To get past the "Lake of Rage Dilemma", you have to surf out to the Red Gyarados and either capture it or defeat it. Then surf back to shore and Lance, the champion, will tell you what to do from there.
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The lake valor is part of a game named "Pokemon". The secret place is actually located in the middle part of the lake which has an entrance that leads through the legendary Pokemon.
to get trough union cave enter the cave look very closely at the end of the lake and the beginning of the boulder there is an opening that you can walk through warning warning there is people you will have to battle 2 or 3 other people
you can get heart scales underground, but it takes a while to find one. you have to keep digging until you do. (you need an explorer kit.) OR use your item finder poketch app and look through the sand below the valor lake front buildings.
You meet him at the lake of rage after fighting or catchig the red gyrados.
There is not a red Gyarados in Lake Verity. The in-game report of a sighting is simply a story mechanic to get the player there. This little story element is a reference to the Red Gyarados in the Lake of Rage on Pokemon Gold and Silver.