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Dustin:
Hi everyone, my name is Dustin Miles with Momentum Multifamily. I’m super excited to have Annette here today—another fellow Texan. Annette, if you want to introduce yourself, I’d love to learn more about you.
Annette:
Totally—thanks for having me, Dustin. I’m based out of San Antonio and started my company, Covenant Capital, in 2023. We became general partners in our first deal this year. My background is actually in pharmaceutical sales—I’ve sold everything from fentanyl to insulin to weight loss drugs. I’m still doing that while investing in commercial real estate, so it’s a wild ride. I’ve got two little boys, I’m married, and on most days, it’s chaos—but a fun kind of chaos!
Dustin:
Awesome. And how long have you been in multifamily?
Annette:
Our journey started about three years ago. We just realized we needed something that worked better for us. When you’re successful in sales and make good money, you also pay a lot in taxes—both my husband and I do. It’s a blessing, don’t get me wrong, but we wanted our money to work harder. When we started studying how wealthy people build and protect their wealth, it kept leading us back to real estate. That was something I could get excited about. I never really understood the stock market or options trading, but real estate made sense. So, we started educating ourselves and invested as limited partners with Grant Cardone two years ago. That kicked off our journey.
Dustin:
Oh wow, okay. That’s a familiar path. When I started 12 years ago on the passive side, I didn’t even realize this was something regular people could do. I thought you had to be ultra-rich or a big company. And then, I learned about the tax benefits and thought, “Okay, this is really cool.”
Annette:
Isn’t it mind-bending? If you really study the tax code, it’s like a playbook. It gives you the answers for how to pay the least amount—or no taxes at all—if you follow the path.
Dustin:
Exactly. So where have you guys been investing?
Annette:
We’re based in San Antonio, and our focus right now is the San Antonio metro area, up through Austin and the I-35 corridor. That’s where we’re currently underwriting and looking for deals.
Dustin:
What’s your role on your deals so far?
Annette:
I came in as a partner on our latest deal and helped raise equity. Now, I’m more focused on investor relations, which I love.
Dustin:
That’s great. You know, when you go to conferences and meet people, there are a lot of potential LPs out there. What do you feel sets you apart from others in this space?
Annette:
Great question. I think we resonate strongly with high-performing sales professionals, especially in medical device and pharmaceutical sales—people who feel the same pain points: high income, high taxes, capped commissions, and limited control. In Pharma, you’re told to run your territory like it’s your own business, so there’s this entrepreneurial spirit—but at the end of the day, you’re building someone else’s dream. If you’re going to be working that hard, why not build something for yourself and your family?
Dustin:
Yeah, I hadn’t thought of it that way, but that makes total sense. What does your deal box look like right now?
Annette:
Our last deal was called Stratton Park—a Class B, 1980s vintage property with long-term tenants in a sweet little tucked-away neighborhood. Going forward, we’re focused on cash-flowing properties. That’s why we’re in multifamily—to create passive income. We’re leaning toward newer vintage properties—2000s and up—ideally 100+ units, and with long-term fixed-rate debt.
Dustin:
And you’re still focused on San Antonio and Austin?
Annette:
Yes, that’s our main focus. We’re open to Houston and Dallas, but we’d need to get more educated on those submarkets before jumping in.
Dustin:
Yeah, even in multifamily, it’s still all about location. So when LPs are looking at your deals, what should they be asking you about?
Annette:
They absolutely should be doing due diligence. Ask about the team’s experience—how many deals have they done, how many have gone full cycle, and how long they’ve been in the market? Ask about the underwriting: what kind of debt was used, are the projections conservative or aggressive? Also, ask about cash reserves—do they have the capital to weather a storm?
And a big one: ask if they’re invested in the deal themselves. Do they have skin in the game? If someone’s asking you for five or six figures, you should know how much they’re putting in too.
Dustin:
Yeah, I totally agree. Are they eating their own cooking or just selling it?
Annette:
Exactly.
Dustin:
So what do you love most about multifamily?
Annette:
The passive income. I love the idea of building “little money machines.” You can scale wealth and take your active income—say $200k/year—and plug a portion of it into something that pays you while you sleep. And the tax advantages are no joke. The tax code literally rewards you for being a business owner, an investor, and for providing housing.
Dustin:
I love that “money machine” image! That’s a great way to look at it. When I was still a W-2 employee, I used to think of passive income as part-time jobs that I didn’t have to show up to—but I still got paid.
Annette:
Exactly!
Dustin:
So you mentioned Cardone—did you do any formal mentorship or coaching?
Annette:
Yes! While we love Grant and his team, we wanted to invest locally—build relationships with brokers, walk properties, get to know vendors. So we joined a local mentorship program called Apartment Educators. It’s based in San Antonio and was founded by Devin Elder and Ruben Dominguez—both highly successful operators.
Dustin:
That’s great. I had a similar experience. I went through Brad Sumrok’s program after some others, and the local access was key for me too. Any books or podcasts you recommend?
Annette:
Yes! Podcasts were huge for me. As a Pharma rep, you’re in the car a lot, so I started with Best Ever Show, Bigger Pockets, Old Capital, and Lone Star Capital. Those are great, especially the Texas-based ones.
As for books, I’m reading Thou Shall Prosper by Rabbi Daniel Lapin. It’s mind-blowing—Ten Commandments of wealth based on ancient Jewish principles. The Jewish view of money is so different: it’s seen as a gift from God to steward, to bless others, and to build businesses that help people. It’s a mindset shift for sure.
Dustin:
That’s fascinating. I’ve never heard of that one. I’ll check it out. It’s true—before I got into multifamily, no one talked about money. Now, it’s common and encouraged, and people love helping each other.
Annette:
Absolutely. It’s such a high-caliber space—people talk ideas, not gossip or fluff. They challenge you. It’s a culture of abundance, not scarcity. That’s another reason I love multifamily.
Dustin:
So looking ahead—what’s next for you and Covenant Capital?
Annette:
2024 is going to be a big opportunity. We’re looking to do at least two more GP deals this year, partnering with other sponsors. Long-term, I’d love to be full-time in commercial real estate, travel more with my family, and support the charities we care about. That freedom—of time, money, and purpose—is what this is all about.
Dustin:
Love that. My son’s 12, almost 13, and I totally relate. Every summer counts. That kind of freedom is what we’re all working toward. Any final advice for someone who wants to get into the GP or fund-to-fund space?
Annette:
Start today by educating yourself—books, podcasts, all of that is free. Next, invest in a mentorship program. Yes, it costs money, but it condenses years of learning. And get around people who are smarter than you. That’s the ultimate life hack for growth—in business and in life.
Dustin:
100%. Books are like $20 shortcuts to someone’s lifetime of wisdom. So true. Before we wrap—how can people connect with you?
Annette:
You can visit our website at covenantcapitaltx.com. My calendar, email, and contact info are there. Or find me on LinkedIn—Annette Hemmert. I post daily content on commercial real estate and wealth building.
Dustin:
You do! You’re popping up a lot in my feed lately—great job with the LinkedIn content. Everyone, be sure to follow Annette. She’s super sharp, super approachable, and really knows her stuff. Thanks again for being here!
Annette:
Thanks, Dustin! Appreciate it.