Robert Kiyosaki reports $1.2 billion in real estate-related debt

Robert Kiyosaki, the author of ‘Rich Dad Poor Dad’, has disclosed carrying approximately $1.2 billion in debt. However, reports clarify that this figure is not a personal liability but is tied to a massive real estate portfolio.

According to his ex-wife and business partner, Kim Kiyosaki, the debt is associated with a collection of roughly 1,500 apartment units held alongside various business partners. Estimates from Vanity Fair suggest Kiyosaki’s personal share of the debt likely ranges between $30 million and $60 million.

The author defends this high level of leverage as a core component of his investment philosophy, which advocates using ‘good debt’ to acquire income-producing assets. He utilizes a strategy of borrowing against increased property equity to access liquidity without selling assets, often shielding investments within separate limited liability companies to mitigate risk.

While some financial experts view this as a legitimate use of leverage, others warn that such significant debt carries substantial risks if property values decline or cash flows are disrupted.