Rich Dad, Big Debt: Author of iconic book defends multibillion dollar debt

Robert Kiyosaki, author of the best-selling book Rich Dad Poor Dad, has declared he has a $2.2 billion debt tied to his real estate empire.

Kiyosaki, 79, has repeatedly cited the figure himself, using it to argue that borrowing to buy income-producing assets is a tactic the wealthy rely on.

"So, I'm a billion two in debt," he told the Get Rich Education podcast recently, adding that people "should not do what I do." 

He said he had studied the strategy since 1974 and that anyone attempting it “better take some education.”

His ex-wife and business partner Kim Kiyosaki recently told Vanity Fair that the $2.2 billion figure has been widely misunderstood — and does not represent money the best-selling author personally owes.

“We have a lot of apartment houses with our partners,” Kim told the magazine.

“So technically, yes, we have all this debt,” she said, adding that the borrowing is attached to real estate and that Kiyosaki’s personal share is small.

Kiyosaki's method is not uncommon: putting it in simple terms, as his properties rise in value, he borrows further against the added equity. He also places individual investments into separate limited liability companies, so a problem with one doesn't touch the others.

Kim said her ex-husband uses the headline-grabbing figure deliberately. 

"He loves to say things that shock," she told the magazine, adding that Kiyosaki leads with the billion-dollar number before explaining “why investment debt is good.”

 

 

 

 

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Rich Dad, Poor Dad - facts behind the iconic book

Kiyosaki built a financial-education business around Rich Dad Poor Dad, first self-published in 1997, which has sold more than 44 million copies.

The book compares lessons Kiyosaki says he learned from his biological father — the "Poor Dad" — with those from the father of his childhood best friend, the "Rich Dad."

His biological father, Ralph Kiyosaki, was Hawaii's state superintendent of education and ran unsuccessfully for lieutenant governor in 1970. Kiyosaki has identified his "Rich Dad" as Richard Kimi, a Hawaii businessman who once owned a hotel chain that included the Waikiki Biltmore Hotel.