‘Rich Dad Poor Dad’ Author Robert Kiyosaki Reveals He Is $1.2 Billion in Debt

Robert Kiyosaki

‘Rich Dad Poor Dad’ Author Robert Kiyosaki Reveals He Is $1.2 Billion in Debt

The 79-year-old financial guru says he carries over a billion dollars in debt tied to real estate investments, but his ex-wife clarifies it is not personal liability and forms part of a deliberate wealth-building strategy.

Robert Kiyosaki, the author of one of the best-selling personal finance books of all time, has revealed that he is carrying a staggering $1.2 billion in debt tied to his real estate investments. The 79-year-old “Rich Dad Poor Dad” author disclosed the figure during a summer appearance on the “Get Rich Education” podcast, stating plainly, “So, I’m a billion two in debt.” He added that people “should not do what I do, right?” but noted that he has studied debt since 1974 and that using it as a wealth-building tool requires proper knowledge.

While the eye-popping number has generated headlines worldwide, Kiyosaki’s ex-wife and long-time business partner, Kim Kiyosaki, has clarified that the figure does not represent money the author personally owes. She explained that the couple’s real estate portfolio includes approximately 1,500 apartment units held with partners, and the borrowing is attached to the properties themselves rather than to Kiyosaki personally. Her estimate for his personal share is far smaller—Vanity Fair calculated it could be between $30 million and $60 million, working backward from his claim of earning roughly $3 million a year.

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The massive debt pile is a product of Kiyosaki’s intentional investment strategy rather than financial distress. As his properties rise in value, he borrows additional money against the increased equity and treats the loan proceeds as tax-free income, since loans are not taxed the way earnings are. He also places individual investments into separate limited liability companies, insulating them from one another if one runs into trouble—a structure he calls “firewalls.” “If it all comes to hell, you can talk to my attorney,” Kiyosaki told Vanity Fair. “Firewalls—that’s the way the rich play the game.”

Kim Kiyosaki suggested her former husband deliberately uses the billion-dollar figure to grab attention before explaining his position on investment debt. “He loves to say things that shock,” she told Vanity Fair, referring to his effort to explain “why investment debt is good.”

Financial experts are divided on the merits of Kiyosaki’s approach. David A. Perez, a multifamily real estate investor and founder of Tax Maverick AI, called it “a great strategy” and said carrying large amounts of property-backed debt is “actually very normal.” Perez noted that borrowing against property equity generally produces a tax-free loan because the property has not been sold, while warning that additional borrowing can increase mortgage payments and interest costs and reduce cash flow. However, John Poole, founder of Scottsdale-based consultancy JPTD Partners, offered a more cautious assessment. “I think there’s good debt and there’s bad debt, and then there’s $1.2 billion of debt, which you better know exactly what in the world you’re doing,” he told The Post. “Leverage works beautifully on the way up, and if it’s not continuing on that way up, then it’s like a chainsaw financially coming down.” Poole warned that the strategy cannot continue indefinitely, adding, “Kiyosaki may call this the ‘Rich Dad debt,’ but for the average investor, it could turn out to be ‘Poor Dad bankruptcy’ really quickly.”

The revelation has also brought attention to the gap between Kiyosaki’s public advocacy for Bitcoin and gold and his portfolio’s dependence on available credit. The loans tied to his $1.2 billion debt are secured by real estate, not by his crypto or metal holdings. This leaves an odd tension: he warns that cheap credit will wreck the economy while his own portfolio depends on that same credit staying available. History has shown the risks—one of his companies, Rich Global LLC, filed for Chapter 7 bankruptcy in 2012 following a $24 million judgment against it. Kiyosaki built his financial education empire around “Rich Dad Poor Dad,” first self-published in 1997 and sold over 44 million copies. The book contrasts the financial lessons he learned from his biological father, whom he calls the “Poor Dad,” with those he says he learned from the father of his childhood best friend, the “Rich Dad.”