---------    ---------
     Net cash used in investing activities                  (164,000)     (34,000)
                                                           ---------    ---------

CASH FLOWS FROM FINANCING ACTIVITIES
   Principal payments on long-term debt                         --        (37,000)
   Net proceeds from mortgage note payable                   697,000         --
                                                           ---------    ---------

     Net cash provided by (used in) financing activities     697,000      (37,000)
                                                           ---------    ---------

INCREASE IN CASH AND
   CASH EQUIVALENTS                                          780,000      192,000

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

CASH AND CASH EQUIVALENTS, END OF PERIOD                   $ 998,000    $ 550,000
                                                           =========    =========

See notes to consolidated financial statements.
</TABLE>

                                       6

<PAGE>

                   SECURED INVESTMENT RESOURCES FUND, L.P. III
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                SIX MONTHS ENDED JUNE 30, 2001 AND JUNE 30, 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 six month period ended June 30, 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:

                                                 June 30,         December 31,
                                                   2001              2000
Real Estate Mortgages:
Greenhills Bicycle Club Apartments              $8,350,000        $7,820,000

Interest  expense  totaled  $304,000 and $355,000 during the first six 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:

                                                  Six Months Ended
                                                      June 30,
                                                  2001         2000

        Property Management Fee             $   54,000        54,000
        Partnership Management Fee              17,000        13,000

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  $13,000,  for the six months ended June 30, 2001 and
June 30, 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                     Six Months Ended
                                                             June 30,
                                                     2001              2000

     Interest Paid                              $  315,000            354,000

                                       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 six months  ended June 30,  2001  decreased  by $22,000
(2.1%) when  compared to the same period in 2000.  The decrease is primarily due
to an increase in vacancy loss of $43,000 and  concessions of $8,000,  offset by
an increase in rental rates of $33,000.

Property  operating  expenses for the first six months of 2001 increased $51,000
(18.2%) compared to the same period in 2000. The increase is primarily due to an
increase in repairs and  maintenance  of $30,000,  real estate taxes of $11,000,
and utilities of $10,000.

General and  administrative  expenses increased by $8,000 (8.9%) compared to the
first six  months of 2000.  The  increase  was due to  increases  in a number of
expense categories, none of which was significant.

Professional  service  expenses  for the first six months  ended  June 30,  2001
decreased  $11,000 (34.4%)  compared to the same period in 2000. The majority of
the decrease in fees was due to a decrease in accounting fee expense.


Liquidity and Capital Resources

During  the  first  six  months  of  2001,  $247,000  of cash  was  provided  by
operations, a decrease of $16,000 compared to the same period in 2000. Investing
activities during the first six months of 2001 used $164,000, primarily due to a
purchase of a  temporary  investment  of $106,000  and  property  and  equipment
purchases of $57,000. Financing activities for the same period provided $697,000
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  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

                    Pursuant to Rule 12h-3 under the Securities  Exchange Act of
                    1934, as amended (the "Act"),  the  Partnership is no longer
                    required to file periodic reports (such as Form 10-KSB, Form
                    10QSB or Form 8-K) upon filing a Form 15 certification  with
                    the Securities and Exchange  Commission  (the "SEC") because
                    the Partnership's limited partnership units are held by less
                    than 500 persons and the Partnership's total assets have not
                    exceeded  $10,000,000  on  the  last  day  of  each  of  the
                    Partnership's three most recent fiscal years.

                    As a result,  the General  Partners have determined it is in
                    the best  interest  of the  Partnership  to file the Form 15
                    certification  with the SEC shortly  after  filing this Form
                    10QSB because it will reduce legal and accounting  expenses.
                    As a  result,  the  Partnership  will no  longer  be  filing
                    periodic reports with the SEC. If the  certification on Form
                    15 is subsequently  withdrawn (which we have no intention to
                    do) or is denied by the SEC, the Partnership will, within 60
                    days  thereafter,  file with the SEC all reports which would
                    have been required if such certification had not been filed.

                    The  Partnership  will,  however,  continue to send  limited
                    partners  annual  reports and other reports  required by the
                    Partnership's  Amended  and  Restated  Agreement  of Limited
                    Partnership.

          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: August 13, 2001

                                       11