Robert Kiyosaki, the author of the popular self-help and personal finance book Rich Dad Poor Dad, has amassed a staggering $1.2 billion in debt.
The 79-year-old self-help guru, who made a fortune preaching the secrets of financial success, primarily through his 1997 book that has sold more than 44 million copies so far, said his real-estate empire is built on roughly $1.2 billion in debt. NDTV reported.
On various podcasts and interviews, Kiyosaki has cited this figure as proof that borrowing to acquire income-generating assets is how the wealthy operate.
So, I'm a billion two in debt," Kiyosaki said on the 'Get Rich Education' podcast over the summer, as quoted by New York Post.
Kiyosaki's method involved borrowing against properties as they appreciate. Afterwards, he treats the loan proceeds as tax-free income rather than selling the underlying asset. He also places individual investments in separate LLCs to shield one deal from the fallout of another going bad.
Kiyosaki, however, cautioned listeners against copying his approach without understanding the risks. "Should not do what I do, right? But I studied it since 1974. If you're going to learn to use debt, you'd better take some education."
