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                                                                    EXHIBIT 99.3
 
                    INSTRUCTIONS TO REGISTERED HOLDER AND/OR
         BOOK-ENTRY TRANSFER FACILITY PARTICIPANT FROM BENEFICIAL OWNER
 
                                       OF
 
                           TRANSWESTERN HOLDINGS L.P.
                               TWP CAPITAL CORP.
 
                     11 7/8% SENIOR DISCOUNT NOTES DUE 2008
 
     THE EXCHANGE OFFER WILL EXPIRE AT 5:00 P.M., NEW YORK CITY TIME, ON
            1998, UNLESS EXTENDED (THE "EXPIRATION DATE").
 
To Registered Holder and/or Participant of the Book-Entry Transfer Facility:
 
     The undersigned hereby acknowledges receipt of the Prospectus, dated
            , 1998 (the "Prospectus"), of TransWestern Holdings L.P. and TWP
Capital Corp. (collectively, the "Company"), and the accompanying Letter of
Transmittal (the "Letter of Transmittal"), that together constitute the
Company's offer (the "Exchange Offer") to exchange $1,000 principal amount at
maturity of its 11 7/8% Senior Discount Notes due 2008, Series B (the "Exchange
Notes"), for each $1,000 principal amount at maturity of its outstanding 11 7/8%
Senior Discount Notes due 2008 (the "Notes"). Capitalized terms used but not
defined herein have the meanings ascribed to them in the Prospectus.
 
     This will instruct you, the registered holder and/or book-entry transfer
facility participant, as to the action to be taken by you relating to the
Exchange Offer with respect to the Notes held by you for the account of the
undersigned.
 
     The aggregate face amount at maturity of the Notes held by you for the
     account of the undersigned is (FILL IN AMOUNT):
 
     $          of the 11 7/8% Senior Discount Notes due 2008.
 
     With respect to the Exchange Offer, the undersigned hereby instructs you
     (CHECK APPROPRIATE BOX):
 
     [ ]  TO TENDER the following Notes held by you for the account of the
          undersigned (INSERT PRINCIPAL AMOUNT AT MATURITY OF NOTES TO BE
          TENDERED):
       $
 
     [ ]  NOT TO TENDER any Notes held by you for the account of the
undersigned.
 
     If the undersigned instructs you to tender the Notes held by you for the
account of the undersigned, it is understood that you are authorized (a) to
make, on behalf of the undersigned (and the undersigned, by its signature below,
hereby makes to you), the representations and warranties contained in the Letter
of Transmittal that are to be made with respect to the undersigned as a
beneficial owner, including but not limited to the representations that (i) the
undersigned's principal residence is in the state of (fill in state)
               , (ii) the undersigned is acquiring the Exchange Notes in the
ordinary course of business of the undersigned, (iii) the undersigned is not
participating, does not intend to participate, and has no arrangement or
understanding with any person to participate in the distribution of the Exchange
Notes, (iv) the undersigned acknowledges that any person participating in the
Exchange Offer for the purpose of distributing the Exchange Notes must comply
with the registration and prospectus delivery requirements of the Securities Act
of 1933, as amended (the "Act"), in connection with a secondary resale
transaction of the Exchange Notes acquired by such person and cannot rely on the
position of the staff of the Securities and Exchange Commission set forth in no-
action letters that are discussed in the section of the Prospectus entitled "The
Exchange Offer -- Resale of the Exchange Discount Notes," and (v) the
undersigned is not an "affiliate," as defined in Rule 405 under the Act, of the
Company; (b) to agree, on behalf of the undersigned, as set forth in the Letter
of Transmittal; and (c) to take such other action as necessary under the
Prospectus or the Letter of Transmittal to effect the valid tender of such
Notes.
 
PLEASE NOTE: THE COMPANY HAS AGREED THAT, FOR A PERIOD OF 180 DAYS AFTER THE
EXPIRATION DATE, IT WILL MAKE COPIES OF THE PROSPECTUS AVAILABLE TO ANY
PARTICIPATING BROKER-DEALER FOR USE IN CONNECTION WITH RESALES OF THE EXCHANGE
NOTES.
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   [ ] Check this box if the Beneficial Owner of the Notes is a Participating
       Broker-Dealer and such Participating Broker-Dealer acquired the Notes
       for its own account as a result of market-making activities or other
       trading activities. IF THIS BOX IS CHECKED, PLEASE SEND A COPY OF
       THESE INSTRUCTIONS TO JOAN M. FIORITO, CHIEF FINANCIAL OFFICER, VIA
       FACSIMILE: (619) 467-2872.
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                                   SIGN HERE
 
   Name of beneficial owner(s):
                               ---------------------------------------------- 
   Signature(s):
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   Name (please print):
                       ------------------------------------------------------ 
   Address:
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   Telephone number:
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   Taxpayer Identification or Social Security Number:
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   Date:
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