I use this property and another one as my business line of credit. 

He’s not a pushy salesman, and I’ve got a business partner who has worked with him for the last 10 years without any issues.As for your situation, I wouldn’t say it sounds like a Ponzi scheme, but I’d strongly recommend meeting with the fund sponsor in person and asking as many questions as you can.

Is the mid term rental business that you have a 'rental arbitrage' business?

The property that you sell and then purchase through a 1031 Exchange must be held for rental, investment (capital appreciation), or used in a business. 

Working this backwards, what I see is a 3rd party trying to benefit from another’s house via rental cashflow, My only business is 30+ years as probate estate and trust lending in CA.

The new people don't know and they are the business target.

as one who grew up in the land business brokering land in Napa Sonoma Lake Mendo and humbolt counties..

As far as LLC structures and tax strategies you should find a CPA who has experience with real estate and small business.  

Regarding finding discounted deals......That is the reason why I started a wholesaling business. 

The frequent travelers that like to do repeat business, cherish those basic things.