Question about Deal Structure and Title

[Allen Gregory]

Hey guys,

I have a broker who is representing a buyer in a transaction. He's supposed to send me an offer in the next few days. When I get the offer, I plan on opening title with it. I don't have a company or anything and it's my first deal so this will all be in my own name. When he submits the offer to me, where does the earnest money go? Does it come to me in the form of a check before I even open title? Or does it go into escrow at the title company? If they don't perform will the title company still send me the check?

I don't have a contract with the seller yet. I'm waiting to get this offer and then I'll send an offer to the seller that's a little less so I can make $5,000 or so.

Based on all this information, how is this transaction supposed to go? Please keep in mind that this is a portfolio of properties that the buyer wants to cherry-pick from. It might be 10 properties or it might be 65 properties. That's why I'm waiting to get the offer from the buyer before I make an offer to the seller. Because if the transaction ends up being $500,000 or more then $5,000 or $10,000 won't make a big difference to anyone.

Is my train of thought correct on this? Can somebody help me? Maybe even give me like 5 or 10 steps as to how this is supposed to go. For example, 1. Get contract from buyer. 2. Open title. 3. and so on and so on.

Thanks in advance guys. BP beats all the other forums out there. I got a really complicated question answered in less than an hour a few days ago. So I know for a fact that you guys are on the ball. Any feedback would be greatly appreciated.