<?xml version="1.0"?>
<edgarSubmission>

    <schemaVersion>X0603</schemaVersion>

    <submissionType>D</submissionType>

    <testOrLive>LIVE</testOrLive>

    <primaryIssuer>
        <cik>0001429830</cik>
        <entityName>NO DEBT REAL ESTATE INVESTMENT FUND III LLC</entityName>
        <issuerAddress>
            <street1>1522 BLAKE STREET</street1>
            <street2>SUITE 200</street2>
            <city>DENVER</city>
            <stateOrCountry>CO</stateOrCountry>
            <zipCode>80202</zipCode>
        </issuerAddress>
        <issuerPhoneNumber>303-615-9544</issuerPhoneNumber>
        <jurisdictionOfInc>COLORADO</jurisdictionOfInc>
        <issuerPreviousNameList>
            <value>None</value>
        </issuerPreviousNameList>
        <edgarPreviousNameList>
            <value>None</value>
        </edgarPreviousNameList>
        <entityType>Limited Liability Company</entityType>
        <yearOfInc>
            <withinFiveYears>true</withinFiveYears>
            <value>2007</value>
        </yearOfInc>
    </primaryIssuer>

    <relatedPersonsList>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>David</firstName>
                <lastName>Puchi</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>1522 Blake St.</street1>
                <street2>Ste. 200</street2>
                <city>Denver</city>
                <stateOrCountry>CO</stateOrCountry>
                <zipCode>80202</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
                <relationship>Promoter</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification>Managing Partner</relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Craig</firstName>
                <lastName>Zoellner</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>1522 Blake St.</street1>
                <street2>Ste. 200</street2>
                <city>Denver</city>
                <stateOrCountry>CO</stateOrCountry>
                <zipCode>80202</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
                <relationship>Promoter</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification>Managing Partner</relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Douglas</firstName>
                <lastName>Arnold</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>1522 Blake St.</street1>
                <street2>Ste. 200</street2>
                <city>Denver</city>
                <stateOrCountry>CO</stateOrCountry>
                <zipCode>80202</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
                <relationship>Promoter</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification>Managing Partner</relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>John</firstName>
                <lastName>Lester</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>1522 Blake St.</street1>
                <street2>Ste. 200</street2>
                <city>Denver</city>
                <stateOrCountry>CO</stateOrCountry>
                <zipCode>80202</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification>Partner</relationshipClarification>
        </relatedPersonInfo>
    </relatedPersonsList>

