You found the footage I've shown you sufficiently impressive that you believe it to be shot on a RED camera - so here's how this works: you provide the $10,000 budget at the start, and at the finish I will deliver the product that you want (which will look like it's shot on a RED; to you whether it actually was or not is beside the point) and you will not worry about, mention, or discuss with me what happens in-between because ten grand is easily enough for me to make you an outstanding video but nowhere near the value of my time to sit down with you and teach school along the way.
I had a client like that once, who absolutely unquestionably HAD to shoot on film, for some regional tv commercials for a careers college. I said "no problem, we can do that, but -- why are you so certain that it must be on film? Have you seen what the latest 24p video cameras can do? Makes no difference to me, but it'll make a difference to your budget if you think 24p video will work for you." He said "er... well... we've always done film before..." and I then said "okay, here -- watch this reel, I've got five film spots and two 24p video spots on there, let me know which ones you think they are." He watched the reel, couldn't tell the difference, and so I said "okay, with film the budget will be xxx, with 24p video the budget is yyy." He chose to go with the DVX for all the spots except one, the "premiere" spot for his most important school.
If the guy really, really wants it shot on a Red, I'd make sure that I had a Red owner lined up to rent it out. Whether you rent anything or not is not any of his business; your job is to deliver him a finished product that meets his quality specifications, within his budget.
If he's truly going to be micro-obsessive over everything, that's absolutely the client that you say "goodbye" to.
Pick choice four, "Yes, I'll do it on my XH-a1 with the "Red" setting on." You create a setting called "Red" and show him the setting and say, "See full HD and watch this." Show the client something that looks cool (nope, they won't know what they're looking at). Then say, "Yep, that's everything. So lets talk about the planning."
If a client insisted to me that it be shot on the Red, I'd shoot it on the Red. Meaning, I'd rent one.
If he insisted that there be no rentals at all, I'd say "if you want it on the Red, I'd have to rent it. If you want to avoid rentals, I can use my existing equipment and deliver results like THIS" (and then show off some spots).
Then let him choose. And if he chooses to walk, that's okay.
In the real world of pro gigs these issues never come up... pros rent gear all the time. Producers want a given product delivered in a given format... and call a crew to do the gig in order to make that happen.
What you're really being asked... in real terms... is if you can meet the specifications... under the allotted budget. If the answer is "yes" then say yes... and fill the order, cash the check, and pay your expenses to deliver what you said you could deliver for $10K.
Simple situation... no scruples required.
"yes I have a RED available and I can shoot your video... I need ____ up front and ____ upon delivery"...
If there are lighting or other needs involved... then that's your problem, and you'd better figure that out before hand... because the worst thing you can do is look at the $10K like it's a thing to get... only to make excuses as to why you can't do what you said you could do... later. I'd look at it as about $5-6K in real terms... and realize what the possible expenses (for YOU) will be... and there's no way in hell I'd be spending that money on my own... waiting for something down later to recoup your expenses... that's why I say "I need ____ up front..."... because if you're doing something for a significant budget... it doesn't mean anything until you actually see some green... even if it's going straight to a rental (that the other party need not know about)...