“Rich Dad Poor Dad” Author Robert Kiyosaki Claims He’s In $1.2 Billion In Debt

Best-selling Rich Dad Poor Dad author Robert Kiyosaki said he owes a whopping $1.2 billion tied to his extensive real estate holdings, the New York Post reported.

Kiyosaki made the admission during a wide-ranging interview on the “Get Rich Education” podcast.

“So, I’m a billion two in debt,” he said. “But I studied it since 1974… If you’re going to learn to use debt, you’d better take some education.”

However, Kim Kiyosaki, the financial self-help guru’s former wife, told Vanity Fair the figure was blown out of proportion.

“We have a lot of apartment houses with our partners,” Kim Kiyosaki said. “So technically, yes, we have all this debt.”

“He loves to say things that shock,” she added.

Vanity Fair reported that the pair’s individual investments are held in separate limited liability companies, insulating them from one another if one runs into trouble.

Robert Kiyosaki told the magazine the same structure is used to keep those investments apart.

“If it all comes to hell, you can talk to my attorney,” he said. “Firewalls – that’s the way the rich play the game.”

John Poole, who runs JPTD Partners, an acquisition consulting firm, told the Post that Kiyosaki’s strategy is far more risky than the best-selling author is leading on.

“I think there’s good debt and there’s bad debt, and then there’s $1.2 billion of debt, which you better know exactly what in the world you’re doing,” Poole explained. “Leverage works beautifully on the way up, and if it’s not continuing on that way up, then it’s like a chainsaw financially coming down.”

“It doesn’t go on forever. There has to be a payday, and be prepared for that payday, irrespective of the size,” he added. “[Kiyosaki] may call this the ‘Rich Dad debt,’ but for the average investor, it could turn out to be ‘Poor Dad bankruptcy’ really quickly.”