Robert Kiyosaki, author of the best-selling financial book, ‘Rich Dad Poor Dad’, has revealed that he is currently in debt of $1.2 billion through his real estate investments.
The 79-year-old financial educator made this disclosure while speaking on the Get Rich Education podcast, where he explained that borrowing money to acquire income-generating assets is part of his investment strategy.
“So, I’m a billion two in debt.”
He, however, cautioned people against blindly copying his approach, saying they need to understand how debt works before using it to build wealth.
He said, “You should not do what I do, right? But I studied it since 1974… If you’re going to learn to use debt, you’d better take some education.”
However, 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.
According to report,estimation of Kiyosaki’s portion of the debt could be between $30 million and $60 million. This is based on his reported income and the structure of his investments.
Kiyosaki also reportedly places individual investments in separate limited liability companies to protect them from problems that may affect other investments.
“If it all comes to hell, you can talk to my attorney,” he said.
“Firewalls — that’s the way the rich play the game.”
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.
Kiyosaki has long promoted the use of debt to acquire cash-producing assets such as real estate. His argument is that wealthy investors distinguish between debt used to build wealth and borrowing used to finance expenses.
His book, Rich Dad Poor Dad, first published in 1997, has sold more than 44 million copies and established Kiyosaki as one of the most prominent voices in personal finance.