Everyone is writing, “Robert Kiyosaki must $1.2 billion”
It sounds like a person simply racked up loans for $1.2 billion and is sitting in debt
But it’s a bit more complicated
Those $1.2 billion are primarily tied to real estate that Kiyosaki owns together with partners
We’re talking about roughly 1,500 apartments and other properties
So it’s an investment debt secured by real estate
Vanity Fair estimated his personal share of the debt at about $30–60 million
This is an estimate, not a figure officially disclosed by Kiyosaki
And this is where his main principle really shows
A loan for consumer expenses and a loan for income-producing real estate are two completely different things
If the property drops in value, interest rates rise, or the cash flow is no longer enough to cover the loan payments, the debt burden becomes a problem
That’s why looking only at the $1.2 billion figure is pointless
It sounds like a person simply racked up loans for $1.2 billion and is sitting in debt
But it’s a bit more complicated
Those $1.2 billion are primarily tied to real estate that Kiyosaki owns together with partners
We’re talking about roughly 1,500 apartments and other properties
So it’s an investment debt secured by real estate
Vanity Fair estimated his personal share of the debt at about $30–60 million
This is an estimate, not a figure officially disclosed by Kiyosaki
And this is where his main principle really shows
A loan for consumer expenses and a loan for income-producing real estate are two completely different things
If the property drops in value, interest rates rise, or the cash flow is no longer enough to cover the loan payments, the debt burden becomes a problem
That’s why looking only at the $1.2 billion figure is pointless