Robert Kiyosaki has announced that he has a debt of $1.2 billion. According to media reports, the author of the book 'Rich Dad Poor Dad' borrowed this amount using multi-family buildings as collateral, rather than bitcoin and gold, which he actively recommends to his millions of followers.
As reported by BeinCrypto, his ex-wife and business partner Kim Kiyosaki stated that this amount includes obligations related to nearly 1500 real estate properties co-formed with partners. She noted that Kiyosaki's personal debt obligations are significantly smaller than the publicly stated controversial figure of $1.2 billion.
Vanity Fair, which is referenced by the New York Post, estimates his personal obligations to be around $30-60 million, based on Kiyosaki's reported annual income of about $3 million. This is just a small portion of the amount he publicly discusses.
According to BeinCrypto, such a mechanism is quite common in the multi-family real estate financing sector. When the value of a building increases, owners refinance the loan and receive cash that is not subject to taxation since the property is not sold. Additionally, each property is registered under a separate limited liability company, so issues with one property do not affect the others.
The article notes that the history of debts appears particularly controversial, as Kiyosaki primarily encourages his followers to save in gold and bitcoin rather than in dollars. In July, he referred to bitcoin and ethereum, along with gold, as a protection against a currency he considers 'fake.'
However, these assets do not serve as collateral for loans. According to BeinCrypto, bitcoin, which is currently selling for about $77,425 after a 1.8% drop in one day, does not serve as collateral for any of the loans described in the publications. The collateral for mortgage loans is the buildings themselves and the income generated from their rentals, the article states.
BeinCrypto estimates that this is where the contradiction lies, which Kiyosaki rarely discusses. He warns that cheap loans will lead to a collapse of the system, while the U.S. national debt approaches $40 trillion, yet he simultaneously manages a portfolio of real estate whose existence depends on the availability of those very loans.
