Final answer:
The correct answer is option e. Dominic Martinez has invested in a Mortgage REIT, which derives income from interest on loans to real estate owners and is required to refrain from speculative, quick turnover real estate sales. This aligns with the characteristics of Mortgage REITs under federal regulations.
Step-by-step explanation:
The type of investment Dominic Martinez has made is one that derives income from interest on loans to real estate owners, and it acts like a mutual fund but specializes in the real estate sector. Given the characteristic that it refrains from engaging in speculative, short-term holding of real estate for quick profits, the type of investment in question is known as a Real Estate Investment Trust (REIT). Specifically, the investment type that fits the description provided by the question, focuses on providing loans versus owning the real estate directly, which classifies it as a Mortgage REIT.
A Mortgage REIT, or mREIT, provides financing for real estate by purchasing or originating mortgages and mortgage-backed securities and earning income from the interest on these financial assets. Unlike Equity REITs, which own and operate income-producing real estate, Mortgage REITs focus on the financing aspect and are required to comply with federal regulations that prohibit them from engaging in the speculative real estate selling for quick profits.
Therefore, the correct option for the type of investment Dominic has made is e. Mortgage REIT.