SCHEDULE 14A

                                 (Rule 14a-101)

                     INFORMATION REQUIRED IN PROXY STATEMENT

                            SCHEDULE 14A INFORMATION
              Proxy Statement Pursuant to Section 14(a) Securities
                              Exchange Act of 1934

Filed by the Registrant |_|

Filed by a party other than the Registrant

         Check the appropriate box:

[ ]      Preliminary Proxy Statement

[ ]      Confidential, for Use of the Commission Only
           (as permitted by Rule 14a-6(e)(2))

[ ]      Definitive Proxy Statement

[X]      Definitive Additional Materials

[ ]      Soliciting material pursuant to Rule 14a-11(c) or Rule 14a-12

                       REAL ESTATE ASSOCIATES LIMITED III

                (Name of Registrant as Specified in Its Charter)

                             BOND PURCHASE, L.L.C.

    (Name of Person(s) Filing Proxy Statement, if other than the Registrant)

Payment of filing fee (Check the appropriate box):

[X]      No fee required

[ ]      Fee computed on table below per Exchange Act Rules 14a-6(i)(4)and 0-11.


         (1) Title of each class of securities to which transaction applies:

         (2) Aggregate number of securities to which transactions applies:




         (3) Per unit price or other  underlying  value of transaction  computed
             pursuant to  Exchange  Act Rule 0-11 (Set forth the amount on which
             the filing fee is calculated and state how it was determined.)

         (4) Proposed maximum aggregate value of transaction:

         (5) Total Fee paid:

[ ]      Fee paid previously with preliminary materials

[ ]      Check box if any part of the fee is offset as provided by Exchange  Act
         Rule  0-11(a)(2)  and identify the filing for which the  offsetting fee
         was paid  previously.  Identify  the  previous  filing by  registration
         statement number, or the Form or Schedule and the date of its filing.

         (1) Amount previously paid:

         (2) Form, Schedule or Registration Statement No.:

         (3) Filing party:

         (4) Date filed:



                              Bond Purchase, L.L.C.
                                 104 Armour Road
                           North Kansas City, MO 64116

TO:               Real Estate Associates Limited III, Limited Partners

FROM:             Bond Purchase, LLC

DATE:             April 16, 2001
- --------------------------------------------------------------------------------

We are  writing to you as a fellow  limited  partner in Real  Estate  Associates
Limited  III.  You  should  have  previously  received  a  Consent  Solicitation
Statement  from us  requesting  your  consent  to remove  NAPICO as our  General
Partner.  We need your help to remove NAPICO. The greatest problem in removing a
General Partner in a partnership  like ours, that has many small  investors,  is
convincing  each of you that your consent is important.  We need you to take the
time to consent. Please consider the following track record of NAPICO:

         1)  In your just received  partnership K-1, you were allocated interest
             income  (Line 4A).  Despite not  receiving  any cash  distributions
             during  2000,  each  limited  partner is now forced to pay taxes on
             this income that has been held by our partnership.

         2)  NAPICO  has  refused  Bond  Purchase,  LLC  access to the books and
             records.  We are always concerned when a General Partner refuses to
             follow the  partnership  agreement  which  provides this right.  We
             wonder if NAPICO is hiding something.

         3)  Our partnership has made no distributions since the sale of some of
             our assets.  We have asked NAPICO  repeatedly why no  distributions
             have  been  made  when  our  partnership  has  cash in the  bank of
             $5,655,763 at 12/31/00. This is almost $1,000 a unit.

         4)  NAPICO has past legal and SEC problems. Consider:

             a) In the Century  Hillcreste  Partnership,  NAPICO was censured by
                the SEC for borrowing funds from the partnership's cash balances
                and not disclosing  this in connection  with its periodic public
                reporting  obligations.  b) The  current  class  action  lawsuit
                against NAPICO which has been  certified by the court  regarding
                our partnership.

         5)  Despite  prohibitions  against loans to NAPICO, our partnership had
             an account receivable from NAPICO at the end of 1999.



April 16, 2001                                                          Page Two

If New G.P., LLC is elected, we are committed to:

         1)  Complete  review  of the  books  and  records.  We plan to  closely
             inspect all related  party  transactions  and sales of  partnership
             assets made by NAPICO.

         2)  Start Cash Distributions.  We plan to immediately assess cash needs
             and distribute as much of the $1,000 a unit as possible.  Remember,
             Bond  Purchase  owns almost 5% of the units and our  interests  are
             aligned with the limited partners.

