Rich Dad Poor Dad Author Explains Why He Carries $1.2 Billion in Property Debt

Robert Kiyosaki, author of Rich Dad Poor Dad, says he is linked to about $1.2 billion in debt through real-estate investments held with partners. He argues that borrowing to buy income-producing assets can help build wealth when managed properly. His former wife and business partner, Kim Kiyosaki, says the figure does not represent money he personally owes. She said the debt is tied to a portfolio of roughly 1,500 apartment units, with Robert's personal share estimated to be far smaller. Kiyosaki's strategy involves borrowing against rising property values and using separate companies to limit risk on individual investments. While some financial experts say property-backed debt can be useful, others warn that heavy leverage can become dangerous when property values, rental income or cash flow fall. The debate is whether this is smart use of investment debt or a risky approach that ordinary investors should avoid.

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