The Wealth Flow Podcast Featuring Annette Hemmert

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Keith:

Annette Hemmert is the founder of Covenant Capital. She graduated from Texas Tech University with a BS in Biology and has worked as an award-winning pharmaceutical rep for the last decade. She started her real estate investment journey in 2022 because she wanted more control over her investment portfolio and knew she needed to create passive income streams. In her free time, you’ll find her reading, running, and spending time with her husband and two little boys. Annette, I’m looking forward to this—welcome to The Wealth Flow!

Annette:

Thanks for having me and for reaching out. It’s super awesome because we live here in San Antonio, probably like 20 minutes apart, but we’re able to hang out on a Tuesday morning and just talk real estate.

Keith:

Exactly. And I love that we both went to Texas Tech—my daughters did too! One just graduated, and the other is a sophomore. I just made another tuition payment to Tech recently, so my money’s still going there. But yeah, let’s dig in—where did you grow up and what led you to real estate investing, especially since you’ve got the pharma career as well?

Annette:

I grew up mostly in Corpus Christi. We moved there when I was six. My dad is a dentist—he bought a practice down there. My parents are actually originally from the Bay Area and he went to school in Boston, so Corpus was a bit random for us. But I loved it growing up. That said, by the time I was 18, I was ready to get out. I went to Texas Tech—studied biology planning to follow in my dad’s footsteps and become a dentist. I even got into a program at Baylor. But then I realized I was doing it for the wrong reasons—to make my parents happy, not because I actually wanted it. So instead of going back to school, I found a sales job in San Antonio and have been here about 13 years.

Keith:

Fantastic. You’ve clearly been successful in sales, which is a natural transition into real estate—it’s all about relationships. Did you go straight into multifamily?

Annette:

Not right away. In 2021, I had just had my second child—two boys, now six and three. I was on maternity leave, painting in our new house, and listening to Rich Dad Poor Dad on audiobook. It was a complete paradigm shift for me. The idea of using earned income to create passive income just clicked. I was facing going back to work and putting a newborn in daycare—and I knew something had to change. So my husband and I had a sort of “come to Jesus” moment. We realized if we wanted to create wealth and freedom, we needed to build multiple income streams outside of our W-2s.

Keith:

That’s such a common catalyst—new baby, facing work again, realizing there has to be a better way. I’ve heard that from other guests too. Your audience now is high-net-worth professionals and execs, right?

Annette:

Exactly. What I find interesting is that once people hit that 8- or 10-year mark in their career, they start to burn out. It becomes Groundhog Day. Even in sales—which starts out exciting because of the relationships—there comes a point where people crave more fulfillment and creativity. You don’t have to quit your job overnight, but you can absolutely start a side hustle and transition smartly. And you just made that jump—two weeks ago you left your W-2, right Keith?

Keith:

Yep! Full-time now. It’s surreal, but I wouldn’t have been able to do it without the real estate investing groundwork we laid beforehand. That’s exactly what this show is about—becoming job optional. When you invest in hard assets like real estate, your money works for you and not the other way around. So, walk us through your first deal—how did you break in?

Annette:

We spent all of 2021 studying—reading books, listening to podcasts, watching YouTube. You can’t Google “real estate investing” without Grant Cardone showing up, and he was one of our early influences. We flew out to Florida, went to one of his summits, and it really solidified our focus on apartment investing. We liked the buy-and-hold model, especially investing locally in Texas. We joined a local mastermind, started underwriting deals, and eventually got invited to partner on our first deal as general partners.

Keith:

Nice. So you had already invested as limited partners for a year before that?

Annette:

Exactly. That helped us understand what to expect—communications, reporting, the whole process. We also believe in putting our own capital into every deal we sponsor. So when we talk to investors, we’re aligned and credible.

Keith:

What was that first deal like?

Annette:

127 units, near the airport in a tucked-away neighborhood. It was high occupancy—99%—and well maintained. The sellers were experienced operators, so it wasn’t distressed at all. Our strategy was a classic value-add: renovate units, improve amenities, and raise rents ethically. It cash flows with a 7% preferred return and has equity upside. The plan is to hold it for 3–5 years.

Keith:

And how are you handling the upgrades? Is it on move-outs or during renewals?

