Sometimes it is hard to trace where a coolant leak is coming from... What I am confused about is when you say "flywheel" and "front of engine"...

If it is up front, then most likely leaking from your radiator or expansion tank (e36 are notorious for this). Take it to a mechanic if you can't find it. They can do a pressure test to find the leak... Probably a good idea to check out water pump and thermostat as well...

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