Robert Kiyosaki became famous for teaching millions of readers about assets, liabilities and financial independence through his bestselling book Rich Dad Poor Dad. Now, the 79-year-old author is attracting attention for another extraordinary financial claim: he says he is $1.2 billion in debt.
The figure sounds like financial disaster, but Kiyosaki sees debt differently. He has long argued that borrowing can be useful when the money finances income-producing assets rather than consumption.
There is also an important qualification. His former wife and business partner Kim Kiyosaki has said the $1.2 billion is associated with real estate investments involving partners and roughly 1,500 apartment units. Reporting cited by several outlets estimates Kiyosaki's own exposure at around $30 million to $60 million rather than the entire $1.2 billion.
His strategy involves using leverage to acquire property that generates rental income. As properties appreciate, investors can potentially borrow against their equity instead of selling them, providing capital that can be deployed elsewhere.
That strategy carries substantial risk. Debt magnifies investment returns when things go well, but it can also magnify losses when property values decline, interest costs increase or rental income fails to cover obligations. Kiyosaki himself has warned people against blindly copying his approach without understanding debt.
The $1.2 billion headline therefore does not mean the Rich Dad Poor Dad author is broke. Instead, it provides an extreme example of the financial philosophy he has promoted for decades: the wealthy can use debt as a tool, provided the assets financed by that debt can support it.
