Making an entity's texture a render target material?

[Sheeplie]

Hi, in this earlier thread:
[url]https://facepunch.com/showthread.php?t=1493722&p=49119124#post49119124[/url]

I mentioned that I was looking to create an armband-texture over the player's existing model's texture using lua.
Someone recommended I use render targets. After a bit of research, I'm assuming that I have to
1. create a new render target
2. set the render.SetRenderTarget to that
3. Draw on it
4. set the render.SetRenderTarget back to the old one (my screen)

Supposedly GetRenderTarget creates a new render target and returns an imaterial, I'm still not sure how I'd set that to an entity's material though.
Help would be appreciated, thanks.

[Sheeplie]

Bump.