Annette:

Mostly on move-outs. We’ve already upgraded 30+ units. The renovations are light—new finishes, landscaping, signage. And we’ve got a vertically integrated partner on that deal, DJE Texas Management—Devin Elder. You probably know him.

Keith:

Yeah! Devin’s great. My wife and I even flew with him and his wife to Belize once. Having vertically integrated partners makes such a difference—you’re aligned, and execution improves dramatically.

Annette:

Absolutely. It reduces risk when your property management is in-house and part of the ownership team. They’re directly responsible for executing the business plan and keeping expenses in check.

Keith:

So after that first one, you’ve done several more deals this year?

Annette:

Keith:

You’ve been busy! What’s been the biggest lesson learned in your first year?

Annette:

Joining a mastermind was huge. I used to hesitate to invest in myself, but it shortened the learning curve dramatically. You also meet vetted professionals—CPAs, attorneys, analysts. And LinkedIn has been a major lever for us too. So underrated. Most people just scroll—but if you consistently create content, the visibility is incredible. I met many of our partners and investors through LinkedIn.

Keith:

That’s such a great point. And masterminds really do get you in the right rooms. Which one did you join?

Annette:

It’s called Apartment Educators. It might be on hold right now, but it was a great experience. There are lots of others out there, like Jake & Gino, Rod Khleif, or Joe Fairless’s community. Pick your mentor wisely—track record matters.

Keith:

Absolutely. Let’s shift to passive investing. People often don’t realize you don’t need millions to invest in apartments. How did you make your first LP investment?

Annette:

After getting laid off from my pharma job, I had a 401(k) sitting around. We rolled it into an IRA and converted it into a self-directed IRA. We used that $90k to invest passively in our first deal. It wasn’t funding our lifestyle—it was all within the IRA—but it proved the concept. Quarterly returns, great experience, and much better performance than the stock market.

Keith:

That’s smart. And of course, the tax benefits are incredible—depreciation, bonus depreciation…

Annette:

Exactly. My husband and I are both high-income, so the ability to offset gains is huge. Investing in deals with cost segregation studies helps us reduce taxable income significantly. We love that aspect. Are you planning to go for REP (Real Estate Professional) status now that you’re full-time with Bobo Capital?

Keith:

Yes. I had a brokerage before but never claimed REP because of the W-2. Now, we’re setting it up to offset both my and my wife’s income.

Annette:

Love it. And you’re proving you don’t have to start with single-family. You can go straight into big assets.

Keith:

Absolutely. The scale makes everything easier—especially when it comes to risk. One tenant missing rent in a single-family home is a big hit. In a 100-unit property? Barely a blip.

Keith:

Totally. So—where is Covenant Capital headed in the next 3–5 years?

Annette:

I want to follow your footsteps—full-time real estate investor, community impact, and eventually expanding into business acquisitions and possibly development downtown. I love multifamily, but I want to diversify offerings for our investors too. And on a personal level, we want to create financial and creative freedom for our family.

Keith:

Beautiful. How can people connect with you?

Annette:

Our website is covenantcapitaltx.com. You can check out our portfolio and join our newsletter there. I’m also super active on LinkedIn under Annette Hemmert—posting about real estate, wealth mindset, and mom life.

Keith:

Awesome. Last two questions: What’s your advice for someone just starting their investment journey?

Annette:

Educate yourself. Read books, listen to podcasts—Best Ever, Lone Star Capital, and yes, The Wealth Flow. Then vet your team. Work with experienced, transparent operators.

Keith:

And one book recommendation?

Annette:

Can I do two? 10x Is Easier Than 2x—absolute game-changer about focus and delegation. And the Bible. Two years ago, my husband and I got serious about studying it, and it’s transformed our business and our marriage. Proverbs and Ecclesiastes are full of timeless wisdom on wealth and life.

Keith:

That’s powerful. Any resources that helped guide that study?

Annette:

Yes—start with the Gospels and Proverbs. We also love The Richest Man Who Ever Lived by Steven Scott and Rabbi Daniel Lapin’s Thou Shall Prosper. We also follow a YouTube teacher named Myron Golden who teaches biblical business principles. Great place to start.

Keith:

Amazing. Annette, this has been such a valuable conversation. I can’t wait to watch your journey. Thanks so much for being here!