Robert Kiyosaki says he is carrying $1.2bn in debt linked to his real estate investments, but insists the figure is not a personal financial threat because the borrowing is tied to income-producing property.
The 79-year-old author of Rich Dad Poor Dad made the comments on the Get Rich Education podcast, presenting the scale of the debt as evidence of his investment strategy rather than a warning sign. His view is that the risk belongs primarily to the banks providing the finance, not to him personally.
However, the $1.2bn figure does not represent Kiyosaki’s individual liability. The borrowing supports about 1,500 apartment units and a portfolio of hotels held by a group of real estate investors that includes Kiyosaki and his partners.
Analysts who have attempted to assess his personal exposure have placed it at between $30m and $60m. That estimate is significantly below the headline figure and reflects the way debt in syndicated real estate arrangements is distributed among a large number of co-investors.
Kiyosaki’s estimated annual income is about $3m, although he has continued to defend the use of substantial leverage. His approach is based on borrowing against property and other assets that generate cash flow, rather than holding wealth primarily in dollars.
The investor’s attitude towards debt mirrors his long-standing support for bitcoin. Kiyosaki has repeatedly described himself as a bitcoin bull and has argued that the cryptocurrency should be viewed alongside gold and silver as a potential protection against a weakening US dollar.
He has continued buying bitcoin during sharp market swings, including as its price moved from deep declines back towards the $77,000 range this year. His latest remarks also follow a familiar pattern in which he uses a striking financial figure before setting out his wider economic argument.
For months, Kiyosaki has warned that an “everything bubble” remains inflated across stocks, bonds and real estate. He expects a more serious reckoning for highly leveraged institutions and governments, while maintaining that his own borrowing is different because it is supported by cash-generating property and hard assets.
He has previously described himself as “a billionaire in debt”, using the phrase to make the same argument: that borrowed money can work in an investor’s favour when it is used to acquire assets rather than to fund consumption.
Whether the $1.2bn figure ultimately proves to be a successful strategy or a cautionary example will depend on the direction of interest rates, property values and bitcoin. Kiyosaki has repeatedly bet that all three will move in his favour.
The debt figure also serves a promotional purpose for a businessman whose career has been built around financial education. Rather than representing a wholly new disclosure, it reinforces the message at the centre of his public profile: that leverage can be beneficial when backed by assets and cash flow.
Kiyosaki has also said that expanded US Treasury debt buybacks amount to quantitative easing, while again expressing a preference for bitcoin, gold and silver.
