‘$1.2 billion in debt’: How Robert Kiyosaki used real estate to build wealth

Robert Kiyosaki, author of "Rich Dad Poor Dad," has amassed approximately USD 1.2 billion in debt through his real estate investments, according to a report by the New York Post. However, his ex-wife and business partner, Kim Kiyosaki, clarified that this figure does not represent the amount Kiyosaki personally owes. Kiyosaki has repeatedly cited the USD 1.2 billion figure to promote debt as a tool for acquiring income-generating assets.

He cautioned listeners against replicating his approach without proper education on the risks involved. Kiyosaki's real estate portfolio includes around 1,500 apartment units held with partners, with the debt attached to these properties. Kim Kiyosaki explained that the borrowing is tied to the real estate and that Kiyosaki's personal share of the debt is significantly smaller, estimated by Vanity Fair to be around USD 30 million to USD 60 million.

Kiyosaki's strategy involves borrowing against the rising equity in his properties and treating the loan proceeds as tax-free income. He also places individual investments in separate limited liability companies to limit exposure between investments. Real estate experts have expressed varying opinions on Kiyosaki's debt strategy.

Some, like David A. Perez, consider it a sound approach, while others, like John Poole, warn of the potential dangers of excessive borrowing and the importance of understanding the risks involved.