According to reports from The New York Post, Robert Kiyosaki disclosed he owes $1.2 billion in debt, primarily secured against apartment buildings rather than the Bitcoin and gold investments he promotes to millions of followers. The debt structure involves borrowing shared with partners across approximately 1,500 apartment units. Kiyosaki has repeated this figure throughout the summer, most recently on the Get Rich Education podcast, stating 'I'm a billion two in debt.' Speaking on the podcast, he also mentioned that he had studied the use of debt since 1974 and cautioned listeners against simply copying his approach.
As reported by The New York Post, Kim Kiyosaki, his former wife and business partner, estimates his personal exposure at $30 million to $60 million, significantly below the headline figure. This assessment is based on working backward from his claimed $3 million in annual income. The debt mechanics involve ordinary multifamily finance where buildings appreciate and owners refinance, with cash arriving untaxed because nothing is sold. Each property operates within its own limited liability company (LLC), providing isolation from trouble at other properties. Vanity Fair estimated that Kiyosaki's actual share of the debt could be between $30 million and $60 million.
According to The New York Post, John Poole, founder of JPTD Partners consultancy, warned that leverage works well on the way up but becomes problematic when prices stop climbing. The report noted that borrowed money behaves differently once price appreciation ceases. Kiyosaki's portfolio tension emerges because he warns against cheap credit while running a portfolio dependent on credit availability continuing. David A. Perez, a real estate investor and tax agent, noted that Kiyosaki's model of borrowing against property equity was 'very normal' for large-scale investors, though he added that the added borrowing raises mortgage payments and interest costs while reducing cash flow.
As reported by The New York Post, Kiyosaki's Bitcoin and gold holdings are not used as collateral for the apartment loans. His Bitcoin holdings, trading near $77,425 after a 1.8% daily decline, secure none of the mortgages described in the reporting. This creates a tension as he warns against currency devaluation while maintaining investments in the same financial system he criticizes. Historical context includes Rich Global LLC filing for Chapter 7 bankruptcy in 2012 after losing a judgment, according to ABC News reports. The couple owns interests in apartment properties totalling around 1,500 units, with the debt shared among investment partners.
