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For most people, the idea of carrying nine-figure debt would probably be terrifying. But for “Rich Dad, Poor Dad” author Robert Kiyosaki, it’s no cause for concern.
In a recent appearance on “The Iced Coffee Hour” podcast, the hosts asked Kiyosaki a blunt question, “How much debt do you have?” (1)
Kiyosaki didn’t hesitate. “$1.2 billion,” he replied.
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When asked 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.
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.
And with $1.2 billion in borrowed capital, Kiyosaki is operating on an entirely different scale.
“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 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.
The good news? You don’t need to be as wealthy as Kiyosaki — or take on massive debt — to start investing in real estate.
Build your real estate empire — starting with $100
Crowdfunding platforms like Arrived have made it easier than ever for everyday investors to gain exposure to America’s real estate market.
Backed by world class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.
The process is simple: browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase and then sit back as you start receiving any positive rental income distributions from your investment.
Read more: I’m almost 50 and have nothing saved for retirement — what now? Don’t panic. These 6 easy steps can help you turn things around
Invest like a mogul
Another option is Mogul, a real estate investment platform offering 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 team hand-picks 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 to 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.
Getting started is a quick and easy process. You can sign up for an account and then browse available properties. Once you verify your information with their team, you can invest like a mogul in just a few clicks.
Manage your rentals — and your time — like a pro
In the same interview where Kiyosaki revealed that he owns 15,000 rental properties, he acknowledged one big challenge: “The hardest thing about real estate is the management.”
And if you already own rental property, you know he’s right — it’s not always “passive” income. Managing tenants, chasing down late payments, juggling multiple accounts —and then sorting it all out at tax time — can turn into a full-time job.
The good news? You don’t have to do it all on your own.
That’s where Baselane comes in. The platform is designed specifically for independent landlords and real estate investors, helping them manage their properties, tenants and finances — all in one place.
Here’s how Baselane works: rent gets collected automatically — no more chasing tenants. Late fees and reminders go out without you lifting a finger. Expenses are tracked and categorized instantly, and financial reports update in real time — ready for tax season
Baselane also offers a full suite of funding options for rental properties, whether your strategy is fix and flip, Airbnb, BRRRR, new construction, or even a HELOC.
Whether you own a single rental unit or a growing portfolio, Baselane can help turn the chaos of property management into something a lot more hands-off. You can sign up today and receive a $150 cash bonus.
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