The 'Rich Dad Poor Dad' author has publicly cited $1.2 billion in debt tied to real estate holdings, but clarification suggests his personal share is substantially smaller, though experts remain divided on the strategy's wisdom.
Robert Kiyosaki, the 79-year-old author of the bestselling financial self-help book 'Rich Dad Poor Dad,' has repeatedly stated that he carries $1.2 billion in debt across his real estate portfolio. The figure, which Kiyosaki has cited on multiple podcasts including 'Get Rich Education,' is central to his argument that borrowing to acquire income-producing assets reflects how wealthy investors operate. However, he has cautioned others against replicating his approach without proper financial education, telling listeners: "Should not do what I do, right? But I studied it since 1974."
Kiyosaki's ex-wife and former business partner Kim Kiyosaki has pushed back against how the debt figure is publicly understood. According to interviews with Vanity Fair, the $1.2 billion is tied to approximately 1,500 apartment units held jointly with multiple partners, and does not represent Kiyosaki's personal liability. She suggested her former husband deliberately invokes the shocking figure to capture attention before explaining his rationale for investment-based borrowing. Vanity Fair estimated Kiyosaki's actual personal share of the debt could range from $30 million to $60 million, based on his reported annual income of roughly $3 million.
Kiyosaki's strategy involves borrowing against appreciating property values and treating loan proceeds as tax-free income without selling assets, while placing individual investments into separate limited liability companies for legal protection. Experts offered conflicting assessments. David A. Perez, an enrolled agent and real estate investor, characterized the approach as sound and noted that substantial property-backed debt is common in multifamily real estate. Conversely, John Poole of JPTD Partners warned that such leverage "works beautifully on the way up" but cautioned that the strategy cannot continue indefinitely, cautioning that "for the average investor, it could turn out to be 'Poor Dad bankruptcy' really quickly."