         3)  Assist the class  action  lawsuit  and look for  recoveries  of any
             damages from NAPICO and their affiliates.

         4)  Determine  how to liquidate  the  partnership  and  distribute  all
             proceeds so that on-going and continuing  management  fees will not
             deplete partnership funds until no assets are left. This would also
             eliminate future K-1's and IRS reporting.

If you have already responded, please disregard this request.

Please sign,  date and return the enclosed  Consent to remove  NAPICO as General
Partner  and to replace  NAPICO  with our  affiliate  New,  G.P.  as promptly as
possible.  If you have any  questions,  please do not  hesitate to contact  Bond
Purchase at (816) 303-4500.




                                (Form of Consent)

                       Real Estate Associates Limited III
              a California Limited Partnership (the "Partnership")

                           CONSENT OF LIMITED PARTNER

              This Consent is Solicited on Behalf of Bond Purchase

The undersigned has received the Consent Solicitation  Statement dated March 13,
2001 ("Consent  Solicitation  Statement") by Bond Purchase,  L.L.C.,  a Missouri
limited  liability company ("Bond  Purchase."),  seeking the approval by written
consent of the following proposals:

(1)  the  removal  of  the  current  general  partners,   National   Partnership
Investments  Corp.,  a  California  corporation  and Coast  Housing  Investments
Associates, a California limited partnership; and

(2) the  continuation of the Partnership and the election of New G.P. as the new
general  partner of the  Partnership  (which is  conditioned  on the approval of
proposal (1) above).

Each  of  the  undersigned,  by  signing  and  returning  this  Consent,  hereby
constitutes  and  appoints  Bond  Purchase,  acting  through  its  officers  and
employees as his or her  attorney-in-fact  for the purposes of executing any and
all  documents  and taking any and all actions  required  under the  Partnership
Agreement in connection with this Consent and the Consent Solicitation Statement
or in order to  implement  an approved  proposal;  and hereby  votes all limited
partnership  interests of the  Partnership  held of record by the undersigned as
follows for the proposals set forth above,  subject to the Consent  Solicitation
Statement.

Proposal                                     FOR       AGAINST       ABSTAIN

1. Removal of General Partners               [ ]         [ ]           [ ]

2. Continuation of the Partnership
   and election of new general partner,
   New G.P.                                  [ ]         [ ]           [ ]

(Please sign exactly as your name appears on the  Partnership's  records.  Joint
owners should each sign. Attorneys-in-fact, executors, administrators, trustees,
guardians,  corporation  officers or others  acting in  representative  capacity
should indicate the capacity in which they sign and should give FULL title,  and
submit appropriate evidence of authority to execute the Consent)

Dated: _______________, 2001
(Important - please fill in)


- ------------------------                     ----------------------------
PRINT Registered Name                        PRINT Registered Name

- ------------------------                     ----------------------------
Signature                                    Signature

                                             ----------------------------
                                             Telephone Number

PLEASE MARK, SIGN, DATE & PROMPTLY RETURN THIS CONSENT BY APRIL 30, 2001.



THIS  CONSENT IS SOLICITED BY BOND PURCHASE.   LIMITED PARTNERS WHO RETURN A
SIGNED CONSENT BUT  FAIL  TO INDICATE  THEIR  APPROVAL OR DISAPPROVAL AS TO  ANY
MATTER WILL  BE DEEMED  TO  HAVE VOTED  TO APPROVE SUCH MATTER.  THIS CONSENT IS
VALID FROM THE DATE OF ITS EXECUTION UNLESS DULY REVOKED.



                       REAL ESTATE ASSOCIATES LIMITED III
              a California Limited Partnership (the "Partnership")


                           CONSENT OF LIMITED PARTNER

         Deliveries of Consents, properly completed and duly executed, should be
made to Bond Purchase at the address set forth below. A prepaid, return envelope
is included herewith.

         Questions and requests for assistance  about  procedures for consenting
or other matters relating to this  Solicitation may be directed to Bond Purchase
at the address and  telephone  number listed  below.  Additional  copies of this
Consent  Solicitation  Statement  and form of Consent may be obtained  from Bond
Purchase as set forth below.





                              Bond Purchase, L.L.C.
                                 104 Armour Road
                        North Kansas City, Missouri 64116

                                 (816) 303-4500


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