Even bad friends need identification, I suppose.
Be that as it may, you'll suffer the consequences. This ID requires you to talk to someone strange.
Try some of the more run-down parts of town. ?
There's a particularly wrecked street that's a good place to start.
Check out Nick's street, and be sure to search it thoroughly.
Exhaust dialogue with the homeless man on the far right side of Nick's street.
With the ID in hand, return to these hints.