TLDR
- Kiyosaki’s $1.2 billion debt is tied to real estate investments held with partners, not personal borrowings
- His strategy uses borrowed money to buy assets, then borrows again as those assets rise in value
- Each investment is held inside a separate LLC, creating legal protection if one fails
- Financial advisors warn the strategy worked in a specific low-interest-rate era that no longer exists
- Kiyosaki argues “good debt” is debt paid down by income from the asset itself, not from your own pocket
Robert Kiyosaki, author of “Rich Dad Poor Dad,” says he carries $1.2 billion in debt. He is not embarrassed about it. He calls it a strategy.
BREAKING 🚨: Robert Kiyosaki
Rich Dad Poor Dad Author Robert Kiyosaki is reportedly $1.2 Billion in Debt 🤯 👀 pic.twitter.com/49i3z1g90y
— Barchart (@Barchart) September 1, 2026
A Vanity Fair profile published August 26 confirmed the figure. His ex-wife and business partner, Kim Kiyosaki, said the debt is connected to a portfolio of apartment properties held with partners.
“We have a lot of apartment houses with our partners,” Kim said. “So technically, yes, we have all this debt.”
The number had already gone viral in 2024 when Kiyosaki posted on Instagram that if he went bust, the bank would too. “Not my problem,” he said.
How the Strategy Works
Kiyosaki borrows money to buy assets. When those assets rise in value, he borrows against the new equity instead of selling. The loan proceeds come in tax-free. The cycle continues.
Each property is held inside its own LLC. If one investment fails, the bank is left with that problem. The other properties stay protected behind a legal firewall.
“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.”
His definition of “good debt” is simple. If the income from an asset covers the loan payment and leaves cash left over, the debt is good. If tenants are paying the debt down, not you, Kiyosaki says borrow as much as you can.
Real estate agent and investor Brock Harris agrees with this view. “You tell the difference by asking who is paying it down,” Harris said. “If it’s not you, it’s good debt.”
Why Advisors Say It Is Harder to Copy Today
Not everyone sees the strategy the same way.
Wealth advisor Chris Galeski of Morton Wealth says Kiyosaki built his portfolio over decades at a low cost basis, then refinanced repeatedly during the near-zero interest rate period between 2009 and 2022.
“Someone starting today is working with a very different set of conditions,” Galeski said. “Prices are still elevated and rates are much higher.”
Galeski does not side with debt-free advocates either. He says the real question is disciplined leverage versus reckless leverage.
Kiyosaki pushes back on the advice to live below your means. He says frugality without investing keeps people poor. “A scarcity mindset masquerading as financial responsibility has kept generations of hardworking people from ever building real wealth,” he wrote.
Galeski counters that living below your means is what creates the capital to invest in the first place. The money still has to go somewhere productive.
Kiyosaki’s approach carries real risk. Property values fall. Interest rates rise. Cash flow can dry up. Leverage works both ways.
His answer to that risk is structure, legal separation, and staying one step ahead of creditors.
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