October 7, 2020

Episode – 04

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Backstreet Boy “Howie D” and Brother John Talk On Their $60 Million Real Estate Projects


Description:

Howie Dorough is more famously known as being one of the BackStreet Boys. However, what most people don’t know is that Howie and his brother John own a real estate development and consulting firm called Dorough Brothers.

Dorough Brothers Developments specializes in multi-family, commercial, and hospitality real estate.  They are a real estate development company in Orlando who’s been serving the local Central Florida area for over 11 years.

 

What you’ll learn from this episode:
– What has influenced Howie and John to start their business.
– What is the motivation behind the names they give their projects.
– Why they’re focusing their efforts in the central Florida area.
– AND MUCH MORE!

Connect with Howie:
Instagram

Full Transcript:

JP Maroney:

Hello and welcome to another edition of the deal flow show. I’m JP Maroney, your host, along with my cohost, this episode, and many others, Paul Nicoline from Harbor city capital. And, uh, we’ve got actually here in the studio, which we’re real excited about some guests here from locally, which is Howard Doro and John Durrell from Durrell brothers construction. We’re going to get into all sorts of things. Talk about childhood, cause I’m sure there’s a couple of stories there. We’re going to talk a little bit about the paths y’all have taken professionally, how the two of you have come back together and the work that you’re doing as well as the charitable work of the foundation. I’d like to talk a little bit about that as well. If you’re watching this edition or listening, you can get access to additional episodes of the deal flow show@thedealflowshow.com and you can also follow or subscribe for future episodes.

So it was funny, you said before we started the show, we had to get around a table in an interview to get to know our neighbor. We’ve been neighbors for a couple of years now and see each other talk off the docks and things like that. But before moving into the neighborhood, I saw an interview talking about y’alls work in the real estate space. And it was very interesting to me. Um, I started out, I’ve been building companies this year for 30 years in the entrepreneurial space, but it wasn’t until 2013 that I entered the capital markets and we started Harbor city capital and started doing what we’re doing from an investment side of things. So anyone that’s involved in, whether it’s real estate, traditional assets or alternative assets. And it’s obviously very interesting. So I can’t wait to dive into that, but what I’d like to do is take individually, maybe talk a little bit about the business path and go back in your career that you’ve had in the entertainment industry. And talk a little bit about the path that brought you to where you all are today. So, Howard…

Howie Dorough:

Perfect. Um, yeah, well, this is my brother, John, uh, there’s actually believe it or not almost 10 years, uh, age difference between the two of us. Uh, we come from a family of five kids, um, and, uh, Johnny is here. I had three sisters above that and then, um, a little Catholic surprise about 10 years later. And, um, but my brother, Johnny, uh, we didn’t come, like I say, is the, the traditional, um, bosom buddies. Uh, it was an age difference. Um, but he’s, you know, that age difference over time, the gap did get much smaller and we’ve become very, very close. He’s actually now like my, what I consider my best friend, uh, besides my wife, of course I have to put her name in there as well, if not, I’ll get in trouble. Um, but, um, he’s just kind of guided me along, uh, with just the age that he’s, you know, having that, that many more years on me and just kind of, you know, uh, just kinda mentored me, uh, to a point of, you know, finding my path and not only being as a musician, but also understanding it’s, it’s a show business and a when business is something that my brother has always been very hand in hand with me and helping me to craft my business to make sure I don’t put all my eggs in one basket. And that’s where I start off very blessed with a Backstreet boys career, but he’s been able to show me a second path. That’s created another whole different Avenue of a career for me with doing the real estate and developing. And so I’m very blessed. We’ve, we’ve started, uh, 23 years ago with our company and we’ve built now, what is it? Uh, eight condos

John Dorough:

Eight, um, buildings. Um, but then some of those buildings we’ve had multiple. I mean, some of those projects has had multiple buildings in there. So we’ve had, um, a good eight projects that we’ve done behind us besides all the single family and all that kind of stuff in a hotel. 

Howie Dorough:

So we’ve, uh, been very blessed that I’ve, uh, to a point have been able to create a totally separate, uh, career outside of extra boys and, uh, very blessed for and feel we’ve accomplished a lot for, you know, our, our knowledge that we’ve been able to bring to the table and learn over the years, sir. That’s great. 

John Dorough:

So, um, also what I wanted to say was in, um, when we started this company in 97, um, we, we got into the whole real estate thing because, you know, as I was young, it’s say 12 years old, my father would actually get into, um, buying single family homes, refurbishing them and turn around and sell them or rent them out, things like this. So around 12 years old and I was out there cutting the grass, painting, doing some hard labor there. And, but it actually instilled me on how to really in what, what is you need to do with all of real estate instead of there’s so much to do with it.

Um, in kind of opened my eyes to it, to where, um, when my brother ACCE became a Backstreet boy and I’ve already, I was already doing, um, some single family here and I’m working my full time job. And then he came in, he’s like, Hey bro, I got some money. And then I was like, alright, well, let’s do it. Let’s do it together. And this it’s go big with it. And so that was our first building in, when we bought the land in 1997, which was, um, right there in Cape Canaveral. And, um, it was our first building called Floris ocean suites. And, um, that building went on light onto to where we’re at.

JP Maroney:

The name Flores is actually important and special, right?

Howie Dorough:

Yes, it is. It is actually our mother’s maiden name is Flores. Uh, she’s a sweet little lady from Puerto Rico. And, uh, actually, like I say, my mother was a Spanish, Puerto Rican descent, and my dad is Irish, Scottish Scandinavian descent. And, uh, so

JP Maroney:

you’ve got a dark enough skin and you don’t see how red in the face you’re getting exactly. I’m raising my granddad Irish. And who are you going to boop the drink inside for us? Tell us a little about that.

Paul Nicolini:

The first project that must have been something that the first project in Cape Canaveral.

John Dorough:

Absolutely. We found this, um, I actually, um, found this pro this property and everything was another friend of mine at the time that was working with me at the airlines. I was working for American airlines and he’s like, yeah, I’m, um, looking at purchasing this property. And I said, and he showed it to me and stuff. He, um, and ended up, um, he couldn’t go through with it and he just couldn’t do it. And he goes, Hey, you know, and I asked you that. I said, well, you know, let me see what I can do with it. So it actually came in there. And then, um, so we actually, the biggest part about doing projects is surrounding yourself with capable people and, and to where they are. And you feel very comfortable with these people that you’re working with. And, um, so, so that was, that was the first learning stage in all of this stuff is meeting, um, the architects meeting the engineers, meeting the realtors, um, um, interior designers, um, all these kinds of things in meeting the ones that actually understand you and you understand them and stuff and feeling comfortable with each other.

Um, so once we, um, got our architect, which was, um, Dave, uh, Dave Jackson was the guy that Alex who was working with me, this called Jackson Kershner is Andrew cursin and Dave Jackson in unbelievable architectural group. They, to me, they’re the best. They’re actually done every one of our projects except for the hotels and the single family and stuff. Cause they, but they do an all of our, um, condominiums that we’d done up and down the coast. And that was a real personal one. Um, even coming up with the name, which was floors, which is named after my mother and that Florence means, um, flowers. And then, so we were like, like, what else? How can we, uh, what, how do you want to name this building? And then they used to call my brother in the group and everything sweet D cause he was the nicest one in the group.

So, um, so we were like, okay, you know, let’s try to somehow implement that. And, um, so that’s where we got, um, this, um, florists, ocean sweets it’s called. And, um, so it just, that actually, as soon as we got that and we did our, and we started doing our presales cause how we do it, we had to do our presales. And usually it’s about 60 to 70% pre-sold before we can actually get the loan from the bank to break ground. And, um, it happened like that, that quick. And w we knew at that point, we gotta, you know, keep doing what we’re doing in this way, you know? And, um, so, um, I would say 80% to 90% of our buildings that we’d done, um, has, uh, we’ve implemented my mother’s maiden name, Floris in it. And we have, um, uh, floor associates, suites, florists, Del Mar Flores, um, Del Rio, um, is a project we’re looking at doing Flores, Della Playa, um, um, Floris, um, Dell Costa. And, um, and then we’ve had a couple other ones that we’ve done,

Um, when it comes to buying into other projects or buying or, or another partner being involved and it’s already has a name to it, like the Mediterranean and Noosa Myrna, and, um, in the one that we’re actually working on now, which is our favorite is called the surfy cocoa beach.

JP Maroney:

It’s interesting that you applied the brand. I don’t think in all the episodes that we’ve done, anyone’s really focused on talking about the importance of the building, the brand side of it, because we do, we work with a lot of dealmakers and they have a variety of different deals. So on the brand concept, is there a culture or an underlying theme beyond the name that you all brought to these in terms of the kind of people and the company that you’re creating underneath that, that banne

Howie Dorough:

Well, I think Flores, um, all of our, if you look at all of our condos, I do have the, the Flores name. They have that kind of like a tropical feel. So I think with creating the brand of that, the name for those condos, uh, we’ve been able to establish that and actually to a point where when we started it back, uh, 23 years ago, uh, especially over in Cape Canaveral, we were actually bringing designs that people were just like opening eyes and little by little people were starting to copy a lot of our buildings. So I feel like one of the things that we’ve been very blessed as we were, I feel like we’ve constantly been almost like setting the new trend for what’s coming. Even with this new building that we’re doing this, I think we’re bringing something that’s going to open eyes, you know, shake up downtown cocoa beach.

Uh, we decided to go with a slice of Miami, uh, bringing it up here, Miami Fort Lauderdale area. Uh, cause we feel like, you know, it’s, it’s one of those kind of things. I, I try to keep, you know, Coco, uh, not, you know, I obviously for business, I, I try to publicize as much as possible, but the same fun at the same time on a personal level. I love that it’s we have a little gym here and it’s nice and peaceful, but it’s, it’s, you know, as, as I think we all know it’s, it’s a lot of the space down in South Florida has been bought up and so little by little people are starting to come more up this area and you know, who knows in 10 years from now, and maybe a different area than what we’re experiencing right now. But, um, so we decided to create like something that’s a breath of fresh air.

That’s gonna be like, hopefully like a landmark in cocoa beach. Um, but yeah, I think, you know, I don’t know if you want to add anything to that.

John Dorough:

You know, the Flores is a Spanish name instead of, so most of our stuff, like he was saying, it’s kind of, kind of a Spanish flare to it. Um, but with that said, we also have to kind of, um, grow with time and everything. And so the Spanish I’m involved, um, we’ve all been to Spanish. Um, part of is not as, um, significant now as it used to be to us. Um, like the most, uh, one of the most recent buildings we did, it was called flora, Stella Costa in it’s got a West Indies looks to it, you know, and we noticed that that’s coming in and everything, um, by seeing other developments and stuff like this going around. And so we decided to go that route with this past building, but then, um, you know, I’ve always loved the modern Miami look and everything. It’s just, it’s a much more expensive to build for one thing. Right. But, um, so I don’t think it was time for Coco to grasp that whole thing yet, but now we believe it is. And it’s actually proven that it is to tell on how great our sales has been and stuff.

Paul Nicolini:

Are you guys, is all your developments and projects in Florida?

Howard Dorough:

Pretty much everything has been here in central floor. We did do one project in Georgia as well. Um, but I’d say, um, 91 is that it would be like 95% of our stuff has mostly been here. Um, we just, you know, we, we were born and, uh, this is probably, uh, one of the reasons why, especially central Florida is even more so like over here on the coast, we were, we came from Orlando, Florida just to give you a little bit of background on us. We were born and raised there and cocoa beach to us was always the closest beach, uh, to Orlando. And so little by little, you know, we, we have such great memories of coming over here as a little, you know, the, both of us as kids with our parents. And, uh, so when we found the opportunity to come over here, we, we got, we just took it. I mean, I think we’ve always believed that location, location, location is, is key. And, you know, being on the beach is really desirable for a lot of people. Um, we’re even seeing a lot of actually even our sales, uh, recently with the surf, uh, the presales or people that are right now in this COVID situation that are from up North saying, you know, at this, we don’t know how long it’s going to happen if this happens again, if I can work from any place remotely, well, I’d think I’d rather be on the beach looking at, you know, the water. So it’s a beautiful view. A lot of our stuff is water, uh, based. Um, because I feel like a lot of it is, you know, sort of here in Florida, it’s either the water people are looking for or the golf courses. And we just found out a little niche with being on the water and water, you know.

John Dorough:

How he lives on the river. My mother lives on the river. I live on the Lake in winter park and, you know, in our buildings, most of our buildings is ocean front. So it’s just one of those things that we, um, that we’re just water people.

JP Maroney:

I had a real estate developer, very successful real estate developer. I talked to a number of years ago. In fact, we shared the stage speaking at a bunch of investor conferences and he’s, that was one of his criteria is that he would look for property. It had to be near water. Let me actually, he said the values always hold or grow faster. I mean, it was a very important feature. I want to come back and talk a little bit about the background. You mentioned your father and working and the hard work and not just the work ethic, but understanding the dynamics. I want to talk a little bit about your background and what brought you to this point. If you’re watching or listening to this episode of the deal flow show, you can get additional episodes, subscribe for the future episodes@thedealflowshow.com. So let’s go look back a little bit. You, you joined the man or were a part of the formation of the band early on. Was there anything prior to that that seems to have set the stage for what you do now? Or were there any things that you learned early in the career with the band that given you, maybe some of the arsenal of skill sets that you need to be involved in the deal flow process now?

Howie Dorough:

Well, I think, you know, for me as a little kid, um, math was always my favorite subject. Um, I just always loved numbers and coincidence. My brother, he’s so great with numbers as well. And I think like we were talking about, you know, I think being, uh, around our father, uh, who was probably one of the now thinking back on it is probably the biggest mentor, if not my brother for me. Um, but just seeing how he was, uh, just the, the American dream. He, he was a police officer, but he also had two other side jobs working security at the local bank in Orlando and just doing whatever he could just to provide for a family of five kids. And he always would, he was just, he worked at, he was a hustler. He, the, a little bit of money that he would get, like, like Johnny was saying he would, you know, tie it into another real estate house on a block.

