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This becomes the moment to buy things, not get rid of things: Grant Cardone

Entrepreneur and Author Grant Cardone joins Yahoo Finance’s Zack Guzman to discuss the outlook on retail and real estate amid the coronavirus pandemic.

Video Transcript

ZACK GUZMAN: Welcome back to live coverage here on Yahoo Finance. Of course, we love chatting the way that the housing market has been pretty resilient through the pandemic right now, and we've got new data out from the National Multifamily Housing Council showing the percentage of renters making rent payments is not actually all that different from last year when you look at the month of May, only about a 2% decline, which is not necessarily panning into the fears that we heard about massive rent payments being cancelled or people not being able to pay.

For more on that, I want to check in with one of our favorite guests here on the show. That would be self-made millionaire Grant Cardone. The entrepreneur and author joins us once again. Grant, good to see you, man.

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GRANT CARDONE: Always good--

ZACK GUZMAN: I mean, when you look into this-- when you look into this, what have you been seeing? Obviously you have a lot of properties. How have you been judging this?

GRANT CARDONE: Yeah, so look, we have 8,000 apartments. We're 96% occupied, almost 99% collected. Everything that basically that was said about apartments two months ago, a month ago was incorrect, much like the doctor before you. Just a lot of missed data everywhere.

ZACK GUZMAN: All right, listen, we've got to dig into this missed data thing because you seem pretty adamant about opening up right now. You seem adamant about opening. Back to normal.

GRANT CARDONE: It seems like everybody thinks the world is going to come to an end here. It will not come to an end. So, like, 39 million people unemployed today. It's going to probably get worse before it gets better.

ZACK GUZMAN: Yeah

GRANT CARDONE: But people-- we go on. We continue to learn how to live. And there's just-- when moments like this happen, people overreact. This becomes the moment to buy things, not get rid of things. And this is where wealth gets redistributed because the wealthy look long term at, hey, how can I go buy apartments? I'm looking at retail right now, apartments, and office buildings to purchase.

ZACK GUZMAN: Yeah, well, let's talk about that too because we had Barbara Corcoran coming on last week mentioning that right now the housing market could be setting up for some pretty big rallies here. We got the update from the Case-Shiller Index showing that before all this happened prices were pretty strong, up 4.4% annually in the month of March. So, I mean, if the housing market was that strong heading into all this, are you also saying it could be pretty strong on the end when we get out from all this?

GRANT CARDONE: Yeah. You need to wait though. It's probably-- the market's going to be November to February, March of next year. That's where the buys are going to be. You need to be out looking right now, know where you want to be, what neighborhoods.

I don't want to be at the low end of the spectrum. I want to be probably towards the top third of the pricing spectrum for a house.

ZACK GUZMAN: Yeah.

GRANT CARDONE: Apartments-- if you can find apartments there rent for $1,300 a month, you're going to be a winner for decades to come.

ZACK GUZMAN: Well, it's interesting you mentioned retail because you talk about the panic. I mean, the panic is there when we talk about bankruptcies in the retail space right now, the idea of Mall of America being behind on their payments and the idea that malls are never going to be what they were. Why right now would you be so into retail? I understand there's panic there, but still.

GRANT CARDONE: Because if I could buy something that's 40% occupied and it cash flows, my job now is to get it to 80%, and I get super rich.

ZACK GUZMAN: Do you see it returning to 80%? A lot of people are saying the market can't come back.

GRANT CARDONE: 100%. 100%. You can see when people-- when they open these cities up, watch what happens at the beaches. It won't just be Alabama, by the way. It's not just that Southern people are stupid. The people in the North, they're going to go to the beach. They're going to drop their mask. The mask is going to be in the glove compartment. It's never going to make it out of the car again. People will drop their gloves. They won't be wearing gowns. We will be French kissing again in public doing selfies, hugging it out, and sharing tequila and cigars with one another. I guarantee that will happen in the next 60 days.

ZACK GUZMAN: I mean, you could make the argument it's happening right now. It happened over the long weekend too. But when we do look at it, you bring up the fact that it's not just a regional story when we look at this, but some of the housing data did point to a pretty large difference between the Northeast and the West. When you look at that, Northeast and West still down year over year pretty substantially, but the South and Midwest up. Both those regions showing some strength, giving the idea that once we do open up there could be more room to is run in the East and the West. So, I mean, when you look at that, are you saying that there could be opportunities maybe in those regions that have been hardest hit [INAUDIBLE]?

GRANT CARDONE: Again, location's everything in real estate, right? Barbara is going to talk about location, location, location. You still have to have great locations. So our property-- we're at 96% occupied because our locations are unbelievable, but our price point is affordable. And we actually take care of our customer. So we're helping.

When this happened March 22, I think in six days we had contacted 7,700 residents and said what can we do to help you? That's how you maintain clientele. Real estate is a business. It's not just I'm going to hold something. I have to take care of the client.

ZACK GUZMAN: Yeah.

KRISTIN MYERS: So, Grant, I know you're talking about retail, but I was reading today a lot of Airbnb owners are trying to dump all of their properties. One, if you have the ability to, are you saying that you should try to hold it? And two, if you have the ability to buy, is this the time to rush in and maybe snap up something for cheap?

GRANT CARDONE: It's a great, great question. Look, the last time I was in New York on your show, Zack, I was talking about Airbnb. I wouldn't touch it, OK? Airbnb will dump out now. This is a great opportunity to buy homes for Airbnb investors because you're not going to have that rental market for that travel customer for many, many months. He will not be able to keep it because it's one unit. He doesn't have the cash flow. He'll lose the property. It will probably go to distressed foreclosure, OREO, and that's a great place where people should be looking to buy homes from the Airbnb investor like the WeWorks. The WeWorks didn't work. So, you know, [INAUDIBLE].

ZACK GUZMAN: You couldn't pass that one up, could you? You couldn't pass that one up. You had to-- you had to sneak that one in there.

Well, listen, we didn't have enough time to chat this time. I hope you come back and chat with us soon, but Grant Cardone, always appreciate you chatting.

GRANT CARDONE: Be great.