Does anyone know of a group or angel investors who would invest up to 5M to fund a luxury 6 room micro resort in central coast wine country in California? 

If you feel you are ready for this and have a desire to ignore advice that doesnt fit what you want to hear just go for it.

Why does this seem too good to be true? 

For more details on driving for dollars, check out this article from BiggerPockets:   https://www.biggerpockets.com/blog/driving-for-dollars

You would need to let them know you are 2nd lender and want to pay the loan off.

@Vijay Singh SambasivamI would suggest speaking to local banks, and credit unions.

Your agent should be able to provide all off this for you and more, this is just my .02.    

Continuous participation.This is great if you are talking about an SMB with effectively connected Real Estate.Note rental activity is considered passive unless you meet the RE Pro threshold of 750 hours and more than 1/2 your time.This is the conundrum for passive real estate investors.If you have a full-time job or a large, time-consuming business it can be difficult or impossible to qualify.A huge loss from depreciation if you have one LP investment isn’t going to do anything for you.

This is one of the main reasons that HUD deals fail to close.  

in the heart of the delta.. what do you want to sell it for ?