What is the difference between a capital markets broker and a loan broker?
Is main difference CM brokers source equity and not just debt?
[{"id": "i5u40an", "text": "Capital markets brokers generally sell equity in large deals.  If you built 200 apartment units, you can sell on the capital market to a person or group that just buys equity.  So you can sell 80% owner ship or all.  Or need financing for a large and complicated deal.  Capital markets buy debt.  \n\nLoan brokers find a buyer a loan for purchase or refinance.  Commercial or residential.", "replies": [{"id": "i5usws8", "text": "So main difference could you say (simplified) cap markets are larger deals and equity sources?\n\nEdit: bc if you sell all the equity\u2026 really that\u2019s what a regular CRE broker does anyway no?", "replies": [{"id": "i5yn90y", "text": "Capital Markets sell to debt buyers like the MBS market.  The debt goes into a portfolio that is sold to more investors like a REIT or EFT. \nLoan broker would sell directly to an investor that then packages the loan with others and it gets sold on the capital market.  \nSo normally, straight to capital market sales involves numbers that exceed individual purchase or refinance parameters. \n\nIf a property is worth up to $5 million, normally a loan broker can find an investor for that.  If it\u2019s $50 million your looking at a fund.  Because there are so little loans at that scale to package with, you go strait to the capital market.  \n\nIn the end, all loans wind up there.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i5u6dez", "text": "Capital markets brokers sell institutional-level deals and arrange the respective debt / equity for the client as a one-stop shop. \n\nThey can also do structured equity or debt or investment sales all separately.\n\nThere are also plenty of 'capital markets brokers' that simply have a debt guy in-house that quote debt for their investment sale listings.", "replies": [], "depth": 1}, {"id": "i5us5r0", "text": "\u201cCapital markets\u201d is just a way big firms try and sound smart, and is a blanket term for loan brokers, investment sales, and debt/equity placement groups.", "replies": [{"id": "i5vf993", "text": "Exactly. That\u2019s why I have it in my LinkedIn profile. At my brothers medical school graduation, my mom turns to the person next to her and says \u201cyou know my other son is in real estate capital markets\u201d.", "replies": [], "depth": 2}, {"id": "i5ymx1t", "text": "Ok, so a regular investment sales broker could say they\u2019re  in capital markets, even if they do that exclusively and not debt/equity placement and vice versa", "replies": [], "depth": 2}, {"id": "i5yy31d", "text": "What\u2019s the difference between loan broker and d/e placement groups?", "replies": [{"id": "i69zxhc", "text": "It is possible that d/e placement groups will be more sophisticated or offer more services (or not), but like was said above its just trying to sound smart. Like saying I work in debt placement at a capital markets shop versus saying I'm a mortgage broker.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i5we3le", "text": "Capital Markets is basically a very formal and cool phrase investment sale brokers use. It's meant to sound super sleek and cool. You don't want to ever tell anyone your a multifamily realtor. But Multifamily Capital Markets just sounds so sweet.", "replies": [{"id": "i5wib9f", "text": "But doesn't \"capital markets\" imply loan services which isn't part of a multifamily broker's wheelhouse.", "replies": [{"id": "i7rsg1g", "text": "Capital markets simply means placing capital to an asset. For an investment sales broker that means arranging a buyer on behalf of a seller. For a debt placement guy, it\u2019s lining up a lender for that buyer. For an equity placement guy (who\u2019s usually the same person as the debt guy) it\u2019s lining up an equity partner for the guy that\u2019s tied the deal up to get the loan", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i62pcno", "text": "Real Estate Capital Markets covers anyone who buys, sells or trades public and private debt and equity instruments on the secondary market.\n\nCommercial Loan brokers would generally be working in the private debt markets. Senior debt, Mezz, B-pieces etc..\n\nCapital placement (debt and equity) agents might play in all four quadrants especially if they are FINRA licensed and can trade securities.\n\nSecurities brokers who trade public or private REITs; Who, depending on their focus, might acquire public or private debt (MBS, CMBS and/or private non-securitized whole loan note portfolios etc..) or some REITs might acquire and own property portfolios, which are really equities. Note the REITs are actually in the capital markets space as well as the brokers trading their shares.\n\nGiven that, I couldn't tell you where your typical Investment Sales Broker folks see their place in all that except perhaps it does sound cool and smart as u/ConstantArmadillo780 says. Perhaps on the private equity side? But that's a stretch unless they are brokering LP secondaries tied to a property (maybe?).\n\nMaybe they are borrowing the accounting definition of buildings as Capital Goods and thinking since they are trading these \"Capital Goods\" they must be in the \"Capital Markets\".\n\nAll of this is very simplistic and only what I remember from my very smart European professor at that very expensive graduate school.", "replies": [{"id": "icexfv1", "text": "For the investment sales guys (\u201ccapital markets\u201d) they are basically finding equity (a buyer) for their seller client. Everything is property-level. Typically it ends there with the buyer tying up the deal and raising the equity from its investor base on their own during the due diligence window and finding the debt needed to close. If they can\u2019t - they drop the deal. Where I was going with investment sales being a sexy way of saying \u201ccapital markets\u201d is its 99% of the time property level. Doesn\u2019t matter if it\u2019s Cushman, CB, JLL, Eastdil, etc, it\u2019s all brokerage. Only one of those shops can take down corporate-level or true secondary capital market  trades and it\u2019s eastdil. The rest are (were) selling 3.0% cap apartment complexes and warehouses to institutional buyers (that are now on the sidelines) and collecting 50bps-80bps fees at close", "replies": [], "depth": 2}], "depth": 1}]