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


                             **IMPORTANT REMINDER**

                                 August 29, 2001

Dear Fellow Limited Partner:

     We previously have mailed to you consent materials  relating to Real Estate
Associates  Limited  III (the  "Partnership")  that are  scheduled  to expire on
September 14, 2001.

         Your vote for this important consent has yet not been received

     Although  the votes we have  received to date have been  overwhelmingly  in
favor of removing NAPICO as the general  partner,  we still need your support to
reach the  majority of units  needed.  As an owner of a large number of units in
the partnership, your vote is critical.

     We have  undertaken  this effort to remove  NAPICO at our own  expense.  We
believe  our vocal,  lead role in this  effort  has  resulted  in a  retaliatory
lawsuit meant to  discourage  us. We,  however,  remain  committed.  Through our
affiliate,  New G.P.,  L.L.C., we hope to become the new general partner so that
we may distribute the remaining  cash in the  Partnership,  lower the management
fees and liquidate the Partnership,  contingent on a review of the Partnership's
books and records and review of the partnership's investments.

     As a direct result of our involvement,  NAPICO has miraculously  discovered
that they are now in a position to  distribute  up to $3,000.00  of  Partnership
funds they have held over two years. In an effort to minimize costs and to bring
further positive change at the Partnership,  we ask for your support by signing,
dating and returning the enclosed BLUE consent form as soon as possible.

     We thank you for your support.

                                        Very Truly Yours,
                                        Bond Purchase, L.L.C.




                                        By: /c/ David L. Johnson
                                                David L. Johnson, Member


This letter is being delivered to the 100 largest limited partner unit holders,
who have not responded to our consent solicitation, on or about August 29, 2001.


                    YOUR VOTE IS IMPORTANT. PLEASE VOTE TODAY

                               (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, LLC

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.

  THIS CONSENT CARD WILL REVOKE ANY PREVIOUSLY EXECUTED REVOCATION OF CONSENT.

The undersigned has received the Consent Solicitation  Statement dated March 13,
2001,  as amended  August 2, 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 National Partnership Investment
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)

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                                                                Telephone Number