And at one point we had believer not like half of our block on one side of the neighborhood. That was just, I couldn’t believe my dad just worked so hard and he just, he just had that mind to go get her in this to try to, just, to, to keep on building. And, uh, so he, he, you know, I think that’s where we’ve developed. The passion was from him starting that, uh, and just wanting to, you know, do the real estate stuff, but even as well, that I think that just made me instill in me the little bit of the businessman that I’ve become actually to a point where the guys believe in are in the group. When we decided to elect officers of our company, they all voted me, the president of, uh, of our back street, uh, KB, NHA, uh, our company. And, um, cause they knew that when it came to working on deals, talking with our managers or our promoters, our agents, uh, putting together the, the, the, the stage, uh, the production, uh, all the budgets, I was always wanting to be hands on.

Um, I learned, uh, many years ago when I was joking earlier about this being a show business I learned from a great person. Um, he was one of the final, uh, last remaining members of the, uh, the temptations. Uh, I’m sorry, the OJS, uh, we did a concert with them and, and, uh, in central Florida area at the fairgrounds, and I’ll never forget, he, you know, before going on stage, he’s like, I want to give you guys some advice. He’s like, you gotta understand this is, this is two words to this, what you’re doing, it’s called show business. And he’s like, you know, you always got to treat them both equally. He says, because if you’re just focusing on your show, somebody can be taken off with your business. And I’ll never forget that wasn’t the best advice that I ever got. Because a lot of times, especially artists, a lot of times, they just, they focus on their craft and they don’t want to get bothered by all the business.

And then they look back like, you know, 10 years later, well, where’d all my money. Go know why did I, why am I not, you know, economically much better off than I am now. So that always, you know, kind of made me want to be a part of the business. And then from that, you know, just being hands on within the Backstreet, in our company, it was just a very easy tie, uh, to, to, you know, parlay into the real estate because it’s very, in some aspects it’s, it’s business, it’s still know, trying to make sure 

You’re keeping on your budgets, making sure something is worth your time and your efforts that the payoff is going to be, you know, you’re doing your due diligence and making sure that you’re, you know, so that way with the end of the project, you know, what you got yourself into and you’re, you’re happy with the final outcome. 

Paul Nicolini:

Did you have hands on if you were across the world somewhere, were you able to still connect with your brother and talk about the deals that you were involved in?

Howie Dorough:

And, um, we’ve been in touch, you know, where we talk pretty much almost on a daily basis. Um, I think our wives probably would be a little jealous. They think we’re a little closer with each other clear with them. Um, but, um, you know, even when, uh, before modern technology, we were always, you know, in communication over the phone or email, um, have him come out, he’s experienced a lot of great experiences with me all around the world. And a lot of that was, uh, I had the excuse with my other brothers and sisters to be able to say, well, we have partly some businesses talk about, so that’s why it’s coming up. Right.

John Dorough:

And I would try to always, you know, keep him involved and everything because, you know, he’s, he, he’s the main partner on this whole thing. And, and, um, I think his input is input that, um, that he has from being this international star and everything is, is, um, you know, Gibbs a lot to what he sees out there and everything to implement it in some of the things that we’re doing. And, um, he’s got a great eye on when, you know, from going into different places and stuff like this, um, from hotels and just all kinds of the architectural differences of how much he actually sees in his life and what he saw, it’s all his life that, um, and how much, some of that, um, that we actually can put into these projects that we’re doing.

JP Maroney:

Yeah. That’s a good point. I want to talk a little bit about the deal, a due diligence process, because you mentioned that just a moment ago. So we’ll talk about in just a moment, if you’re watching or listening to this episode of the deal flow show, you can get access to our archives as well as subscriber, follow us for future episodes of the deal flow show@thedealflowshow.com. Uh, we’re joined today by John Doro and Howard Doro hallway from the Backstreet boys. No big secret there, but talk a little bit about that due diligence process, because the devil’s in the details, right? What is y’alls process that y’all walked through in evaluating partnerships of the flag you’re going to put up, you know, all this different things, a lot of moving parts, as you talked about early on, 

John Dorough:

That’s a, that’s a, you know, that’s could be another whole show and everything, but the due diligence is a huge thing. Um, the market analysis, you know, that has to, it has to work. If it doesn’t, then you got to go.

To look at some different or just pass on it. Um, you know, whether it’s, um, do any hotel and making sure that that hotel can get the capacity in the ADR that we need. Um, average daily rate, um, is a big part of, you know, whether you can do that or not. Um, you know, the, you know, whether how many units or something you can put in a building, um, also, um, based off the zoning and, um, and just so many different things when in our, like we said before, when it comes to our due diligence, We love water. So, So it’s either we want to see water or we want to be on the water. We want to be in the water, one of the other. So, um, so it’s, that’s got a lot to do with what we do and then having the right people around you, um, to, you know, having our religious, to make sure that she can sell these units, you know, at this price range that we’re, that we need to get, you know, from us doing our financials on this and everything, um, is a big part of it. Um, you know, our hotels that we do or by the port, you know, we know that as long as this port is going to be there, the hotel where we’re at and everything, we actually have the closest hotel to the port and stuff. So that’s what we’ve always kind of ran with that, but that meant, that meant a lot. 

And I remember when I first saw that piece of property, I was like, this thing’s for sale. We’re getting, we need to get this property. It’s going to, it’s going to explode over here eventually. And at that point, I think we were like fourth, uh, when it comes to the port, uh, comes the people flowing through the port and the cargo and stuff. And now I think we’re on to, um, to Miami we’re second to Miami. So that meant a lot. Um, and then, you know, when it comes to our say our single family, um, it’s, you know, location, location, location, it really is. Um, we grew up in this downtown area, which was a great, um, great, um, area and everything. So, um, after we left that house and stuff, and my parents moved away, we bought up all the land we could around there to ensure enough they all were sold, you know, in, you know, as soon as we haven’t built, they were gone and stuff, same thing in our winter park areas where we do our single family. And that’s, so that’s a lot to do. Um, when it comes to, um, doing your homework before you actually do a project, which you have to do. So that, to me, that’s the number one thing. 

Paul Nicolini:

Did you talk about, uh, surrounding yourself with the right people being that you guys generally do? Um, projects locally, are you using the same subcontractors for all your deals?

John Dorough:

Most of it, yeah. Yeah. Not always some people, some of them retire. Right. You know, um, um, back in Oh eight when everything kind of took that crash and everything, a lot of them, you know, got out of the business and stuff. So back in, um, when did we start this last one? I think it was, um, about four years ago, um, four or five years ago, we actually had to bring in all new people and everything. And what helped us out with this is we are building Howard a house over in, um, in Bovard in getting to know different contractors, getting to know, you know, the new realtors and stuff like this, which we have. Um, Chris Burton is a great contractor here in Brevard County. Alissa Boyd was Sandelo Realty, um, which is a tour year. She’s just been doing an unbelievable job for us, Jackson, Kershner architects, you know, our engineers from girding, um, girding engineering is one of the biggest and the best around here, especially when you gotta do pilings, you know, cause when you do an, a project like this, it’s all about your foundation. Now it’s all about, and you know what, you’re building down there has got to perfect and everything before you can go up and stuff. So, and do an ocean front stuff or in hotels over here and being in this climate where we’re at, but the hurricanes and like this, it’s the number one thing, right?

JP Maroney:

We had an attorney on the show last week, I guess it was a contact of Paul’s and she was talking about then in the private equity space, there’s been quite a few of these guys that had PE funds that were mainly for new construction that because of the COVID and the opportunities that are coming up have shifted to distressed and re rehabbing and growing the asset there, the all have anything in the plans or is that completely off the table for y’all have, y’all looked at distressed, being able to go in and apply your magic to something that already is sitting there, but maybe needs, needs a facelift.

John Dorough:

You know, we’ve done some things when it comes to that. I don’t think, um, that’s really the way we actually do things. Luckily we have a Backstreet boy. So when it comes to a lot of this kind of things, when, and especially when it comes to the financing part of it, um, there are some properties that, that we would, um, that we actually got into whether they were, um, distressed assets and things like this, but, um, or foreclosures and Darlene, Darlene was one that we actually bought this house, beautiful house over there, off the Butler chain in Orlando. If anyone knows that area, that’s where, you know, it’s just a desirable area. And, um, we, um, right, this happened in 2010, we actually got that one. And that was one of the first projects that we’d done since Oh eight crash. And it was totally distressed and everything, but, um, when it comes to that financing, um, Howard Backstreet, wasn’t doing all that bad. They still were just kicking it out and everything. So, uh, we’ve been able to sell finance, um, a lot of these different single family specially and, um, and we would go in there and we totally took a 6,000 square foot home. And that was in, it was gutted, you know, somebody got out of this whole thing, gutted it out and we just came in there, you know, and just put it all back together and made it better than what it ever was and did very, very well on it. So that’s been,

JP Maroney:

Where do you all see the market over the next 24 to 36 months as a result of some of this, um, being effected, especially the areas you operate in.  

John Dorough:

So I think when it comes to single family, I think the market’s not going to, I think it’s in ACCE, we’ve seen it actually increase, uh, when it comes to the condominium stuff, the multifamily stuff it’s done very well for us, if we’re already, um, you know, have all our presales that we need and stuff. So, um, that’s actually been doing really well where I believe that we’re going to see a, a difficult time is hospitality and stuff, hospitality loans, and all that kind of stuff, because hotels are struggling. Hotels are very much struggling and stuff. So, and we, we plan on doing another hotel, um, right over here, um, in front of the hotel that we have now, the country and the suites. Um, luckily, um, we’re still a little ways out before we would actually need to get into faint anything. And we’ve been having a lot of people come to us that want to go ahead and see your track record and want to go ahead and do projects with you. So I think a lot of that’s got to do with the experience you have behind it. And, um, and when you do something like a hotel, which takes a good two years, you know, we do believe that by the time he gets there, we should ramp up pretty quick and stuff in our hotel that we were at, um, at the country and sweets before the COVID we’re at 95% occupancy, it was just ridiculous

Paul Nicolini:

Because of the pandemic, the cruise lines, obviously aren’t operating, so that’s got to hurt right now, doesn’t it? Absolutely. Yes. Especially all in and around the port. Yeah.

John Dorough:

Cruise line is really taking a toll. We still hold our own, especially on the weekends, um, um, because of the location and everything. But once we get this cruise lines back in and start flowing, we should see our occupancies start going up to the 60% and that kind of rain 60 on up. And usually you, you usually, um, break even around 50%. Yeah. 

Paul Nicolini:

Where’s your, where do you where’s I guess the most interest for you, it’s kind of like picking one of your children, I’m sure. But either residential or hospitality or multifamily, or where do you guys see that really has the most interest for you?

Howie Dorough:

I mean, I think majority of our stuff has been in the multi-families in the condominium buildings, but believe it or not. Um, one of my favorite projects over the years that we’ve done is the country and the suites, our first hotel, which has, what is it, 170, 150, 151 rooms. Um, because most of the condo projects, they’re fun. They’re very, very creative, but we’re in and out, right. Uh, and the hotel actually is something that, you know, even though we don’t have as much hands on, cause obviously we there’s a cookie cutter format with the design and everything versus the individual franchise versus the multi-families, we’re able to, you know, have a bit more of the hands on, in the design of the building to working with the architects and the engineers and working with the interior decorators. Um, but the, the hotels to me are, are, are fun because I, I just, it’s something we’re still a part of that. And that one we’ve been into what, like 15 years, probably the country and suites and it’s doing great. Like I say, it’s, and that’s something that, where I see longterm money coming. That’s something that my kids will eventually take on with them and hopefully still pay for their lifestyle.

John Dorough:

No, I like, I actually liked the multifamily, you know, it’s, um, it’s, you know, there’s, there’s so much involved before Eric, before it actually break ground. And, um, and you deal with a lot more people, right? Because you have to deal with deal with all the in end users and everything in each one of these units are kind of customized to them. So you’re constantly dealing with all of them. You’re dealing with the contract, you’re dealing with the engineers, you’re dealing with the subs. You know, there’s a lot more people that you’re dealing with, you know, doing our weekly meetings that we do, which I always enjoyed see how, how things are progressing and stuff. Um, so I, I actually like, um, the single, the single family also, but the multifamily to me, just, I get to see so many different avenues of it and stuff. So I enjoyed that. 

JP Maroney:

You mentioned two aspects. One is the financing, um, having a name and rights and recognition has helped. Has there ever been a case where being in the entertainment industry, people look at you in a certain way and you go to the deal table for something like this, has that ever hurt? Has it ever been sabotaged and opportunity?

Howie Dorough:

You know, it’s interesting because I think a lot of people believe it or not still don’t know that one of the Backstreet boys is into real estate. It’s still, you know, for, I’m still kind of constantly knocking on the door, letting people know about it and getting out there here and there. I, I’d never boast about it. It’s never something that, you know, unless it naturally has the opportunity or the chance for me to talk about it, I really don’t go out of my way. Um, but, um, it’s, it’s, uh, you know, there’s, there’s definitely been, you know, I think more so in the music career, um, for like back in the early days of, you know, young guys being jealous of us because of their girlfriends, maybe liking us a little bit more, um, maybe then a little more, but I find that believer not in the business aspects and it’s opened up the doors more so on the other, totally on the other spectrum. Um, I don’t know what it is. I don’t know if it’s sometimes in the, uh, the business world. Sometimes people just want to have that warm little fuzzy feeling, whether it’s cause their kids liked us or their wives or, or just the fact that they just want to be able to put their name in association with the brand and that we had created over the years. Um, so believe it or not, it’s actually helped, um, in our, in our situation to have the, the history that we’ve had as a Group.

