Exhibit (a)

Angeles Income Properties, Ltd. III
August 12, 1998


Dear Limited Partner:

           Enclosed is the Schedule 14D-9 which was filed by Angeles Income
Properties, Ltd. III (the "Partnership") with the Securities and Exchange
Commission in connection with an offer (the "Offer") by Cooper River
Properties, L.L.C., a Delaware limited liability company (the "Purchaser"),
Insignia Properties, L.P., a Delaware limited partnership ("IPLP"), Insignia
Properties Trust, a Maryland real estate investment trust ("IPT"), and Insignia
Financial Group, Inc., a Delaware corporation ("Insignia," and together with
IPLP, IPT and the Purchaser, the "Bidders"), to purchase units of limited
partnership interest ("Units") in the Partnership.

           The Partnership's managing general partner is Angeles Realty
Corporation II (the "Managing General Partner"), which is an affiliate of the
Bidders. Due to the affiliation between the Managing General Partner of the
Partnership and the Bidders, the Managing General Partner is subject to certain
conflicts of interest in connection with the response to the Offer.

           AS A RESULT OF THE EXISTING AND POTENTIAL CONFLICTS OF INTEREST,
NEITHER THE PARTNERSHIP NOR THE MANAGING GENERAL PARTNER EXPRESSES ANY OPINION
AS TO THE OFFER AND EACH IS REMAINING NEUTRAL AND MAKING NO RECOMMENDATION AS
TO WHETHER LIMITED PARTNERS SHOULD TENDER THEIR UNITS IN RESPONSE TO THE OFFER.

           Limited Partners are advised to carefully read the enclosed Schedule
14D-9.


                      Angeles Income Properties, Ltd. III