I never use a coffee filter. Get some silkscreen or fine cheesecloth. Or better yet, buy an inexpensive set of bubble bags off E-Bay and make bubble hash--easy and no dangerous volatile alcohol.
When making tinctures you want to use the strongest (highest proof) that you can--I personally would NOT use brandy or schnapps. Most use everclear if they can get it. I cannot, so I use 151 rum. I do not soak in water overnight. I did that several times, but never really noticed any difference in the finished product as when I didn't. I am making a batch of "green dragon" this weekend to use in Jello shooters for an annual Halloween Pumpkin Carving party I have every year.