JP Maroney:

Yeah. You keep doing that by the way, mr. Irish, over here,

Howie Dorough:

I’m very blessed. I’m very grateful.

JP Maroney:

I appreciate that because a lot of people, you said show business to have longevity as a group is a true Testament to not just your ability to turn out good music, but to be able to do good business. And so that’s obviously important, but y’all do have a new album. Let’s talk a little bit about that, but talk about the comparison over how many years now, 27 years, 27 years, the difference between this album and the first and, uh, give us a little insight. 

Howie Dorough:

There’s a lot of history that’s happened between those 27 years of the first album. I mean, I first got in the group when I was 19 years old. Um, I was so bright eyed, bushy tail, um, and to this whole thing, um, you know, I, you know, coming out of Orlando, Florida trying to break in the business at a young age. And I decided at the age of like seven years old that I wanted to be an entertainer. And I went through, you know, just coming out of Orlando and obviously Orlando not being New York or California, you know, just trying to do a little bit of everything you could just to get your name out there. So I would sing dance act. You know, I had so many close things, I got close to being in part, uh, one at one point, uh, close to me in a group called menudo, which Ricky Martin was really famous for him. 

Um, and I also got very close to being in Mickey mouse club, uh, when they refranchising the whole brand again later on. Um, and it’s one of those things that I just, I constantly just kept on pushing, pushing, pushing, you know, uh, just trying to get my name out there. And, um, you know, I’ve been blessed that, you know, I, I was, you know, all, all the cards in the stars, you know, all aligned for me to, to, to have this lottery ticket that I got and, you know, starting the Backstreet boys at 19 years old, that was my, my big break for me. Uh, never knew exactly where it was going to go. If it was just going to be like a one hit, wonder exactly one record. If we were going to blast, you know, hopefully get signed for a record deal. And next year we got signed and we just were very blessed.

I mean, we’re now, uh, uh, 10 records strong. Um, but our first record we were, so, you know, what behind the ears with knowing, you know, what we were getting ourselves into, we were just young kids. I mean, a lot of us had, you know, it was like our biggest break. Some of the guys hadn’t even been in the industry to the guys, Kevin and Brian, they were from Kentucky. And Brian literally got picked right out of his high school, 11th grade, his older cousin, Kevin, who was part of the group said, Hey, we’re looking for a fifth member, come on down to Florida. He just got picked right out of Kentucky. Did they come alone or with their families at that point? Cause it was a major risk right to take. Yeah, no, actually they came alone and Kevin was Brian’s older cousin. So at one point the three of us shared an apartment together and two other, the two other youngest, Nick and Asia had their parents who they were here in central Florida.

Um, but like I said, starting that first record, it was, uh, those first couple of years I say were probably some of the, the most memories, the most enjoyable times I remember having, um, cause as a kid, you know, I, unless I thought I was going to be joining the military, I didn’t think ever get a chance to travel the world, like what we did. And, uh, I had seen some of the first things ever in my life and some of the first experiences and it was, it was a lot of great fun times. Uh, we were all young single guys, um, you know, and that I think brought a whole, you know, fun, youthful dynamic to it. Um, from that time to now, obviously life has changed. We’ve all grown. Uh, each of us now we’re married and have kids. So now when it goes into making a record or our tour, It’s a whole different process. Uh, first of all,

We’re not singing anymore about trying to get the girls in the clubs or anything like that. Or, you know, when our adult man, we have kids, you know, you were in our forties. Uh, so the subject has changed a little bit. Um, but also, you know, our lifestyles have changed. Um, now when it comes to making a tour or making a record, you know, it’s not just the five of us that we’re thinking of, just our schedules, it’s the five of us plus our families. And so that adds a whole new dynamic. And um, so, you know, we, I think we’re now we’re very blessed that we’ve afforded ourselves to not have to grind and just constantly go, go, go. We, now that we’ve been blessed with this many years of success, we’re allowed to take a little bit more of a, you know, a seatback and work out our schedules, what works good for you?

Uh, obviously there’s school, that’s involved with kids and, and some of the West coast and East coast, you know, there’s different summer vacations starting at different times. Spring break started at different times. So we’re all we all try to really communicate. That’s the biggest thing. I think that’s one of the biggest reasons, hopefully God willing besides of the music and the, the, the hits that we’ve had, that we’ve been able to stay together for so long, uh, because of the power of our fans, just supporting us and the power of us communicating and realizing what’s the enough factor for everybody. Um, cause what might be enough for me might be totally different than what might be enough for somebody else within the group. And each of us have different work levels of, you know, some of us just want to still go nonstop and hit it while we can while we’re, you know, especially with this new, uh, second resurgence of us with this DNA album and having the, a number one record again, first time in a couple of years.

Um, so some of us, you know, are more like wanting to let’s go, go, go. And some of us were like, Hey, you know, I don’t want to sit back a little bit, um, and just enjoy. And the, the, the benefits that we’ve been able to provide. Um, but it’s really actually taught me a lot about, you know, worth working with my band of brothers. Uh, it’s really helped me actually as well, to work with my own brother, uh, to realize that, you know, you, your partners, your, your team and people who you surround yourself, like Johnny always says, um, is very, very important. And I’m blessed that I have had, you know, four other guys within my group that I’ve, we actually like each other. Um, you know, we have our moments, we have our ups and downs. Partnerships.

Totally, absolutely. But it’s been able to help me to work with my brother on a different, totally different level of just, you know, family get togethers. Um, it’s brought us, I think, even closer. Um, then, you know, sometimes in the rest of my brothers, my sisters, um, and, uh, but it’s, it’s, it’s, it’s really, I’ve, I’ve just grown so much. And I, I definitely credit the guys for helping me to grow into, to make me almost, I say more

JP Maroney:

Anybody in the industry. And I’m going to ask both of you this question, but for you, anybody in the industry, as you’ve built your career, that you looked at them and said, that’s the consummate deal maker. Like, and if so, what were the characteristics or skills when you think about that person, if you had to make a list, like what was it that made them so successful at what they were doing in that process?

Howie Dorough:

You want to go first Johny?

John Dorough:

Um, I actually, um, I’ve always watched what goes on in the, the area that we, that we work in and everything like this. And then I’ve, um, the actual one of my mentors also, it was Charlie boy in boy construction. And, um, when we were doing our stuff with, um, a, um, contractor named Larkin here locally, um, we were always watching what he was doing. Um, Charlie boy construction stuff, and we competed with each other and stuff. Um, then the, you know, the 2000, um, you know, like I said, eight came through and then, um, then we started back up and Alarcon wasn’t a business anymore and sure enough, um, I got to meet Charlie and everything through Alyssa, which is our realtor, which is, it was her father. Um, unfortunately Charlie passed away a couple months ago. And, um, so, um, that was very disheartening and, um, but you know, he was, um, I love following his work and looking at, you know, how he, how he was doing things and it just admired his construction. 

JP Maroney:

What was it? What if you, is there a, can you encapsulate it, like when

John Dorough:

He seemed to know how to capitalize on every bit of space in that unit, which means a lot to me, I try to do the same thing. He was very unique on, um, the way he did, um, the way he did that and stuff. And, you know, whether it’s just from a niche, you know, um, you know, in showers and stuff, which really wasn’t done until probably within the last, you know, 10 years and stuff, um, as much as you see it, um, now it’s just about every bathroom has got to have a niche in it and stuff, um, you know, to where, um, different, like another niche and a wall for a statue or the lighting that he does and how he, you know, really makes illuminates a unit based off just, you know, the can lighting’s or something like this in there and stuff. So I’m going through a lot of his watching, a lot of his stuff as we were going through our buildings and everything really, I admired it and everything. So emulating somebody that you, you see does good work and you want to yeah. Yep.

Paul Nicolini:

So emulating somebody that you, you see does good work and you want to yeah.

Howie Dorough:

I think for me, it’s interesting because I’m always fascinated to be around people who are successful and, and have, you know, a mind that just wants to not just settle. Um, cause I think a lot of times in the music industry, it is easy to say, okay, well, I’m just going to do my job and this is what I do and that’s it. But I think there’s, you know, with me being, um, the mindset that I am, this the music industry is, is just a creative outlet. And so I’ve been able to take that into like doing what we do now. It’s just, it’s, it’s just, it’s, it’s another project. And so I really admire other artists who have done, uh, you know, um, some great people I’ve met over the years that have not only taken their music, but like partly their success into other ventures. Uh, they write from like Lionel Richie and Steven Tyler, um, Elton John, uh, Ryan Seacrest, I think is a great person.

Who’s, you know, taking, you know, somebody who’s was just a local DJ in Georgia and took his company to multimillion dollar company now and then just branched out. And I, I love seeing people who, who are never just, you know, complacent just always are looking to, you know, how can we, you know, especially in the music industry now, it’s like, you’re constantly trying to re your it’s not the same when it was back in the days, because back in the day his records were being sold. Um, and nowadays it’s, it’s a lot of times a lot of downloads and stuff like that. And, you know, so you have to figure ways of making your money in different outlets than what it was in the past. And so a lot of people are also getting an adventurous and saying, okay, well, how can I get into corporate, like sponsorships?

Or how can I get into, you know, instead of just sponsorships, how about a percentage of that instead, uh, for the longterm, you know, investment feature ideas of, uh, something that you might believe in, whether it’s a product that’s just coming out on the market. I mean, even within the Backstreet boys, we’re, we’re still branding ourselves in other aspects, even, you know, to a point where we’re still then thinking about a, possibly an alcohol beverage that we’re going to eventually tie our names to and just, you know, and also food products and stuff like that. It’s like, you know, it’s definitely thinking outside of that. 

JP Maroney:

Well, you’re talking about people who parlayed that Jimmy buffet, you know, another great example. And it was interesting. Cause if you go into, we were staying down at the Margaritaville in Hollywood, great place two or three months, maybe. Well before coach with three months before COVID and I looked out and there was a land shark bar and I had not done any background and research on, and I started reading about it and the daily had with Corona early on, and then how he transitioned into created his own beer brand to be able to come out with land chart. But it was funny because both of you actually gave the same answer, but in a different way, it’s all about looking at everything and maximizing the opportunity, right? So it’s finding those, maximizing the space, maximizing the relationships, maximizing the opportunities, which is really very exciting. Um, we’ll come back to that in just a moment. If you’re watching or listening to this episode of the deal flow show, you can get access to our archives as, as future episodes, follow us, subscribe@thedealflowshow.com pulley on the Euro itch. 

Paul Nicolini:

No, well, I was, I wanted to say what a Testament to the Backstreet boys, yourself, for that many years to stay together as a group and to respect each other, check there, check your egos, right? Cause otherwise the new music business, how many times do you see bands that that could have made it for 25 years? That couldn’t stay?

Howie Dorough:

Absolutely. I mean, we were definitely it’s public knowledge. We were not, we didn’t grow up together obviously besides Kevin and Brian who are cousins from Kentucky. Um, I did know AIJ actually who’s, uh, coming up, uh, gonna be on dancing with the stars. So we’re all really proud of him written for him on that. Um, but, um, I did know him a little bit from their Lando entertainment, uh, scene, just an auditions and stuff like that. Um, but we were put together and you know, that’s not always the, the recipe for the easiest success. Um, like I said, we didn’t grow up each other. We didn’t, you know, practice in a garage even though we’d practice eventually in a garage at the band house, but like we weren’t, you know, having our parents help us out and, you know, um, but with that, you know, we had to really learn to, uh, learn, to get, get along to bond with each other really quickly because, uh, you know, once we got together within, I’d say six to eight months, we were traveling overseas and I got a record deal. 

Uh, actually, no, I’m sorry. Before I go on overseas, we were on a bus and the States traveling all across America, going to high schools and middle schools performing for kids that didn’t know who we were. Um, didn’t probably really want to know who we were. Um, but they were forced to go into assemblies to listen to a bunch of boys jumping around singing and dancing. Um, but we did, we developed a bond and there was times w you know, we could have easily gone our separate ways. I mean, it’s public knowledge. We had lawsuits, uh, with previous management, a record label. Um, we’ve had some internal issues. Uh, but we, you know, I just, I’m very blessed because it could have gone easily. Like a lot of other groups, like you said, that just said, you know what? I don’t want to do this. 

This is not for me. My, you know, my opinion, even when Kevin actually took a break for a second, he just, and it wasn’t like a bad break or anything like that. He just decided he wanted to do something different. And the rest of us could have easily said, you know what we’re done. You know, we’ve had a good run of this, but the four of us, you know, kept on going. We held that torching and kept on, you know, running to the finish line as long as fast as we hit the two albums little dude. Yes, we did two albums without him. And, um, always kept the door open for him. And when he came back, it was, you know, it was always, we were meant to be as the five of us. We, you know, we were suggested to replace him by management, by record labels them. We just always felt I wasn’t, you know, the bond wouldn’t be the same, you know, was having a new member coming in, filling in for Kevin. So instead I just took it the rest of his parts. Um, but it definitely.

Paul Nicolini:

Thought the money was commensurate. 

Howie Dorough:

My nightly rate didn’t go up, unfortunately. Um, but it definitely did, uh, really educate me on realizing, cause I didn’t grow up in the, you know, all American boy who played sports and was in the team, uh, you know, realm of like hanging with a bunch of guys. And that, that, even that, that just the, the, the, the feeling of being able to, um, have somebody criticize you and not take it personally, I didn’t have that. So that was probably, for me, the hardest struggle I had to learn was to be able to be like, wow, why are they like busting my chops? You know, I don’t get it. I’m not busting their chops and stuff, but then you learn that friendly, you know, locker room kind of get a little bit exactly. Right. And so that actually really did help me develop a thick skin to where, when I got, you know, working with my brother and I think it made it easier for us to be able to create a business relationship and to be able to go into negotiations or being able to go into situations where we’re going to be, it’s going to be a little uncomfortable, bro. We’re going to go into this negotiation talk right now. And, you know, I understand if you’re going to probably stay quiet for a few things and immediate talk on behalf of us, but you know, I might get a little bit hairy, but it’s okay. We’re going to get through this. And it’s part of negotiating. It’s part of business. 

