Hey!!
a few quick answers before some real expert's chime in;
1. Most (I'm assuming) of the people in the podcasts that you're listening to are probably investors, so they are offering prices waaay below the asking price. For example, if the house is 100k, but maybe needs some rehab, and investor takes that in to account (plus other 'expenses') and will offer, say $60k or even $50k. At that price, they have a good (10-20%) profit margin, there's not much at 100k or even 80k..
2. They put in huge amounts of offers because 1)they can afford to, 2) they know that most will not be accepted, or 3) they know that if they're accepted, they can wholesale them or they have the capital to actual follow thru (flip, buy & hold, whatever strategy).
3. Yes, I believe you lose the earnest money. No sure about the reputation aspect, although, if they (the realtors) know you're an investor, they'll be expecting low offers so I wouldn't think they would get upset about it..
