For most people, carrying $1.2 billion in debt would be a terrifying prospect. But for Rich Dad, Poor Dad author Robert Kiyosaki, it’s no cause for concern. And an August 2026 Vanity Fair profile offers some important context behind that eye-popping figure.

Kiyosaki doesn’t personally owe $1.2 billion, according to his former wife and longtime business partner Kim Kiyosaki. Rather, the debt is held by a group of real estate investors, including Kiyosaki and his partners, tied to roughly 1,500 apartment units. His personal share is reportedly much smaller (1).

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In a prior appearance on The Iced Coffee Hour podcast, the hosts asked Kiyosaki a blunt question: “How much debt do you have?” Kiyosaki didn’t hesitate. “$1.2 billion,” he replied (2).

The figure may be eye-popping, but it fits neatly with Kiyosaki’s long-running philosophy: Use borrowed money to acquire assets that can generate income and appreciate over time.

When asked on the podcast whether that amount made him nervous — or worried about defaulting — Kiyosaki laughed.

“Are you sh-tting me?” he said. “No. I’ll tell you why. If you owe the bank $20 million and you can’t pay it back, you got a problem. But you owe the bank $1 billion and you can’t pay it back, it’s their problem.”

That quip, a modern echo of J. Paul Getty’s famous line, reflects Kiyosaki’s philosophy on money: Use debt strategically, not fearfully. When asked why the bank gave him such an astronomical loan, he needed only two words — “real estate.”

Indeed, investing in property often requires leverage, whether you’re buying your first rental unit or scaling a portfolio. For Kiyosaki, that mindset goes back decades — and runs counter to conventional wisdom.

“Debt is money. My poor dad always says, ‘Get out of debt,’ Dave Ramsey says, ‘Get out of debt.’ My rich dad says, ‘Only lazy people use their own money — your job is to borrow money,'” Kiyosaki explained in a recent interview with Hannah Hammond (3).

And he’s clearly followed that advice. “We’re always buying real estate because we use debt — and we pay no tax legally,” he said.

‘I make a lot of money’

Kiyosaki’s point comes down to how real estate investors can legally reduce their tax burden by using debt strategically. When investors purchase properties with borrowed funds, the interest payments on those loans are often tax-deductible — even when the properties themselves generate positive cash flow.

The strategy Kiyosaki describes is pretty simple: Borrow against an asset rather than sell it. If a property gains value, an investor may be able to tap that equity for cash without triggering the capital-gains tax that could come with selling the property.

Of course, that doesn’t mean the money is free. The debt still has to be repaid and the strategy only works if the underlying investment can generate enough income to keep up with the loan.

“I own hotels today and 15,000 rental properties — and make a lot of money and pay no tax. I love it,” he revealed.

Real estate can indeed be a powerful tool for preserving — and building — wealth. It’s no wonder that real estate accounts for nearly 25% of the typical family office portfolio.

It can generate steady rental income, serve as a hedge against inflation and provide valuable tax perks that help investors keep more of what they earn while growing their portfolios.

Still, while Kiyosaki has thrived using substantial debt to expand his empire, that strategy may not be for everyone. Leveraging a large amount of borrowed money amplifies both gains and losses — and without reliable cash flow or experience managing properties, even a small downturn in the market or a rise in interest rates can quickly turn manageable debt into a financial burden.

And the time, effort and costs involved in managing and maintaining multiple properties prevent many from investing. So unless you’re a hedge fund titan or an oil baron, you’ve been shut out of one of the most profitable corners of the market.

The good news? You don’t need to be as wealthy as Kiyosaki — or take on massive debt — to start investing in real estate. For investors who like the idea of real estate income but don’t want to deal with the headaches of owning and managing a property themselves, there are other ways to get in.

Mogul bridges the divide here. This real estate investment platform offers fractional ownership in blue-chip rental properties, which gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or 3 a.m. tenant calls.

Founded by former Goldman Sachs real estate investors, the mogul team handpicks the top 1% of single-family rental homes nationwide for you. Simply put, you can invest in institutional-quality offerings for a fraction of the usual cost.

Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10% and 12% annually. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.

Every investment is secured by real assets, not dependent on the platform’s viability. Each property is held in a standalone Propco LLC, so investors own the property — not the platform. Blockchain-based fractionalization adds a layer of safety, ensuring a permanent, verifiable record of each stake.