That is correct the PFSense box is the gateway for the LAN
Config was PFSense Box
NIC1 WAN1 – VPN to Public Network
NIC2 WAN2 -- Load Balance to WAN1
NIC3 LAN -- Internal Network
Yes I was able to see the packets on the LAN side but they always tried to go out the WAN1 interface not the IPSec tunnel - I have added a 2nd PFSense Box now and it's working as expected
New Config
Original Box
NIC1 = WAN1 (/28 Network Public)
NIC2 = WAN2 (/28 Network Public)
NIC3 = VPN Link (/30 Network Public)
NIC4 = LAN (/24 Network Internal)
2nd Box
NIC1 = WAN1 / VPN Public (/28 Network Public)
NIC2 = VPN Link to 1st Server (/30 Network Public)
Now when I send traffic to that subnet I added a rule to send all traffic out VPNGW on the 1st router and it's passing it to the VPN box (2nd router) then passing along to the VPN Subnet as expected