How to buy a property with partners?

[Cheng Chu]

I have 2 good friends and we've always talked about buying a property together(STR in the smokeys). In terms of legal entity,

should we form an LLC first(3 member LLC) and then use the LLC to finance the deal which would make it a commercial loan. The

other option I was thinking is to buy the property in our individual names, then transfer the title to an LLC. The benefit of this

approach would be we be able to get a conventional loan(30 yr fixed) with more favorable terms.  I'm just wondering how other people 

are doing it.  Thx for the response.