I’m the last person who should complain about grammar, but these are yellow flags, at best.

Attend in person, bid, if you win you have to pay right then via a cashiers check.

Quote from @Jeff Sanders: Personally coming from an agent/investor in CA, I always get a quote from a broker of mine and make sure I am knowledgeable with the fees/costs.

Additional DetailsI’m willing to invest in out-of-state properties, though I prefer areas with good property management options.My primary focus is passive income, but I’m also interested in value-add opportunities.I want to ensure these investments provide strong tax benefits and diversify my portfolio.I’d love to hear from experienced investors:What would you do in my position?

Maybe you don't notice it, but it's notable to others who have experienced life outside of CA and don't have CA as the singular center and whole of the universe in their mind. 

We're based in Tampa and, in addition to personally investing, I own a mortgage company that provides financing for tons of investors.

Personally I'm against these types of programs, especially 5-figure ones.

They actually have a licensed person in California.

Could it be considered piercing the corporate veil if the mortgage for the property is in your personal name but the deed is in the name of the LLC? 

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.