Rich Dad Poor Dad” author Robert Kiyosaki has revealed that he is carrying about $1.2 billion in debt, despite building his fortune by teaching people how to achieve financial success.
The 79-year-old financial author reportedly accumulated the massive debt through his real estate investments and has repeatedly defended borrowing money to acquire income-producing assets.
So, I’m a billion two in debt,” Kiyosaki said on the “Get Rich Education” podcast.
He, however, warned people not to blindly copy his strategy, saying they need to understand how debt works before using it to build wealth.
Kiyosaki’s ex-wife and business partner, Kim Kiyosaki, later explained that the $1.2 billion figure does not mean Robert personally owes that amount.
According to Kim, the debt is tied to the couple’s real estate portfolio, which includes about 1,500 apartment units owned with business partners.
“So technically, yes, we have all this debt,” she said, adding that Robert’s personal share of the debt is much smaller.
Vanity Fair estimated that Kiyosaki’s portion of the debt could be between $30 million and $60 million, based on his reported income and the structure of his investments.
Kiyosaki reportedly borrows against the increased equity in his properties rather than selling them, allowing him to access cash while continuing to hold the assets.
He also places investments in separate limited liability companies to protect individual assets if one of his businesses runs into financial trouble.
“If it all comes to hell, you can talk to my attorney,” Kiyosaki said, describing the structure as “the way the rich play the game.”
While some financial experts described the strategy as a legitimate use of leverage, others warned that carrying such a huge amount of debt can become dangerous if property values or cash flow decline.