Robert Kiyosaki, author of 'Rich Dad, Poor Dad,' has $1.2 billion in debt

Robert Kiyosaki, author of the personal finance book "Rich Dad, Poor Dad," stated that he has accumulated $1.2 billion in debt linked to his real estate investments.

The 79-year-old entrepreneur has repeatedly cited the figure of $1.2 billion while advocating for debt as a strategy to acquire income-generating assets. In remarks made to the Get Rich Education podcast over the summer, as reported by The New York Post, Kiyosaki said: "So, I’m a billion two in debt." He then added that people "[s]hould not do what I do, right?"

However, his ex-wife and business partner, Kim Kiyosaki, recently explained to Vanity Fair that the $1.2 billion does not represent money that Robert Kiyosaki personally owes. According to the publication, the two own a portfolio of approximately 1,500 apartment units together with their partners.

"So technically, yes, we have all this debt," explained Kim Kiyosaki, who added that the debt is tied to real estate and that her ex-husband's personal stake is small.

A strategy based on real estate debt

The enormous amount of debt is related to Kiyosaki's investment strategy. According to Vanity Fair, as the value of his properties increases, the entrepreneur borrows more money using the equity accumulated in those properties as collateral.

The funds obtained through these loans are treated as tax-free income, according to the publication. In addition, Kiyosaki places individual investments in different limited liability companies, which allows him to keep them separate from one another in case any one of them runs into trouble.

"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."