If all $R$-modules are flat, prove that $R$ is von Neumann regular. Conversely if $R$ is von Neumann regular, show at least that all submodules of free $R$-modules are flat. For the first part, choose $r \in R$ and apply the preceding exercise with $I=R r$ and $J=r R$. For the converse, use the fact that $R$ is semihereditary.