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Kiyosaki's Real Estate: Built on $1.2 Billion Debt
2 Sep
Summary
- Robert Kiyosaki's real estate holdings are backed by $1.2 billion in debt.
- He uses debt by borrowing against appreciating properties for tax-free income.
- Kiyosaki cautions against his strategy without proper education and understanding.
Robert Kiyosaki, the renowned author of "Rich Dad Poor Dad," has disclosed that his extensive real estate ventures are financed through roughly $1.2 billion in debt. This substantial debt load forms the foundation of his empire.
Kiyosaki's method entails borrowing against his properties as their value increases. He then treats the funds acquired from these loans as income free from taxes, rather than selling the actual assets. This approach allows him to leverage appreciation without liquidating holdings.
To mitigate risk, Kiyosaki places individual investments within separate Limited Liability Companies (LLCs). This structural safeguard aims to isolate potential financial setbacks from one deal affecting another. He also stresses that his strategy requires significant study, having done so since 1974.
However, Kiyosaki advises caution, urging individuals not to replicate his methods without thorough comprehension of the risks involved. His ex-wife, Kim Kiyosaki, has provided further context, suggesting the debt is tied to around 1,500 apartment units shared with partners and does not represent direct personal liability for Robert. She indicated he uses the large debt figure to attract attention to his financial philosophy.