JP Maroney:

We’ve talked about business, we’ve talked about show business. Let’s talk a little bit about the foundation because we’re obviously big believers. I live by a philosophy. The more you give, the more you get. And I think that there’s opportunities also, we can ultimately give back and we find interest outside of business. Can you all talk a little bit about that? The history and the background behind the foundation? Yeah.

Howie Dorough:

Yes. I’m very proud to say that my family, we have created over the years, the Douro, uh, lupus foundation and, um, it’s a memory of a sister that I lost to lupus back in 98. Her name was Caroline. And, um, it was a disease that took a really quickly from us, even though she had it for, I think over 10, 12 years maybe. Um, but it came about really drastically when she passed away. I’ll never forget. Um, I was with my brother in California and we had just received our first MTV music award, uh, back in 98. And it was probably the, the biggest award that we had ever received in our Homeland. Cause we had, most of our success came internationally. Believe it or not. A lot of people don’t know this. We start over in Europe first. And, uh, and, and like I say, in 94 and made success all around the rest of the world before America finally accepted us.

So this was a big night for me to receive our first award in America, our Homeland. And I’ll never forget. My brother told me that he got a call from my dad and that my sister, uh, had to go to the hospital and that, um, he didn’t want my brother really to alarm, you know, to worry me too much. He wanted me to night. He didn’t want me to take away from this glorious moment that I was having. Um, but my brother being my brother, he, uh, you know, couldn’t let that, you know, he knows that, you know, for me, I need to know things. Um, so he told me and he said he was gonna go see her the next day. Um, and uh, he says, I’ll let you know if it’s, if it’s enough where you should be coming to see us as well. 

And, uh, so I went through that next day. And then the following night, I got a call in the middle of the night were saying, you need to get on a plane the next morning, as soon as possible. And, um, I went to see her and unfortunately had already passed away at that time. Uh, but we decided at the time, um, our fans, this is probably like me say probably at the height of our career, if not right, uh, right before. But it was, it was enough where we had a huge fan following fan base around the world. Um, they kept on sending so many flowers to our house and our house turned into like a floor shop. And so we decided, you know, we were very, very grateful for the outpour from the fans, but we, we tried, we were trying to figure out how can we turn this negative into a positive situation?

And so the local hospital, Orlando, uh, Florida hospital, uh, reached out to us, uh, and said, you know, if you’re interested, we can definitely help you. Because I think at the time we wanted to give, we were giving money to that hospital because it was the closest hospital to us, but they didn’t really truly have a lupus research center, but they said we could help you, uh, to turn this into something of maybe creating your own foundation. I would have never thought that I would have my own foundation, but it just, it felt right at the time. Um, I was able to Parley and use my statuses, the success of the group and to having those opportunities to grow, uh, to have media asked me, you know, about this on hush hush disease, it really was at that time was really, really harsh. And it’s now become way more on the map. 

Um, but at the time nobody knew about it. Nobody knew how you got it or how the people live with it, who had it. And, um, so I’m very proud that we were able to raise a lot of money at the time we were given most of our money to UCLA research center. And at one point we were gay. We gave a check to them over a half a million dollars that we had raised. And, uh, it was, it was, it was definitely, I give credit to all of our fans. Um, it was a, you know, a, a F fan club slash charity. Um, they want to just support me in whatever they could and they knew I was putting on, you know, charity concerts. I was doing anything we could, we would do a family cruise, anything I could do outside of the Backstreet boys, just to create an opportunity for my fans to come and be with me.

And they were just gracious enough to want to pay, to come out and give donations and stuff like that. And so we did very well. Um, you know, it’s, it was, it was, we had a great run with it at the time. Unfortunately, the, uh, once we got to a point where the market crashed, our fans could barely, uh, let alone buy our own records, decided to really constantly contribute. So we’ve at this point, uh, the doors have been closed on it, but we still have the, what is it? A four Oh one C five Oh one [inaudible]. And um, so one day possibly, you know, when the timing’s right, if we open the doors, I would be glad to, in the meantime, I’ve been giving a lot of my time

And efforts for lupus, uh, to, uh, lupus LA, which is, uh, a foundation out in California that I was a part of their first event that they ever did and have been supporting them ever since, as well as I do. I try to do what I can here locally in town. Uh, I’m a part of the Kings, uh, board, uh, the King center. And, uh, I try to do whatever I can to just give back, you know, here and there and when I can, uh, cause you know, I’ve been really blessed. And so for me, it’s about giving back when you can.

JP Maroney:

Absolutely. If you’re watching or listening to this episode of the deal flow show, you can get access to our archives and a subscriber, follow us for future episodes at the deal flow, show.com, any business activities outside of the work that you all do that others wouldn’t know about that you’d like to talk about. Any other projects or things that y’all are working on.

John Dorough:

Yeah on our own homes. It seems like never stop having a project going on there. 

Paul Nicolini:

That’s called the honeydew list.

JP Maroney:

What about the, what about the next project? That’s now on the horizon for Dorough Brothers? 

John Dorough:

We have to surf, which is a great, um, give us, give us some details on the survey. Okay. Yeah, I’m sure it’s, it’s 25, um, condominium units. Um, and plus we have three bays of retail. This is one thing about the uniqueness of this building that I really like is this is the first time we’ve ever done. Um, multi-family with retail on the bottom and stuff. So that’s just to deal with the whole association thing, the stuff it’s been a different animal to us. Um, but, um, it ends up being a unbelievable, um, project for us to do. We’re very, very proud of it. Um, and um, we look forward to actually really bring in some good, um, retail, um, whether it’s a restaurant or I don’t know, it could be a massage, um, or whatever it could mean that does retail spots in this a great, great location.

They have to drive by it. There’s people walking up and down there on the beach all the time. So, um, we’re really looking forward to that project. So that’s, I’m the one that’s in the horizon, the most recent riser at this point. Plus we have, um, these, um, townhomes that are across the street from Floris Del Acosta that, um, we just finished and everything last year that we’re looking at I’m going ahead and building them up and possibly do and bro be with it and just keeping them within, um, our company. Um, we also have, um, the hotel in front of the country and in suites at the port there that we’re looking at doing another hundred and 50 rooms it’s gotta be. And that’s, that’s what the city requires a minimum of 150 rooms in that area. Um, and then, um, there’s another property that we have in Titusville that we’re looking at doing some more condominiums and those are going to be more of a river view in the best view of the launches going up from the Cape right there. We have a great piece of property or in a couple of single family homes there also in that project have 50 condominiums. So we’ve got about $60 million with the projects. 

JP Maroney:

Yeah. So just spare time work. Um, we have obviously a diverse audience that watches and listens to the deal flow show. What kind of people would, y’all like to hear from our people that might want to do projects with you or my, what are the kinds of folks that you’re looking for to continue to grow your business? 

Howie Dorough:

Well, I’ve always told Johnny I, I see that we’re still breaking ground with a company. I actually see this company getting bigger and larger and taking on more projects. Um, even outside of the realm of what, how we can bring to the table, finance wise with Backstreet and getting loans and everything. I would love ideally, to get more like a nest pool of, of, uh, finance, financial people who are willing to come and raise capital outside of, of your own doing exactly and be able to take our projects instead of just, you know, doing what are limits of what we have financially be able to take on more projects and multi projects that one

John Dorough:

Maybe down the road, exit strategy, if somebody buy us out, you know, as a company and everything. So all those things are still there. You know, we’re all star. And so we are definitely looking for those kinds of capital to come in and I’m in work with us as a partnership. Or like I said, possibly can buy us out one day. 

JP Maroney:

That’s interesting because y’all have done mostly just debt yourself, right. Bank financing for personal yeah. Not tapped into the capital markets at all. Yeah. That was why actually poly joined the team at Harbor city, capital 25 years in the broker dealer community as a broker and Harbor city, our bonds we’ve issued four rounds. We’re in our fifth round right now, raising direct from retail investors. But the six round that’s coming is going to that broker dealer community. So we’re as a company, we’re just now moving into that space and he’s spearheading a lot of that with his team. So, um, we’ll definitely want to connect you with some folks that we’ve already had on the show and that we know yeah. 

John Dorough:

A little check to say I’m with the country and his suites. We have ventured just a little bit outside of that. We went to the insurance company with the highway national, um, to where they actually, um, um, do, um, the actual longterm loan on that one. And then we have a partner as well on that one. And then we have, um, um, kit Oliver who’s with the Oliver group. And, um, they were, they, he actually partnered with us on that one to bring pretty much half the capital. He’s got 50% ownership. Yeah.

JP Maroney:

Very interesting. What’s the best way for folks to get in touch with you all’s company?

John Dorough:

Pretty much the website, um, DOR brothers.com. And in that, in there, it has our contacts and everything to emails to get ahold of us. Yes. And for backstory, they can contact my management if they need,

Paul Nicolini:

Just cause I’m curious. So, so collectively through the years, how many albums have you guys sold? 

Howie Dorough:

Uh, well the last big number that they’ve said, and it’s, it’s grown since then, but I don’t know where it is, but the last number that was out there was 130 million records. Wow. And that was a while. That was a while. Yeah. Millennium and then black and blue. So we’ve done that since then.

Paul Nicolini:

Obviously after the pandemic, are you guys going on tour with a new album?

Howie Dorough:

 Actually we’re right in the midst of a world tour. Uh, we had started, uh, last may and Europe and then did the whole summer and the here in the States and in Canada, um, all arenas and stadiums. Um, and then we, uh, whenever to Southeast Asia, uh, Japan and last fall, and then this past, uh, February, March, we were over in South America, pretty much got through the whole tour. So for the very last show we had to cancel. Um, and, uh, so Paulo, Brazil. Um, so we definitely, we had plans. We were supposed to be this past April and the summer in New Zealand, Australia and America again, the second run. So that’s all been pushed to next year. So next April I’ll be back, hopefully God willing, uh, back over and New Zealand, Australia and back here in the summertime. 

JP Maroney:

Yeah. Y’all have to y’all weren’t the first to see, um, whether you call it a struggle, but you saw your early success overseas and know obviously, uh, Jimmy Hendricks, same thing, right. How to go to London to get famous, but, um, to be received. But do you feel like I’ve come full circle now? Cause a lot of this touring is overseas.

Howie Dorough:

Oh definitely. I mean a lot, a majority of it. We’ve that’s one thing that I’m very proud of is that, you know, a lot of times people are like, wow, they didn’t even know that we started over in Germany. We were there for three years. We date in German girlfriends cause we were never home. Uh, we have, we had, we had German girlfriends, we were never back home. Um, but we got our success overseas at first and it was truly the grassroots approach we were over in Germany. Like I said, for three years, playing all the little Halas and going to all like the nook and cranny spots that, um, I think that’s what really truly created our foundation. That’s been able to give us sustained power to have success for this long because even at the times when finally America did catch on, um, just like most artists, you have that highs, but then eventually the, you know, you come down from the wave and still internationally has been our biggest market. 

They’ve supported us to a point, like I said, well, we’re still playing stadiums and certain countries. Uh, we have been blessed with the second resurgence of us here in America, uh, with this record and bringing us back to arenas again, which is really great. Uh, cause before that, you know, like most artists, we, we did the ups and downs. We went from, uh, doing arenas to back to theaters again. And uh, but you know, I really give credit to the fans supporting us, supporting us and not giving up on us that really fed us and gave us the energy to want to keep on doing this. 

John Dorough:

And a lot of people don’t know about the group is, um, they never really stopped. They were always going, but they were so big overseas, whether it’s in Asia or, um, you know, um, Europe and stuff like this that they just kept going. They just, you know, so there was never really a major hiatus time you took off. Right. And um, in, you know, I’ve heard so many from my friends and everything. Oh, you know, it’s great to see the sheet and you needed to came back thought, well, they really never left, but in there and they really haven’t had to promote so much cause their fan base is so big. It just fills up everything. Right. 

JP Maroney:

Yeah. That’s excellent. Anything that you all would like to give a shout out or any, you know, projects or information or anything that you would like to share with our audience before we finish? 

John Dorough:

Um, I would like to share some, a little bit of some of the people that are involved with this and what we’ve been doing. Like right now we have Chris Barton, um, with Burton homes, um, is to me is the best about the best builder here in our County, if not the, and um, we have, uh, like I said, Alyssa Boyd with the real estate Sandow reality, we have um, um, Jackson Kershner is the architects. If girding is engineered, we have, um, a lot, a bunch of different subs that they will be using. And we have our design team interior design team, which is, um, blue days design with Kathy and Joe over there. Yes. And Dale Cox, our CFO is another heart of our company. Um, he’s the CFO of the company and his RM CPA and everything. And he does he’s. He’s like I say, him and I work hand in hand most of the time and definitely one of definitely my right hand.

JP Maroney:

Well, I’m glad we finally got to a table together. Hopefully the next time we’ll have a couple of glasses of wine and a nice big steak. The team here. Absolutely. Once again, this is the deal flow show and this is my cohost, Paul Nicoline, John Dorough, Howard Dorough. Howie D [inaudible] what happens on the deal flow show stays in the depression. You can get access to our archives as well as subscribe and follow us@thedealflowshow.com. And also if you’re out there, they gave out their information for their website. Look forward to hearing from anyone that is interested in talking about projects or partnerships or things that you might work together. We’ll see you guys in another episode very, very soon. Take care, have a buddy for more episodes, visit the deal flow show dot com.

