@Tim Fitzgerald, you are explaining a scenario that was first disclosed in 1974 by Jimmy Napier and later formalized in his book Invest in Debt.Later, it became a stable of note 'gurus'.The reason that it isn't discussed by people who actually buy notes is that it has a VERY low success rate.One would probably have to buy 100 notes to be able to get 1 debtor to accept this.When this strategy was discussed in the late 1970s and early 1980s interest rates where a LOT higher.As a result the cut interest rate in half double the payment offer was much more attractive to mortgagors, they saved significantly more in interest.

., but it's ok to use it to acquire bad debt or pay off other debts?  

Additionally,  I {personally} believe we should call it debt and not cash flow ;-)Having ready access to debt - or, credit if you prefer - is a good thing ... it can be an extra buffer to your reserves and contingency.  

I’ve read/listened to the ‘Pay Debt or Invest’ debate thousands of times and have decided to take the risk and do a few ventures to pay down the debt, and then continue investing for cash flow.I work in the Pharmaceutical industry full time and like what I do, but it limits my time.

You’ll likely want to do this anyways as your recent BK will make it difficult to get conventional lending.Clearly you took on a lot of debt before and that didn’t end well, so I would recommend pursuing a different strategy besides real estate that doesn’t require debt OR buy houses in cash.

I have no student loan debt or car debt.

Debt can ruin one (credit card consumer debt) or it can be used to create wealth .

depends do you want to give him debt or equity?

Capital Debt, or Company Equity to VCs?

If you do not need it now, you could use it to pay down debt or put away for the times when things do get bad.