‘I paid for it on my credit card.’ How to invest in real estate safely

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As elevated as home prices are these days, buying a house can be a significant challenge even for those with stable income. But for Rich Dad, Poor Dad author Robert Kiyosaki, it’s a breeze.

During an interview with personal finance YouTuber Sharan Hegde, Kiyosaki stated, “I own 15,000 houses (1).”

The median house price in the U.S. was $405,300 in Q4 of 2025, according to the Federal Reserve Bank of St. Louis (2).

Hegde asked if Kiyosaki rents out these houses to collect income, to which Kiyosaki simply responded, “Yeah.”

The famed author elaborated on the topic of purchasing a house, explaining:

“Nothing wrong with buying a house. The difference is, I use debt to buy it, and I pay no taxes. It’s not the house, it’s not the stock, it’s not the bond, it’s not the ETF. It’s your brains.”

More recently on YouTube, Kiyosaki posted on his own channel about his first investment property — which he bought using a credit card.

“I bought my first piece of real estate on the island of Maui,” he said. “One bedroom, one bath. It wasn’t quite oceanfront but was pretty close to the ocean. I paid for it on my credit card — so it was 100% debt financing.”

Even in those early days, he had no concerns about using credit card debt to pay for housing.

“I had none of my own money in the deal and I was still making money (3).”

Kiyosaki is referring to a strategy often employed by real estate investors. They often use borrowed money (debt) to finance their purchases. This allows them to acquire more assets than they could with their own money alone. Mortgage interest from these loans can be deducted from taxable income, lowering their overall tax burden.

In addition, investors can claim expense deductions for property taxes, property insurance and costs associated with managing and maintaining the property, such as repairs, maintenance and property management fees (4).

By leveraging debt and taking advantage of tax deductions, real estate investors can boost their returns while minimizing taxes.

If this is an approach you want to take, it should be done with caution — and hiring a financial advisor is a smart approach.

Advisor.com can quickly match you with an advisor who can guide you through your options.

Just answer a few quick questions about your investment timeline and goals, and Advisor.com will match you with an advisor who best fits your needs.

Book a free, no-obligation call today to see if they’re the right advisor for you.

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Kiyosaki distinguishes between income-generating properties and a primary residence, emphasizing they serve different financial purposes.

“Your house is not an asset,” Kiyosaki said.

According to Kiyosaki, there’s an easy way to determine if something is an asset.

“What is the definition of the word? If it puts money in my pocket, it’s an asset. If my house is taking money from my pocket, it’s a liability,” he explained.

By this definition, a primary residence is not an asset. Most homeowners face mortgage payments, property taxes, insurance and maintenance costs, which take money out of their pockets.

Instead, real estate should be generating steady, stable returns.

Lightstone DIRECT offers accredited investors access to institutional-quality multifamily and industrial real estate — with a minimum investment of $100,000.

Founded in 1986 by David Lichtenstein, Lightstone Group is one of the largest privately held real estate investment firms in the U.S., with more than $12 billion in assets under management.

Over nearly-four decades, their team has delivered strong, risk-adjusted performance across multiple market cycles — including a 27.5% historical net IRR and a 2.49x historical net equity multiple on realized investments since 2004.

With Lightstone DIRECT, you gain access to that proprietary deal flow.

Here’s the kicker: Lightstone invests at least 20% of its own capital in every deal — roughly four times the industry average. With its skin in the game, the firm ensures its interests are directly aligned with those of its investors.

If you’re not an accredited investor, crowdfunding platforms like Arrived allow you to enter the real estate market for as little as $100.

Arrived offers you access to shares of SEC-qualified investments in rental homes and vacation rentals, curated and vetted for their appreciation and income potential.

Backed by world-class investors like Jeff Bezos, Arrived makes it easy to fit these properties into your investment portfolio regardless of your income level. Their flexible investment amounts and simplified process allow accredited and non-accredited investors to take advantage of this inflation-hedging asset class without any extra work on your part.

Of course, you can invest in income-producing real estate assets. After all, in an era where passive income has become a big buzzword, one of the most popular ways to create a passive income stream is through real estate — at least in theory.

The good news? These days, you can invest in real estate without becoming a landlord. For instance, necessity-based commercial real estate are properties that serve an essential function – like health-care facilities or grocery stores – making these properties in demand because they are always in need regardless of economic conditions.

Real estate investment platform mogul 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 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. Blockchain-based fractionalization adds a layer of safety, ensuring a permanent, verifiable record of each stake.

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.

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@FinancewithSharan (1); Federal Reserve (2); @TheRichDadChannel (3); IRS (4)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.