October 7, 2020

Backstreet Boy “Howie D” and Brother John Talk On Their $60 Million Real Estate Projects


Description:

Howie Dorough is more famously known as being one of the BackStreet Boys. However, what most people don’t know is that Howie and his brother John own a real estate development and consulting firm called Dorough Brothers.

Dorough Brothers Developments specializes in multi-family, commercial, and hospitality real estate.  They are a real estate development company in Orlando who’s been serving the local Central Florida area for over 11 years.

 

What you’ll learn from this episode:
– What has influenced Howie and John to start their business.
– What is the motivation behind the names they give their projects.
– Why they’re focusing their efforts in the central Florida area.
– AND MUCH MORE!

Connect with Howie:
Instagram

Full Transcript:

JP Maroney:

Hello and welcome to another edition of the deal flow show. I’m JP Maroney, your host, along with my cohost, this episode, and many others, Paul Nicoline from Harbor city capital. And, uh, we’ve got actually here in the studio, which we’re real excited about some guests here from locally, which is Howard Doro and John Durrell from Durrell brothers construction. We’re going to get into all sorts of things. Talk about childhood, cause I’m sure there’s a couple of stories there. We’re going to talk a little bit about the paths y’all have taken professionally, how the two of you have come back together and the work that you’re doing as well as the charitable work of the foundation. I’d like to talk a little bit about that as well. If you’re watching this edition or listening, you can get access to additional episodes of the deal flow show@thedealflowshow.com and you can also follow or subscribe for future episodes.

So it was funny, you said before we started the show, we had to get around a table in an interview to get to know our neighbor. We’ve been neighbors for a couple of years now and see each other talk off the docks and things like that. But before moving into the neighborhood, I saw an interview talking about y’alls work in the real estate space. And it was very interesting to me. Um, I started out, I’ve been building companies this year for 30 years in the entrepreneurial space, but it wasn’t until 2013 that I entered the capital markets and we started Harbor city capital and started doing what we’re doing from an investment side of things. So anyone that’s involved in, whether it’s real estate, traditional assets or alternative assets. And it’s obviously very interesting. So I can’t wait to dive into that, but what I’d like to do is take individually, maybe talk a little bit about the business path and go back in your career that you’ve had in the entertainment industry. And talk a little bit about the path that brought you to where you all are today. So, Howard…

Howie Dorough:

Perfect. Um, yeah, well, this is my brother, John, uh, there’s actually believe it or not almost 10 years, uh, age difference between the two of us. Uh, we come from a family of five kids, um, and, uh, Johnny is here. I had three sisters above that and then, um, a little Catholic surprise about 10 years later. And, um, but my brother, Johnny, uh, we didn’t come, like I say, is the, the traditional, um, bosom buddies. Uh, it was an age difference. Um, but he’s, you know, that age difference over time, the gap did get much smaller and we’ve become very, very close. He’s actually now like my, what I consider my best friend, uh, besides my wife, of course I have to put her name in there as well, if not, I’ll get in trouble. Um, but, um, he’s just kind of guided me along, uh, with just the age that he’s, you know, having that, that many more years on me and just kind of, you know, uh, just kinda mentored me, uh, to a point of, you know, finding my path and not only being as a musician, but also understanding it’s, it’s a show business and a when business is something that my brother has always been very hand in hand with me and helping me to craft my business to make sure I don’t put all my eggs in one basket. And that’s where I start off very blessed with a Backstreet boys career, but he’s been able to show me a second path. That’s created another whole different Avenue of a career for me with doing the real estate and developing. And so I’m very blessed. We’ve, we’ve started, uh, 23 years ago with our company and we’ve built now, what is it? Uh, eight condos

John Dorough:

Eight, um, buildings. Um, but then some of those buildings we’ve had multiple. I mean, some of those projects has had multiple buildings in there. So we’ve had, um, a good eight projects that we’ve done behind us besides all the single family and all that kind of stuff in a hotel. 

Howie Dorough:

So we’ve, uh, been very blessed that I’ve, uh, to a point have been able to create a totally separate, uh, career outside of extra boys and, uh, very blessed for and feel we’ve accomplished a lot for, you know, our, our knowledge that we’ve been able to bring to the table and learn over the years, sir. That’s great. 

John Dorough:

So, um, also what I wanted to say was in, um, when we started this company in 97, um, we, we got into the whole real estate thing because, you know, as I was young, it’s say 12 years old, my father would actually get into, um, buying single family homes, refurbishing them and turn around and sell them or rent them out, things like this. So around 12 years old and I was out there cutting the grass, painting, doing some hard labor there. And, but it actually instilled me on how to really in what, what is you need to do with all of real estate instead of there’s so much to do with it.

Um, in kind of opened my eyes to it, to where, um, when my brother ACCE became a Backstreet boy and I’ve already, I was already doing, um, some single family here and I’m working my full time job. And then he came in, he’s like, Hey bro, I got some money. And then I was like, alright, well, let’s do it. Let’s do it together. And this it’s go big with it. And so that was our first building in, when we bought the land in 1997, which was, um, right there in Cape Canaveral. And, um, it was our first building called Floris ocean suites. And, um, that building went on light onto to where we’re at.

JP Maroney:

The name Flores is actually important and special, right?

Howie Dorough:

Yes, it is. It is actually our mother’s maiden name is Flores. Uh, she’s a sweet little lady from Puerto Rico. And, uh, actually, like I say, my mother was a Spanish, Puerto Rican descent, and my dad is Irish, Scottish Scandinavian descent. And, uh, so

JP Maroney:

you’ve got a dark enough skin and you don’t see how red in the face you’re getting exactly. I’m raising my granddad Irish. And who are you going to boop the drink inside for us? Tell us a little about that.

Paul Nicolini:

The first project that must have been something that the first project in Cape Canaveral.

John Dorough:

Absolutely. We found this, um, I actually, um, found this pro this property and everything was another friend of mine at the time that was working with me at the airlines. I was working for American airlines and he’s like, yeah, I’m, um, looking at purchasing this property. And I said, and he showed it to me and stuff. He, um, and ended up, um, he couldn’t go through with it and he just couldn’t do it. And he goes, Hey, you know, and I asked you that. I said, well, you know, let me see what I can do with it. So it actually came in there. And then, um, so we actually, the biggest part about doing projects is surrounding yourself with capable people and, and to where they are. And you feel very comfortable with these people that you’re working with. And, um, so, so that was, that was the first learning stage in all of this stuff is meeting, um, the architects meeting the engineers, meeting the realtors, um, um, interior designers, um, all these kinds of things in meeting the ones that actually understand you and you understand them and stuff and feeling comfortable with each other.

Um, so once we, um, got our architect, which was, um, Dave, uh, Dave Jackson was the guy that Alex who was working with me, this called Jackson Kershner is Andrew cursin and Dave Jackson in unbelievable architectural group. They, to me, they’re the best. They’re actually done every one of our projects except for the hotels and the single family and stuff. Cause they, but they do an all of our, um, condominiums that we’d done up and down the coast. And that was a real personal one. Um, even coming up with the name, which was floors, which is named after my mother and that Florence means, um, flowers. And then, so we were like, like, what else? How can we, uh, what, how do you want to name this building? And then they used to call my brother in the group and everything sweet D cause he was the nicest one in the group.

So, um, so we were like, okay, you know, let’s try to somehow implement that. And, um, so that’s where we got, um, this, um, florists, ocean sweets it’s called. And, um, so it just, that actually, as soon as we got that and we did our, and we started doing our presales cause how we do it, we had to do our presales. And usually it’s about 60 to 70% pre-sold before we can actually get the loan from the bank to break ground. And, um, it happened like that, that quick. And w we knew at that point, we gotta, you know, keep doing what we’re doing in this way, you know? And, um, so, um, I would say 80% to 90% of our buildings that we’d done, um, has, uh, we’ve implemented my mother’s maiden name, Floris in it. And we have, um, uh, floor associates, suites, florists, Del Mar Flores, um, Del Rio, um, is a project we’re looking at doing Flores, Della Playa, um, um, Floris, um, Dell Costa. And, um, and then we’ve had a couple other ones that we’ve done,

Um, when it comes to buying into other projects or buying or, or another partner being involved and it’s already has a name to it, like the Mediterranean and Noosa Myrna, and, um, in the one that we’re actually working on now, which is our favorite is called the surfy cocoa beach.

JP Maroney:

It’s interesting that you applied the brand. I don’t think in all the episodes that we’ve done, anyone’s really focused on talking about the importance of the building, the brand side of it, because we do, we work with a lot of dealmakers and they have a variety of different deals. So on the brand concept, is there a culture or an underlying theme beyond the name that you all brought to these in terms of the kind of people and the company that you’re creating underneath that, that banne

Howie Dorough:

Well, I think Flores, um, all of our, if you look at all of our condos, I do have the, the Flores name. They have that kind of like a tropical feel. So I think with creating the brand of that, the name for those condos, uh, we’ve been able to establish that and actually to a point where when we started it back, uh, 23 years ago, uh, especially over in Cape Canaveral, we were actually bringing designs that people were just like opening eyes and little by little people were starting to copy a lot of our buildings. So I feel like one of the things that we’ve been very blessed as we were, I feel like we’ve constantly been almost like setting the new trend for what’s coming. Even with this new building that we’re doing this, I think we’re bringing something that’s going to open eyes, you know, shake up downtown cocoa beach.

Uh, we decided to go with a slice of Miami, uh, bringing it up here, Miami Fort Lauderdale area. Uh, cause we feel like, you know, it’s, it’s one of those kind of things. I, I try to keep, you know, Coco, uh, not, you know, I obviously for business, I, I try to publicize as much as possible, but the same fun at the same time on a personal level. I love that it’s we have a little gym here and it’s nice and peaceful, but it’s, it’s, you know, as, as I think we all know it’s, it’s a lot of the space down in South Florida has been bought up and so little by little people are starting to come more up this area and you know, who knows in 10 years from now, and maybe a different area than what we’re experiencing right now. But, um, so we decided to create like something that’s a breath of fresh air.

That’s gonna be like, hopefully like a landmark in cocoa beach. Um, but yeah, I think, you know, I don’t know if you want to add anything to that.

John Dorough:

You know, the Flores is a Spanish name instead of, so most of our stuff, like he was saying, it’s kind of, kind of a Spanish flare to it. Um, but with that said, we also have to kind of, um, grow with time and everything. And so the Spanish I’m involved, um, we’ve all been to Spanish. Um, part of is not as, um, significant now as it used to be to us. Um, like the most, uh, one of the most recent buildings we did, it was called flora, Stella Costa in it’s got a West Indies looks to it, you know, and we noticed that that’s coming in and everything, um, by seeing other developments and stuff like this going around. And so we decided to go that route with this past building, but then, um, you know, I’ve always loved the modern Miami look and everything. It’s just, it’s a much more expensive to build for one thing. Right. But, um, so I don’t think it was time for Coco to grasp that whole thing yet, but now we believe it is. And it’s actually proven that it is to tell on how great our sales has been and stuff.

Paul Nicolini:

Are you guys, is all your developments and projects in Florida?

Howard Dorough:

Pretty much everything has been here in central floor. We did do one project in Georgia as well. Um, but I’d say, um, 91 is that it would be like 95% of our stuff has mostly been here. Um, we just, you know, we, we were born and, uh, this is probably, uh, one of the reasons why, especially central Florida is even more so like over here on the coast, we were, we came from Orlando, Florida just to give you a little bit of background on us. We were born and raised there and cocoa beach to us was always the closest beach, uh, to Orlando. And so little by little, you know, we, we have such great memories of coming over here as a little, you know, the, both of us as kids with our parents. And, uh, so when we found the opportunity to come over here, we, we got, we just took it. I mean, I think we’ve always believed that location, location, location is, is key. And, you know, being on the beach is really desirable for a lot of people. Um, we’re even seeing a lot of actually even our sales, uh, recently with the surf, uh, the presales or people that are right now in this COVID situation that are from up North saying, you know, at this, we don’t know how long it’s going to happen if this happens again, if I can work from any place remotely, well, I’d think I’d rather be on the beach looking at, you know, the water. So it’s a beautiful view. A lot of our stuff is water, uh, based. Um, because I feel like a lot of it is, you know, sort of here in Florida, it’s either the water people are looking for or the golf courses. And we just found out a little niche with being on the water and water, you know.

John Dorough:

How he lives on the river. My mother lives on the river. I live on the Lake in winter park and, you know, in our buildings, most of our buildings is ocean front. So it’s just one of those things that we, um, that we’re just water people.

JP Maroney:

I had a real estate developer, very successful real estate developer. I talked to a number of years ago. In fact, we shared the stage speaking at a bunch of investor conferences and he’s, that was one of his criteria is that he would look for property. It had to be near water. Let me actually, he said the values always hold or grow faster. I mean, it was a very important feature. I want to come back and talk a little bit about the background. You mentioned your father and working and the hard work and not just the work ethic, but understanding the dynamics. I want to talk a little bit about your background and what brought you to this point. If you’re watching or listening to this episode of the deal flow show, you can get additional episodes, subscribe for the future episodes@thedealflowshow.com. So let’s go look back a little bit. You, you joined the man or were a part of the formation of the band early on. Was there anything prior to that that seems to have set the stage for what you do now? Or were there any things that you learned early in the career with the band that given you, maybe some of the arsenal of skill sets that you need to be involved in the deal flow process now?

Howie Dorough:

Well, I think, you know, for me as a little kid, um, math was always my favorite subject. Um, I just always loved numbers and coincidence. My brother, he’s so great with numbers as well. And I think like we were talking about, you know, I think being, uh, around our father, uh, who was probably one of the now thinking back on it is probably the biggest mentor, if not my brother for me. Um, but just seeing how he was, uh, just the, the American dream. He, he was a police officer, but he also had two other side jobs working security at the local bank in Orlando and just doing whatever he could just to provide for a family of five kids. And he always would, he was just, he worked at, he was a hustler. He, the, a little bit of money that he would get, like, like Johnny was saying he would, you know, tie it into another real estate house on a block.