    <offeringData>
        <industryGroup>
            <industryGroupType>Commercial</industryGroupType>
        </industryGroup>
        <issuerSize>
            <revenueRange>Decline to Disclose</revenueRange>
        </issuerSize>
        <federalExemptionsExclusions>
            <item>05</item>
            <item>06</item>
            <item>46</item>
        </federalExemptionsExclusions>
        <typeOfFiling>
            <newOrAmendment>
                <isAmendment>false</isAmendment>
            </newOrAmendment>
            <dateOfFirstSale>
                <value>2007-09-28</value>
            </dateOfFirstSale>
        </typeOfFiling>
        <durationOfOffering>
            <moreThanOneYear>true</moreThanOneYear>
        </durationOfOffering>
        <typesOfSecuritiesOffered>
            <isEquityType>true</isEquityType>
        </typesOfSecuritiesOffered>
        <businessCombinationTransaction>
            <isBusinessCombinationTransaction>false</isBusinessCombinationTransaction>
            <clarificationOfResponse></clarificationOfResponse>
        </businessCombinationTransaction>
        <minimumInvestmentAccepted>25000</minimumInvestmentAccepted>
        <salesCompensationList>
            <recipient>
                <recipientName>Alternative Wealth Strategies, Inc.</recipientName>
                <recipientCRDNumber>130933</recipientCRDNumber>
                <associatedBDName>Antonio Taddeo</associatedBDName>
                <associatedBDCRDNumber>5110448</associatedBDCRDNumber>
                <recipientAddress>
                    <street1>50 Broadway</street1>
                    <street2>1st Fl., Ste. 22</street2>
                    <city>Hawthorne</city>
                    <stateOrCountry>NY</stateOrCountry>
                    <zipCode>10532</zipCode>
                </recipientAddress>
                <statesOfSolicitationList>
                    <state>NY</state>
                </statesOfSolicitationList>
            </recipient>
            <recipient>
                <recipientName>Alternative Wealth Strategies, Inc.</recipientName>
                <recipientCRDNumber>130933</recipientCRDNumber>
                <associatedBDName>Steven D. Klein</associatedBDName>
                <associatedBDCRDNumber>1940511</associatedBDCRDNumber>
                <recipientAddress>
                    <street1>1040 N. Kings Highway</street1>
                    <street2>Ste. 302</street2>
                    <city>Cherry Hill</city>
                    <stateOrCountry>NJ</stateOrCountry>
                    <zipCode>08034</zipCode>
                </recipientAddress>
                <statesOfSolicitationList>
                    <state>NY</state>
                </statesOfSolicitationList>
            </recipient>
            <recipient>
                <recipientName>Sunset Financial Services</recipientName>
                <recipientCRDNumber>3538</recipientCRDNumber>
                <associatedBDName>Roby Financial</associatedBDName>
                <associatedBDCRDNumber>813169</associatedBDCRDNumber>
                <recipientAddress>
                    <street1>5865 W. Hidden Springs Dr.</street1>
                    <city>Boise</city>
                    <stateOrCountry>ID</stateOrCountry>
                    <zipCode>83714</zipCode>
                </recipientAddress>
                <statesOfSolicitationList>
                    <state>ID</state>
                </statesOfSolicitationList>
            </recipient>
            <recipient>
                <recipientName>Pacific West Securities</recipientName>
                <recipientCRDNumber>6390</recipientCRDNumber>
                <associatedBDName>David S. Mowatt</associatedBDName>
                <associatedBDCRDNumber>1098942</associatedBDCRDNumber>
                <recipientAddress>
                    <street1>383 Inverness Pkwy</street1>
                    <street2>Ste 400</street2>
                    <city>Englewood</city>
                    <stateOrCountry>CO</stateOrCountry>
                    <zipCode>80112</zipCode>
                </recipientAddress>
                <statesOfSolicitationList>
                    <state>AZ</state>
                    <state>NY</state>
                </statesOfSolicitationList>
            </recipient>
        </salesCompensationList>
        <offeringSalesAmounts>
            <totalOfferingAmount>75000000</totalOfferingAmount>
            <totalAmountSold>321000</totalAmountSold>
            <totalRemaining>74679000</totalRemaining>
            <clarificationOfResponse></clarificationOfResponse>
        </offeringSalesAmounts>
        <investors>
            <hasNonAccreditedInvestors>false</hasNonAccreditedInvestors>
            <totalNumberAlreadyInvested>6</totalNumberAlreadyInvested>
        </investors>
        <salesCommissionsFindersFees>
            <salesCommissions>
                <dollarAmount>60000</dollarAmount>
                <isEstimate>true</isEstimate>
            </salesCommissions>
            <findersFees>
                <dollarAmount>0</dollarAmount>
            </findersFees>
            <clarificationOfResponse>$60,000 is the estimated selling commissions for the minimum offering amount of $1,000,000 while the estimated selling commissions for the maximum offering amount of $75,000,000 is estimated to be $4,500,000.</clarificationOfResponse>
        </salesCommissionsFindersFees>
        <useOfProceeds>
            <grossProceedsUsed>
                <dollarAmount>0</dollarAmount>
            </grossProceedsUsed>
            <clarificationOfResponse></clarificationOfResponse>
        </useOfProceeds>
        <signatureBlock>
            <authorizedRepresentative>false</authorizedRepresentative>
            <signature>
                <issuerName>NO DEBT REAL ESTATE INVESTMENT FUND III LLC</issuerName>
                <signatureName>David Puchi</signatureName>
                <nameOfSigner>David Puchi</nameOfSigner>
                <signatureTitle>Manager</signatureTitle>
                <signatureDate>2010-03-03</signatureDate>
            </signature>
        </signatureBlock>
    </offeringData>
</edgarSubmission>
