1. all else equal, is developing riskier than investing in existing assets ? true or false

2.which is unique to construction loans and rarely seen in other forms of commerical RE finance?

a. interest rates based on risk and underlying capital mkt factors

b. underwriting of both the property and the borrower

c. loans draws based on percentage of completion of the project

d. fixed rate of interest for the entire term of the loan

3.if a developer requires a 25% profit margin, what is the maximum they can pay for a parcel of land if total construciton and devlopmnetcosts are estimated at $7.5 million and the building is prokected to sell for $12.5 million?