And at one point we had believer not like half of our block on one side of the neighborhood. That was just, I couldn’t believe my dad just worked so hard and he just, he just had that mind to go get her in this to try to, just, to, to keep on building. And, uh, so he, he, you know, I think that’s where we’ve developed. The passion was from him starting that, uh, and just wanting to, you know, do the real estate stuff, but even as well, that I think that just made me instill in me the little bit of the businessman that I’ve become actually to a point where the guys believe in are in the group. When we decided to elect officers of our company, they all voted me, the president of, uh, of our back street, uh, KB, NHA, uh, our company. And, um, cause they knew that when it came to working on deals, talking with our managers or our promoters, our agents, uh, putting together the, the, the, the stage, uh, the production, uh, all the budgets, I was always wanting to be hands on.

Um, I learned, uh, many years ago when I was joking earlier about this being a show business I learned from a great person. Um, he was one of the final, uh, last remaining members of the, uh, the temptations. Uh, I’m sorry, the OJS, uh, we did a concert with them and, and, uh, in central Florida area at the fairgrounds, and I’ll never forget, he, you know, before going on stage, he’s like, I want to give you guys some advice. He’s like, you gotta understand this is, this is two words to this, what you’re doing, it’s called show business. And he’s like, you know, you always got to treat them both equally. He says, because if you’re just focusing on your show, somebody can be taken off with your business. And I’ll never forget that wasn’t the best advice that I ever got. Because a lot of times, especially artists, a lot of times, they just, they focus on their craft and they don’t want to get bothered by all the business.

And then they look back like, you know, 10 years later, well, where’d all my money. Go know why did I, why am I not, you know, economically much better off than I am now. So that always, you know, kind of made me want to be a part of the business. And then from that, you know, just being hands on within the Backstreet, in our company, it was just a very easy tie, uh, to, to, you know, parlay into the real estate because it’s very, in some aspects it’s, it’s business, it’s still know, trying to make sure 

You’re keeping on your budgets, making sure something is worth your time and your efforts that the payoff is going to be, you know, you’re doing your due diligence and making sure that you’re, you know, so that way with the end of the project, you know, what you got yourself into and you’re, you’re happy with the final outcome. 

Paul Nicolini:

Did you have hands on if you were across the world somewhere, were you able to still connect with your brother and talk about the deals that you were involved in?

Howie Dorough:

And, um, we’ve been in touch, you know, where we talk pretty much almost on a daily basis. Um, I think our wives probably would be a little jealous. They think we’re a little closer with each other clear with them. Um, but, um, you know, even when, uh, before modern technology, we were always, you know, in communication over the phone or email, um, have him come out, he’s experienced a lot of great experiences with me all around the world. And a lot of that was, uh, I had the excuse with my other brothers and sisters to be able to say, well, we have partly some businesses talk about, so that’s why it’s coming up. Right.

John Dorough:

And I would try to always, you know, keep him involved and everything because, you know, he’s, he, he’s the main partner on this whole thing. And, and, um, I think his input is input that, um, that he has from being this international star and everything is, is, um, you know, Gibbs a lot to what he sees out there and everything to implement it in some of the things that we’re doing. And, um, he’s got a great eye on when, you know, from going into different places and stuff like this, um, from hotels and just all kinds of the architectural differences of how much he actually sees in his life and what he saw, it’s all his life that, um, and how much, some of that, um, that we actually can put into these projects that we’re doing.

JP Maroney:

Yeah. That’s a good point. I want to talk a little bit about the deal, a due diligence process, because you mentioned that just a moment ago. So we’ll talk about in just a moment, if you’re watching or listening to this episode of the deal flow show, you can get access to our archives as well as subscriber, follow us for future episodes of the deal flow show@thedealflowshow.com. Uh, we’re joined today by John Doro and Howard Doro hallway from the Backstreet boys. No big secret there, but talk a little bit about that due diligence process, because the devil’s in the details, right? What is y’alls process that y’all walked through in evaluating partnerships of the flag you’re going to put up, you know, all this different things, a lot of moving parts, as you talked about early on, 

John Dorough:

That’s a, that’s a, you know, that’s could be another whole show and everything, but the due diligence is a huge thing. Um, the market analysis, you know, that has to, it has to work. If it doesn’t, then you got to go.

To look at some different or just pass on it. Um, you know, whether it’s, um, do any hotel and making sure that that hotel can get the capacity in the ADR that we need. Um, average daily rate, um, is a big part of, you know, whether you can do that or not. Um, you know, the, you know, whether how many units or something you can put in a building, um, also, um, based off the zoning and, um, and just so many different things when in our, like we said before, when it comes to our due diligence, We love water. So, So it’s either we want to see water or we want to be on the water. We want to be in the water, one of the other. So, um, so it’s, that’s got a lot to do with what we do and then having the right people around you, um, to, you know, having our religious, to make sure that she can sell these units, you know, at this price range that we’re, that we need to get, you know, from us doing our financials on this and everything, um, is a big part of it. Um, you know, our hotels that we do or by the port, you know, we know that as long as this port is going to be there, the hotel where we’re at and everything, we actually have the closest hotel to the port and stuff. So that’s what we’ve always kind of ran with that, but that meant, that meant a lot. 

And I remember when I first saw that piece of property, I was like, this thing’s for sale. We’re getting, we need to get this property. It’s going to, it’s going to explode over here eventually. And at that point, I think we were like fourth, uh, when it comes to the port, uh, comes the people flowing through the port and the cargo and stuff. And now I think we’re on to, um, to Miami we’re second to Miami. So that meant a lot. Um, and then, you know, when it comes to our say our single family, um, it’s, you know, location, location, location, it really is. Um, we grew up in this downtown area, which was a great, um, great, um, area and everything. So, um, after we left that house and stuff, and my parents moved away, we bought up all the land we could around there to ensure enough they all were sold, you know, in, you know, as soon as we haven’t built, they were gone and stuff, same thing in our winter park areas where we do our single family. And that’s, so that’s a lot to do. Um, when it comes to, um, doing your homework before you actually do a project, which you have to do. So that, to me, that’s the number one thing. 

Paul Nicolini:

Did you talk about, uh, surrounding yourself with the right people being that you guys generally do? Um, projects locally, are you using the same subcontractors for all your deals?

John Dorough:

Most of it, yeah. Yeah. Not always some people, some of them retire. Right. You know, um, um, back in Oh eight when everything kind of took that crash and everything, a lot of them, you know, got out of the business and stuff. So back in, um, when did we start this last one? I think it was, um, about four years ago, um, four or five years ago, we actually had to bring in all new people and everything. And what helped us out with this is we are building Howard a house over in, um, in Bovard in getting to know different contractors, getting to know, you know, the new realtors and stuff like this, which we have. Um, Chris Burton is a great contractor here in Brevard County. Alissa Boyd was Sandelo Realty, um, which is a tour year. She’s just been doing an unbelievable job for us, Jackson, Kershner architects, you know, our engineers from girding, um, girding engineering is one of the biggest and the best around here, especially when you gotta do pilings, you know, cause when you do an, a project like this, it’s all about your foundation. Now it’s all about, and you know what, you’re building down there has got to perfect and everything before you can go up and stuff. So, and do an ocean front stuff or in hotels over here and being in this climate where we’re at, but the hurricanes and like this, it’s the number one thing, right?

JP Maroney:

We had an attorney on the show last week, I guess it was a contact of Paul’s and she was talking about then in the private equity space, there’s been quite a few of these guys that had PE funds that were mainly for new construction that because of the COVID and the opportunities that are coming up have shifted to distressed and re rehabbing and growing the asset there, the all have anything in the plans or is that completely off the table for y’all have, y’all looked at distressed, being able to go in and apply your magic to something that already is sitting there, but maybe needs, needs a facelift.

John Dorough:

You know, we’ve done some things when it comes to that. I don’t think, um, that’s really the way we actually do things. Luckily we have a Backstreet boy. So when it comes to a lot of this kind of things, when, and especially when it comes to the financing part of it, um, there are some properties that, that we would, um, that we actually got into whether they were, um, distressed assets and things like this, but, um, or foreclosures and Darlene, Darlene was one that we actually bought this house, beautiful house over there, off the Butler chain in Orlando. If anyone knows that area, that’s where, you know, it’s just a desirable area. And, um, we, um, right, this happened in 2010, we actually got that one. And that was one of the first projects that we’d done since Oh eight crash. And it was totally distressed and everything, but, um, when it comes to that financing, um, Howard Backstreet, wasn’t doing all that bad. They still were just kicking it out and everything. So, uh, we’ve been able to sell finance, um, a lot of these different single family specially and, um, and we would go in there and we totally took a 6,000 square foot home. And that was in, it was gutted, you know, somebody got out of this whole thing, gutted it out and we just came in there, you know, and just put it all back together and made it better than what it ever was and did very, very well on it. So that’s been,

JP Maroney:

Where do you all see the market over the next 24 to 36 months as a result of some of this, um, being effected, especially the areas you operate in.  

John Dorough:

So I think when it comes to single family, I think the market’s not going to, I think it’s in ACCE, we’ve seen it actually increase, uh, when it comes to the condominium stuff, the multifamily stuff it’s done very well for us, if we’re already, um, you know, have all our presales that we need and stuff. So, um, that’s actually been doing really well where I believe that we’re going to see a, a difficult time is hospitality and stuff, hospitality loans, and all that kind of stuff, because hotels are struggling. Hotels are very much struggling and stuff. So, and we, we plan on doing another hotel, um, right over here, um, in front of the hotel that we have now, the country and the suites. Um, luckily, um, we’re still a little ways out before we would actually need to get into faint anything. And we’ve been having a lot of people come to us that want to go ahead and see your track record and want to go ahead and do projects with you. So I think a lot of that’s got to do with the experience you have behind it. And, um, and when you do something like a hotel, which takes a good two years, you know, we do believe that by the time he gets there, we should ramp up pretty quick and stuff in our hotel that we were at, um, at the country and sweets before the COVID we’re at 95% occupancy, it was just ridiculous

Paul Nicolini:

Because of the pandemic, the cruise lines, obviously aren’t operating, so that’s got to hurt right now, doesn’t it? Absolutely. Yes. Especially all in and around the port. Yeah.

John Dorough:

Cruise line is really taking a toll. We still hold our own, especially on the weekends, um, um, because of the location and everything. But once we get this cruise lines back in and start flowing, we should see our occupancies start going up to the 60% and that kind of rain 60 on up. And usually you, you usually, um, break even around 50%. Yeah. 

Paul Nicolini:

Where’s your, where do you where’s I guess the most interest for you, it’s kind of like picking one of your children, I’m sure. But either residential or hospitality or multifamily, or where do you guys see that really has the most interest for you?

Howie Dorough:

I mean, I think majority of our stuff has been in the multi-families in the condominium buildings, but believe it or not. Um, one of my favorite projects over the years that we’ve done is the country and the suites, our first hotel, which has, what is it, 170, 150, 151 rooms. Um, because most of the condo projects, they’re fun. They’re very, very creative, but we’re in and out, right. Uh, and the hotel actually is something that, you know, even though we don’t have as much hands on, cause obviously we there’s a cookie cutter format with the design and everything versus the individual franchise versus the multi-families, we’re able to, you know, have a bit more of the hands on, in the design of the building to working with the architects and the engineers and working with the interior decorators. Um, but the, the hotels to me are, are, are fun because I, I just, it’s something we’re still a part of that. And that one we’ve been into what, like 15 years, probably the country and suites and it’s doing great. Like I say, it’s, and that’s something that, where I see longterm money coming. That’s something that my kids will eventually take on with them and hopefully still pay for their lifestyle.

John Dorough:

No, I like, I actually liked the multifamily, you know, it’s, um, it’s, you know, there’s, there’s so much involved before Eric, before it actually break ground. And, um, and you deal with a lot more people, right? Because you have to deal with deal with all the in end users and everything in each one of these units are kind of customized to them. So you’re constantly dealing with all of them. You’re dealing with the contract, you’re dealing with the engineers, you’re dealing with the subs. You know, there’s a lot more people that you’re dealing with, you know, doing our weekly meetings that we do, which I always enjoyed see how, how things are progressing and stuff. Um, so I, I actually like, um, the single, the single family also, but the multifamily to me, just, I get to see so many different avenues of it and stuff. So I enjoyed that. 

JP Maroney:

You mentioned two aspects. One is the financing, um, having a name and rights and recognition has helped. Has there ever been a case where being in the entertainment industry, people look at you in a certain way and you go to the deal table for something like this, has that ever hurt? Has it ever been sabotaged and opportunity?

Howie Dorough:

You know, it’s interesting because I think a lot of people believe it or not still don’t know that one of the Backstreet boys is into real estate. It’s still, you know, for, I’m still kind of constantly knocking on the door, letting people know about it and getting out there here and there. I, I’d never boast about it. It’s never something that, you know, unless it naturally has the opportunity or the chance for me to talk about it, I really don’t go out of my way. Um, but, um, it’s, it’s, uh, you know, there’s, there’s definitely been, you know, I think more so in the music career, um, for like back in the early days of, you know, young guys being jealous of us because of their girlfriends, maybe liking us a little bit more, um, maybe then a little more, but I find that believer not in the business aspects and it’s opened up the doors more so on the other, totally on the other spectrum. Um, I don’t know what it is. I don’t know if it’s sometimes in the, uh, the business world. Sometimes people just want to have that warm little fuzzy feeling, whether it’s cause their kids liked us or their wives or, or just the fact that they just want to be able to put their name in association with the brand and that we had created over the years. Um, so believe it or not, it’s actually helped, um, in our, in our situation to have the, the history that we’ve had as a Group.

