To win these deals, you must have vetted, trusted cash buyers ready to close — ideally with multiple funding sources lined up.

Unless there is an HOA that takes care of everyones front yards.So just  like any rental the values will only follow the rental rates if rental rates dont go up teh value wont go up B/C no one looking to own a home will buy in these type of developments trust me this is true..

• At what point in your scaling journey did you find that having a formal entity (LLC, LP, or trust) became non-negotiable for both protection and ease of growing your portfolio?

That's an ENOURMOUS amount of trust to put in a stranger. 

Quote from @Dominic Mazzarella: I would ask this, when raising capital for a real estate syndication, what strategies have you found most effective for building trust and credibility with first-time passive investors?

Trust and clear communication are key!

It is impressive to hear that you're also a musician and songwriter.One thing I may recommend, if you haven't done so already, is to learn about Trusts and LLCs as you begin your real estate investment journey, either investing on your own or with partner investors.

U should have the seller sell to you on a All inclusive Deed of Trust or something similar

When it comes to REIT Stocks or Wholesaling, it may depend on how active you may want to be trying to make deals for a wholesale versus obtaining and growing funds through REITs.One thing I may recommend as you start your real estate journey, if you haven't done so already, is to learn about Trusts and LLCs.

One thing I’d add is communication with owners; keeping investors informed (without overwhelming them) is a big part of building trust and long-term relationships.