The author of "Rich Dad Poor Dad" reveals he is $1.2 billion in debt.

On September 2nd, Robert Kiyosaki, author of "Rich Dad Poor Dad," revealed on a podcast that he was "1.2 billion US dollars in debt," sparking widespread market attention. Robert Kiyosaki stated that his $1.2 billion debt was secured by apartment buildings, not Bitcoin (BTC) or gold. According to his ex-wife and business partner, Kim Kiyosaki, the $1.2 billion was not personal consumer debt, but rather leveraged assets in his real estate portfolio. The $1.2 billion covers the total mortgages on approximately 1,500 apartments he co-owned with his partners. If we extrapolate from his claimed annual income of approximately $3 million, Kiyosaki's actual personal debt exposure is estimated to be between $30 million and $60 million. In the real estate industry, refinancing through property appreciation to obtain tax-free cash flow is a common practice. Kiyosaki's various investment projects are all isolated from risk through independent limited liability companies (LLCs), so a problem with a single property will not affect other assets. Therefore, this $1.2 billion is essentially the total project liability on a large balance sheet, not a direct debt owed by Kiyosaki personally. This $1.2 billion may be his cyclical financing model of "debt-driven wealth creation" through real estate. By borrowing from banks to buy apartment buildings that can continuously generate rental income, the rental income covers loan interest and operating costs, thus using bank money to generate positive cash flow for himself. As the property appreciates and the net worth increases, he uses the new net worth as collateral to continue borrowing, expanding his asset size. To support this high-leverage strategy, Kiyosaki manages his assets through multiple limited liability companies (LLCs). Each real estate project is held by an independent company, so even if one project defaults or incurs losses, the risk will not spread to his personal assets or other projects. He himself has stated that this "firewall" mechanism is exactly how the wealthy play this game. Kiyosaki has frequently warned of the depreciation of the US dollar in recent years, urging his followers to stay away from fiat currencies and instead hold "hard assets" such as gold and Bitcoin (BTC). However, according to crypto media such as BeInCrypto, Kiyosaki's Bitcoin and gold holdings have not been used as collateral for any loans; the related debts are entirely secured by physical real estate and rental income. Despite Kiyosaki's boastful statement that "owing banks $1 billion is the banks' problem," critics have pointed out the fatal hidden dangers of high leverage. John Poole, founder of Scottsdale-based consulting firm JPTD Partners, warned that leverage is a wealth amplifier when asset prices rise, but once the market stops rising, it becomes financially as dangerous as a falling chainsaw. Kiyosaki's words and actions are clearly contradictory: on the one hand, he warns that the nearly $40 trillion in U.S. debt and cheap credit will eventually destroy the financial system; on the other hand, his real estate portfolio is highly dependent on the continued availability of this credit. History has also sounded the alarm for this aggressive approach—according to ABC News, Kiyosaki's Rich Global LLC was required to pay a huge fine after losing a lawsuit in 2012. To avoid debt, he directly had the company, valued at only $4 million, file for Chapter 7 bankruptcy protection. As long as the rent can cover the repayments and banks continue to lend, Kiyosaki's refinancing game can continue. However, for those who blindly follow his investment philosophy, the core test of this "financial literacy education" lies in recognizing the real risks behind high leverage. Born in Hawaii in 1947, Kiyosaki served as a U.S. Marine Corps armed helicopter pilot in the Vietnam War. After retiring, he experienced several ups and downs in the business world, becoming a millionaire for the third time in 1985 before turning to financial literacy education. His 1997 book, *Rich Dad Poor Dad*, sold over 44 million copies worldwide, solidifying his status as the "Godfather of Millionaires." The book's core argument is that "the poor and middle class work for money, while the rich make money work for them." He believes debt is divided into "bad debt" (borrowing money to consume) and "good debt" (borrowing money to buy assets). "The poor save money, the rich incur debt" is a concept he repeatedly emphasizes in the book.