Land development loans are somewhat different than development loans for vertical developments such as office buildings. All of the following are true, but which statement highlights a key difference that is applicable only to land development loans?
a. Land development loans are funded over time via "draws"
b. Land development loans can experience principal paydowns before they are fully drawn
c. Land development loans require a market analysis as part of underwriting process
d. Land development loans are usually floating rate interest loans
e. Development is a risky business