I have not done any type of direct mail marketing yet but have spent to morning researching how do run such a campaign.  

Hind sight is always 20-20 but it never occurred to me that the lenders would just assume I would run the property as an adult foster home (I never indicted such).

Keep running your numbers and be ready to move quickly when you do find the property that works for you because chances are that if it really is a good deal then someone else will be ready to roll if you're not.  

The issue you're going to run into is that you cannot exchange into a property that you already own. 

I'm a Real Estate Broker, I do my own deals, and I have traditional RE clients, but I also have a couple other businesses I run. 

I currently run a packaging shop and have a small handyman business. 

I would love to share what I am learning and what I run across and would like to hear what other people find out as well.

Invests himself and runs a management company. 

the issue your client may run into is that most hard money lendes will not / do not take anything but first position loans, so if he is trying to use hard money for a bridge or down payment he may run into trouble. 

Let him be and run with it.