LLC for joint-owned duplex?

[Jill M Ward]

We are about to close on our first real estate investment with another couple, where each couple will own 50% of the property. It makes sense to me to have a separate entity to own the property and then we share ownership in the LLC equally. The operating agreement will spell out the terms of how we operate the rental property, etc. Our realtor is questioning whether we need the LLC. I get that it doesn't make much difference if one person or couple owns the entire property, but it seems to make sense to form the entity in our situation. We discovered in this process that the two couples have to actually buy the property, but then we can turn the ownership over to the LLC. Makes sense, it is our credit worthiness the lenders care about. Thoughts?