JP Maroney:

Yeah. You keep doing that by the way, mr. Irish, over here,

Howie Dorough:

I’m very blessed. I’m very grateful.

JP Maroney:

I appreciate that because a lot of people, you said show business to have longevity as a group is a true Testament to not just your ability to turn out good music, but to be able to do good business. And so that’s obviously important, but y’all do have a new album. Let’s talk a little bit about that, but talk about the comparison over how many years now, 27 years, 27 years, the difference between this album and the first and, uh, give us a little insight. 

Howie Dorough:

There’s a lot of history that’s happened between those 27 years of the first album. I mean, I first got in the group when I was 19 years old. Um, I was so bright eyed, bushy tail, um, and to this whole thing, um, you know, I, you know, coming out of Orlando, Florida trying to break in the business at a young age. And I decided at the age of like seven years old that I wanted to be an entertainer. And I went through, you know, just coming out of Orlando and obviously Orlando not being New York or California, you know, just trying to do a little bit of everything you could just to get your name out there. So I would sing dance act. You know, I had so many close things, I got close to being in part, uh, one at one point, uh, close to me in a group called menudo, which Ricky Martin was really famous for him. 

Um, and I also got very close to being in Mickey mouse club, uh, when they refranchising the whole brand again later on. Um, and it’s one of those things that I just, I constantly just kept on pushing, pushing, pushing, you know, uh, just trying to get my name out there. And, um, you know, I’ve been blessed that, you know, I, I was, you know, all, all the cards in the stars, you know, all aligned for me to, to, to have this lottery ticket that I got and, you know, starting the Backstreet boys at 19 years old, that was my, my big break for me. Uh, never knew exactly where it was going to go. If it was just going to be like a one hit, wonder exactly one record. If we were going to blast, you know, hopefully get signed for a record deal. And next year we got signed and we just were very blessed.

I mean, we’re now, uh, uh, 10 records strong. Um, but our first record we were, so, you know, what behind the ears with knowing, you know, what we were getting ourselves into, we were just young kids. I mean, a lot of us had, you know, it was like our biggest break. Some of the guys hadn’t even been in the industry to the guys, Kevin and Brian, they were from Kentucky. And Brian literally got picked right out of his high school, 11th grade, his older cousin, Kevin, who was part of the group said, Hey, we’re looking for a fifth member, come on down to Florida. He just got picked right out of Kentucky. Did they come alone or with their families at that point? Cause it was a major risk right to take. Yeah, no, actually they came alone and Kevin was Brian’s older cousin. So at one point the three of us shared an apartment together and two other, the two other youngest, Nick and Asia had their parents who they were here in central Florida.

Um, but like I said, starting that first record, it was, uh, those first couple of years I say were probably some of the, the most memories, the most enjoyable times I remember having, um, cause as a kid, you know, I, unless I thought I was going to be joining the military, I didn’t think ever get a chance to travel the world, like what we did. And, uh, I had seen some of the first things ever in my life and some of the first experiences and it was, it was a lot of great fun times. Uh, we were all young single guys, um, you know, and that I think brought a whole, you know, fun, youthful dynamic to it. Um, from that time to now, obviously life has changed. We’ve all grown. Uh, each of us now we’re married and have kids. So now when it goes into making a record or our tour, It’s a whole different process. Uh, first of all,

We’re not singing anymore about trying to get the girls in the clubs or anything like that. Or, you know, when our adult man, we have kids, you know, you were in our forties. Uh, so the subject has changed a little bit. Um, but also, you know, our lifestyles have changed. Um, now when it comes to making a tour or making a record, you know, it’s not just the five of us that we’re thinking of, just our schedules, it’s the five of us plus our families. And so that adds a whole new dynamic. And um, so, you know, we, I think we’re now we’re very blessed that we’ve afforded ourselves to not have to grind and just constantly go, go, go. We, now that we’ve been blessed with this many years of success, we’re allowed to take a little bit more of a, you know, a seatback and work out our schedules, what works good for you?

Uh, obviously there’s school, that’s involved with kids and, and some of the West coast and East coast, you know, there’s different summer vacations starting at different times. Spring break started at different times. So we’re all we all try to really communicate. That’s the biggest thing. I think that’s one of the biggest reasons, hopefully God willing besides of the music and the, the, the hits that we’ve had, that we’ve been able to stay together for so long, uh, because of the power of our fans, just supporting us and the power of us communicating and realizing what’s the enough factor for everybody. Um, cause what might be enough for me might be totally different than what might be enough for somebody else within the group. And each of us have different work levels of, you know, some of us just want to still go nonstop and hit it while we can while we’re, you know, especially with this new, uh, second resurgence of us with this DNA album and having the, a number one record again, first time in a couple of years.

Um, so some of us, you know, are more like wanting to let’s go, go, go. And some of us were like, Hey, you know, I don’t want to sit back a little bit, um, and just enjoy. And the, the, the benefits that we’ve been able to provide. Um, but it’s really actually taught me a lot about, you know, worth working with my band of brothers. Uh, it’s really helped me actually as well, to work with my own brother, uh, to realize that, you know, you, your partners, your, your team and people who you surround yourself, like Johnny always says, um, is very, very important. And I’m blessed that I have had, you know, four other guys within my group that I’ve, we actually like each other. Um, you know, we have our moments, we have our ups and downs. Partnerships.

Totally, absolutely. But it’s been able to help me to work with my brother on a different, totally different level of just, you know, family get togethers. Um, it’s brought us, I think, even closer. Um, then, you know, sometimes in the rest of my brothers, my sisters, um, and, uh, but it’s, it’s, it’s, it’s really, I’ve, I’ve just grown so much. And I, I definitely credit the guys for helping me to grow into, to make me almost, I say more

JP Maroney:

Anybody in the industry. And I’m going to ask both of you this question, but for you, anybody in the industry, as you’ve built your career, that you looked at them and said, that’s the consummate deal maker. Like, and if so, what were the characteristics or skills when you think about that person, if you had to make a list, like what was it that made them so successful at what they were doing in that process?

Howie Dorough:

You want to go first Johny?

John Dorough:

Um, I actually, um, I’ve always watched what goes on in the, the area that we, that we work in and everything like this. And then I’ve, um, the actual one of my mentors also, it was Charlie boy in boy construction. And, um, when we were doing our stuff with, um, a, um, contractor named Larkin here locally, um, we were always watching what he was doing. Um, Charlie boy construction stuff, and we competed with each other and stuff. Um, then the, you know, the 2000, um, you know, like I said, eight came through and then, um, then we started back up and Alarcon wasn’t a business anymore and sure enough, um, I got to meet Charlie and everything through Alyssa, which is our realtor, which is, it was her father. Um, unfortunately Charlie passed away a couple months ago. And, um, so, um, that was very disheartening and, um, but you know, he was, um, I love following his work and looking at, you know, how he, how he was doing things and it just admired his construction. 

JP Maroney:

What was it? What if you, is there a, can you encapsulate it, like when

John Dorough:

He seemed to know how to capitalize on every bit of space in that unit, which means a lot to me, I try to do the same thing. He was very unique on, um, the way he did, um, the way he did that and stuff. And, you know, whether it’s just from a niche, you know, um, you know, in showers and stuff, which really wasn’t done until probably within the last, you know, 10 years and stuff, um, as much as you see it, um, now it’s just about every bathroom has got to have a niche in it and stuff, um, you know, to where, um, different, like another niche and a wall for a statue or the lighting that he does and how he, you know, really makes illuminates a unit based off just, you know, the can lighting’s or something like this in there and stuff. So I’m going through a lot of his watching, a lot of his stuff as we were going through our buildings and everything really, I admired it and everything. So emulating somebody that you, you see does good work and you want to yeah. Yep.

Paul Nicolini:

So emulating somebody that you, you see does good work and you want to yeah.

Howie Dorough:

I think for me, it’s interesting because I’m always fascinated to be around people who are successful and, and have, you know, a mind that just wants to not just settle. Um, cause I think a lot of times in the music industry, it is easy to say, okay, well, I’m just going to do my job and this is what I do and that’s it. But I think there’s, you know, with me being, um, the mindset that I am, this the music industry is, is just a creative outlet. And so I’ve been able to take that into like doing what we do now. It’s just, it’s, it’s just, it’s, it’s another project. And so I really admire other artists who have done, uh, you know, um, some great people I’ve met over the years that have not only taken their music, but like partly their success into other ventures. Uh, they write from like Lionel Richie and Steven Tyler, um, Elton John, uh, Ryan Seacrest, I think is a great person.

Who’s, you know, taking, you know, somebody who’s was just a local DJ in Georgia and took his company to multimillion dollar company now and then just branched out. And I, I love seeing people who, who are never just, you know, complacent just always are looking to, you know, how can we, you know, especially in the music industry now, it’s like, you’re constantly trying to re your it’s not the same when it was back in the days, because back in the day his records were being sold. Um, and nowadays it’s, it’s a lot of times a lot of downloads and stuff like that. And, you know, so you have to figure ways of making your money in different outlets than what it was in the past. And so a lot of people are also getting an adventurous and saying, okay, well, how can I get into corporate, like sponsorships?

Or how can I get into, you know, instead of just sponsorships, how about a percentage of that instead, uh, for the longterm, you know, investment feature ideas of, uh, something that you might believe in, whether it’s a product that’s just coming out on the market. I mean, even within the Backstreet boys, we’re, we’re still branding ourselves in other aspects, even, you know, to a point where we’re still then thinking about a, possibly an alcohol beverage that we’re going to eventually tie our names to and just, you know, and also food products and stuff like that. It’s like, you know, it’s definitely thinking outside of that. 

JP Maroney:

Well, you’re talking about people who parlayed that Jimmy buffet, you know, another great example. And it was interesting. Cause if you go into, we were staying down at the Margaritaville in Hollywood, great place two or three months, maybe. Well before coach with three months before COVID and I looked out and there was a land shark bar and I had not done any background and research on, and I started reading about it and the daily had with Corona early on, and then how he transitioned into created his own beer brand to be able to come out with land chart. But it was funny because both of you actually gave the same answer, but in a different way, it’s all about looking at everything and maximizing the opportunity, right? So it’s finding those, maximizing the space, maximizing the relationships, maximizing the opportunities, which is really very exciting. Um, we’ll come back to that in just a moment. If you’re watching or listening to this episode of the deal flow show, you can get access to our archives as, as future episodes, follow us, subscribe@thedealflowshow.com pulley on the Euro itch. 

Paul Nicolini:

No, well, I was, I wanted to say what a Testament to the Backstreet boys, yourself, for that many years to stay together as a group and to respect each other, check there, check your egos, right? Cause otherwise the new music business, how many times do you see bands that that could have made it for 25 years? That couldn’t stay?

Howie Dorough:

Absolutely. I mean, we were definitely it’s public knowledge. We were not, we didn’t grow up together obviously besides Kevin and Brian who are cousins from Kentucky. Um, I did know AIJ actually who’s, uh, coming up, uh, gonna be on dancing with the stars. So we’re all really proud of him written for him on that. Um, but, um, I did know him a little bit from their Lando entertainment, uh, scene, just an auditions and stuff like that. Um, but we were put together and you know, that’s not always the, the recipe for the easiest success. Um, like I said, we didn’t grow up each other. We didn’t, you know, practice in a garage even though we’d practice eventually in a garage at the band house, but like we weren’t, you know, having our parents help us out and, you know, um, but with that, you know, we had to really learn to, uh, learn, to get, get along to bond with each other really quickly because, uh, you know, once we got together within, I’d say six to eight months, we were traveling overseas and I got a record deal. 

Uh, actually, no, I’m sorry. Before I go on overseas, we were on a bus and the States traveling all across America, going to high schools and middle schools performing for kids that didn’t know who we were. Um, didn’t probably really want to know who we were. Um, but they were forced to go into assemblies to listen to a bunch of boys jumping around singing and dancing. Um, but we did, we developed a bond and there was times w you know, we could have easily gone our separate ways. I mean, it’s public knowledge. We had lawsuits, uh, with previous management, a record label. Um, we’ve had some internal issues. Uh, but we, you know, I just, I’m very blessed because it could have gone easily. Like a lot of other groups, like you said, that just said, you know what? I don’t want to do this. 

This is not for me. My, you know, my opinion, even when Kevin actually took a break for a second, he just, and it wasn’t like a bad break or anything like that. He just decided he wanted to do something different. And the rest of us could have easily said, you know what we’re done. You know, we’ve had a good run of this, but the four of us, you know, kept on going. We held that torching and kept on, you know, running to the finish line as long as fast as we hit the two albums little dude. Yes, we did two albums without him. And, um, always kept the door open for him. And when he came back, it was, you know, it was always, we were meant to be as the five of us. We, you know, we were suggested to replace him by management, by record labels them. We just always felt I wasn’t, you know, the bond wouldn’t be the same, you know, was having a new member coming in, filling in for Kevin. So instead I just took it the rest of his parts. Um, but it definitely.

Paul Nicolini:

Thought the money was commensurate. 

Howie Dorough:

My nightly rate didn’t go up, unfortunately. Um, but it definitely did, uh, really educate me on realizing, cause I didn’t grow up in the, you know, all American boy who played sports and was in the team, uh, you know, realm of like hanging with a bunch of guys. And that, that, even that, that just the, the, the, the feeling of being able to, um, have somebody criticize you and not take it personally, I didn’t have that. So that was probably, for me, the hardest struggle I had to learn was to be able to be like, wow, why are they like busting my chops? You know, I don’t get it. I’m not busting their chops and stuff, but then you learn that friendly, you know, locker room kind of get a little bit exactly. Right. And so that actually really did help me develop a thick skin to where, when I got, you know, working with my brother and I think it made it easier for us to be able to create a business relationship and to be able to go into negotiations or being able to go into situations where we’re going to be, it’s going to be a little uncomfortable, bro. We’re going to go into this negotiation talk right now. And, you know, I understand if you’re going to probably stay quiet for a few things and immediate talk on behalf of us, but you know, I might get a little bit hairy, but it’s okay. We’re going to get through this. And it’s part of negotiating. It’s part of business. 

