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Zhu Wenqian

The revelation that Rich Dad, Poor Dad author Robert Kiyosaki has amassed a staggering debt pile has sparked heated discussion in China, where property investors have suffered painful losses in recent years amid a deep market downturn.
The 79-year-old Japanese-American author, who inspired generations of investors to take on leverage to scale up their investments, claimed in a series of podcast interviews over the summer that he owed US$1.2 billion.
His ex-wife and long-term business partner Kim Kiyosaki clarified in an interview with Vanity Fair in late August that the figure covered borrowings related to investments in roughly 1,500 flats, which were shared with his partners rather than personal liabilities.
In China, where Kiyosaki’s 1997 bestseller Rich Dad, Poor Dad was also a huge hit, the news has sparked an outpouring of comments on social media – especially from property investors who said they regretted following his advice.
Many users said they had bought flats after reading Rich Dad, Poor Dad, only to fall victim to China’s property downturn, which has led to steep falls in housing prices and left huge numbers of investors in negative equity over the past five years.
Others recalled reading the book when they were younger and credited it for encouraging them to invest in stocks and funds, in posts on the Chinese social media platform RedNote.
There was also some cynicism over the sheer scale of Kiyosaki’s liabilities, with some users noting that ordinary people would never be able to secure US$1.2 billion worth of loans – especially if most of the borrowing was linked to property investment.

While Kiyosaki’s vast debt pile has sparked schadenfreude, and some scepticism – with Vanity Fair estimating his personal debt likely amounted to roughly US$30 million to US$60 million – the eye-watering liabilities are part of a deliberate strategy. The author claims to generate an annual income of about US$3 million from his investments.
“There does appear to be a stark contrast when a personal finance educator carries massive debt. However, this is precisely the real-world application of the logic in his book,” said Yan Yuejin, vice-president of the E‑house China Research and Development Institute, a Shanghai-based property consultancy.
“At the heart of the book, it indicates the distinction between assets and liabilities, and the argument for borrowing money to acquire cash‑flow‑generating assets.”
Kiyosaki’s debt was essentially project-level liabilities from property investments, Yan explained. This is a common strategy among large‑scale US property investors, who refinance against asset appreciation to roll over and expand their investments, while insulating themselves from personal risks through limited liability companies.
The author set out this principle in Rich Dad, Poor Dad, which spent six years on The New York Times bestseller list after its release in 1997. The book also gained huge popularity in China, where many readers regard it as their introduction to personal finance.
The book is framed around two father figures. The “Poor Dad” refers to Kiyosaki’s biological father, a well-educated teacher with a stable public sector job, but who struggles financially. The “Rich Dad”, portrayed as his childhood friend’s father, is a less-educated, but savvy entrepreneur who built wealth through investments.
But speculative property investment has become a riskier game in recent years. Higher interest rates in the US had driven a notable rise in financing costs, while rent growth had cooled, Yan noted.
Kiyosaki’s strategy would be harder to replicate today. According to Yan, his portfolio consists of rent‑generating properties with relatively steady cash flow. Plus, he entered the market early in the 1970s, giving him a very low cost basis for his assets.
The risks tied to this debt hinge on asset-side valuations and cash flow coverage. For now, the model can remain viable as long as there are no extreme market shocks, according to Yan.
Kiyosaki himself has acknowledged that his operating model – high-leverage, large-scale and long-term investing – is barely replicable for most people. He has repeatedly warned readers, “Don’t follow my example.”
“This represents him taking his own investment philosophy to its extreme. Average readers need to recognise the huge gap between underlying principles and real‑world execution,” Yan said.


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Robert Kiyosaki’s claim to be US$1.2 billion in debt has sparked heated debate in China, where property investors have suffered steep losses


Robert Kiyosaki’s claim to be US$1.2 billion in debt has sparked heated debate in China, where property investors have suffered steep losses.


Rich Dad, Poor Dad author’s vast debts spark awe – and some bitterness – in China

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Robert Kiyosaki’s claim to be US$1.2 billion in debt has sparked heated debate in China, where property investors have suffered steep losses

Robert Kiyosaki’s claim to be US$1.2 billion in debt has sparked heated debate in China, where property investors have suffered steep losses