I loved not having to deal with lenders and all their requirements.

However, this means you’ll need to comply with the annual filing, franchise tax, and reporting requirements in both states.

CA maybe as high with their EIR requirements that cost 250k to 500k just for the EIR reports.

The key to this is finding a HML that doesn't require access to the property for an appraisal.

For example, a $200,000 property might require $2,000–$4,000 per year.

Or is he requiring a down payment?  

A&D has a 2nd position DSCR but not revolving - installment only.AO has a HELOC but self-employment documented for 2 years is required. 

For example, places like Illinois and Oklahoma have specific rules requiring a real estate license for certain types of marketing.This specifically for flipping land using Transactional Funding.If you’ve done this before, what states have you found to be friendly toward this approach?

In addition, the Grantor will probably be required to sign the same seller's affidavit that are needed for a non DIL closing. 

The underwriting process is certainly more arduous than most acquisitions but through my personal experiences some of the lenders are far more knowledgeable about the requirements and make for a far easier process for both seller and buyer.