JP Maroney:

We’ve talked about business, we’ve talked about show business. Let’s talk a little bit about the foundation because we’re obviously big believers. I live by a philosophy. The more you give, the more you get. And I think that there’s opportunities also, we can ultimately give back and we find interest outside of business. Can you all talk a little bit about that? The history and the background behind the foundation? Yeah.

Howie Dorough:

Yes. I’m very proud to say that my family, we have created over the years, the Douro, uh, lupus foundation and, um, it’s a memory of a sister that I lost to lupus back in 98. Her name was Caroline. And, um, it was a disease that took a really quickly from us, even though she had it for, I think over 10, 12 years maybe. Um, but it came about really drastically when she passed away. I’ll never forget. Um, I was with my brother in California and we had just received our first MTV music award, uh, back in 98. And it was probably the, the biggest award that we had ever received in our Homeland. Cause we had, most of our success came internationally. Believe it or not. A lot of people don’t know this. We start over in Europe first. And, uh, and, and like I say, in 94 and made success all around the rest of the world before America finally accepted us.

So this was a big night for me to receive our first award in America, our Homeland. And I’ll never forget. My brother told me that he got a call from my dad and that my sister, uh, had to go to the hospital and that, um, he didn’t want my brother really to alarm, you know, to worry me too much. He wanted me to night. He didn’t want me to take away from this glorious moment that I was having. Um, but my brother being my brother, he, uh, you know, couldn’t let that, you know, he knows that, you know, for me, I need to know things. Um, so he told me and he said he was gonna go see her the next day. Um, and uh, he says, I’ll let you know if it’s, if it’s enough where you should be coming to see us as well. 

And, uh, so I went through that next day. And then the following night, I got a call in the middle of the night were saying, you need to get on a plane the next morning, as soon as possible. And, um, I went to see her and unfortunately had already passed away at that time. Uh, but we decided at the time, um, our fans, this is probably like me say probably at the height of our career, if not right, uh, right before. But it was, it was enough where we had a huge fan following fan base around the world. Um, they kept on sending so many flowers to our house and our house turned into like a floor shop. And so we decided, you know, we were very, very grateful for the outpour from the fans, but we, we tried, we were trying to figure out how can we turn this negative into a positive situation?

And so the local hospital, Orlando, uh, Florida hospital, uh, reached out to us, uh, and said, you know, if you’re interested, we can definitely help you. Because I think at the time we wanted to give, we were giving money to that hospital because it was the closest hospital to us, but they didn’t really truly have a lupus research center, but they said we could help you, uh, to turn this into something of maybe creating your own foundation. I would have never thought that I would have my own foundation, but it just, it felt right at the time. Um, I was able to Parley and use my statuses, the success of the group and to having those opportunities to grow, uh, to have media asked me, you know, about this on hush hush disease, it really was at that time was really, really harsh. And it’s now become way more on the map. 

Um, but at the time nobody knew about it. Nobody knew how you got it or how the people live with it, who had it. And, um, so I’m very proud that we were able to raise a lot of money at the time we were given most of our money to UCLA research center. And at one point we were gay. We gave a check to them over a half a million dollars that we had raised. And, uh, it was, it was, it was definitely, I give credit to all of our fans. Um, it was a, you know, a, a F fan club slash charity. Um, they want to just support me in whatever they could and they knew I was putting on, you know, charity concerts. I was doing anything we could, we would do a family cruise, anything I could do outside of the Backstreet boys, just to create an opportunity for my fans to come and be with me.

And they were just gracious enough to want to pay, to come out and give donations and stuff like that. And so we did very well. Um, you know, it’s, it was, it was, we had a great run with it at the time. Unfortunately, the, uh, once we got to a point where the market crashed, our fans could barely, uh, let alone buy our own records, decided to really constantly contribute. So we’ve at this point, uh, the doors have been closed on it, but we still have the, what is it? A four Oh one C five Oh one [inaudible]. And um, so one day possibly, you know, when the timing’s right, if we open the doors, I would be glad to, in the meantime, I’ve been giving a lot of my time

And efforts for lupus, uh, to, uh, lupus LA, which is, uh, a foundation out in California that I was a part of their first event that they ever did and have been supporting them ever since, as well as I do. I try to do what I can here locally in town. Uh, I’m a part of the Kings, uh, board, uh, the King center. And, uh, I try to do whatever I can to just give back, you know, here and there and when I can, uh, cause you know, I’ve been really blessed. And so for me, it’s about giving back when you can.

JP Maroney:

Absolutely. If you’re watching or listening to this episode of the deal flow show, you can get access to our archives and a subscriber, follow us for future episodes at the deal flow, show.com, any business activities outside of the work that you all do that others wouldn’t know about that you’d like to talk about. Any other projects or things that y’all are working on.

John Dorough:

Yeah on our own homes. It seems like never stop having a project going on there. 

Paul Nicolini:

That’s called the honeydew list.

JP Maroney:

What about the, what about the next project? That’s now on the horizon for Dorough Brothers? 

John Dorough:

We have to surf, which is a great, um, give us, give us some details on the survey. Okay. Yeah, I’m sure it’s, it’s 25, um, condominium units. Um, and plus we have three bays of retail. This is one thing about the uniqueness of this building that I really like is this is the first time we’ve ever done. Um, multi-family with retail on the bottom and stuff. So that’s just to deal with the whole association thing, the stuff it’s been a different animal to us. Um, but, um, it ends up being a unbelievable, um, project for us to do. We’re very, very proud of it. Um, and um, we look forward to actually really bring in some good, um, retail, um, whether it’s a restaurant or I don’t know, it could be a massage, um, or whatever it could mean that does retail spots in this a great, great location.

They have to drive by it. There’s people walking up and down there on the beach all the time. So, um, we’re really looking forward to that project. So that’s, I’m the one that’s in the horizon, the most recent riser at this point. Plus we have, um, these, um, townhomes that are across the street from Floris Del Acosta that, um, we just finished and everything last year that we’re looking at I’m going ahead and building them up and possibly do and bro be with it and just keeping them within, um, our company. Um, we also have, um, the hotel in front of the country and in suites at the port there that we’re looking at doing another hundred and 50 rooms it’s gotta be. And that’s, that’s what the city requires a minimum of 150 rooms in that area. Um, and then, um, there’s another property that we have in Titusville that we’re looking at doing some more condominiums and those are going to be more of a river view in the best view of the launches going up from the Cape right there. We have a great piece of property or in a couple of single family homes there also in that project have 50 condominiums. So we’ve got about $60 million with the projects. 

JP Maroney:

Yeah. So just spare time work. Um, we have obviously a diverse audience that watches and listens to the deal flow show. What kind of people would, y’all like to hear from our people that might want to do projects with you or my, what are the kinds of folks that you’re looking for to continue to grow your business? 

Howie Dorough:

Well, I’ve always told Johnny I, I see that we’re still breaking ground with a company. I actually see this company getting bigger and larger and taking on more projects. Um, even outside of the realm of what, how we can bring to the table, finance wise with Backstreet and getting loans and everything. I would love ideally, to get more like a nest pool of, of, uh, finance, financial people who are willing to come and raise capital outside of, of your own doing exactly and be able to take our projects instead of just, you know, doing what are limits of what we have financially be able to take on more projects and multi projects that one

John Dorough:

Maybe down the road, exit strategy, if somebody buy us out, you know, as a company and everything. So all those things are still there. You know, we’re all star. And so we are definitely looking for those kinds of capital to come in and I’m in work with us as a partnership. Or like I said, possibly can buy us out one day. 

JP Maroney:

That’s interesting because y’all have done mostly just debt yourself, right. Bank financing for personal yeah. Not tapped into the capital markets at all. Yeah. That was why actually poly joined the team at Harbor city, capital 25 years in the broker dealer community as a broker and Harbor city, our bonds we’ve issued four rounds. We’re in our fifth round right now, raising direct from retail investors. But the six round that’s coming is going to that broker dealer community. So we’re as a company, we’re just now moving into that space and he’s spearheading a lot of that with his team. So, um, we’ll definitely want to connect you with some folks that we’ve already had on the show and that we know yeah. 

John Dorough:

A little check to say I’m with the country and his suites. We have ventured just a little bit outside of that. We went to the insurance company with the highway national, um, to where they actually, um, um, do, um, the actual longterm loan on that one. And then we have a partner as well on that one. And then we have, um, um, kit Oliver who’s with the Oliver group. And, um, they were, they, he actually partnered with us on that one to bring pretty much half the capital. He’s got 50% ownership. Yeah.

JP Maroney:

Very interesting. What’s the best way for folks to get in touch with you all’s company?

John Dorough:

Pretty much the website, um, DOR brothers.com. And in that, in there, it has our contacts and everything to emails to get ahold of us. Yes. And for backstory, they can contact my management if they need,

Paul Nicolini:

Just cause I’m curious. So, so collectively through the years, how many albums have you guys sold? 

Howie Dorough:

Uh, well the last big number that they’ve said, and it’s, it’s grown since then, but I don’t know where it is, but the last number that was out there was 130 million records. Wow. And that was a while. That was a while. Yeah. Millennium and then black and blue. So we’ve done that since then.

Paul Nicolini:

Obviously after the pandemic, are you guys going on tour with a new album?

Howie Dorough:

 Actually we’re right in the midst of a world tour. Uh, we had started, uh, last may and Europe and then did the whole summer and the here in the States and in Canada, um, all arenas and stadiums. Um, and then we, uh, whenever to Southeast Asia, uh, Japan and last fall, and then this past, uh, February, March, we were over in South America, pretty much got through the whole tour. So for the very last show we had to cancel. Um, and, uh, so Paulo, Brazil. Um, so we definitely, we had plans. We were supposed to be this past April and the summer in New Zealand, Australia and America again, the second run. So that’s all been pushed to next year. So next April I’ll be back, hopefully God willing, uh, back over and New Zealand, Australia and back here in the summertime. 

JP Maroney:

Yeah. Y’all have to y’all weren’t the first to see, um, whether you call it a struggle, but you saw your early success overseas and know obviously, uh, Jimmy Hendricks, same thing, right. How to go to London to get famous, but, um, to be received. But do you feel like I’ve come full circle now? Cause a lot of this touring is overseas.

Howie Dorough:

Oh definitely. I mean a lot, a majority of it. We’ve that’s one thing that I’m very proud of is that, you know, a lot of times people are like, wow, they didn’t even know that we started over in Germany. We were there for three years. We date in German girlfriends cause we were never home. Uh, we have, we had, we had German girlfriends, we were never back home. Um, but we got our success overseas at first and it was truly the grassroots approach we were over in Germany. Like I said, for three years, playing all the little Halas and going to all like the nook and cranny spots that, um, I think that’s what really truly created our foundation. That’s been able to give us sustained power to have success for this long because even at the times when finally America did catch on, um, just like most artists, you have that highs, but then eventually the, you know, you come down from the wave and still internationally has been our biggest market. 

They’ve supported us to a point, like I said, well, we’re still playing stadiums and certain countries. Uh, we have been blessed with the second resurgence of us here in America, uh, with this record and bringing us back to arenas again, which is really great. Uh, cause before that, you know, like most artists, we, we did the ups and downs. We went from, uh, doing arenas to back to theaters again. And uh, but you know, I really give credit to the fans supporting us, supporting us and not giving up on us that really fed us and gave us the energy to want to keep on doing this. 

John Dorough:

And a lot of people don’t know about the group is, um, they never really stopped. They were always going, but they were so big overseas, whether it’s in Asia or, um, you know, um, Europe and stuff like this that they just kept going. They just, you know, so there was never really a major hiatus time you took off. Right. And um, in, you know, I’ve heard so many from my friends and everything. Oh, you know, it’s great to see the sheet and you needed to came back thought, well, they really never left, but in there and they really haven’t had to promote so much cause their fan base is so big. It just fills up everything. Right. 

JP Maroney:

Yeah. That’s excellent. Anything that you all would like to give a shout out or any, you know, projects or information or anything that you would like to share with our audience before we finish? 

John Dorough:

Um, I would like to share some, a little bit of some of the people that are involved with this and what we’ve been doing. Like right now we have Chris Barton, um, with Burton homes, um, is to me is the best about the best builder here in our County, if not the, and um, we have, uh, like I said, Alyssa Boyd with the real estate Sandow reality, we have um, um, Jackson Kershner is the architects. If girding is engineered, we have, um, a lot, a bunch of different subs that they will be using. And we have our design team interior design team, which is, um, blue days design with Kathy and Joe over there. Yes. And Dale Cox, our CFO is another heart of our company. Um, he’s the CFO of the company and his RM CPA and everything. And he does he’s. He’s like I say, him and I work hand in hand most of the time and definitely one of definitely my right hand.

JP Maroney:

Well, I’m glad we finally got to a table together. Hopefully the next time we’ll have a couple of glasses of wine and a nice big steak. The team here. Absolutely. Once again, this is the deal flow show and this is my cohost, Paul Nicoline, John Dorough, Howard Dorough. Howie D [inaudible] what happens on the deal flow show stays in the depression. You can get access to our archives as well as subscribe and follow us@thedealflowshow.com. And also if you’re out there, they gave out their information for their website. Look forward to hearing from anyone that is interested in talking about projects or partnerships or things that you might work together. We’ll see you guys in another episode very, very soon. Take care, have a buddy for more episodes, visit the deal flow show dot com.

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